Nearly three quarters of potential Columbia SC home buyers believe home prices will increase in their neighborhood in the next twelve months, twice as many as in the first quarter.
Despite forecasts that prices will increase less in 2013 than this year, buyers are more concerned by rising prices than the overall economy. Thirty-three percent of buyers listed rising prices as a major concern in the fourth quarter, up from just 23 percent in the third quarter. Meanwhile, 22 percent said they were concerned with a weak economy, down from 27 percent in the third quarter, according to the Redfin Real-Time Homebuyer Survey.
More Than 70 percent of Columbia SC home buyers believe prices will rise next year. The number of buyers who believe prices are rising shot up even higher in the fourth quarter, although most still expect gains to be modest. Ten percent expect home prices in their area to “rise a lot” over the next twelve months, the same as last quarter; 61 percent expect prices to “rise a little” an increase of ten percentage points over last quarter. Twenty-one percent expect prices to “stay the same,” 6 percent expect prices to “drop a little,” and less than 1 percent expect prices to “drop a lot.”
Growing Number of Columbia SC Home Buyers Planning to Buy
A growing number of Columbia SC home buyers are planning to buy in order to get out in front of rising prices. Thirty-three percent of respondents indicated rising prices as a motivation for buying now, up from 29 percent in the third quarter and just 19 percent in the first quarter.
Most Columbia SC home buyers are not very concerned about the Fiscal Cliff and possible changes to the mortgage interest deduction. Although the possible consequences of some of the proposed changes may be large for certain people, only about 5 percent of buyers are seriously concerned and only 23 percent are being more cautious in their home search while they wait to see how things pan out.
What about you? Are you in that group of potential Columbia SC home buyers worried about home prices continuing to increase? We’d love to hear from you.
Backlogs in foreclosure processing are causing delays in home-price improvement and could wind up affecting the cost of a mortgage, thereby hurting Columbia SC home buyers wanting to get a mortgage.
As unpleasant as it is for everyone involved, when a borrower can’t — or decides not to — make payments, the more quickly you can move the property back into the inventory and get a new homeowner in it, the better it is for the community.
How the Slow Process Affects Columbia SC Home Buyers
Even if you’re not in foreclosure, if you live where processing times are long, that could eventually end up affecting you when you’re in the market for a new mortgage.
If you’re in a home not making payments for a long time, your taxes, insurance and interest payments may be building up. Suddenly, you owe $100,000 more than you owed in the first place, and you would likely have a hard time becoming current.
Freddie Mac and Fannie Mae are considering state-to-state pricing on mortgages because of long processing times. In states where there are long turnaround times, Freddie and Fannie would calculate the cost of foreclosing on properties and how long it would take. The costs could be built into the mortgage rate you’d get in those states.
High foreclosure inventory volume also affects home prices. Prices are rising faster in places where the foreclosure process isn’t so delayed.
Nationwide, the average time for homes to spend in the foreclosure process is 382 days. That may not seem so long, but it’s actually an extended stretch compared with the average of 336 days in the third quarter of last year — and only 140 days in the third quarter of 2007.
Columbia SC home buyers need not be discouraged. There are still lenders who are ready to focus on your mortgage application, and prices may never be this low again. Contact us today to schedule a no-obligation consultation on the current real estate market in the Columbia SC area.
As foreclosures have taken a sudden nose dive, it appears that bidding wars have begun to break out among Columbia SC home buyers, as well as home buyers in markets all over America.
It would seem that the long awaited “bottom” in the Columbia SC real estate market has already passed, meaning, if you were waiting, you’ve waited too long.
Don’t let prices continue to go up and inventory continue to go down. Smart Columbia SC home buyers are looking for that perfect home now. Give us a call for more information, or search for homes at our site and let us know when you’re ready to start looking at properties.
Columbia SC home buyers are needing higher and higher FICO scores these days in order to qualify for a mortgage. Very few Columbia SC home buyers sporting credit scores below 620 are able to obtain loans. On the bright side, more are putting down less than 20 percent.
