The housing market is on the rebound. Economists are saying that the housing market is clearly superior this year to the past four years and the National Association of Realtors expects the national median of existing home prices to rise 5.7% in 2013. The lack of inventory on the market has many prospective buyers finding themselves in frustrating bidding wars. Some tips to help you know if you truly are getting a good deal – for starters do your homework on the neighborhood. Find out how many homes are on the market in the neighborhood, what kind of condition they are in, and how long they’ve been on the market. Also look to see what homes in the area have sold for in the past 90 days and then compare the cost and condition of the one you want to buy. Remember how the neighbor treats their house can impact the value of yours, so make sure the view across the street and next door isn’t looking onto a rundown property. And if you find yourself in a bidding war, 2 key factors that can help you come out the winner include putting down a larger earnest money deposit to show you are really serious and committed to the home and find a lender that can get the loan closed fast. Your realtor will often times be able to suggest a lender that they work with and while you are free to use whoever you want, remember your agent does this on a regular basis and will know what their own lender is capable of.
Need a little extra cash month to month? The answer may be as close as your own home. With rates at historic lows and new programs for home owners coming out on a regular basis you may be able to refinance your home and save hundreds. FHA home owners who purchased prior to June 2009 may be eligible for a streamline refinance without an appraisal. The process is quick and simple and involves very little paperwork. The good news for those with rental properties is that there are programs now to refinance them as well. Your home is the biggest asset you will ever own, see if you can put it to work for you.
About a week ago I found myself in every landlord’s most frustrating position. Tenants had rolled out and now on a hot 100 degree afternoon I was standing in the middle of my rental property wondering where to begin. They had left behind furniture, there was trash all over the floor of every room, they had half painted 3 of the bedrooms in funky shades of purple and green, and they had let a window air conditioner drip down the wall in the kitchen where now the drywall was all crumbling due to water damage. The counters and floors in the kitchen and bathroom were covered in filth. While I was pondering over how people could be such pigs there was a knock at the door. The man on the other side walked into my house and said “I want to rent your house, let’s make a deal.” I looked at him and looked around the room and said “You’re crazy! I think the heat has gotten to you.” He looked me in the eye and said, “What you see is a mess, what I see is the potential of a beautiful home.” Two weeks later, he was right. With the trash cleaned out, walls patched and freshly painted, counters and floors scrubbed, and hardwood floors refinished what remains is a beautiful home.
When looking for your new home, always look for the potential. If you find one where you love the neighborhood, love the floor plan and the way it lives, but it needs some work, consider an FHA 203K Renovation loan. There are two different types of 203K loans, the streamline which is for the home that just needs some simple updates like new carpets and paint and covers up to $35,000 in repair costs, or the full for when you need to make structural changes like knocking out walls. Everyone talks about the great deals in today’s market with low prices and low rates. One of the best ways to get a deal on a good house is to recognize its potential and know that with a little work and a 203K loan you could turn it into a beautiful home.
The month of June is Homeownership Month in Maryland and to add incentive for prospective homeowners the Maryland Mortgage Program has
lowered the interest rate on 30-year fixed rate loans to 2.875% (APR 3.675%) in targeted areas and 3.25% (APR 4.082%) in non-targeted areas. $30 million dollars has been earmarked by the Mayor towards this incentive and these low rates will last for the next 3 months or until the entire 30 million is gone.
Targeted areas consist of the following counties:
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Baltimore City
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Caroline
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Dorchester
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Garrett
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Kent
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Somerset
And portions of the following:
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Anne Arundel
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Baltimore County
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Frederick
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Harford
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Prince George’s
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Washington
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Wicomico
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Worcester
There are additional incentives for those looking to buy foreclosures and short sales with the same reduced rates being offered via the
Save-A-Home Loan Program through the end of June. The hope is that the low rates plus the down payment assistance offered by the Maryland Mortgage Program will bring 10,000 new home owners to Baltimore City by the end of the summer.
