As interest rates hover in historically low levels, there are certain things happening that will start to slow down some of the refinancing and purchases.
For openers, the lenders are trying to slow down the flow so they can keep their costs low. Underwriting is reviewing packages and taking weeks to finalize, often with last minute requirements that have even caused loans to be disapproved at the last minute.
Another is the use of many legal, but sometimes questionable, fees. These can add hundreds to thousands of dollars to the cost of obtaining a loan. The banks need this money to offset the low interest rates. They are not making a lot of money on the low rates, so they are not waiving or reducing the fees they charge.
Even our highly regarded Texas Veteran Loan program is keeping their rates higher than usual, and have reduced the Veterans with disability discount to 0.5%. This is to slow down the number of loans and keep their program funded through the rest of the year.
So, we may be at the lowest cost of obtaining a loan and may see more fees, higher interest rates, and longer times for approval as the economy starts to "recover" and the stimulus packages kick in.
I'll let you know if I see things changing anytime soon.
Sorry about the spelling earlier, I missed spell check!
Tuesday, January 27, 2009
Monday, January 12, 2009
Texas Home Inspection Updates
Thanks to our frined, Jim Wiley of Gold Star Home Inspection, here is a quick update to the Texas Residential Inspection regulations. As always, when purchasing a home, it is in your best interest to have a thrid party inspector go over it whether new construction or existing.
Changes to the Standards of Practice
I have just returned from a seminar for our Standards of Practice. Some changes have taken place that I feel everyone should know.
They have removed the term “In Need of Repair” and replaced it with “Deficiency”. It seems a buyer assumed that if a box was checked “In Need of Repair” that the seller was obligated to repair that item before the sell of the home. As always the report is just a negotiating tool.
Everyone has heard of Arc Fault Circuit Interrupters (AFCI) breakers. They are used for an additional level of protection on all branch circuits that supply 125 Volt, single-phase power installed in bedrooms and for smoke alarms. This requirement did not become effective until November 1, 2002 for all new and remodeled construction.
Now, Texas has adopted the 2008 NEC which requires AFCIs circuit breakers for all branch circuits that supply 125 Volt, single-phase power serving bedrooms, family rooms, dining rooms, living rooms, parlors, libraries, dens, sunrooms, recreations rooms, closets, hallways, or similar rooms or areas. We are required to report the lack of arc arc-fault circuit interrupting devices.
How does this affect you? The only thing we have to do extra is brief our clients that this is a new requirement and that NO home in Texas will meet the new standard. It is not something that has to be repaired and will not affect the sell of a home. However it is my duty to tell our client that there is an additional level of protection out there for them.
On this same line of thought now all outlets in the garage must be GFCI protected. The earlier standards allowed one outlet to not be on a GFCI circuit.
If you have any questions regarding the Standards Of Practice please give me a call.
Jim Wiley
Gold Star Home Inspections
Changes to the Standards of Practice
I have just returned from a seminar for our Standards of Practice. Some changes have taken place that I feel everyone should know.
They have removed the term “In Need of Repair” and replaced it with “Deficiency”. It seems a buyer assumed that if a box was checked “In Need of Repair” that the seller was obligated to repair that item before the sell of the home. As always the report is just a negotiating tool.
Everyone has heard of Arc Fault Circuit Interrupters (AFCI) breakers. They are used for an additional level of protection on all branch circuits that supply 125 Volt, single-phase power installed in bedrooms and for smoke alarms. This requirement did not become effective until November 1, 2002 for all new and remodeled construction.
Now, Texas has adopted the 2008 NEC which requires AFCIs circuit breakers for all branch circuits that supply 125 Volt, single-phase power serving bedrooms, family rooms, dining rooms, living rooms, parlors, libraries, dens, sunrooms, recreations rooms, closets, hallways, or similar rooms or areas. We are required to report the lack of arc arc-fault circuit interrupting devices.
How does this affect you? The only thing we have to do extra is brief our clients that this is a new requirement and that NO home in Texas will meet the new standard. It is not something that has to be repaired and will not affect the sell of a home. However it is my duty to tell our client that there is an additional level of protection out there for them.
On this same line of thought now all outlets in the garage must be GFCI protected. The earlier standards allowed one outlet to not be on a GFCI circuit.
If you have any questions regarding the Standards Of Practice please give me a call.
Jim Wiley
Gold Star Home Inspections
Thursday, January 8, 2009
Foreclosure info
If you live in the San Antonio are you have seen recent news about the increase in foreclosure listings in Bexar County, up to over 1100 in January 2009! our normal numbers hover around 700 or so, and have for years.
But the media are not completing the "rest of the story" to you - of the Foreclosure FILINGS, about 30-35% will actually end up in foreclosure!
