Buying a home can be an exciting and somewhat stressful experience. When shopping for your new home, keep in mind that one of the most important aspects of home ownership is often neglected, finding the right mortgage.

Your mortgage is the backbone of the entire purchase, but without doing proper research, you might not be getting the best deal you can. Before you begin the home search process, consider the following ways to increase your chances of a speedy, stress-free home buying experience.

1. Get Pre-qualified Before You Start Home Hunting

Getting pre-qualified means you will better understand how much home you can afford and which mortgage program(s) best fits your needs. By giving yourself options, you’ll be able to find a lender you’re comfortable working with and a mortgage you’ll be able to afford. Once you’ve done this, you can begin your home search without worry. You will also save yourself time as shopping for homes that you can’t afford only takes up time you could be spending finding the right home you can afford.

2. Know Your Personal Finances

Knowing your financial situation prior to speaking with a lender can help speed up the process when you do seek financing to buy a home. Budgeting for your current expenses and using a mortgage calculator can help predict what you’d pay with a mortgage. From there you can make a choice about how much you feel comfortable borrowing. A secure, steady working situation will also help make you more appealing to lenders since you’ll be able to prove stable income.

With a little bit of preparation before you speak with a lender, your lender can help you make an informed decision about how much house can afford to purchase and which loan program is the best fit for your needs.

 3. Understand All the Costs Involved With A New Mortgage

When you pick a financial institution to work with, you will submitting your information, checking your credit, and being given a mortgage quote.  While your monthly payment is a vital part of your mortgage, you’ll also be responsible for paying interest, insurance and lender fees, which your lender will help you understand. Many borrowers forget about these extra fees and instead of consulting with a mortgage professional, use a mortgage calculator as their guide in how much they will have to pay for a given loan size without taking these extras fees into consideration.

Housing has been a bright spot in economic news as of late and there is more positive news coming from the housing sector. The National Association of Realtors (NAR) is reporting that existing home sales (previously occupied homes as opposed to newly constructed homes) rose in November by 4% to a seasonally adjusted annual rate of 4.42 million.

While economists say a healthy housing market should be seeing around 6 million sales a year, the data is an improvement over the sales of the past few years, putting 2011 home sales on track to be 2010 sales.

U.S. Census Bureau: New Home Construction Increases

The  U.S. Census Bureau is reporting November housing starts (beginning of construction of a new home) are also showing improvement with a 2.3% increase to 447,000 starts, a 2.3% increase over the revised October figure of 437,000. This means that there have been 3 consecutive months of improvement in housing starts.

After months of negative data being released, this data is one more signal that housing may very likely be ready for a turn around in 2012.

Home Builders Confidence Increases

The National Association of Home Builders (NAHB) is reporting that builder confidence in the market for newly built, single-family homes has increased by two points from  on the National Association of Home Builders/Wells Fargo Housing Market Index (HMI) for December.  today. This increase marks the third consecutive month of builder confidence improvement.

 NAHB Chief Economist David Crowe:

“This is the first time that builder confidence has improved for three consecutive months since mid-2009, which signifies a legitimate though slowly emerging upward trend,” said NAHB Chief Economist David Crowe. “While large inventories of foreclosed properties continue to plague the most distressed markets and consumer worries about job security and the challenges of selling an existing home remain significant factors, builders are reporting more inquiries and more interest among potential buyers than they have seen in previous months.”

Pre-Qualification: The First Step in Shopping For a New Home

The first step in shopping for a new home is getting pre-qualified so that you know how much home you can afford. We can help you get pre-qualified and help answer any questions you might have about what type of loan will best fit your needs and whether or not a rate lock makes sense for your situation. If you have questions, we can help with a no cost consultation where we put together a mortgage strategy that makes the most sense for your unique needs.

After hitting all time historical lows last week, mortgage rates have opened up this week flat, with little to no change from last week. We start the week with news of the death of Kim Jong il, which may play a role in the market in the future, but seems to have little affect on mortgage rates today.

There are several economic reports being released this week with the ability to change mortgages rates, with the GDP and Jobless Claims data being released later in the week.

Trading Volume, Volatility and Your Mortgage Rate in the Week Ahead

The markets will likely be quiet as we move into the final weeks of the Holiday Season, but low trading volume in the Equity and Bond markets can lead to volatility. Since we are at all time historical lows, waiting through the next few weeks may be risky. If you need help deciding if a rate lock is the best move for your needs, we can help.

