Price Check!
Check the selling prices of comparable homes in your area. Realtor Websites such as mine can give you a general idea of what you should expect to pay. You can also do a quick search of actual MLS listings in your area.

Can You Afford It?
See what you can afford. Use the mortgage calculator on my website to see what your payment would be. Find out what your total monthly housing cost would be, including taxes and homeowners insurance. To get a feel for the maximum amount you should spend, including taxes and insurance. In some areas, what you’ll pay for your taxes and insurance escrow can almost double your mortgage payment.

Insurance is Good
To get an idea of what you’ll pay in insurance, pick a property in the area where you want to live and make a call to a local insurance agent for an estimate. You won’t be obligated to get the insurance, but you’ll have a good idea of what you’ll pay if you buy. For an idea of what you’ll pay in taxes, most properties on my website have property-tax information in the property features. Just remember that exemptions and the intricacies of local tax law (such as Florida’s Save Our Homes value cap) can create differences between what a homeowner is currently paying and what you can expect to pay as a new homeowner.

Closing Costs
Find out how much you’ll likely pay in closing costs. The upfront cost of settling on your home shouldn’t be ignored. Closing costs include origination fees charged by the lender, title and settlement fees, taxes and prepaid items such as homeowners insurance or homeowners association fees.

Budget!
Look at your budget and determine how a house fits into it. Fannie Mae recommends that buyers spend no more than 28% of their income on housing costs. Go much past 30% and you risk becoming house poor. Talk to reputable real-estate agents like me about the real-estate climate. Do they believe prices will continue falling or do they think your area has hit bottom or will rise soon? This insight into how the market is behaving could save you big money.

The Big Picture
Remember to look at the big picture. While buying a house is a great way to build wealth, maintaining your investment can be labor-intensive and expensive. When unexpected costs for new appliances, roof repairs and plumbing problems crop up, there’s no landlord to turn to, and these costs can drain your bank account.

The best step you can take is to work with a qualified Boise Realtor like Bill Cady. I can help you find homes you are qualified to buy that meet your needs quickly and easily, as well as help you avoid common mistakes and pitfalls that can bog down your home buying process. Don’t delay, call me today!

There’s no putting it off, there will come a time during your home buying process when you will need to do a final walk through of the home before closing. Usually about a week before you close on your new home take the time to visit it one last time before it’s yours – this is a great opportunity to spot any last minute items that may need attention. Check to make sure the terms of your contract have been met and that the condition of the property has not change significantly since talks began. It doesn’t hurt to bring your a copy of your purchase contract as a reference guide during this visit as it can help you track down the little details without losing sight of the whole picture.

Here are a few things you should be on the lookout for:

1. Major appliances: Be sure that any items that were to remain in the home are still there, and that they are in good working order.

2. Major systems: Do the air conditioning, heat, and plumbing still function properly?

3. Repairs: As part of your purchase contract, the seller may have been required to make repairs. Be certain that these have been completed, or that the seller has a written timeline for when the repairs will be completed.

4. Walls and floors: Has any damage occurred to the floors or walls during the sellers move? Were rugs, artwork, or carpets covering water damage that was not disclosed? Dings in the walls?

5. Screens and Storm Windows: If it is the season for these items to be in storage, be sure they have indeed been left in storage and that they are in good shape.

6. Remotes: Garage doors, alarms,and sound systems likely all use a remote, some of which can be very expensive to replace. If these items were part of your agreement, be sure they have been kept with the house.

7. Cleanliness: The home should have been cleaned and all debris removed. Moving is stressful enough without having to clean up other peoples mess the first week you are there.

8. Fixtures: Light fixtures, curtains, and other items that were agreed upon should still be in the home. If they are not, let your agent address the conflict.

9. Landscaping: It may seem hard to believe but yes, some sellers may try to run off with your shrubs and plants! Check your contract to see what is supposed to stay; if plants were taken, let your agent handle the situation.