Most of the loans will either be paid up, taxes paid, mortgage refinance or restructure, or other means of holding off the foreclosure sale process. In fact the number of foreclosures has risen in the last few months. But with recent interest rate reductions and more money being freed up by lenders, more filings are being saved as well.
So, things are different if you get ALL the news information.
Call and we can discuss the actual number of foreclosures and the actual savings we are seeing this year in prices.
But the media are not completing the "rest of the story" to you - of the Foreclosure FILINGS, about 30-35% will actually end up in foreclosure!
Most of the loans will either be paid up, taxes paid, mortgage refinance or restructure, or other means of holding off the foreclosure sale process. In fact the number of foreclosures has risen in the last few months. But with recent interest rate reductions and more money being freed up by lenders, more filings are being saved as well.
So, things are different if you get ALL the news information.
Call and we can discuss the actual number of foreclosures and the actual savings we are seeing this year in prices.
Tuesday, January 6, 2009
2009 Housing Forecast
We attended the 2009 Housing Forecast put on by the San Antonio Board of Realtors (SABOR) this morning and have a lot of information to share.
For starters, as we all know, the greater San Antonio area is weathering the recession well and is poised to be the front runner during the upcoming growth period. We are still affected by the many folks moving to the area for good jobs, Military, and quality of life that are unable to sell or rent their homes in other areas. As this situation starts to slow amid the normal spring moving season, as well as with the promised stimulus packages, we will see an increase in sales.
For the time being we have over 12,000 available homes on the market and interest rates are at all time lows. This is still a buyer's market and will be into 2009 or even 2010. However, statistics show that home prices have stabilized in our region and even appreciated in some areas over the last year. This indicates that the buyer's market may not allow for some of the slashing that has occurred in other markets such as Florida and Las Vegas.
Dr. Mark Doutzour, the Chief Economist for the Texas A&M Real Estate Research Center is strong on home ownership, but is also supportive of realistic lending practices. He tells us that we will start seeing recovery in our area this spring, and history shows that we will start to see both home prices begin to move up and interest rates to possibly increase as well. He flatly states that now is probably the best buying opportunity for the next 20 or more years!
There were all kinds of statistics and trend lines thrown around to make the numbers types feel involved, but bottom line is we are in a great location and now would be the time to lock in future appreciation at phenomenal prices and rates.
Call and I can provide details and share more with you as well!
It sure is nice to be in Texas!
For starters, as we all know, the greater San Antonio area is weathering the recession well and is poised to be the front runner during the upcoming growth period. We are still affected by the many folks moving to the area for good jobs, Military, and quality of life that are unable to sell or rent their homes in other areas. As this situation starts to slow amid the normal spring moving season, as well as with the promised stimulus packages, we will see an increase in sales.
For the time being we have over 12,000 available homes on the market and interest rates are at all time lows. This is still a buyer's market and will be into 2009 or even 2010. However, statistics show that home prices have stabilized in our region and even appreciated in some areas over the last year. This indicates that the buyer's market may not allow for some of the slashing that has occurred in other markets such as Florida and Las Vegas.
Dr. Mark Doutzour, the Chief Economist for the Texas A&M Real Estate Research Center is strong on home ownership, but is also supportive of realistic lending practices. He tells us that we will start seeing recovery in our area this spring, and history shows that we will start to see both home prices begin to move up and interest rates to possibly increase as well. He flatly states that now is probably the best buying opportunity for the next 20 or more years!
There were all kinds of statistics and trend lines thrown around to make the numbers types feel involved, but bottom line is we are in a great location and now would be the time to lock in future appreciation at phenomenal prices and rates.
Call and I can provide details and share more with you as well!
It sure is nice to be in Texas!
Thursday, December 11, 2008
Buy Now or Wait?
With interest rates raching lows not seen in 20 years, many are hoping they will continue to the 4.5% rumored to be "around the corner" by many in the industry.
However, the rumor is first just that until the money and the direction is provided. Second, the lowest rates will only be given to the best borrowers. That means if your credit score is less than 760, don't hold your breath for the lowest rates. However, if your credit is between 620 and 760, your chance of getting very good rates and terms remains fantastic.
If your credit is below 620, you need to sit down and see just where you are and set up a plan to get it up around 600 as a minimum, or face paying higher rates, requiring larger down payments, or not getting a loan at all.
So, what are you waiting for? Let's start looking for the right house that meets your needs and negotiate a great price and terms now!
However, the rumor is first just that until the money and the direction is provided. Second, the lowest rates will only be given to the best borrowers. That means if your credit score is less than 760, don't hold your breath for the lowest rates. However, if your credit is between 620 and 760, your chance of getting very good rates and terms remains fantastic.
If your credit is below 620, you need to sit down and see just where you are and set up a plan to get it up around 600 as a minimum, or face paying higher rates, requiring larger down payments, or not getting a loan at all.