Economic Calendar for Week of December 19, 2011

• Monday - Housing Market Index
• Tuesday - Housing Starts
• Wednesday - Existing Home Sales
• Thursday - GDP, Jobless Claims, Consumer Sentiment
• Friday - Durable Goods Orders, Personal Income and Outlays, New Home Sales

This week mortgage rates have yet again, made all time historical lows. Factors in this historic mortgage rate movement include the realization that the European debt crisis is going to take a long time to fix and slower than expected improvement in the US economy.

The Federal Open Market Committee (FOMC) Meets

The Federal Open Market Committee (FOMC) met this week and as expected, they left key short term interest rates alone. The Fed Funds Rate (the rate at which banks lend money to each other) is still at 0.000% to 0.250%. The committee has said it believes the economy is growing moderately and that employment will continue to improve, albeit at a slower than desirable pace.

The FOMC also indicated that there are some areas of concern that might affect the US Economy moving forward such as slowing in global growth and concerns in business investment.

Mortgage Rates Moving Forward

Will rates be higher or lower next week? The truth is that nobody knows. We do know that since we are at all time historic lows, there is limited upside in waiting for rates to improve. On the other hand, there is substantial risk that rates will move higher if you wait.

Should you lock now? What is the best program for your needs? We can answer these questions and more with a free consultation where we can put together a strategy to that best fits your unique needs.

Houses, like people, can be all shapes and sizes. What you choose to buy might not be what someone else chooses, but the thing nearly all home buyers look for is a well-made house. Home inspectors, builders, and previous owners can all help by informing you of the condition of a potential purchase, but knowing what to look for with your own eyes is important since you are the ultimate decision maker.

Not every house is perfect and you can sometimes use this to your advantage. Cosmetic issues like paint and finishes are often some of the most glaring, but are also typically the easiest to fix. A house that has serious issues, however, is not. Insure that you evaluate the following:

Look Structural and Foundation Issues

When you’re touring a home, look for significant cracks in the walls or the ceiling or possible areas where such cracks may have been repaired. These can be signs of settling, structural, or foundation issues, and may be costly to repair if they’re deemed serious. Also be vigilant to the presence of bugs, especially termites, because they can cause significant structural damage.

Look For Water Damage

Be sure to look for signs of water damage that might imply a leak in the roof, windows, or plumbing. If there are cracks in the foundation of the home, water can come in that way as well, causing wood to rot, mold to grow, and general damage to flooring or drywall. Depending on the extent of the damage, these repairs can be cosmetic or costly. Mold can also have serious health implications, which means it is important to check for, especially if you have children.

Other Issues To Watch Out For

While the basic structure of the house is the most important thing, home buyers should also take note that a builder or previous owner’s cost-cutting measure can result in more money spent in the end. Some of these things are a matter of comfort, and some can be a distinct issue, including:

• The quantity and quality of insulation used.
• Proper installation of rain gutters, shutters, and accent details.
• Any drafts coming from windows and doors.
• How water drains outside.

Just remember, your new home doesn’t have to be perfect, you may save money if there is work that needs to be done, just be sure that you know about existing issues before purchasing. Always do your due diligence!

Mortgage rates continue a push downward early this week, challenging the all time historic lows set a few months ago. This week mortgage rate movement will be based on a few key pieces of data being released, any worthy news coming out of the FOMC meeting that begins tomorrow and any new news coming out of Europe.

Putting Mortgage Rates Into Perspective

Since it is quite easy to hear how low mortgage rates are but not understand how low they are in a historical context, we have been hard at work creating some charts that we will be releasing in the coming weeks documenting the history of mortgage rates. Sometimes it take a chart to truly understand how low and historic the mortgage market we are in is.

Economic Calendar for Week of December 12, 2011

• Monday - Treasury Budget
• Tuesday - Retail Sales, Business Inventories, FOMC Meeting Announcement
• Wednesday - Import and Export Prices
• Thursday - Jobless Claims, Producer Price Index, Industrial Production, Philadelphia Fed Survey

Mortgage Rates and the Best Program For Your Needs

We commonly speak with homeowners that are confused about which program is best for them or what size loan they qualify for. We also find that many are confused about rate locks and when and if they should lock in their mortgage rate.

If you need a free professional consultation to put together a mortgage strategy that fits your needs the best, we can help. Now is a critical time to learn about your options if you are on the fence or unsure about what move, if any, you should make in regards to refinancing your existing or locking in a rate for a new mortgage. Mortgage rates are at historical all time lows, don’t miss the opportunity to take advantage of this unique market!

