Be Upfront

When you are purchasing a newly constructed home, do not be afraid to ask the builder what he can do in regards to paint, wallpaper, materials, appliances, and fixtures.  No matter the stage of home construction, make sure you address what you want over the next phases of construction to ensure you end up with the home you want.  Most builders will be flexible into what they can do for your home, and also remember to try and complete construction before closing.  If not, just negotiate with the builder to ensure there is adequate incentive to timely complete construction.

Ask the Builder about Financing

Builders will often have relationships with various banks and financial institutions, and may be able to offer financing.  Make sure you secure financing before moving to far in the searching process.

Don’t Be Afraid to Negotiate

In today’s market, you will want to understand how to negotiate.  The buyer still has substantial power in the market, and you will want to understand how to appropriately negotiate not only a good price, but how your home is built.  Educate yourself before you enter the process and make sure you understand the details.  You will usually pay more for a new home, but you will have the advantage of selecting energy saving appliances and custom design.

Get Educated

When you are going through the process of purchasing a newly built home, or you are setting out to start from scratch, you will want to educate yourself before you start.   Make sure you understand all elements of the process, including the warranty offered by the builder.  Read all documents, and make sure you understand your liability or exposure, as well as understand how the builder’s warranty is backed.   Finally, make sure you check the history of the builder and look into other people’s experiences with the company.

South Carolina will get almost $34 million from a $25 billion pot of money that five major bank-owned mortgage servicers are funding to address foreclosure abuses, fraud and other practices, state Attorney General Alan Wilson today.

He said South Carolina is among the 49 states included in a joint federal-state “settlement in principle” with the companies. Wilson said he used that term because a final document has not been presented to the states. Oklahoma is the only state that did not agree to the deal.

“This ‘settlement in principle’ provides certain protections for consumers dealing with the difficult issue of mortgage foreclosure,” Wilson said in statement. “It also provides certain guidelines for how these mortgage servicers should operate going forward.”

The settlement puts in place the first-ever nationwide reforms to mortgage servicing standards.

Wilson’s office said the standards require the five companies to offer a single point of contact, adequate staffing levels and training, better communication with borrowers, and appropriate standards for executing documents in foreclosure cases. Also, they have agreed to end improper fees and dual-track foreclosures for many loans.

Approximately $2.5 billion will be paid to the participating states, with $32.8 million going to South Carolina. Also, each state’s banking regulator will receive $1 million for foreclosure prevention and education.

Another $1.5 billion will be distributed to certain borrowers who experienced foreclosure.

The separate $17 billion federal portion of the settlement requires the five banks to provide assistance to borrowers in danger of foreclosure who have the intent and ability to stay in their homes.

In addition, the deal requires the banks to offer refinancing to borrowers who are current on their payments but whose mortgages currently exceed their home’s value, or are “underwater.” That assistance is valued at $3 billion.

Wilson’s office said due to the complexity of the mortgage market and the agreement, which will be executed over a period of three years, borrowers will not immediately know if they are eligible for relief.

Banks will be identifying eligible borrowers, a process that could take six to nine months.

Wilson’s office provide contact information for borrowers who think they qualify for loan modifications and want to talk with the banks directly:

Bank of America: 877-488-7814

Citi: 866-272-4749

Chase: 866-372-6901

GMAC: 800-766-4622

Wells Fargo: 1-800-288-3212

A website has been set up at www.NationalMortgageSettlement.com with more details.

Remember to Consider All Costs

When you are a first-time homebuyer, you need to remember that even though you feel you are ready to assume a mortgage payment you may not be ready to assume all the additional costs associated with owning a home.  Make sure you take into account:

• Property Taxes
• Property Insurance
• Mortgage Insurance
• Homeowners Association Dues
• Monthly Maintenance
• Higher Electric Bills
• Higher Water Bills

Start with Mortgage Approval

Do not jump ahead to searching for a home.  Your first step should be to seek prequalification for a mortgage loan.  You need to start by seeking prequalification, which will give you a true sense of what you can afford.  Then go look for homes and residences that fall within your range of affordability.

Seek Experts in Your Agent and Loan Officer

When you are new to the home buying process, you will want to seek out experts to help you sort through the details.  Find a reputable real estate agent, who comes recommended.  Also find a quality loan officer that you feel comfortable with.   You may also want to seek out second opinions in regards to certain elements of the process, whether it is advice from your agent or loan officer.  Finally, a real estate lawyer may come in handy if you can seek out one who is well referenced.

