Long Beach Real Estate-Long Beach Condos

Last week, I reported that Long Beach mortgage rates were under 5% while the average was 5.1%.  Today, rates are higher; I'm offering 5.25%.

Jumbo mortgage rates are much higher:

Super Jumbo:  $1,000,000 to $3,000,000- 7.125%
Jumbo:  $730,000- $1,000,000- 6.5%
Agency Jumbo:  $417,000-$729,750- 5.5%
Conforming:  $417,000 and under- 5.25%

Are you holding out for prices of Long Beach homes to drop before you make an offer?  You aren't alone.  I spoke with Spencer Raskoff of Zillow.com, before he spoke on CNBC last week:

Homebuyers have to feel confident that we're at or near a bottom. Zillow's research shows that a striking 70% of American homeowners think their home will increase in value or stay flat over the next 6 months. But buyers aren't walking the walk. Credit goes to Brian Brady for calling my attention to this point today. Too many buyers are sitting on the sidelines, not making offers because they don't want to buy too early. We're not going to have a housing market turnaround until those buyers start to make offers, and they're not going to make offers until they feel that we've already hit a bottom.

 

We both agreed that these horrific reports were actually good news because it demonstrates that we are awfully close to the bottom.  Waiting won't help you unless you have tons of money.  While housing prices were dropping, lenders have been requiring higher and higher down payments.  Let's face it; bankers are pretty stupid.  When California real estate was skyrocketing, they let people buy homes with no money down and no income verification while the collateral was getting risky.  Now, as collateral becomes much safer, the bankers are asking for even HIGHER down payments.  What this means to you, the Long Beach home buyer, is that even if you wait, you WILL NOT have the means to buy a home.

Is it any wonder we have to bail out these bozos?

Unfortunately, we need these bozos to finance your home.  While you may not catch the ABSOLUTE bottom, you can still get a loan with as little as 3.5% down payment...today.  Laurie Manny  can point you to some terrific deals being offered by the bozos. Call her and we'll get you all set up.

http://www.longbeachrealestatehome.com/0094FE

 

Buyers Want to Know "Is now a good time to buy?" "Should I buy now or should I wait?"  "If I wait will I get a better deal?" "Are interest rates going to go down further?" "Will interest rates go up?"

I just received an email from a long time friend who lives up on the West side of Los Angeles.  She just read an article on the LA Times website that frightened her.  The article discusses the luxury market, mostly in the Beverly Hills area, the cities decreased tax income and the downward impact on several luxury neighborhoods and many luxury businesses in the Southern California area. 

 

My friend and her husband currently live in a rental and had searched for a home back when the market was sizzling hot.  At that time the only homes they might be able to afford would have cost too much to put into livable condition.  They were basically priced out of the market.  My friend wants to know if now is a good time to buy a house or if they should continue to wait.  She expresses concern that homes in the San Fernando Valley are receiving multiple offers.  Reading the news has frightened and confused her. 

 

Lets look at this for a minute.  Here is a couple who has been expressing a desire to purchase a home for many years.  They searched when they really could not afford to buy one, downgraded their search to Fixer Uppers that they also couldn't buy comfortably and then gave up, resigning themselves to living in rent indefinitely without the benefits and rewards of home ownership.  This couple represents the same feelings and emotions of many buyers in today's market. 

 

This couple can afford to buy a home now, a nice one.  They can get a great interest rate right now and terrific loan terms.  Another client of ours, a first time home buyer, was just quoted 4.6% with 1.25 points on a 30 year fixed home loan through a very reputable direct lender; that client has a modest income a good credit score, currently lives in rent and is now in escrow on a fantastic Long Beach Condo - with a view! She will be enjoying the benefits of home ownership finally! 

 

FHA loans can be had with just 3.5% down payment.  Conventional loans have been available with just 5% down, this is starting to change now with many lenders beginning to demand 10% down payments, I wouldn't be surprised to see that number go up to 20% by the end of the year.  Loan standards are tightening and will continue to do so.  As these lenders raise the bar and make loans available to only the most qualified many less qualified buyers will once again be locked out of buying a home, they just won't be able to qualify. 

 

Concern was also expressed about multiple offer situations on homes currently on the market.  Multiple offers are a reality in todays real estate market whether you are shopping in the valley or in Long Beach for your new home, while the competition can be fierce for some of the most desirable homes it is still possible to successfully have an offer accepted. 

