Time to Get PreQualified...Again?

 

Finally, the holidays are over and you are serious now about purchasing a new home.  Several months ago, you were pre-qualified by a good lender who was recommended to you by someone you trust. Together you determined what amount of loan you would qualify for.  You even provided everything that the lender requested AND he ran your credit report.  You have been "pre-approved" which is even better than pre-qualified as everyone, including your Realtor, has assured you.


But wait...beginning in January 2014, the mortgage rules are changing again and the truth is that these new rules may work for or against your ability to get a loan. 

If you are planning a home purchase in 2014, I strongly recommend that you reconnect with your mortgage lender and request an appointment to discuss the new rules and to obtain an updated pre-approval letter. 

Pre-approval letters that are only a few months old could be out-of-date in light of some of the changes. Additional documentation may be required which can often take time to obtain.  Something else that you may find out is that you actually qualify for a larger purchase since the qualifying debt to income ration will be increased in January 2014.

If you have any questions concerning your real estate needs, please call Nancy Puder directly at 805.710.2415 or email Nancy @NancyPuder.com  She always loves to hear from you!  Nancy Puder is a real estate broker on the Central Coast of California.  Follow Nancy on Facebook.  Go to www.Facebook.com/NancyPuderRealtor and click "like" 

 

 

Smart Tax Moves to Make Before 2013 Ends

There are still a few things that a smart homeowner can do before the end of the year to save on their 2013 taxes. 

1. Pre-pay your property taxes

In California, where property taxes are due twice a year, it may make sense to pre-pay next year’s first installment. 

2. Make your January mortgage payment now.

If you are planning to make the payment over the next few weeks anyway, why not make it now and take the deduction?

3. Make energy efficiency improvements

The IRS tax credit for making improvements to a home for energy efficiency–insulation, air conditioning or heating units, windows, among other items–they can qualify for a tax credit of 10% of the cost, up to a lifetime maximum of $500. Note that this is not a deduction, but a credit–a straight subtraction from taxes owed. This is a time-sensitive allowance so it may make sense to make these improvements before the end of the year

4. Finalize your foreclosure sale

Before the financial crisis, people who lost their homes to foreclosure and had the remainder of the balance on their mortgages forgiven had to report that cancelled debt as income and pay taxes on it. But in the midst of the recession, with so many people losing their homes, Congress stopped taxing the first $2 million in forgiveness of mortgage debt. This perk is coming to an ending 12/31/2013. So if you have a home in the midst of a short sale or foreclosure proceeding, put the pressure on everyone involved to get the deal done before the year is over.

All of these tips will help you to get a good start in 2014.  Check with your CPA to get more information on how to save money on your 2013 return.

 

Wishing you and yours a very Merry Christmas!  If you would like help planning your next real estate move, give me a call.  I always enjoy hearing from you.

Nancy Puder is a real estate broker in Arroyo Grande, CA.  You may contact her at Nancy@NancyPuder.com or call (805)710-2415.  Follow her posts on Facebook Nancy Puder Realtor and click "like".

 

 

 

 

Recovery Will Continue Through 2014

 

The National Association of Realtors has predicted that the housing market will continue on it's road to recovery in 2014 and that home prices should go up around 6 percent.

 

Mortgage rates are expected to increase to around 5.4 percent which should keep the real estate market somewhat balanced.  Loans will be a little easier to obtain in  this upcoming year because of some loosening of mortgage underwriting guidelines.

 

Low inventory will continue to be a challenge for home buyers and investors. I believe one reason that there are fewer homes on the market, is that many homeowners chose to remodel rather than sell when home prices dropped. Many of those same potential sellers are now satisfied with their homes and will stay a bit longer.  Others will decide to sell now, however, as prices are increasing.

 

All indicators are that the real estate recovery is gaining momentum at a cautionary speed.  Jobs are being created as the overall recovery improves and buyer confidence is up.

 

I don't think that we are going to see "runaway prices"  anytime soon, however, I do recommend that 2014 buyers get started now to stay ahead of rising interest rates which will affect how much home they will be able to purchase.

 

May you have a very Merry Christmas and a joyous Holiday Season!  

 

Nancy Puder is a real estate broker in Arroyo Grande, CA.  For questions concerning your individual real estate needs or to determine the value of your home, call Nancy directly at (805)710-2415 or email Nancy@NancyPuder.com She always enjoys hearing from you!

 

 

 

Pillar to Post

If you are thinking of selling your home, you may want to begin by ordering a pre-sale home inspection. Most sellers these days are opting for full disclosure when selling their home.  A thorough home inspection by a company that provides this type of service usually takes about 2-3 hours and costs around $450 depending on the size of your home.

 

For years. the typical situation has been that the seller lists their property for sale, then enters into a sales contract and within the first couple of weeks the buyer orders a home inspection report at the buyer's expense. The buyer accepts the assessment and disclosures made by the seller but wants to make sure that an independent inspector feels the same way about the home.

 

Imagine everyone's dismay when the home inspector discovers a problem with the heating system, a hidden plumbing leak or some other problem that translates into big money.  In this scenario, the buyer comes back to the seller and asks them to either correct the problem or renegotiate the sales price.  The transaction at that point, can deteriorate rapidly if the buyer and seller cannot come to an agreement.  Sometimes, the buyer will even become disillusioned and choose to move on to another property.  If that happens,  the process has to start all over again.

 

Surprises that cost money are not pleasant for anyone.  Home sellers can prevent most unforeseen repair costs by ordering a home inspection before the house sells. Having a professional home inspection is a powerful tool when selling your home.  A pre-inspection will help you put your best foot forward and will increase the likelihood of a successful closing in today's market.

 

Call if you would like a list of the home inspection companies that I have had good experiences with. I always love to hear from you! 

 

Nancy Puder is a real estate broker in Arroyo Grande, CA.  You may contact her at Nancy@NancyPuder.com or call (805)710-2415.  Follow her posts on Facebook Nancy Puder Realtor and click "like".

 

 

 

 

Home Sales Steady Prices Up

So often, I will hear that the winter is not a good time to sell.  Contrary to that general belief, however, many sellers actually do quite well when they put their home on the market during the winter season.

 

These are some reasons to put your home on the market now.

 

1. There are fewer homes on the market during the winter months.  This means that your home will not have as much competition.   Contrary to what you may hear, there are buyers looking to buy a home now and they are not waiting until spring to make their purchase.

 

2. Interest rates are probably going to go up.  The same buyers that are able to purchase your home today, may not be able to qualify for the same loan in the spring because a higher interest rate will translate into a higher monthly payment.

 

3. If you wait to put your home on the market, you and everyone else will put their home on the market at the same time.  The advantage you were hoping to gain by waiting will be neutralized as competition will be much greater.  In addition, if interest rates go up by then, you will possibly lose some potential buyers.

 

My advice is that if you are ready to sell, go right ahead and do it now. It's often a good idea to swim in a different direction from the crowd if you want to stand out.

 

Weekly Tidbit:  Home prices have jumped in some of the largest cities, with the largest price gains in the western cities of Las Vegas, San Francisco, Los Angeles and San Diego.

 

 

Nancy Puder is a real estate broker in Arroyo Grande, CA.  You may contact her at Nancy@NancyPuder.com or (805)710-2415. She always enjoys hearing from you!