10. Exterior: Has there been any storm or other damage to the home since your inspection or first visit? Be sure to visually inspect the exterior of the house for damage. Once you have signed on that dotted line, the house is yours — and that could mean storm damage and all.

Closing time can be very hectic. Take the time for your final walk-through. It’s the smart thing to do in order to make sure no last minute items have been forgotten and that nothing has changed regarding the property during the time since your first visit.

Consumer confidence plays a huge role in economic recovery, it’s a basic rule we all can understand: people just aren’t going to buy anything in an economy where they don’t feel safe – this holds especially true in the real estate market where such large amounts of finances are involved. A new national poll holds some encouraging new for the months ahead.

The survey was conducted by the Certified Financial Planning Board of Standards in early July, and involved interviews with a statistically representative sample of more than one thousands households.

This survey revealed that despite nervousness about the stock market and unemployment some 66 percent of all consumers believe the economy will hold steady or even improve over the next six months. Eighty-three percent believe their own personal finances will get better or at least hold as is.

According to researchers most consumers are looking for a “long and slow return to economic growth”, meaning slow gradual improvements in major sectors of our economy including home sales and real estate.

Does that slow and steady theme sound familiar (to anyone other than the tortoise or the hare) ?

Without a doubt it is old territory to real estate analists at MDA DataQuick in San Diego. Their latest report on the housing markets of Souther California describe a “continual slow crawl towards normalcy”.

It might seem sort of hard to get excited about that news, but despite its slow progress: it is in fact progress in the right direction even though home sales in that area only rose some seven percent.John Walsh, president of MDA DataQuick, said the market there is still “out of kilter” by historical standards – with lots of foreclosures and short sales acting as a restraint on prices. However despite all the challenges more money was spent last month in SoCal than in the past two years, and more money was also loaned for home mortgages.

This is highly significant as the six counties of southern California are often considered the “canaries in the mineshaft” for the housing markets nationwide. They were hit extremely hard during the recession and they still have a long way to bounce back, but it IS happening.

Meanwhile there are growing indications of similar patterns underway in other major markets around the country — even some gains in home values. According to Corelogic, a large real estate date company, found last week that prices on a national basis are now 2.9 percent higher than they were this same time last year, including distressed sales! Prices overall were up in 60 of the top 100 real estate markets nationwide which is a big change from a year ago when all 100 were negative.

There is hope! That light at the end of the tunnel just might not be a train after all! And while the increase of home prices and sales is good it should also be a signal to you, the prospective home buyer, in the fact that the historically low home prices you’ve been seeing may be slowly on their way out! NOW is the time to buy!

These historically low home prices and mortgage rates will not last! If you have been thinking of buying a home in Eagle or anywhere in Idaho now is the best time! I can help you find homes by city, price, closest school, or any number of other criteria! Use my Eagle Idaho Realtor website to find the home of your dreams in Idaho today!

Positive news from the real estate market amidst the overall somewhat dismal economic times we are in:

When it comes to single family homes the average sales price of a home in Ada County has gone up by about $6,000. Even better news is that Canyon County has seen that number increased to nearly $12,000, with April’s 573 closings setting a new high water mark in Idaho real estate.

Let’s look a little closer at the sales numbers. While the volume of sales hasn’t returned to the golden levels of 2005 and 2006, these latest figures do show promise. Even though Ada County closings are still down 9% it is likely due to a continued supply of distressed properties saturating the market. Distressed properties went through the roof in Ada County by 48 units – with 56 in Canyon County. Pending sales weren’t all they could be either, but despite those figures things may still be just getting ready for a much needed turn around.

The real estate market is still very much in recovery mode, and other economic factors contribute to that being an even slower process. It may take a while before we see the numbers moving like they were just a few short years ago, but many real estate professionals are confident that we WILL see those sort of figures again.