The process of buying a home is one that you need to engage in with your head as well as your heart. You can’t make impulsive decisions when buying a home or you may find that you make a poor investment that will cost you time, money and frustration down the road.

Insure that you are a smart first-time home buyer by avoiding some common mistakes:

Mistakes to Avoid as a First-Time Home Buyer

• You Can’t Get Over the Decor – Don’t allow the paint colors or the furniture in a home to sway you either way. The current home owners will take their furniture with them, and paint can be easily changed. Try to picture yourself in the home to determine if it’s the right fit.
• Skip an inspection – It doesn’t matter how the home looks on the surface; you need a home inspection when purchasing ANY home. You don’t want to be surprised by issues down the road that may have been deal breakers.
• Rely on Verbal Promises – The only agreements in a real estate transaction are those put in writing. Just because there is an unwritten agreement that you ‘may’ be able to occupy the home before your official closing date, does not mean anyone is obligated to abide by that. Put the important details in your offer and subsequent contracts and you will have better guarantees.
• Get Approved For a Mortgage After You Make an Offer – It is important that you get pre-approved for a mortgage before you actually start shopping for a home. We can help you get pre-approved in minutes.
• You See the Home Only One Time – Make sure you schedule a walk-through of the home before you take possession. You never know what condition it will be in when time has elapsed between the initial viewing and the closing date.
• You Jump on the First House You Like – Seeing a number of houses will help you get your priorities in order. Visiting multiple homes even when you find one you like will help you to think with your head as well as your heart.

This week starts off with a couple pieces of economic data relating to factory orders and manufacturing that are going to be released this morning. The rest of the week is rather light on economic data with Jobless Claims data being released on Thursday and International Trade / Consumer Sentiment data being released on Friday.

Europe Moving Forward and Mortgage Rates

The market will continue watching Europe and new meetings between European leaders this week.  European leaders are refining their efforts to complete a deal to address the European debt crisis.

Good news coming out of Europe will result in a possible negative affect on mortgage rates (as is the case this morning, with more positive talks occurring in Europe over the weekend) and negative news out of Europe will help keep rates at current levels or push them lower.

Economic Calendar for Week of December 5, 2011

• Monday - Factory Orders, ISM Non-MFG Index
• Tuesday - n/a
• Wednesday - EIA Petroleum Status Report
• Thursday - Jobless Claims
• Friday - International Trade, Consumer Sentiment

Where Are Mortgage Rates Now?

Mortgage rates change on a daily basis and can even change multiple times per day. This means that to get the most up to date mortgage rates, all you need to do is call us for a free no-obligation mortgage quote. More importantly, we can help you understand which loan program fits your needs the best.

We can also help answer questions relating to your credit, credit score(s) and help pre-qualify you for a new home purchase.

There are a number of pitfalls that sellers fall into when they are putting their homes on the market. Going into the process with the wrong attitude can mean that your house sits on the market for many weeks unsold or that you are unable to get a good price for your home. You don’t want to find yourself in either of these situations as a seller. Understanding some common mistakes that home sellers make can help you go into the process with your eyes wide open and ready to make an effective sale.

Mistakes to Avoid When Selling Your Home

1. Hiring a realtor for something other than their skills – Don’t choose a real estate agent simply because you feel obligated to them since they are a friend or family member. You can choose a real estate if they come highly recommended by someone whose opinion you value. The goal is to choose your agent based on their skills not as a result of a favor.
2. Being closed-minded about your asking price - It is okay to want to walk away with a specific profit, but when you truly need to sell, you need to keep an open mind. The market determines the price your house will sell for. If you aren’t willing to be flexible, you need to take it off the market until it will sell for the price you have in mind. If you have unrealistic expectations, that time may never come, however.
3. Misrepresenting your home –  Don’t push your realtor to misrepresent any aspects of your home. If your listing is not honest, potential buyers will show up and be resentful in being misled. The same is true of material facts regarding your home such as items that are broken or that may need work. Misrepresenting such items is not only illegal but can result in costly litigation should you be taken to task after selling a home without disclosing material information pertinent to the sale.

A good agent can help you avoid some of the common selling mistakes, but first you have to find the right one and then you need to take note of their advice.

2012 conforming loan limits have been announced by the Federal Housing Finance Agency (FHFA) for mortgages owned by Fannie Mae and Freddie Mac.

Conforming loan limits are the maximum loan sizes that Fannie Mae or Freddie Mac will purchase and or guarantee. Mortgages that exceed the conforming loan limit are called jumbo loans / mortgages and usually have a higher rate associated with them compared to conforming loans.