Do Not Spend Everything You Have on the Down Payment

When you are looking for your home and going through the prequalification process, remember not to commit all of your savings towards the down payment.   When you reach a 20% down payment, that may save you mortgage insurance, but exhausting your savings is not the best answer.  It is important to maintain a savings account to still cover rainy days.

Don’t Put the Cart Before the Horse

Once you have pre-qualified for a loan, then you can start home searching.  After you have found the home of your dreams, remember that the once the contract is signed you should avoid any other big financed purchases in the 30 days prior to closing.   When you are in this 30 day time period, your lenders will probably pull more credit reports, and newly financed purchases or new loans may damage your credit or hurt your ability to get through the closing.  Remember to finish through the closing before making those big purchases for you new home!

The benchmark 30-year fixed-rate mortgage fell 13 basis points this week to 4.12 percent, according to the Bankrate.com national survey of large lenders. A basis point is one-hundredth of 1 percentage point. The mortgages in this week’s survey had an average total of 0.29 discount and origination points. One year ago, the mortgage index was 5.02 percent; four weeks ago, it was 4.18 percent.

The benchmark 15-year fixed-rate mortgage fell 11 basis points to 3.34 percent. The benchmark 5/1 adjustable-rate mortgage fell 7 basis points to 3.02 percent, and the benchmark 30-year fixed-rate jumbo fell 7 basis points to 4.55 percent.

This is the lowest the rate on 30-year fixed mortgages has reached since Bankrate started its weekly survey in 1985. The 15-year, 5/1 ARM and 30-year jumbo rates are record lows, too.

It is hard to assess how long mortgage rates will remain so low.  Many homeowners are still dealing with the hard fact that they owe more on their mortgages than their homes are worth, which is due to the general steep decline in home prices that has taken place throughout the US.  This fact is one reason why the current administration has kept rates at these low levels, but it is hard to know how long it will last.

Because the cost of debt remains at such low levels, it truly provides qualified buyers a great opportunity to purchase a home and take advantage of the times.  I hope this brief update on mortgage rates has been helpful.  If you want to discuss this blog further, or if you are considering a real estate investment in  in the Charleston, SC area, then don’t hesitate to reach out for advice and information on available properties.

You can reach me via email, bob-chambers@infinityrealty.com, or by phone, 843-849-3005.  The Charleston real estate market has some fabulous homes available right now that I’d love to walk you through. Get in touch with me today so we can take advantage of the favorable buying market!  Talk to you soon!

WASHINGTON — Home sales rose in December to the highest pace in nearly a year. The gain coincides with other signs that show the troubled housing market improved at the end of last year

Still, sales remain depressed and ended 2011 well below healthy levels.

The National Association of Realtors said Friday that sales increased 5 percent last month to a seasonally adjusted annual rate of 4.61 million, the best level since January 2011 and the third straight monthly increase.

For the year, sales totaled only 4.26 million. While that’s up from 4.19 million the previous year, it’s below the 6 million that economists equate with healthy housing markets.

Sales are increasing at a time when the market is flashing other positive signs. Mortgage rates are at record-low levels. Homebuilders have grown slightly less pessimistic because more people are saying they might be open to buying a home this year. And home construction picked up in the final quarter of last year.

The median sales price rose 2.3 percent to $164,500 in December.

Hiring has also improved, which is critical to a housing rebound. Applications for unemployment benefits are near a four-year low. The unemployment rate fell in December to its lowest level in nearly three years. And companies are coming off their best six-month stretch for hiring since 2006.

Still the housing market has a long way to go before it is fully recovered from the housing bust four years ago. In the last four years, home sales have slumped under the weight of foreclosures, tighter credit and falling price.

Fewer first-time buyers, who are critical to a housing recovery, are in the market for a home. Purchases by that group fell last month to make up only 31 percent of sales. That’s down from 35 percent in November. In healthy markets, first-time buyers make up at least 40 percent.

At the same time, homes at risk of foreclosure made up a third of all sales last month. In healthy markets, they comprise 10 percent of sales. Investors are increasingly buying homes priced under $100,000.

