Naji Rashid's Blog » Interest Rates

Take the Stress Out of Homebuying!

Naji Rashid — Tue, 15 Dec 2009 21:56:26 +0000

Buying a home should be fun but it can be a little stressful. As you look for your dream home, keep in mind these tips for making the process as peaceful as possible.

1. Find a real estate agent who you connect with. Home buying is not only a big financial commitment, but also an emotional one. It’s critical that the agent you chose is both highly skilled and a good fit with your personality.

2. Remember, there’s no “right” time to buy, just as there’s no perfect time to sell. If you find a home now, don’t try to second-guess interest rates or the housing market by waiting longer- you risk losing out on the home of your dreams. The housing market usually doesn’t change fast enough to make much difference in price, and a good home won’t stay on the market long.

3. Accept that no house is ever perfect. If it’s in the right location, the yard may be a bit smaller than you had hoped, but the kitchen is perfect. Make a list of your top priorities and focus in on things that are most important to you. Let the minor ones go.

4. Remember your home doesn’t exist in a vacuum. Don’t get so caught up in the physical aspects of the house itself-room size, kitchen, etc.- that you forget about important issues as noise level, location to amenities, and other aspects that also have a big impact on your quality of life.

5. Plan ahead. Don’t wait until you’ve found a home and made an offer to get approved for a mortgage, investigate home insurance, and consider a schedule for moving.

6. Factor in maintenance and repair costs in your post-home buying budget. Even if you buy a new home, there will be costs. Don’t leave yourself short and let your home deteriorate.

7. Accept that a little buyer’s remorse is inevitable and will probably pass. Buying a home, especially for the first time, is a big financial commitment. But it also yields big benefits. Don’t lose sight of why you wanted to buy a home and what made you fall in love with the property you purchased.

I wish everyone a Happy Holiday!

Always Know Your Numbers!

Naji Rashid — Mon, 28 Sep 2009 02:02:03 +0000

In today’s world 85% of consumers starttheir home buying search for properties on the Internet. Many potential home buyers whom are referred to me will give me a list of properties they have been looking at on the Internet and some time they have actually driven the area and viewed the properties from the outside. While I applaud the dedication and seriousness of the clients most have not been prequalified and “know their numbers.”

The first step in the home buying process for everyone no matter the price range is to get prequalified so you know your numbers. Especially in this market. Lender guidelines are changing sometime daily.

These are the numbers you should always know before you start your home search;

1. What is my qualification amount?

2. What is my estimated interest rate?

3. How much down payment and closing cost do I need?

A lender can provide this for you in the form of a Good Faith Estimate in writing. I will not show houses to clients who do not know their numbers. If you request a Good Faith Estimate from a lender and he or she refuse to give you one I would proceed with caution. I can also assist you in obtaining one. So get a Good Faith Estimate and take some of the stress out of the home buying process.

And always KNOW YOUR NUMBERS!

What is “Rescoring!”

Naji Rashid — Sat, 18 Jul 2009 00:42:02 +0000

If you have paid your bills on time but your credit report says you haven’t, your mortgage lender might be able to fix your report fast. Typically, the three credit bureaus each require at least 30 days to investigate and make changes to your credit report. But if you are in the process of applying for a mortgage, your lender might be able to get the changes made in just a few days. It’s called “Rescoring.”

Rescoring is a service offered only to mortgage lenders by independent credit reporting agencies, which compile information from the three credit bureaus (Equifax, Experian, and TransUnion). The independents can work with the Big Three, fix errors, and then recalculate your credit score. If your score can go up, even a little, after the errors are fixed, you could save thousands of dollars on your mortgage interest.

The key is that rescoring works only on real errors. If you have a low score because you don’t pay your bills on time, then you can’t rescore. You must demonstrate to your lender that you have a legitimate error on your report and provide proof, such as payment records. If your lender does decide you have a legitimate case, you will have to pay up to $150 to have the rescoring done.

Rescoring is really an emergency maneuver. If you are planning to apply for a mortgage, you should get a copy of your credit report first. Go to www.annualcreditreport.com. You can get one free report each year from each of the credit bureaus. You will have to pay to get your score.

Long-Term Mortgage Rates Hit Record Low!

Naji Rashid — Mon, 30 Mar 2009 22:31:35 +0000

The Washington Business journal reported that the 30-year fixed-rate mortgage rate has dropped to its lowest level on record. The average rate is the lowest in McLean-based Freddie Mac’s weekly survey dating to 1971. Freddie Mac says its Primary Mortgage Market Survey shows the 30-year fixed-rate mortgage averaged 4.85 percent with an average 0.7 point for the week ending March 26, down from last week when it averaged 4.98 percent.

Last year at this time, the 30-year FRM averaged 5.85 percent. The 30-year FRM has not been lower in the life of Freddie Mac’s weekly survey, which dates back to 1971 for the 30-year FRM. Rates for 30-year FRMs peaked last year at 6.63 percent on July 24th. With last week’s 30-Yr FRM, the interest rate difference is almost 2 percentage points, which amount to a savings of about $225 in monthly mortgage payments for a $200,000 loan.

Now is the Time to Buy a House!

Naji Rashid — Thu, 19 Mar 2009 22:24:48 +0000

Now is a great time for first-time home buyers to buy a house! I have helped several first-time home buyers in the last 30 days become homeowners and receive fantastic deals on their properties. Unfortunately, many first-time buyers are still sitting on the fence. The opportunities that are available will not last forever. Interest rates are low, prices have dropped, sellers are willing to help with closing costs but many buyers who can buy are still waiting. The theme for my seminar presentation Monday evening was “Now is the Time to Buy a House.” I am not saying this just because I am a real estate agent. I feel so passionately about this because I see every day so many wonderful opportunities that first-time home buyers are missing out on because they will not get off the fence. I have a client who is under contract on a property for $162,900 and the seller gave $9,700 towards closing. The properties in this community sell between $220,000-240,000. My client is actually getting this property for $153,200 what a deal! Don’t miss out on your opportunity call me today!

Wednesday’s Rate Cut Was Needed!

Naji Rashid — Sat, 02 Feb 2008 03:22:11 +0000

The Federal Reserve on Wednesday January 30, 2008, cut a key interest rate for the second time in just over a week. In a brief statement explaining their decision, Federal Reserve Chairman Ben Bernanke and his colleagues said that “financial markets remain under considerable stress.” The rate cut marked the fifth time that the Fed has cut the funds rate since it started with a half-point cut on September 18, 2007.

The latest Fed action was expected to be quickly followed by cuts in banks prime lending rate, the benchmark rate for millions of consumers and business loans. If the economy does not get its needed boost by this rate cut I believe we will see another one in the near future