Know Before You Owe

knowbeforeyouowe

The holidays are over, the sun is finally peaking out, and the buyers are making their grand debut from dormancy.

But as a buyer, knowledge is power. And The Consumer Financial Protection Bureau knows that. They have worked diligently to make the loan process more transparent. The new forms discussed below (the Loan Estimate and Closing Disclosure) were introduced to present less confusing information as to ensure consumers understand the terms of their loan and the fees they’re paying. Know before you owe!

To walk the walk, you have to talk the talk. Here is the new lingo and the new forms.

Let’s talk Terminology:

A lender is now a “Creditor”

The Good Faith Estimate (GFE) is now the “Loan Estimate” or LE for short.

HUD or Settlement Statement is now your “Closing Disclosure” or CD for short.

The GFE was meant to provide the buyer with a really good idea of what they’d be bringing to closing and the terms of their loan. But the rules behind its successor, the LE, are stricter, and provide a higher financial accuracy to the buyer. It includes interest rate, fees for both creditor and third-party services (ie: appraisals, title insurance, closing costs, etc.)

Before you do anything, shop around for a lender and get prequalified for a loan. There’s little advantage to visiting with a Real Estate Agent until you know what you can afford.

First you get prequalified, then you work with a Realtor who finds you the perfect home, and then comes your Loan Estimate.

SIX ELEMENTS TO GET THE LOAN ESTIMATE

  1. The consumer’s name
  2. The consumer’s income
  3. The consumer’s SSN to obtain a credit report (creditor shopping will NOT affect credit rating)
  4. Property address
  5. An estimate of the value of the property
  6. The mortgage loan amount sought

CLARIFY!

The prequal is NOT a Loan Estimate. If the consumer/buyer requests a preapproval or prequalification, and provides 5 of these 6 elements in their application, the creditor will provide the prequalification, but is not yet obligated to provide the LE.

Only when the consumer provides all six elements of the application, the creditor must get the LE to the consumer within 3 Federal Business days (if the creditor is open on Saturday, then Saturday counts). Once provided, the LE holds true for 10 days once a property has been determined.

The home does not actually have to be under contract at this point, but it greatly benefits the buyer if it is. Without knowing which title company the contract will be at, your creditor can’t know the exact fees. With the new LE, the liability and financial accuracy weighs much heavier on the creditor than it did in the past. So what if there are differences presented on your final CD than those on your LE?  There are zero tolerance fees, and fees that fall between a 10% tolerance. So if there is a difference between your CD and your LE, depending on which category the miscalculation falls under, the creditor may have to pay.

Moral is, sellers want strong buyers. Preapproval from a creditor shows just that, which is why it’s critical to get that first. Present that to your Realtor, house hunt, get under contract, and request the LE. Leave the rest to your happy and knowledgeable Realtor.

We’ll leave the changes to the consummation (the new term for closing) for a later discussion…

QUICK FACTS FROM 2015 COMPARED TO 2014

Demand was healthy in 2015, and the supply was enough to give the buyers options.

  • 1% increase in new listings since 2014
  • 7% increase in median sales price in 78418
  • -4.2% decrease in days on market
  • 15% new construction market share in 78418
  • 8% list to sale price ratio in 78418

8 Benefits of Buying a House at Year’s End

endofyearrealtorSummer may be real estate’s busy season, but winter offers great opportunities for buying a house, especially for renters looking to become homeowners, growing families trading up to larger houses and baby boomers seeking homes to fit their evolving lifestyles.

Generally speaking, your housing choices during the late fall are still healthy. October and November are great months to go house hunting. December is usually sparse, market-wise, but if that fits your timeline, you could luck out.

The benefits to buying a house at the end of the year include the following:

1. Tax savings

If you close by December 31, you can deduct mortgage interest, property taxes, points on your loan and interest costs. These deductions are significant, especially in the early years of your loan when you’re paying off a lot of interest.

2. Motivated sellers

Many sellers want to enjoy tax savings on the next home they purchase. They may accept lower bids in order to meet Uncle Sam’s deadlines. However, if you’re in a strong seller’s market, you’ll want to be conservative and heed advice from your real estate professional.

3. Builder incentives

If you’re buying a house that is brand new, there’s a good chance builders may push to close the books on their year—and meet quotas. They may offer upgrades or little extras to sell houses before the calendar turns.

4. Available movers

Many moving companies are booked six weeks or more in advance during the busy summer months. In the fall and winter, it’s normally easier to secure the services of a moving company or rental equipment on shorter notice.

5. Paying toward something you own

If you’re renting, your monthly check goes toward something that will last you a month: You’ll never see any return on that money. When you buy a house, your monthly mortgage payment goes toward an investment—and ultimately a roof that’s yours.