Still, Sales rose across the country in December. They increased on a seasonal basis by more than 10 percent in the Northeast, 8.3 percent in the Midwest, 2.9 percent in the South and 2.6 percent in the West.

The glut of unsold homes declined to 2.38 million homes. At last month’s sales pace, it would take a nearly 7 months to clear those homes. Analysts say a healthy supply can be cleared in about six months.  (Post and Courier)

I hope this information has been helpful.  If you are considering purchasing a home in 2012 in the Charleston, SC area, then don’t hesitate to reach out for advice and information on available properties.  You can reach me via email, bob-chambers@infinityrealty.com, or by phone, 843-849-3005.  The Charleston Real Estate market has some fabulous homes available right now that I’d love to walk you through.  Get in touch with me today so we can take advantage of the favorable buying market!  Talk to you soon!

If you are considering purchasing a home, you know that there are many reasons and purposes behind this motivation.  Your reason to purchase can be because of family reasons, for extra space, or finally because it makes economic sense.  When you are analyzing whether to rent or own, try to focus on the economics of the situation.  Get the facts and perform your due diligence in regards to affordability, savings, and long-term financial ramifications.  Then start pulling in other factors behind your reason or motivation to purchase, and finally make a complete list of all the pros and cons.

When considering a home purchase, you should try to look beyond the incentive to gain on your investment.  Historically, the gains will on average be somewhat milder than what you could expect in the stock market or elsewhere, and you should think more in terms of building equity.  The New York Times and other news publications have some great tools you can use to analyze the factors in home ownership and renting.  These tools help you determine when it makes economic sense to purchase.  Check out the tool from the NY Times to see what makes sense for you.

In addition to these tools, you should consider some other advantages to home ownership, like the ability to deduct parts of your mortgage interest from your taxes each year.   Also, the ability to build equity over time and lock in a historically low interest rate are both great opportunities that come with home ownership.  Of course, timing is always an issue here.  Look back over 30 years or more, the average term of a mortgage, and look at historical mortgage rates to help in your decision.  You can also consider adjustable rate mortgages.  As a potential buyer, you will also want to think about how long you expect to stay in the area you are looking into for a home.  If you think you might change jobs, or lose your job, or move soon for any reason, then taking on the closing costs and other home buying fees for a short period of time may not make sense.

As you can tell, there are many factors to consider when you think about home buying.  However, I hope this information has been helpful, and I wish you all the best in your decision.  If you are considering purchasing a home in 2012 in the Charleston, SC area, then don’t hesitate to reach out for advice and information on available properties.  You can reach me via email, bob-chambers@infinityrealty.com, or by phone, 843-849-3005.  The Charleston Real Estate market has some fabulous homes available right now that I’d love to walk you through.  Get in touch with me today so we can take advantage of the favorable buying market!  Talk to you soon!

Instead of developing areas where you need to cut spending (no more Starbuck’s lattes or eating out) and forming a budget, you should look into developing specific savings pools, “ When it comes to saving, decide what specifically you want to save for. Then, set up separate pools of money, or “buckets,” for each goal and contribute to them on a regular basis…buckets are more in keeping with how people naturally think about their money” (Wall Street Journal).

If your goal is unspecific (save more) then it is really too abstract  of a concept for you to make solid headway in 2012.  If you are saving for specific goals or within pools or buckets like “trip to Europe” or “new car,” then you are typically more likely not to transfer from these accounts.

When it comes to improving how you organize your debt, “one solution is to use your plastic the way it was meant to be used, paying for pizza and lattes with your debit card and putting the couch on your credit card. Beyond that, some credit-card issuers, such as Chase, let you separate out on your statement the charges you want to pay off right away with no interest (pizzas, lattes) from those you want to pay off over time or even in a certain number of installments (couches) (Wall Street Journal).

Finally, there are plenty of money management tools out there to make your job easier.  For example, Intuit’s Quicken software and Mint.com are both great options that let you monitor your spending and periodically measure your progress towards specific goals

I hope this information has been informative, and I wish you all the best this year as you go after your resolutions.  If you are considering a real estate investment in 2012 in the Charleston, SC area, then don’t hesitate to reach out for advice and information on available properties.  You can reach me via email, bob-chambers@infinityrealty.com, or by phone, 843-849-3005.  The Charleston Real Estate market has some fabulous homes available right now that I’d love to walk you through.  Get in touch with me today so we can take advantage of the favorable buying market!  Talk to you soon!

