Farmington Hills

Don’t even try to scrimp on this cost if you are purchasing a new/used home. This is probably some of the best money that you will spend in purchasing your home. It can save you heartache and future hardship. Getting a good qualified inspector is imperative in beginning your inspection process. After you have found the home of your dreams, the last thing you want it to become is a nightmare or money pit. There are so many possibilities of hidden issues that a good inspector can uncover so you know exactly what you are getting into.

Sellers are supposed to fill out a “seller’s disclosure” letting the prospective purchaser know what the problems are that currently exist in the property. However, there are some things that the sellers may not even know about. How many times do sellers go up in their attic to check and see if there is mold?

How many times do sellers put moisture meters on the areas that they think might have water issues? Many sellers truly do not know all of the problems that might be lurking about in the home that they are living in.

Most inspectors will also let you know how to maintain certain areas of the home so that you can keep from having problems in the future. This knowledge alone can be priceless if it keeps the present roof from having to be replaced in 3 years instead of 6 or having windows last longer than they could otherwise.

A good inspector will go through the home thoroughly explaining along the way and answering your questions as he goes. You should also get some type of written report so you have that to review once the inspection is completed.

After moving in, it is a good idea to keep notes of all the maintenance that you do; so, you have a timely record of what things are coming up to be done and what things you have already taken care of and no longer have to be concerned about.

Yes, home ownership is wonderful; but, it is also a responsibility. One, that if you take seriously, will be to your advantage in the years to come.

….Or in any market for that matter. If you are faced with the prospect of selling your home in today’s market, there are definitely things that you can do to give yourself the best advantage for getting the most money that a buyer is willing to give you for your home in this market. Unfortunately, the sellers are still competing with foreclosures and short sales keeping private owned homes in the background for most buyers. The last thing you want to do as a seller is put more money into your property to get it sold as you are not likely to get much of a return on that money., However, there are some things that sellers can do to really help their property sell that won’t cost them as much as the positive return that they will get.

First of all, clean your property so it shines. Clean the inside until it sparkles and remove all clutter to make your space look as large as it can. Clear all debris from the outside and keep your lawn and landscaping trimmed.

Paint is one of the best things you can do as a seller to improve the looks of your property inside and outside. It is inexpensive and makes the property feel clean. A new paint job definitely uplifts a dreary listing. Also, removing wall paper can be a tremendous plus to helping your property show at its best. Much wall paper is dated and doesn’t do anything to help the property shine. I will say, as much as I love the new colorful paint, unless you are an interior decorator, I would keep the paint colors neutral. Let the new buyers envision what they might want to do with the decor should they decide to become the new owners to your property.

Again, not the best time to be a seller. However, if you can then become a buyer, this sale could be the best one you will ever make.

There was very little daily movement in mortgage rates during the holiday-shortened week, and they ended the week nearly unchanged. The economic news during the week contained few surprises.

Following better than expected results for May, investors were closely watching the June Employment report for clues about the timing of any economic recovery. Thursday’s data showed that the economy lost -467K jobs in June, and the Unemployment Rate rose to 9.5% from 9.4% in May. Average Hourly Earnings, a proxy for wage growth, rose at a slim 2.7% annual rate. High unemployment and slow wage growth have caused consumers to save more and spend less. Since consumer spending accounts for about 70% of economic activity, the slowdown in spending has had a large impact on economic growth. For mortgage rates, however, low wage inflation and slow economic growth are favorable.

While the Employment report may have captured the most attention, the week began with a significant annoucement from Chinese officials. According to the head of China’s central bank, there will be no sudden changes to China’s foreign reserve policy, meaning that China will not pull back from buying US bonds. Over recent months, investors have been concerned that foreign central banks would decide to scale back their purchases of US bonds, so this was very welcome news. Recent Treasury auctions have confirmed that foreign demand remains strong.

Treasury auctions may have the greatest impact on mortgage rates next week, with auctions on Tuesday, Wednesday, and Thursday. It will be a light week for economic data. ISM Services will be released on Monday. The Trade Balance, Import Prices, and Consumer Sentiment will come out on Friday.

MORTGAGE INFORMATION FOR FARMINGTON HILLS BUYERS

Tame inflation data helped mortgage rates move lower early in the week, but stronger than expected economic data turned them higher later in the week, leaving mortgage rates nearly unchanged from last week. The announcement of larger than expected Treasury auctions next week ($104 billion) also was negative for mortgage rates.