If you live in a high cost area, you can view high cost loan limits here.

2012 Conforming Loan Limits:

• 1-unit properties : $417,000
• 2-unit properties : $533,850
• 3-unit properties : $645,300
• 4-unit properties : $801,950

How Does This Affect Me and My Mortgage?

Not sure if you live in a high cost area or if your conforming loan might be affected by these changes should you refinance? We can not only help you understand what the 2012 conforming loan limits mean to you but can also help you answer any other questions you might have about your current or future mortgage. More importantly, mortgage rates are close to all time record lows, so we can also help you decide if locking in a rate is the best move for your needs.

Last week mortgage rates worsened slightly on light trading due to the shortened Holiday schedule. This week mortgage rates may be largely influenced by the events in Europe as they have been in the weeks and months of late.

We will likely see mortgage rates increase on good news affecting events in Europe and mortgage rates decrease if any issues or new concerns are raised regarding a resolution of the debt insolvency fears affecting Eurozone countries such as Greece and Italy.

Economic Calendar for Week of November 28, 2011

• Monday - New Home Sales
• Tuesday - S&P Case-Shiller, Consumer Confidence
• Wednesday - ADP Employment Report, Productivity and Costs
• Thursday - ISM Manufacturing Index, Jobless Claims, Construction Spending
• Friday - Employment Situation

Where Are Mortgage Rates Now?

Mortgage rates are currently near all time historic lows. Rates will not stay at their current levels forever and any number of market events could send mortgage rates on a fast march upwards. Please contact us for your FREE consultation to find out which mortgage program makes the most sense for your needs and whether or not locking in your rate now makes the most sense for your current financial needs.

Mortgage rates opened the week lower as European concerns continue with Spain and Italy becoming new areas of focus. The market is also concerned over the progress of the Congressional Super Committee or lack thereof.

Since this is a shortened week for the Thanksgiving Holiday, it’s hard to know what is in store for mortgage rates moving forward and volatility is a definite possibility.

Positive Housing Data From NAR Released

The National Association of Realtors announced late that sales of previously-owned homes rose 1.4% in October. This figure exceeds forecasts of a 1.0% decline in sales, which indicates that the housing sector was stronger than expected last month.

The Week Moving Forward

The rest of the shortened Holiday week will bring a handful of important economic reports as well as the last FOMC meeting’s minutes. Tuesday, the first revisions to the 3rd Quarter GDP (Gross Domestic Product) are released. Tuesday will also see the minutes from the last FOMC (Federal Open Market Committee) will be released as well, giving some insight into the FOMC’s thoughts about the market and data they’ve analyzed. More data will be released on Wednesday for Jobless Claims, Consumer Sentiment, Durable Goods Orders and Personal Income and Outlays.

Economic Calendar for Week of November 21, 2011

• Monday - Existing Home Sales
• Tuesday - GDP, FOMC Minutes
• Wednesday - Durable Goods Orders, Jobless Claims, Personal Income & Outlays, Consumer Sentiment
• Thursday - Thanksgiving Holiday

Holiday Mortgage Rate Lock?

Rates are near all time record lows, but should you refinance or are you better off staying in your existing loan? How much can you qualify for if you decide to purchase a new home? We can answer these questions and more by giving you a free consultation where we can analyze your existing scenario and help you understand what changes, if any, need to be made regarding your mortgage. We can also help you understand what loan options are available and what programs are the best fit for your needs.

Congress and President Obama approved a measure today to raise the high cost loan limit for FHA loans from $625,5000 to its previous ceiling of $729,750. This means that homeowners in high cost areas can once again be eligible for larger size loans and enabling them to purchase homes while not having to bring in as much of a down payment. .

Higher Loan Limits History

As part of the economic stimulus package in 2008, temporary higher loan limits were enacted to help homeowners in high-cost areas that were unable to get loans FHA loans and conforming loans they needed and were unable to get regardless of their payment history, credit and income. Homeowners in areas such San Francisco, New York and Los Angeles routinely faced higher priced homes, which meant they were required to bring in substantially larger down payments when purchasing their home. These higher loan limits expired on October 1, 2011.

Do You Qualify for a Higher Limit Loan?

Since rates are near all time record lows, it’s important that you take advantage of the new increased loan limits if you are in a high cost area. Not sure if you are in a high cost area or if you qualify? We can help free of charge and help you understand what options might be best for your current situation.