Why do people refinance?

The principal goal of refinancing is to lower your monthly mortgage payments.  If you notice that rates have significantly dropped since you obtained your first mortgage, then you might be able to refinance – meaning adjust your mortgage to the new lower rates resulting in a lower monthly obligation.  However, there are some other reasons people would seek refinancing on their mortgage.  For example, some individuals might be seeking the ability to tap into the equity that they have built up in their home.  This is known as a “cash – out –refinancing” which means that you would take out a new mortgage based on the home’s current appraisal or worth, then you would pay off the remaining balance on the old loan, and pocket the difference.  So if you owe $50,000 on your $200,000 home, then you might refinance a $75,000 amount, where ideally you would receive a better rate on the $50,000 you owe for your home, and then you would get $25,000 in cash.  Other reasons people might refinance include reducing the length of mortgage term, or to switch to an adjustable-rate-mortgage (ARM).  ARM financing means that your rate would change based on conditions in the market.

When is it a good idea to refinance?

Typically, as an old rule of thumb, it was considered timely to refinance when the current interest rate was 2 percentage points below your rate.  However, you should really focus on understanding how long it will take for you to break-even on the costs to refinance, and how long you would like to stay in your home.  Even with so-called “no-cost” refinancing options, you should expect fees of some sort wrapped into your new loan balance or within your new rate.  Try to estimate how much you will save per month on your new refinanced rate, and determine how long you will have to reap these savings for you to cover your refinancing costs and then truly save from the new terms.

How should you compare loans?

When you are comparing loans and looking for refinancing options, you should first check out the APR, annual percentage rate.  This rate represents the total amount of charges for credit annually, stated as a percentage.  This makes it fairly easy for you to compare loans from different lenders, but you may also want to ask each lender to provide a full list of all the fees associated with the new mortgage so you can precisely compare your options.

I hope this brief refinancing guide has been helpful.  If you want to discuss this blog further, or if you are considering a real estate investment in 2012 in the Charleston, SC area, then don’t hesitate to reach out for advice and information on available properties.  You can reach me via email, bob-chambers@infinityrealty.com, or by phone, 843-849-3005.  The Charleston Real Estate market has some fabulous homes available right now that I’d love to walk you through. Get in touch with me today so we can take advantage of the favorable buying market!  Talk to you soon!

1. Gather your records Round up any documents you’ll need when filing your taxes: receipts, canceled checks and other documents that support income or deductions you’re claiming on your return.

2. Be on the lookout W-2s and 1099s will be coming soon; you’ll need these to file your tax return.

3. Have a question? Use the Interactive Tax Assistant available on the IRS website to find answers to your tax questions about credits, deductions, general filing questions and more.

4. Use Free File Let Free File do the hard work for you with brand-name tax software or online fillable forms. It’s available exclusively at www.irs.gov. Everyone can find an option to prepare their tax return and e-file it for free. If you made $57,000 or less, you qualify to use free tax software offered through a private-public partnership with manufacturers.　If you made more or are comfortable preparing your own tax return, there’s Free File Fillable Forms, the electronic versions of IRS paper forms. Visit www.irs.gov/freefile to review your options.

5. Try IRS e-file IRS e-file is the　safe, easy and most common way to file a tax return.　Last year, 79 percent of taxpayers – 106 million people – used IRS e-file. Many tax preparers are now required to use e-file. If you owe taxes, you have payment options to file immediately and pay by the tax deadline. Best of all, the IRS issues refunds to 98 percent of electronic filers by direct deposit within 14 days, if there are no problems, and some may be issued in as few as 10 days.

6. Consider other filing options There are many options for filing your tax return. You can prepare it yourself or go to a tax preparer. You may be eligible for free face-to-face help at a volunteer site. Give yourself time to weigh all the options and find the one that best suits your needs.

7. Consider direct deposit If you elect to have your refund directly deposited into your bank account, you’ll receive it faster than a paper check in the mail.

8. Visit the official IRS website often The IRS website at www.irs.gov is a great place to find everything you need to file your tax return: forms, publications, tips, answers to frequently asked questions and updates on tax law changes.