This week’s Consumer Price Index (CPI) and Producer Price index (PPI) data indicated that inflation is not a concern in the short-term. A significant decline in energy prices from one year ago resulted in a very low overall annual inflation rate. Even Core CPI, which excludes food and energy, rose at a tame 1.8% annual rate. However, the benefit from the favorable inflation news was offset by stronger than expected economic growth data. In particular, the Philadelphia Fed manufacturing index showed surprising improvement. In addition, May Housing Starts rose 17% from April, while Building Permits, a leading indicator of future activity, also exce eded expectations. This week’s data sets the stage for next week’s Fed meeting. With inflation currently low but at risk of increasing if the economy continues to improve, the Fed may be reluctant to introduce more stimulus, opting instead to wait and see how the economy performs.

President Obama this week proposed broad new rules for regulating the financial system. One proposal under the Obama plan would create a consumer protection agency which would have the authority to set rules for the mortgage industry. The details may not be known for quite a while, as the plan now faces a lengthy debate in Congress.

With major economic data, Treasury auctions, and a Fed meeting, next week will be a busy one. Existing Home Sales and New Home Sales on Tuesday and Wednesday will provide a look at activity in the housing sector. Also on Wednesday, Durable Orders will be an important indicator of overall economic activity. Personal Income and the Core PCE inflation index w ill come out on Friday. There will be large Treasury auctions on Tuesday, Wednesday, and Thursday. The announcement from the Fed meeting will be released around 2:15 et on Wednesday. Investors are divided about whether the Fed’s next move will be to increase or decrease the level of stimulus. Even if the Fed takes no action next week, the wording of its statement will be likely to have a significant impact on mortgage markets.

If you want more specific breakdown of this article, shoot me an email or just call me. I have a great mortgage contact for you.

FHA IS NOT JUST FOR THE 1ST TIME HOME BUYER as many people previously thought. FHA has come a long way over the many years to help buyers be able to call a house their own home. The percentage of FHA buyers has increased dramatically over just the past few years. FHA is not credit score driven and can have looser ratios than conventional financing.

There have just been some new FHA guidelines passed that might help certain buyers even more. Site condos used to have to get FHA spot approvals; and, the new word is that FHA will finally treat them as the single family homes that they have always been. As far as condos are concerned, the whole complex must now be FHA approved. You will no longer be able to get just a spot approval on a condominium that is in a complex that is not FHA approved. However, your lender can try and get the whole complex approved; and, if successful, will be able to give you an FHA loan on your unit.

FHA has increased it’s previous 3% down payment to 3.5%. A seller can contribute up to 6% of the purchase price and might also be able to waive tax pro-rations to give the buyer an even better advantage.

The tax credit for buyers that the government is granting if they purchase by December 1, 2009 might also be used with an FHA loan to help pay closing costs, buy down the rate or add to the 3.5% down payment. This is more than likely going to be up to the individual lenders as to which ones are going to work with this credit for the buyer. I am sure that this could be confusing for some buyers as to just how much credit they will be getting. The lenders will want to make sure that they are doing their calculations correctly for the borrowers or they could end up supporting some of the tax credit themselves.

If any/all of this sounds confusing to you and you would like further explanation, please give me a call and it will be my pleasure to try and answer whatever questions that you might have that will help you better understand the inner workings of these FHA loans.

HOME SALES DO SEEM TO BE ON THE UPSWING for Farmington and several other areas in our neck of the woods. How could they not be with these prices! I never thought that home prices would be this good again, First time buyers are able to get into homes that they only dreamed of before; and, to top it off, they receive up to an $8000 tax credit on their 2009 tax returns. Even if you are not a first time buyer; but, have just not owned a home for the past 3 years, you could be eligible for this tax credit.

The properties that are priced right for this market are selling; and, some of them even are getting mulitple offers. Maybe it is just because summer is near; but, there are definitely more people out looking for their new home then there have been in many months. Even if this only lasts a couple of months, it has to help in getting some of the pent up home inventory off of the market.

Faith in home ownership is still alive and well, it just takes a bit more effort. It takes a bit more effort with the financing, a bit more effort in searching out the good properties and a bit more effort in getting to the closing table. It might also take a bit more effort in searching out a good agent that can help you handle all of the obstacles of today’s market. Don’t hesitate to call us if you are in need of such an agent.

