Demetri's Real Estate Blog

For years we have been bombarded with enough doom & gloom to inspire a Steven King novel.  Unfortunately, much of it has been absolutely true and much that has changed because of it only prolongs the pain.  Let me start off by suggesting that our government return to being a government of the people, by the people, and FOR the people AND NOT for the lobbyists and big banks.  Since it is Thanksgiving week, I would prefer to focus on the good news and things to be Thankful for so here is my list:

1.  Existing home sales increased in October another 10%

2.  Ben Bernanke feels the housing market will actually "stimulate" the economy in 2010

3.  Fannie Mae is predicting an 11% increase in home values in 2010 even with a slow economy

4.  Mortgage rates dropped again

5.  Home inventories continue to decline, including foreclosure inventory

6.  This year presented the highest level of activity in housing since 2007

7.  The housing market has been trending upwards for the past 7 months

I hope you can use those bright spots to overcome all the doom & gloom news and have a Wonderful Thanksgiving Holiday!

Happy Thanksgiving!!

There are literally a million pointers that I could provide but I wanted to emphasize some important ones here, specifically regarding financing.  The real estate transaction has changed and continues to change daily thanks to the slew of government regulation that is constantly being thrown on us.  Pay attention because it could cost you your dream home.

1.  Don't change your job during the transaction.  Yes, it might seem like common sense but it does happen.

2.  Don't make any large unverifiable deposits.  I know that monetary gift from aunt Agnes was nice but the bank wants to know where it came from and why.

3.  Make a copy of your cancelled deposit check (front & back) and keep it in a safe place because the bank will likely want a copy to verify you really did make the deposit.

4.  Start getting the past few months of bank statements together (preferably printed from the bank with your name and account number on them), w2s, gift letter (if there is going to be a monetary gift from a relative).

5.  In addition to your down payment, plan on having 5% of the purchase price in reserves to cover closing and inspection costs.

6.  If you are purchasing a condo anticipate a longer time in underwriting.  If you are not going with FHA financing than you will likely need 10% down to go conventional.

Those are some good tips to keep in mind but you can view a complete guide to the buying process by clicking on the "Thinking of Buying?" button on the left menu bar.