Massachusetts Real Estate News You Can Use

- The Warren Group reported last week, the sales of single-family homes jumped 33 percent over last year and that the 2,350 homes sold in Massachusetts was the largest volume sold in February since 2007.

- According to The Wall Street Journal, Bank of America Corp. is launching a pilot program that will allow homeowners at risk of foreclosure to hand over the deeds to their homes and sign leases that will let them rent the houses back from the bank at a market rate. The initial scope of this program is small, but it represents a big change in the way banks may deal with borrowers who cannot afford their mortgages. 

- The National Association of REALTORS® (NAR) reports that the sale of investment homes jumped in 2011, with the combined market share rising to the highest level since 2005. The Investment and Vacation Home Buyers Survey shows that investment-home sales surged 64.5 percent to 1.23 million last year from 749,000 in 2010. Vacation-home sales rose 7 percent to 502,000 in 2011 from 469,000 in 2010. Vacation-home sales accounted for 11 percent of all transactions last year, which is up 10 percent from 2010. Investment-home sales accounted for 27 percent in 2011, which is up from 17 percent in 2010.

Such exciting news, don't you think? Share your comments...and be sure to let me know if you or anyone you know is in the market to buy, rent or sell real estate on Cape Cod and beyond! Visit my website at www.aboutcapecodma.com to set up your own personalized search criteria...

Getting a Mortgage in 2012

Unconventional Borrowing 101 

 In August 2007, the subprime melt-down was a big topic. Now that the lending industry has tightened up again, we are hearing potential borrowers talk about how confusing getting a mortgage is in today's economy. Some think no one can get a loan with less than 20 percent down. Some think that anything goes, if you know the right lender. Here's where we stand in 2012: Prime Lending Rate is set nationally. It is the base rate of all loans. Residential mortgage rates are higher than that prime lending rate. The subprime residential mortgage rate will be even higher than conforming residential mortgage rate. This is reasonable, because non-conforming lenders are taking more risk. The opposite of "subprime mortgage" is not "prime mortgage"; it's a "conforming" mortgage. To get a conforming (or conventional) loan, borrowers must conform to rigid standards developed by mortgage underwriters at FNMA or FDMC, the two big national mortgage companies. Non-conforming loans do not conform to those standards. There are local banks and credit unions that hold their loans. They are non-conforming, but usually called "portfolio lenders." Conforming loan standards are not exact; there is some judgment involved. Since the meltdown, room for judgment is pretty small. An applicant is judged on these factors: income to support the requested mortgage plus all other outstanding debt, credit history, job stability, and assets. It was possible, in 2007, for someone with an unsteady job to still get a mortgage if he/she had good credit history, a good income, and a hefty down payment. NOW, there are a variety of loan programs available. For more information email me at nrw_kwrealty@yahoo.com or call 508.737.3567...

 New Informative Series for Buyers:

                                   THE 5 BIGGEST MISTAKES WHEN BUYING A HOME...

Mistake #2: Relying only on the Home Inspector your Agent recommends

As an agent, it is my job to help you in the process of buying a home. I always recommend a minimum of 3 home inspection agencies. And with a little research you can find your own home inspector who will be able to give you the service you deserve. Ask for referrals or testimonials.  Don’t know where to start? The American Society of Home Inspectors (ASHI) has an easy to use search tool on their web site. You can choose by zip code or by state and city. You can find it here: http://www.ashi.org

 New Informative Series for Buyers:

Article Courtesy of Nichole R. Willey, Keller Williams Realty, Cape Cod MA.                                 
Call Nichole at 508.737.3567 or email nichole@aboutcapecodma.com for more information or to get information on financing now...don't wait - rates are historically low and home prices are too! A perfect combination to get you where you deserve to be - in your own home! 

THE 5 BIGGEST MISTAKES WHEN BUYING A HOME...

Buyer Mistake #1: Finance First, Look Later
One of the first mistakes buyers often make is that they get really excited about purchasing their new home and they dive right in to looking at homes online and scheduling showings in-person. But overlooking financing first is a big oversight.

If you’ve never undergone the process of applying for a mortgage before, you’ll be surprised to learn that the process is very involved and takes some time. You’ll have to gather many things together first for the mortgage officer, including verification of employment, bank statements, pay stubs and proof of deposit funds on loans.
It’s important to finance first because it’s a waste of your time to look for homes that are out of your budget. And conversely, you might be looking at homes that might not meet all your needs because you’re looking in too low of a range.

So ask your real estate expert for a list of financing referrals so you can shop around and find someone you would like to work with. There are many programs available right now, basically something for everyone. And with the prices of both homes and interest rates being so low, now may be the perfect time for you to buy!

Contact me, Nichole R. Willey for more information on either purchasing a home or financing, or both! I can be reached any time at 508.737.3567 or nichole@aboutcapecodma.com. Looking to start your home search online? Goto www.aboutcapecodma.com and register for an account with alerts you set up to your own parameters...

Home Prices in the Northeast Saw an Overall Increase in 2011!

In summarizing an article on Housingwire.com by Justin T. Hilley, there is some good news for the local real estate market...Home prices stabilized in the second half of 2011 and are expected to rise somewhat in 2012, but should remain near levels not seen since 2001, according to Clear Capital.  “Overall, 2011 was a relatively quiet year for U.S. home prices compared to the last five years,” said Alex Villacorta, director of research and analytics at Clear Capital. “Although the national numbers suggest markets are flat, when looking at individual metro markets it turns out only 24% of them showed signs of stabilization in 2011, while the others are still moving more dramatically higher or lower. Regional trends revealed a bit more price variability. The Northeast's meager 0.1% yearly gain led the nation, comparing favorably to the drops of 1.3% in the South, 3% in the Midwest and 4.4% in the West.