The Farmington Hills Library is a plethora of information and resources for those souls searching for answers. If you haven’t visited the Library in a while, you might find it very interesting to see the changes that the libraries of today have made over the libraries of yesteryear. Libraries are not just houses for books anymore. There is so much more for the average person to take advantage.

Computer use with internet access is available for free. There are buddy rooms, quiet rooms and designated children areas for kids to gather. Cafe areas and/or snack areas are usually available.

This is a free resource that people forget about. The Farmington Hills Library on 12 Mile Road between Farmington Rd. and Orchard Lake Rd. (right by the post office) is a newer facility with several levels designed to please all ages.

If you are searching for a home and you do not have computer/internet availability, you can go to the library and search realtor.com to look for houses. You can search the internet to help find an agent. You can read many books on real estate, buying, selling, legalities, etc. You can become very savvy in your real estate quest by visiting the library.

It is very easy to get your library card. You just need to show some ID. The library card can usually be used to check out books at any participating library. A free resource just waiting for you to come and check it out.

As the pressure for higher mortgage rates has increased in recent weeks, investors have speculated that the Fed would step in to “defend” certain interest rate levels, but that hasn’t happened. This week, Fed officials explained that their mortgage-backed securities (MBS) purchases are designed to support the mortgage market and not to set rates. The Fed’s MBS purchases of $25.5 billion this week were similar to levels seen in recent weeks. Disappointed that the Fed hasn’t increased its quantity of asset purchases, investors sold MBS this week, and mortgage rates moved higher.

A number of factors have been developing which typically push interest rates higher. The coming supply of debt needed to pay for government programs will compete for investor funds. Despite strong demand for this week’s large Treasury auctions, investors are concerned that higher rates will be required in the future. In addition, an improved economic outlook has made investors more willing to mov e funds to riskier assets and away from safer assets such as bonds. It also means that higher inflation may be a concern sooner than previously expected.

The difference between short-term and long-term rates reached record spreads during the week. With the Fed-controlled fed funds rate close to zero, short-term rates remained low. Long-term rates, which are market-controlled and influenced by investor expectations, rose significantly. A wide yield curve spread is often found during periods when the economy is strengthening.

Next week, the important Employment report will come out on Friday. As usual, this data on the number of jobs, the Unemployment Rate, and wage inflation will be the most highly anticipated economic data of the month. Early estimates are for a loss of about 550K jobs in May. Before the Employment Data, the ISM index, Personal Income, and Construction Spending will come out on Monday. Pending Home Sales, a leading indicator for the housing mar ket, will be released on Tuesday. ISM Services will be released on Wednesday, and Productivity is scheduled for Thursday. Fed Chief Bernanke will be testifying on Wednesday.

From 5/17/2009- 5/23/2009. 17 listed homes went under contract and/or sold in Farmington Hills last week from $16,200 to $349,000, 9 of which were bank owned or otherwise distressed sales.

31 new listings came on the market last week from $29,900 to $999,999, 9 of which are bank owned homes or otherwise distressed properties.

And, for the rental market, 4 homes recorded as being rented over the last week by an agent. Overall, 8 more homes were added to the rental market by an agent.

We all think that we know what Memorial Day is all about; however, many of us don’t truly give this day the respect and reverence that it deserves. I wanted to know more about how this day actually came about so I looked it up on Wikipedia and found out some facts that I never knew about.

Originally called Decoration Day, Memorial Day is a remembrance for all those who have died in our nation’s service. Memorial Day was officially proclaimed on May 5th 1868 by General John Logan, a national Commander of the Grand Army of the Republic in his General Order number 11. It was first observed on May 30th, 1868 when flowers were placed on the graves of Union and Confederate soldiers at Arlington National Cemetery.

Memorial Day is now observed by most states on the last Monday of May. Moina Michael conceived the idea to wear red poppies on Memorial Day to honor those who have died serving the nation during war. The VFW became the first veteran organization to sell red poppies shortly before Memorial Day in 1922.

Memorial Day is about reconciliation. It’s about honoring those who gave their lives.

In December 2000, there was a resolution passed to help re-educate and remind Americans about what Memorial Day is supposed to be about. This resolution is called the “National Moment of Remembrance”. It asks that all Americans pause at 3:00 in the afternoon (local time) and give a moment to remember and respect the lives that this day stands for.

The freedoms that we still have, which would include owning real estate, we have because of the many who have given their all.