One massive problem still hurting the state’s chances of recovering faster is that people are walking away from their homes, even if they are employed and are making their mortgage payments. It’s easy to understand their thinking in living in a home that’s “under water”; many see their dreams as being just some empty hole they are throwing money into rather than the sound investment it may have seemed to be not that long ago. These people need to take a deep breath and look at the longer term market, yes things are very difficult now, but their homes are still very able to be worth their investment once the market returns. It’s hard to realize values WILL go back up, but this market that took so long to build up simply will not bounce back over night. The best advice is that if you are in a home, and are making the payments, buckle down and ride it out – you will only end up ahead of the game in the long run.

Are you facing foreclosure in Idaho? Maybe you don’t understand the jargon of what is really going on and where you stand. Whether you are looking to buy a home in Eagle Idaho to make the most of the lowest prices and mortgage rates in years, or you are a Idaho Home Owner Facing Foreclosure – I CAN HELP! Contact me today to find out more about what a qualified Eagle Idaho Realtor can do for you!

Idaho Home buyers and their agents have to be aware about the dangers of added balances to credit lines or opening new lines of credit shortly before they close escrow on their new homes. Most specifically it is wise to avoid these sort of activities during the period of time between applying for the loan and closing. New policies under Fannie Mae’s somewhat questionable “Loan Quality Initiative” that went into effect June 1 of 2010 requires lenders to “refresh” a borrower’s credit report just before closing — if buyers aren’t conscious of this that new skidoo just might sink their ship!

Let’s look at an example: Joe and Cindy are excited to offer on a home in Kuna they just love. They realize going in that they might be over-extending themselves a little but their loan officer has pre-qualified them with confidence that they will receive total loan approval without issue. Joe and Cindy’s formal loan approval comes in and they are thrilled with the prospect of their new home coming true, and in anticipation they visit the local furniture store to purchase (see: CHARGE) a new bedroom set, dining room, and sofa for their new spaces. It’s a little costly but they aren’t worried as they figure they can pay it off in a timely manner – Joe and Cindy are very credit conscious. What could possibly go wrong!?

That’s where the big bad wolf usually strolls into the story isn’t it? According to the new Fannie Mae guidelines the lender will run an updated credit report on Joe and Cindy just before closing. With their new high-end furniture their credit balance has definitely gone up and Joe and Cindy no longer meet the required debt-to-income ratio in order to qualify for their loan. The loan is pulled out from under their feet and their dreams of owning that new home crumble.

Fannie Mae’s “Loan Quality Initiative” was introduced in a letter to lenders February 26,2010. In this letter it was noted that during the past three years the need has been elevated for “an improved approach for working with lenders to deliver loans that meet Fannie Mae’s underwriting and eligibility guidelines”. To put it plainly, the loans that had been given to Fannie Mae previously too often turned out not the meet their guidelines. Sadly, this tended to be discovered well after Fannie Mae purchased the loan which of course but their own profit earning on those loans in jeopardy. The idea of this new initiative is to focus “on capturing critical loan data earlier in the process and validate it before,during, and immediately after loan delivery”. Yes, my friends, big brother IS watching and they want to know if you bought that 56 inch plasma flat screen instead of shelled over that cash to them.

The qualification of the borrower was not the only issue of concern. Among other items were determining owner occupancy (how many people you have living in a house), verification of social security numbers (are you who you say you are?), updated quality-control requirements (tracking), and a new policy on excluding certain entities from Fannie May loans (???).

To be quite honest, Fannie Mae guidelines should not require updated “refreshed” credit checks to be performed for borrowers. Fannie May states that “it is the LENDER’s responsibility to develop and implement it’s own business processes to support compliance with Fannie Mae’s requirements on loans delivered to us”. While it seems like Fannie Mae wants to set their own rules or take their toys home and cry if we don’t all play by their rules they do state in the same memo a few tips for lenders to consider: like refreshing the borrowers credit report just prior to closing.

Is it likely that a lender who sells its loans to Fannie Mae is going to ignore such tips? Uh, NO.