 

Prices are lower than they have been in years and investors are shopping heavily.  Investors are cash heavy and are making enticing offers that banks want to accept.  All cash, no demands and the ability to close a deal in 7 to 10 days gets a home off of the banks books fast, clean and easy; they have a lot of homes to sell, it works for them.  Buyers with FHA loans are having difficulties getting their offers accepted as they find themselves competing with bigger, better and badder buyers and investors.  There are buyers out there right now with great credit and large down payments.  It is becoming increasingly difficult to get an offer accepted on highly desirable properties. As this demand grows, sellers will not be so likely to offer concessions of any kind and while prices will remain very desirable the deals will not be as "sweet" as they are with the concessions that are still being made now. 

 

Does this mean that it has become impossible for a buyer to buy a home?  Not at all!  It just means that you need to have some fortitude to shop in this market, try not to fall in love with the home until your offer is accepted, it will be less painful that way if your offer is not accepted.  Don't have standards that are so high that you will not be able to fulfill them when you shop; this doesn't mean that you have to settle and buy a dump either. Expect to write several offers before having one accepted.  It takes time for 1st time buyers to wrap themselves around the terms they need to present in order to get an offer accepted.  You must write a strong offer if you are going into a multiple offer situation.  You will need a strong Realtor, who undertands today's real estate market and knows how to advise you to write your offer for the best chance at having it accepted. 

 

There are some fine homes on the market right now at absolutely incredible prices that we haven't seen in many years.   There are loan programs available at interest rates that are almost unbelievable, with sweet terms that won't get you into trouble down the road.  The Bank of America (a direct lender) has loan programs that offer mortgage protection and guarantee you won't lose your home if you lose your job, become disabled, hospitalized or God forbid pass away.  Given the amount of layoffs across our nation that is an outstanding benefit and a continued source of comfort and peace of mind for home owners. 

 

The big questions buyers need to ask themselves are really quite simple. 

• Do you want to miss this market and live in rent forever?
• Do you have 3.5% down payment to qualify for an FHA loan?
  
• Can you qualify for a loan?  Is your credit OK?
  
• If interest rates go up, how much less of a loan will I qualify for?
• If lenders raise the minimum down payment, will I still be able to buy a home? 

 

 

The next questions are easier and a lot more fun:

• Where do I want to live?
• Condo or House?
• Fixer or turnkey?
  
• What style home?
  
• Beach or inland?
• Pool or no pool?
  
• School district?
  
• How many bedrooms and baths?
• Ample parking?
• etc...
  
• How do I get started?  (this one is easy, Contact Laurie (562) 212-5420)

 

Suggested reading prior to beginning your search: 

 

 

Long Beach Home Buyer Tips

• Home Buyer Tips - Don't Make Any Major Purchases
• Home Buyer Tips - Things to Avoid Before Purchasing a Home
• Home Buyers Tips - Changing Jobs Affects Your Ability to Purchase a Home

 

• Long Beach Homes - Issues for 1st Time Buyers
• 1st Time Buyer Tips - Hire a Buyers Specialist When Buying Long Beach Homes and Condos
• Buying Fixer Upper Homes in Long Beach
• FHA Loan Limits for Los Angeles County and Orange County - Long Beach Real Estate
• Long Beach Home Loans - Understanding Your Credit Scores

 

http://www.longbeachrealestatehome.com/0094C6

Long Beach Mortgage Rates Report - Thursday - February 19, 2009

By Brian Brady

At the beginning of 2009, I called borrowers to action, suggesting that it was imperative to jump on a low mortgage rate.  The Fed announced that they would inject $500 billion, to buy mortgage-backed securities, to "stabilize" the mortgage market.  I was giddy with but adamant that the low mortgage rates wouldn't be around forever, regardless of the Fed's action.    A young lady called me on the carpet for trying to incite a riot.

Maybe I was "too forceful" in my call to action.  Somewhat pensive, I clicked through to the Zillow Mortgage Marketplace Rates Chart, to see how wrong I was.  (Go to the chart, select 30-year fixed, 680 or better credit score, and 20% down payment, charted over three months).

Mea culpa.