So, what are you waiting for? Let's start looking for the right house that meets your needs and negotiate a great price and terms now!
Wednesday, December 3, 2008
Interest Rates Moving Down, Job Growth
Great news! interest rates are down and jobs are up in the San Antonio market!
The article below goes over the increase in jobs in the greater San Antonio area as well as Austin, which is less than an hour up the road!
Interest rates are also lower than they have been in over a year...the average in Texas this week is only 5.52%!!! That is the average and you may pay a little more, or even less. Either way, now is certainly a great time to purchase a home!
Read about the job growth......................
Tuesday, December 2, 2008 - 2:52 PM CST Modified: Tuesday, December 2, 2008 - 3:00 PM Austin job creation slower, but still outpacing rivals Austin Business Journal Employment in the Austin-Round Rock region increased 1.9 percent between October 2007 and October 2008, outpacing many of Austin’s economic development competitors, according to data released Tuesday by the U.S. Bureau of Labor Statistics.
The local region added about 14,700 jobs in the 12-month period, bringing its total employment figure to roughly 781,000, according to the report. By comparison:
• San Jose, Calif. added 700 jobs for a 0.8 percent increase • Raleigh, N.C. added 8,800 jobs for a 1.7 percent increase • Nashville, Tenn. lost 2,200 jobs for a 0.3 percent decrease • Seattle lost 1,900 jobs for a 0.1 percent decrease • Phoenix lost nearly 50,000 jobs for a 2.3 percent decrease • San Antonio added 17,900 jobs for a 2.9 percent increase • Memphis, Tenn. lost 10,800 jobs for a 1.7 percent decrease • Albany, NY remained stagnant.
The article below goes over the increase in jobs in the greater San Antonio area as well as Austin, which is less than an hour up the road!
Interest rates are also lower than they have been in over a year...the average in Texas this week is only 5.52%!!! That is the average and you may pay a little more, or even less. Either way, now is certainly a great time to purchase a home!
Read about the job growth......................
Tuesday, December 2, 2008 - 2:52 PM CST Modified: Tuesday, December 2, 2008 - 3:00 PM Austin job creation slower, but still outpacing rivals Austin Business Journal Employment in the Austin-Round Rock region increased 1.9 percent between October 2007 and October 2008, outpacing many of Austin’s economic development competitors, according to data released Tuesday by the U.S. Bureau of Labor Statistics.
The local region added about 14,700 jobs in the 12-month period, bringing its total employment figure to roughly 781,000, according to the report. By comparison:
• San Jose, Calif. added 700 jobs for a 0.8 percent increase • Raleigh, N.C. added 8,800 jobs for a 1.7 percent increase • Nashville, Tenn. lost 2,200 jobs for a 0.3 percent decrease • Seattle lost 1,900 jobs for a 0.1 percent decrease • Phoenix lost nearly 50,000 jobs for a 2.3 percent decrease • San Antonio added 17,900 jobs for a 2.9 percent increase • Memphis, Tenn. lost 10,800 jobs for a 1.7 percent decrease • Albany, NY remained stagnant.
Monday, November 24, 2008
Thanksgiving
It is Thanksgiving week and many of you are looking forward to time with family and friends to celebrate and give thanks for our many gifts of being an American and the great wealth we enjoy. Not just the individual savings wealth, but the great things that make our country and citizens the absolute best in the world.
Today we are seeing the financial world going through ups and downs that make us crazy. But at least we have the freedom and wealth to enjoy a financial crisis and look for ways to profit from it. In many countries they wouldn't have a crisis because they couldn't! Not enough assets to cause concern for anyone, let alone a giant bank to worry about.
Here we take so much for granted, but we need to remember how blessed we really are and reflect on this with those family and friends that you will be near.
And don't forget our troops that are not spending time with family. They are with the greatest friends they will ever make and many will eat a larger meal than many in the USA. But they have made a choice to defend our way of life and protect the wealth we have created. Pray for their safety and that their efforts will not be in vain.
Thanks to all of you, enjoy.................
Today we are seeing the financial world going through ups and downs that make us crazy. But at least we have the freedom and wealth to enjoy a financial crisis and look for ways to profit from it. In many countries they wouldn't have a crisis because they couldn't! Not enough assets to cause concern for anyone, let alone a giant bank to worry about.
Here we take so much for granted, but we need to remember how blessed we really are and reflect on this with those family and friends that you will be near.
And don't forget our troops that are not spending time with family. They are with the greatest friends they will ever make and many will eat a larger meal than many in the USA. But they have made a choice to defend our way of life and protect the wealth we have created. Pray for their safety and that their efforts will not be in vain.
Thanks to all of you, enjoy.................
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