Their tips show that not only might a refreshed credit report show newly acquired debt but also that is might show new credit inquiries as well.”Credit inquiries listed on the credit report should be investigated to determine whether the borrower did in fact open additional credit resulting in repayment obligations.” You might want to wait on getting that new car or toy til AFTER  your house closes.

Some say that given recent events it is unreasonable to fault Fannie Mae for tightening their grip on procedures. Buyers need to remember that loan approval is based on statements of income and liabilities at the time of the loan application and if those factors change prior to closing it is likely to be found out and could very well undo any dealing.

Don’t let this news scare you off, it’s just one more little detail to consider and be informed about before you buy your home in Idaho. I can help you steer clear of these possible pitfalls and troubles BEFORE they become an issue and put your dreams of home ownership in Idaho at risk. Contact me, Bill Cady, today to start finding the best real estate in Eagle and Idaho today!

Looking at the latest housing numbers released last week by the Commerce Department and the National Association of Realtors, one has to say that we definitely are seeing some improvement and are on track for an amazing year in real estate sales.

Single family median home prices are up by 4.5 percent for the year. Even in the Midwestern states, where the recession has been an anchor on real estate longer than other regions , prices have jumped by 6 percent.Resales of houses and condos in April were up by almost 8 percent – and now are 23 percent higher than they were the year before.Sales of newly-constructed homes also soared in April, up 15 percent. They’re 48 percent higher than April 2009.

So is there no need for concern? Isn’t all this great, super news for Realtors, home buyers, and real estate developers alike? That there will be no feared “double-dip”, or a fragile bottom waiting to drop out from under the market and send it into the economic sub-basement?

That’s right! These newest figures ARE great news, verging even on the extraordinary….but.

There is a little perspective we need to gain on the situation, the new numbers are great for a reason.

Most economists agree that April sales totals, maybe even March, are distorted upwards because of the expiring federal tax credits, padding the results with a little good old fashioned blue light special frenzy! Thousands of home buyers rushed to complete their contracts in the past two months to get the federal credit before it disappeared.

No one is debating that some real estate purchases were accelerated. “The upswing in April sales was expected because of the tax credit inducement, and no doubt there will be some temporary fallback ahead.” said Lawrence Yun, chief economist for the National Association of Realtors.

Many economists and market experts warn that we may see sales fall to another low for a month or two, even during the regularly very active summer months as a natural feedback reaction to the tax credit rush. Regardless of which most agree that in the longer term, if the overal economy can continue to rise even slightly we should see an excellent return to upward moving statistics. Not only do consumers have growing confidence in the economy and their own incomes, but as Yun points out: home buyers no longer fear further price declines — and that’s a crucial turning point in the cycle.

I can help you find the best homes in Meridian Idaho, Eagle Idaho and anywhere in the great gem state! My Idaho Realtor website has the fast home searches, and local area info you need to move or relocate! Call Bill Cady today, or visit my site to start finding the dream home of tomorrow, today!

New-home sales rose 26.9% to a seasonally adjusted annual rate of 411,000 last month, compared to an upwardly revised annual rate of 324,000 in February, the Census Bureau said. The gain snapped a four-month streak of declines.

A consensus of economists surveyed by Briefing.com expected March sales to rise to an annual rate of 330,000. The March sales were the strongest since last July, and the percentage gain was the biggest on a month-over-month basis since a 31% gain in March 1963.

It’s a nation-wide event as new home sales spiked in every region of the United States with the South seeing the biggest jump in new home sales, up 43.5%, while the Northeast region saw sales climb 35.7%.

The West and Midwest regions both saw single-digit percentage growth, with the West up 6% and the Midwest up 4%.

It’s not just new home sales either.The Census Bureau data followed a report from the National Association of Realtors on Thursday that showed existing home sales soared nearly 7% in March, as new homebuyers raced to buy up properties before a tax credit expires on April 30. Have you gotten in on this historically unique real estate market? Time is almost up!

“It’s obvious that homebuyers are rushing in to take advantage of the tax credit that’s set to expire,” said Robert Dye, senior economist for PNC Financial Services.