I didn't scream loudly enough.  I should have advised that young lady that when I speak, she should be taking notes.  When I advised that the sub-5% frenzy would be short-lived, average mortgage rates* were at 5.1%.  Average mortgage rates* dropped to 4.75% (which surprises me because I locked a boatload of borrowers at 4.5%) and stayed below 5% for...

all of 9 days.

Around the third week in January, average mortgage rates* popped over 5% and have stayed above that level since then.   Today, Zillow Mortgage Marketplace quotes average mortgage rates* at the 5.1% level.

Mea Culpa

I've been telling you to hold out for 4.5%, since then, in hopes that the Fed's $500 billion support plan would work.  Well, the Fed's blown 20% of its bankroll, and they still can't keep average mortgage rates* below 5%.  While some of us are able to structure purchase money mortgages below 5%**  the Fed is losing the war.

The Obama Mortgage Plan isn't going to help new home buyers.  In fact, it might just hurt you a lot.  The cornerstone of the plan is to force lenders to compromise loan balances and original mortgage terms.  While that sounds all well and good in theory, in practice it sends a message to lenders;

The terms of the loans you write are rock-solid...unless they aren't, then the gubmint's gonna intervene.

Who suffers?  New homeowners; that's right...YOU.  New homeowners suffer because it means you've got a "weasel-out clause" if things go bad.  Lenders, will price that "weasel-out clause" into the NEW loans in the form of higher rates.

The government, in its efforts to fight the market, may have hit a tipping point.  This intervention will cause lenders to make mortgages harder and more expensive to get. Maybe not tomorrow, maybe not next month but sooner rather than later.  Higher down payments, higher rates, and higher credit score requirements are on the horizon.

What's that mean to you, the Long Beach home buyer?  If you're waiting to see if home prices come down that "last little bit", you might pay a whole lot more for your mortgage loan.

Mea Maxima Culpa

I've been absent and I know from the e-mails and calls that you've missed my advice.  I'm back.

* The term "average mortgage rates" are charted by Zillow Mortgage MarketPlace

** Why do I structure loans with terms superior to "average" ?  I ain't average.  I shop over 100 lenders to secure you the best terms.

 

Brian Brady is Managing Director of World Wide Credit Corporation, a San Diego-based mortgage banking and brokerage firm. Google calls him America's #1 Mortgage Broker; you can call him at (858)-777-9751

 

http://www.longbeachrealestatehome.com/0094D4

Today we are pleased to welcome Bill Nazur, top financial expert with Bank of America, to the Long Beach Real Estate Home Blog.  Bill will be a regular contributor, look forward to his informative articles. 

Bill Nazur has an extensive background in finance & mortgage lending and is privileged to serve as an author, speaker, and consultant to the real estate industry, as well as a featured regular guest on Fox Business, MSNBC, and Univision. Bill has also been a radio guest on Bloomberg Radio and KNX1070, which led to his own online show, The Financial Assurance Show, along with a thriving (yes, its thriving, not just surviving!) mortgage business, powered at Bank of America Mortgage. Bill's experience in calling the current foreclosure crisis, along with many of the real causes, along with the taboos in dealing with such a sensitive subject, led to the publishing of the book Finding Foreclosures, published by Entrepreneur Press. 

 

When its time to get a Mortgage, You should include some Peace of Mind

by Bill Nazur

These days, it is tough to decide if there is any such thing as a sure investment. Truth be told, aside from death and taxes there is no sure thing anymore, particularly not investments given the turmoil in the real estate industry.

If you're in an employment field where you could lose your job, it's a horrible time to buy real estate, right?

 

ABSOLUTELY, COMPLETELY, 100% WRONG!

Hopefully, you're not on the brink of losing your job.

Like most people who have been priced out of the market for the last five to eight years, you've been thinking long and hard whether now is the time to buy real estate, not knowing what the market will do. Will home prices continue to drop? Are rates really continuing to drop, much like the cost of gas at the pump? Oh yeah, that's not working out the way most people thought, is it?

The point is that uncertainty seems to be a constant in our markets these days.

So wouldn't it be nice when you're purchasing the single biggest investment of your life, to find that a mortgage banker can help you safeguard yourself and your family from sudden income losses which can result from unexpected events, such as:

• involuntary job loss 
• disability
  
• hospitalization
  
• or even the loss of your life

 

When you consider that unemployment and disability benefits provide limited coverage, ask yourself if these benefits would be enough to keep your loan payments current?