According to the February Realtor Confidence survey conducted by the National Association of Realtors (NAR), the percentage of home buyers putting less than the standard 20 percent down payment amount is at the lowest level in nearly a year. The same survey found that prospective Columbia SC home buyers had difficulty qualifying for a mortgage.
Columbia SC Home Buyers With Good Credit
A comparison of FICO scores for transactions as reported by Realtors responding to the survey were compared with FICO scores reported by Fannie Mae’s “Acquisition Profile. By Key Product Features”, credit availability to lower scoring applicants seems to have declined since the Fannie Mae data in 2001-2004.
For those Columbia SC home buyers with good credit and access to programs like FHA, down payment requirements are lessening. Approximately 64 percent of buyers with a mortgage are putting down less than 11 percent, according to the survey.
Very few Realtors responding to the survey said prospective home buyers with FICO scores below 620 were able to obtain a mortgage. The same group said approximately 15 percent of those with FICO scores between 660 and 700 were able to get a mortgage. These figures were compared to 18 percent in the Fannie Mae data.
What Columbia SC Home Buyers Should Do First
It pays for Columbia SC home buyers to find out what their FICO score is before they even begin to look for a home. If there are items in your credit score that can be corrected upward, that takes time. It’s better to get the scores up before you apply for a mortgage, rather than find the home of your dreams and then find out your score is too low to qualify.
For first time Columbia SC home buyer’s, the loan process can be extremely intimidating. When you’re buying a home for the first time, you will likely be bombarded with advice from family members, co-workers, and friends, much of which is either inaccurate or not applicable to your particular needs. Acquiring first-hand knowledge of the loans available to a first time home buyer is the best course of action to take. This means scheduling a meeting with a loan or mortgage officer.
Many first time home buyers utilize the Federal Housing Authority (FHA) loan product. FHA has guidelines that must be met in order to qualify for the loan. These guidelines vary depending on which state you’re buying a house in. Here’s a quick overview of what to expect:
- loan limit as to how much the buyer can borrow
- the down payment must be 100% from the borrower’s funds
- income limits
- the borrower’s debt to income (DTI) ratio must be at a certain level
Additionally, there must be an appraisal conducted on the home the borrower wants to purchase. The appraiser must be FHA certified and will complete a report with FHA specific items on it.
Properties purchased with a FHA loan must meet minimum property standards. Structural and mechanical systems must be in working order including the roof, heating, plumbing, and electrical for an FHA loan to be approved for the purchase of a home. Any deficiencies are noted on an FHA appraisal and must be corrected prior to closing.
First time home buyers may also utilize conventional loan products, generally requiring more of a down payment than the FHA loan. Oftentimes, these conventional loans are not practical for the first time buyer simply because they have not owned a home before and therefore have not been able to build up equity to utilize as down payment when purchasing another home.
Special loan products may also be available for first time home buyers who fit into one of the following criteria: teachers, police officers, firemen, or military. Again, a loan officer will have knowledge of any special type of loans, some of which are found at the local level and offered by municipalities, private organizations, or other banks.
As an example of one of these special loan products, a very popular first time buyer loan for those who serve or have served in the military is the Veteran’s Administration (VA) loan. A certificate of eligibility must be acquired from the VA and presented to the loan officer in order to begin the process. Like the FHA loan, there are certain criteria that must be met and guidelines to follow.
The best way to discover which first time home buyer loans are available and which one is the best one to utilize is to meet with a loan officer. He or she has the knowledge about these loans as well as dozens of other loans that might be suitable. There is plenty of stress and anxiety that goes along with purchasing a home. Relieve some of that by sitting down with a professional loan officer to find out exactly what programs for first time home buyers are available to you. If you need help finding a mortgage or loan professional, we can offer you some assistance, as we have experience dealing with many lenders for many different mortgage situations.