In November, the government extended and expanded an $8,000 tax credit, which also allows some repeat buyers to qualify for a $6,500 credit. Buyers have until April 30 to qualify.

Home sales are expected to see continued strength in April’s data before “tailing off” through the summer as the group of buyers who rushed in are “all spent out” and the tax credit dries up.

An estimated that 228,000 new homes hit the market in March. At the current sales rate, it would take 6.7 months to sell through that inventory, down sharply from an estimated 9.2 months of inventory in February.

Although new-home sales in March exceeded analyst expectations, sales are still trending near record lows, and home prices are still under pressure thanks to oversupply.

Average pricing of a new home was $258,600, according to the Census Bureau. That was virtually flat compared to a year earlier, and 12% below average prices in 2008. With the job market still floundering there is a real threat the housing market. April unemployment rates are expected to dip to a still-high 9.6% from March’s 9.7% when data are announced May 7.

More solid house prices and an improving jobs market are KEY to make recovery felt on Main Street as well as Wall Street, and these latest figures are reason to have hope for a turn around.

It all starts at the curbside. This will be the first thing buyers see when they roll up and truly it can make or break a deal, no matter what other awesome features your home might offer.

• Claim the yard. Don’t let the first impressions be the LAST one. Spruce up curb appeal by maintaining a clean yard, adding plants for a splash of color and applying a fresh coat of paint to the front door. Keep the yard trimmed and weed free and wash down the exterior of any dirt that might have settled over the long winter months.

• Foyers are for flourishing. That first step into the house can be a big deciding moment. The home portal sets the tone for the entire home. Make the space up-to-date, well-maintained and eye catching — top to bottom. Clear any toys or clutter from the entrance to your home, use lightly scented air freshers or plugins to give the air a fresh scent.

• Beige is the new boring. Don’t let neutral colored walls dominate a room much less your entire home. Splashes of color can liven up boring spaces. Throw pillows, artwork and fresh flowers add pops of color and personality – a nice area rug can really tie the room together.

• Kitchens shouldn’t be crazy. Keeping things consistent is a big plus. All countertops and cabinets should match or compliment the overall area. New hardware, a new backsplash and a thorough cleaning can transform a bleak kitchen into one with smiles. If it is financially feasible consider any updates to
the countertops or flooring that might be needed.

• Declutter the Dining room. De-cluttering and depersonalizing is the first rule of home staging. It can be hard for homebuyers to envision living in a home that’s full of the seller’s personal items. You want your home to be welcoming, clean, and open not necessarily filled with your personal tastes.

• Find focal point faux-pas. You can highlight the great features of your home by positioning furniture to showcase them. Fireplaces and window views will be noticed by a buyer if they are positioned in a way that they become the focus of the room.

• Patio perks! Your living space doesn’t end at the back door! You can capture a higher selling price by cleaning and adding style to any outdoor space with furniture, landscaping, and accessories.

• Be Master of the master suite. Work with what you’ve got – you’ll save time and money! Using what is already part of the room,repositioning the furniture, and making your master suite inviting will highlight the room’s best features.

• Beware bathroom blues. Old grandma wallpaper or outdated fixtures can kill a perfectly good bathroom! Apply a fresh coat of neutral-hued paint and new hardware to modernize and brighten.

• Repurpose rooms. It’s not an extra bedroom it’s a BONUS room! Or an executive office suite! People are funny but sometimes it is all in the name; the value of a space decreases when homebuyers see a room without direction. Almost every homeowner is guilty of having a “junk room”, but at least for the time during which you are showing your home, that’s now your “library” instead!

The REAL secret to getting homes in Eagle sold? Working with a quality Eagle Idaho Realtor is the first step and Bill Cady provides the best service and skills in the Treasure Valley.

Good news: HUD and the U.S. Department of Veterans Affairs have issued several new rules that will help loosen the tight credit markets. This comes as great news during a time when the banks and lenders are all adjusting to new ways of having to do business.