9. Remember this number: 17 Check out IRS Publication 17, Your Federal Income Tax, on the IRS website. It’s a comprehensive resource for taxpayers, highlighting everything you’ll need to know when filing your return.

10. Review! Review! Review! Don’t rush. We all make mistakes when we rush. Mistakes slow down the processing of your return. Be sure to double check all the Social Security numbers and math calculations on your return as these are the most common errors. Don’t panic! If you run into a problem, remember the IRS is here to help. Start with www.irs.gov.

I hope this information has been informative, and I wish you all the best this year as you organize and prepare your filings.  If you are considering a real estate investment in 2012 in the Charleston, SC area, then don’t hesitate to reach out for advice and information on available properties.  You can reach me via email, bob-chambers@infinityrealty.com, or by phone, 843-849-3005.  The Charleston Real Estate market has some fabulous homes available right now that I’d love to walk you through.  Get in touch with me today so we can take advantage of the favorable buying market!  Talk to you soon!

(MONEY Magazine) — Last year the economic forecasting firm Fiserv predicted that home values would sink around 5% in 2011, and that prices in three-quarters of the nation’s major metro areas would fall. The bad news is, the firm wasn’t that far off the mark. The good news: In the coming year, Fiserv thinks 95% of the 384 metro areas it tracks will see prices rise.

Don’t expect the market to move much beyond first gear, though. The median expectation among more than 100 economists and real estate pros surveyed by MacroMarkets is that home values will inch ahead by a mere 0.25%, compared to their 2011 median forecast decline of 2.8%. They also foresee annualized gains through 2015 of just 1.1%, as the real estate market slowly works its way through a mountain of foreclosures.

Those foreclosures will continue to weigh on the market. According to Core- Logic, there are 5.4 million homes that are for sale or part of the market’s “shadow inventory” — which includes bank-owned properties, homes in the foreclosure pipeline that haven’t hit the market yet, or properties where owners are seriously behind on payments.

To put that in perspective, Freddie Mac forecasts that only 4.8 million homes will be purchased in all of 2012. A market with six months of inventory is considered healthy. That there’s more than a year’s worth of housing stock now tells you what a tough slog this will still be. “It’s analogous to a flood,” says Mark Fleming, CoreLogic’s chief economist. “The water is very deep in the living room, but it’s no longer getting deeper and is starting to recede.

Helping that process along will be low-interest-rate mortgages that are expected to remain cheap. Jay Brinkmann, chief economist at the Mortgage Bankers Association, says the 4.2% rate on a 30-year fixed rate in late October might not last long. Still, he expects the 30-year fixed mortgage rate to stay below 5% throughout 2012.

The action plan: It will pay to think small — as in reduce your mortgage bills and focus on modest homes.

Buyers: Downsize the dream. For those gearing up to make a purchase, 2012 could be a great opportunity, what with cheap prices, low borrowing rates, and little competition among prospective bidders.

Before you take the plunge, remember that the price you pay matters, as does your ability to easily resell that home down the road.This means it’s best to focus on smaller properties in your area near restaurants and retail. McMansions of at least 2,600 square feet, which were the ideal in the boom years, are coveted by a mere 18% of households today, according to a recent survey by Trulia. And that figure could fall even more.

A separate survey by the National Association of Home Builders found that home-construction firms expect U.S. houses to average 2,152 square feet in 2015 — down 10% from last year.

Some of this is attributable to the lingering effects of the past recession, which has eaten into housing budgets. But there’s also a permanent change at play. “Baby boomers are trading down. They don’t need the McMansion, and they don’t want to drive as much,” says Trulia chief economist Jed Kolko.

Sellers: Price it right. The longer you can wait for prices to stabilize in your area and for demand to pick up, the less likely you’ll need to entertain low-ball offers. If you have to make a move in 2012, though, the trick will be to price your home correctly out of the gate.

According to a recent national survey of real estate agents, 75% of homeowners believe their house is worth more than what agents put the fair market value at, and nearly one in two homeowners still overestimate their home’s value by more than 10%.

Meanwhile, Trulia reports that about one in four homes in its database has gone through at least one price reduction, and the average price cut for those homes is 8%.

Joe Magdziarz, president of the Appraisal Institute, says you and your agent should stick with comparable sales data just within the past 90 days, as that’s what lenders expect appraisers to use.

I hope your 2011 was spectacular, and wish you the best in the New Year!