6. Consistent payments

Landlords can increase your rent. Once you secure a mortgage, you can rely on consistent payments if you have a fixed-rate loan.

7. Freedom to renovate

Modernize your kitchen, paint your home’s exterior neon orange, change your fixtures orreplace your carpeting; whatever inspires you, no one can tell you, “No!”

8. Gaining equity

In the beginning, most of your payment goes toward interest. But gradually more will go toward paying off your principal, meaning you build up equity—or savings—in your home. Another factor in equity is appreciation: As home values rise, so does your rate of equity.

via Realtor.com

Corpus Christi Real Estate Market Rebounds Since 2007 Slump!

CORPUS CHRISTI REAL ESTATE PRICES

Gains in existing home sales and median prices during the past three months have lifted the Coastal Bend’s housing market to its highest levels since the local housing slump began in 2007.
Sales closed between April and June numbered 1,172 units, or about a 19 percent increase compared to the same time in 2011, according to figures from the Corpus Christi Association of Realtors.

The median sales price also has risen by more than 8 percent compared with 2011 to $145,367, figures show.

Housing inventory — measured as the amount of time it would take to sell all available existing homes — has dropped almost by half to 5.6 months in June compared with 10 months in June 2011.

There was a monthly average of about 2,200 homes for resale on the area’s housing market during the period, figures show.

The increased buying activity spans all price ranges, said Char Atnip, a residential Realtor and chairman of the realtors association board.

SEARCH THE MULTIPLE LISTING SERVICE IN REAL TIME >>>CLICK HERE

“There’s a lot more people who are looking simply because interest rates are so low and prices have not skyrocketed, and it’s a great time to buy a home,” Atnip said.

New home construction activity has also increased compared to 2011.

In Corpus Christi, data from the city’s Development Services department shows there have been 449 permits issued this year for new residential construction through June, up 61 percent from the first six months of 2011.

The permits have an associated project cost of more than $82 million, figures show.

All but one of those permits is for single-family homes, with one being issued for an eight-unit building.

In all of 2011, the city logged 660 new construction permits for projects totaling more than $118 million

The local figures are similar to momentum building in many areas of the country, with builders beginning to respond to growing buyer interest.

U.S. builders broke ground on the most homes in nearly four years in June, The Associated Press reported this week.

MARKET OUTLOOK

The housing inventory of less than six months is approaching the five-month mark, which is what the area experienced during the housing boom between 2004 and 2006, said Jim Lee, economics professor at Texas A&M University-Corpus Christi.

A normal inventory for the Corpus Christi market is about seven months.

Low inventories typically trigger increased prices as supply dips and demand increases.

Home building can also increase, which is good for local economies, because it generates activity that isn’t exported to other areas, Lee said.

During the area’s most recent housing boom period, construction outpaced the area’s growth rate, which contributed to the slump, Lee said.

Source: Corpus Christi Association of Realtors via Caller Times. Read the original at housing market or housing or home sales, – Google News.

OFFICIAL COUNT OF NEW PROPERTIES UNDER CONSTRUCTION

New Home UPDATE as of 7/19/2012:  As of this week there are a good number of new homes under construction going up here on North Padre Island!  New Developments relating to Schlitterbahn and the Proposed New Park Rd 22 Bridge are creating such an exciting atmosphere to be in. It’s been nearly 5 years since we have seen new construction like this!!

New Construction count is as following:

WATERFRONT HOMES – 8

WATERACCESS HOMES – 55

MULTI-FAMILY PROPERTIES – 2

Dry lots are selling selling on the Island. 18 have closed since June 1, 2012: Selling between $18,500 – $28,900

Padre Island’s real estate market is recovering and now bringing a new wave of buyers.

Now’s the time. Don’t Wait to Buy, Buy and Wait!!

Let Coastline Properties show you the BEST the Island has to offer – put our expertise and experience to work for you!!

Check us out!   Cheri Sperling, Coastline Properties

Padre Island Real Estate Facts – Did You Know??

corpus christi real estate facts 2012We have had many people ask for this information over the past 90 days, so we thought it would be very helpful for all to see how Padre Island is growing by leaps and bounds.  The Island is getting set for another major expansion, are you ready to take advantage of all of the great investment opportunities out there?
 
 
 

Padre Island Facts as of 6/28/2012:

197 vacant single family waterfront lots remaining – – 1,805 have homes on them

1065 vacant single family water access/dry lots remaining – – 1,399 have homes on them

99 vacant multifamily waterfront lots remaining – – 145 have been built on

151 vacant multifamily water access/dry lots remaining – – 75 have been built on

18 vacant duplex waterfront lots remaining – – 78 have been built on

39 vacant duplex water access/dry lots remaining – 65 have been built on

Give Us a Call Today, so we can talk with you about the incredible Real Estate Opportunities Available on Padre Island, TX.