1. Waiver of flipping restrictions

On Jan. 15, HUD announced a one-year waiver of the resale rules applicable to Federal Housing Administration-insured loans in relation to “flipping” homes. FHA’s anti-flipping rules do not allow FHA-insured loans to be used to purchase a home if a seller acquired a title within 90 days of the date of sale. To qualify for this waiver, the sale of the property must have no commonality interest between buyer, seller or other parties participating in the sale transaction. Should the new price exceed the initial price by 20%, additional conditions must be satisfied, such as proof of the seller’s legitimate renovations or repairs that support the increase in value. If no such work has been performed, the appraiser must provide an appropriate explanation of the increase in property value. Doubtlessly this will help stem the flow of artificially inflated resale prices.

2. New rules designed to help consumers better compare settlement costs

The most significant changes to the Real Estate Settlement Procedures Act have modified the manner in which settlement charges are disclosed on the new good faith estimate forms. As of Jan. 1, 2010, HUD’s new GFE form must be used in all residential mortgages. HUD recently clarified the level of change it will tolerate on the new GFE. Depending on the type of settlement service, the charges quoted on the GFE fall into three categories: charges that cannot change on the GFE (HUD calls these “first bucket” charges) charges that can increase up to 10 percent on the GFE (”second bucket” charges) charges that can change without regard to the amount stated on the GFE (”third bucket”). The loan origination fee would be a first bucket charge. Appraisal fees would be a second bucket charge. Daily interest fluctuation would be a third-bucket charge. The intent of the new GFE is to disclose all charges in a simpler form so that the consumer can make an appropriate comparison of services provided by a variety of lenders. The estimates on the new GFE must be good for 10 business days and must be fully disclosed on the new HUD-1 settlement statement forms.

3. Disclosure of real estate broker commissions under RESPA

On Jan. 22, HUD’s general counsel issued a clarification of how real estate broker commission fees are to be disclosed on the HUD-1 settlement statement. RESPA now allows Realtors to charge a flat fee or a percentage fee, as long as: (a), the fee is disclosed in the listing or buyer’s broker agreement; (b), the fee charged on the HUD-1 form is equal to what was disclosed; and (c), the fee disclosed on line 700 of the HUD-1 is disclosed as part of the commission. HUD goes on to state that RESPA does not prescribe how commissions should be distributed between the listing and seller brokers; therefore the division of compensation is negotiable.

4. New rules addressing the disclosure of VA origination fees on the new GFE

A qualifying borrower may be charged up to a 1-percent loan origination fee on VA loans, together with certain other allowable charges. But the new GFE form lumps all origination fees and other allowed charges into one category called “our origination charge.” The VA’s new circular explains how to properly identify these charges on the GFE when the origination fee, together with other allowable fees, exceeds 1 percent of the loan amount.

Two options are available: The lender can itemize the charges in section 800 of the HUD-1 settlement statement, or the lender can issue a separate origination statement, to be signed and dated by the borrower, indicating the purpose of the charges and the amount. If a lender chooses the second option, the HUD-1 should not be separately itemized. While the VA is encouraging lenders to comply with its new rule immediately, lenders are not required to comply with this new rule until May 1.Lenders are no longer required to issue an interest rate and discount disclosure statement for VA-guaranteed loans if the new GFE and HUD-1 have been used. But in all cases the GFE and HUD-1, as well as copies of any invoices for all third-party service providers, must be maintained in the file and submitted to the VA if a file is selected for review.

The residential mortgage lending community was hit hard when the housing bubble burst in 2008. HUD and the VA, however, are taking steps to help the market recover.

Want to find homes in Meridian Idaho online? Maybe you need to sell your current Idaho home? Either way I can help your next move be the right move! Contact me, Bill Cady, today to find the home in Meridian or anywhere in the Gem State that you have been looking for!

article credit to: Hafez Daraee is an attorney in Jordan Schrader Ramis’ Dirt Law and business-law practice groups.