Home Mortgage Advice You Need To Hear

Article Source: http://bestmortgagebrokers.net/

Buying a home is a great time in anyone's life, but getting to that point for most people requires a home mortgage. This is where things can get complicated and delay the process of you actually purchasing your dream home. Don't wait until it is too late, get started now by reading the following article that shows what is needed to get approved for a home mortgage.

Regardless of how much of a loan you're pre-approved for, know how much you can afford to spend on a home. Write out your budget. Include all your known expenses and leave a little extra for unforeseeable expenses that may pop up. Do not buy a more expensive home than you can afford.

Do not waste time in your home mortgage process. After you've submitted a mortgage application to the lender, this is when your clock start ticking. You have to send any necessary documents for the application process quickly. Any delays could destroy a purchase and cost you your deposit. Get an expected closing date, and then keep in touch with the lender periodically until your loan closes. Some lenders close quicker than others.

If your mortgage has been approved, avoid any moves that may change your credit rating. Your lender may run a second credit check before the closing and any suspicious activity may affect your interest rate. Don't close credit card accounts or take out any additional loans. Pay every bill on time.

So many people rush into the home buying process without preparing the financial situation properly in order to get approved for a home mortgage. This can unfortunately delay the process if you get denied. Then you are left wondering what you need to do to get approved. Thankfully the tips presented here should get you prepared on what is needed to get that dream home of yours.

New Home Sales Plummet by 8.1 Percent

News Source: http://bestmortgagebrokers.net/

Sales of newly built, single-family homes dropped 8.1 percent in June, the largest decline since July 2013, the Commerce Department reported Thursday. New-home sales were at a seasonally adjusted annual rate of 406,000 units in June. May’s sales pace was also revised from a previously reported 504,000 units to 442,000 units.

“The numbers are a little disappointing, but May was unusually high and some pull back isn’t completely unexpected,” says Kevin Kelly, chairman of the National Association of Home Builders. “Our surveys show that builders are confident about the future and we are still seeing a gradual upward trajectory in housing demand.” Across the country, new-home sales were down, falling by the largest amount – 20 percent – in the Northeast. New-home sales were also down by 9.5 percent in the South; by 8.2 percent in the Midwest; and by 1.9 percent in the West. Inventories of new homes for-sale rose 3.1 percent in June to the highest number since October 2010, reaching a 5.8-month supply at the current pace.

Builders are still optimistic that the new-home sector will see improvement later this year. “With continued job creation and economic growth, we are cautiously optimistic about the home building industry in the second half of 2014,” says David Crowe, NAHB chief economist. “The increase in existing home sales also bodes well for builders, as it is a signal that trade-up buyers can move up to new construction.”

Investing in Stocks Vs. Real Estate

News Source: http://www.canadianmortgageupdates.ca/

Many people ponder whether it’s better to invest in stocks or mutual funds versus investing in real estate. As it is with so many things in life, it depends on the individual investment. Had you invested in Southern California beachfront property in the 1970s, you’d probably be set for life today. Had you bought Microsoft’s initial public offering you’d be set for life also. However, few investments work out as well as either of those.

There are several things to consider when deciding which you want to invest in. Buying stocks or mutual funds typically involves less long term work. You do need to study the market (or blindly take the advice of a stockbroker). However, once a decision is made, you’re a part owner of the company with no responsibility for the day to day operations. On the other hand, when you invest in real estate, you become a landlord and unless your cash flow is high enough to hire a property management company, you’re fully responsible for day to day operations.

But let’s look at leverage. When investing in stocks, there are a few options allowing you to leverage your investment. One is a margin account where you borrow short term from your stockbroker. Others include buying short or buying puts. Although, if you know what you are doing and with a little luck, you can make a decent profit with this leverage, this is short term leverage that has to be paid off in a few months or less with cold hard cash. Real estate investing typically involves long term leverage. It can be a traditional mortgage, seller financing, a private loan, or another form of financing. What makes this appealing is that tenants cover the cost of repaying the loan and the investor earns the equity. In the end, the investor owns a valuable asset that was paid for by someone else.

More appetite for condo units, poll indicates

News Source: http://bestmortgagebrokers.net/

Condo investors worried about the future pool of buyers may take heart from a new poll suggesting that Ontarians are willing to take the plunge…and soon.

While most home-buyers would prefer to get their hands on a detached home, rising prices and limited supply are pushing their dreams out of reach.

However, that is good news for some investors as a majority of potential buyers say they would turn to the condo market for their future residential needs.

According to a recent survey on behalf of the Ontario Real Estate Association and The Ontario Home Ownership Index, almost 30 per cent of Ontarian buyers say they would consider condos. This push is naturally being led by potential buyers in the GTA region.

Almost 60 per cent of the 1,080 surveyed who are likely to purchase a home in the next two years say they would look for a detached house.

And despite all of the doom and gloom in the market, a majority of the survey respondents believe conditions are currently favourable to buy property, while most believe the overall state of the province’s economy is good.

However, not everyone is as positive. One in five believe the province’s real estate market is weaker compared to one year ago.

Interestingly, more Ontarians rank long-term investment value as they motivation for buying, followed by affordability/availability with 26 per cent driven by the desire to own their own home.

Rents rise but household incomes remain stagnant

News Source: http://www.applymortgageonline.ca/

The average monthly rent for an apartment increased in the most recent quarter to $1,099, up 0.8 percent from the first quarter of this year and up 3.4 percent year over year, according to Reis Inc., a real estate research firm. It marked the 18th consecutive quarter for rent rises at a time when income growth has mostly been stagnant.

All 79 U.S. metro areas that Reis tracks saw an increase in effective rents, with coastal cities posting some of the highest rent growth in the past year. For example, rents rose more than 6 percent in the past year in San Francisco, San Jose, and Seattle, according to Reis. Other metros not usually associated with high rent increases also saw a rise, such as Charleston, S.C., and Nashville, Tenn., which each saw rents increase about 5 percent or more in the past year. “You have definitely seen that recovery now spread to all of the major markets around the country, even if some of them were laggards,” Ryan Severino, an economist at Reis, told The Wall Street Journal. “It’s a very pervasive recovery.” While rents have been rising, household incomes have mostly been stagnant. The median household income in 2012 was $50,017, compared to the 2007 peak of $55,627, according to U.S. Census data. Some relief may be in sight for renters soon. Apartment vacancies in the second quarter were unchanged nationwide at 4.1 percent in the second quarter, which could signal that supply is starting to catch up with demand. The market is expected to add 180,000 multifamily units this year, according to Reis. “We think new supply will self-correct rising rent,” Stephanie Karol, an economist at HIS, told The Wall Street Journal. “It will be a continuous process of easing over the next few years.”.