But how could you ignore that interest rates are as low as they've ever been? Rates are consistently in the high 4 to low 5 percent range. That is the lowest they've been in the last fifty years.

If my memory serves me right, real estate values haven't been this low since the early 1990's. But then again, rates were between 8 to 13 percent during that period.

So if you're seriously considering buying yourself a house that you can call home, you should know that only one company offers you this peace of mind. That company is Bank of America Mortgage. Ask your mortgage broker what they can do for you if you lose your job. Hopefully they won't laugh at you.

Any size loan can qualify for protection. And because the programs are NOT insurance, there are no health requirements, no medical exams, and no age limits.

What would you think to know this protection is FREE for the first year, with a minimal fee after the first year?

In my opinion, you cannot afford to NOT buy a home right now with this type of protection. Of course, there are eligibility requirements, conditions, and exclusions which may prevent you from receiving benefits under your loan protection plan. A full addendum will be provided for a full explanation of the terms of the loan protection plan.

Allow my team to help you, as we can also lend in all 50 states. While Real Estate is local, knowledge is universal. We hope to help you soon.  Bill Nazur can be reached via email at bill.nazur@bankofamerica.com, text message at 949-307-4990, or via phone at 949-274-8950.

 

Then contact Laurie Manny to begin your search for homes and condos in Long Beach (562) 212-5420

 

http://www.longbeachrealestatehome.com/0094B3

Long Beach Home Loans - Understanding Your Credit Scores

 

Understanding how your credit score will affect the purchase of Long Beach homes.

We all know that a good credit score is not only helpful, but today it is necessary to get a mortgage to purchase Long Beach homes, or even buy a car.  Your credit score will also determine the interest rate you have to pay. 

Factors that go into figuring a credit score?

 

• Have you Established Credit?  Paying cash is often construed to be the act of a responsible consumer, by doing so you establish no history for a mortgage lender to examine.  One way to establish credit is to get credit cards and use them - you can, and should, pay them off every month and on time.  A credit score considers the number of creditors as well as payment history.  

 

Read Also:  How to establish credit

 

• Prompt Payment of Financial Obligations.  This is very important, but you should know that this accounts for only about a third of the total score.

• Amount of Available Credit.  Your credit score might be impacted by the number of credit cards you have, even if you never use them.  They indicate the amount of credit you have access to, thus opening up the chance of financial strain.

• Your Debt Ratio.  Lenders will consider your debt ratio when you apply for a Long Beach mortgage.  In spite of an excellent credit rating they will use this debt ratio to see if you can take on additional debt for a mortgage on your Long Beach home.

 

• Consolidation of Debt.  Although, this might make it easier to pay off debt and thus increase your credit score, the process of consolidation will have no effect on your credit score.
  

What do the Credit Score numbers mean?

Your FICO score is comprised of a compilation of your credit history from the three major credit reporting bureaus, Equifax, Transunion, and Experian. Basically your credit score is determined by a formula that is calculated that is proprietary information and owned by Fair Isaac.   Your credit score number will be between 300-900, and the higher the number the better off you are.  

Are you ready to start the process of applying for a Long Beach Mortgage now?   Before you approach a lending institution for a Long Beach home mortgage, know where you stand with your credit score.   Not sure where you stand, a good Mortgage professional will assist you with obtaining a copy of your report.  After obtaining a copy of it, they will review it with you and assist you to resolve any issues that are affecting your credit score negatively.

 

 

Guest author:  Colleen Kulikowski, Buffalo NY Realtor

 

 

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Important Long Beach Home Buyer Tips

• Don't Make Any Major Purchases
• Things to Avoid Before Purchasing a Long Beach Home
• Changing Jobs Affects Your Ability to Purchase a Long Beach Home
• Long Beach Buyers - Step Up to the Plate or Lose the Game!
• Long Beach Homes - Issues for 1st Time Buyers

   

  This article highlights issues that many 1st time home buyers do not consider, that being the remaining life of the existing systems currently in the home and the cost of future replacement. 

  
  

• Buying Fixer Upper Homes in Long Beach
  

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(Direct feeds from the Southern California MLS)

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Laurie Manny Professional Group

244 Redondo Avenue
Belmont Heights
Long Beach, California 90803

(562) 212-5420

 

http://www.longbeachrealestatehome.com/0062E6