Naji Rashid's Blog » Interest Rates

Homeownership Beats Renting in 3 Out of 4 U.S. Cities!

Naji Rashid — Tue, 11 Oct 2011 16:58:31 +0000

Trulia examined the cost of renting versus buying in America’s 50 largest cities and found that buying is more affordable in 72% of major cities. Three reasons buying a home has become more affordable in 72% of major cities than renting . 1. Rental prices have increased. The rental market has become flooded with homeowners who have lost their homes because of foreclosure and short sales. 2. Home prices have decreased back to 2005 prices. 3. Low interest rates. With this combination homeownership has become more affordable in a lot of areas. That is why now is a good time to buy!

Have You Heard Interest Rates as Low as 3.5%!

Naji Rashid — Tue, 27 Sep 2011 21:38:57 +0000

I thought interest rates would be around 5% towards the end of 2011 and heading towards 6%. I am glad to see I was wrong. Because of the lack luster growth with the economy, and low consumer confidence, interest rates have been kept low.This is a good thing for potential buyers. Would you rather finance $200,000 at a 5% interest rate or 3.5%? The difference is $169.41 in mortgage payments each month. Did you know that the lower your interest rate the more buying power you have. This can help you purchase in the neighborhood you desire.

In my 15 years of being a real estate professional I’ve notice that some buyers want to purchase a home in neighborhoods that are out of their financial comfort zone or buying power. Now is a good time to take advantage of the lower interest rates. This is one way to increase your buying power!

How to Get Mortgage Financing in 2011!

Naji Rashid — Tue, 28 Jun 2011 15:36:11 +0000

In my last blog post I quoted the Federal Reserve Chairman, Ben Bernanke who stated at the international monetary conference in Atlanta Georgia a few weeks ago that “despite historically affordable home values, many buyers are unable to access financing due to tightened lending standards.” While this statement is true, there are a couple of things you can do to that will help you get financing and make the process a little smoother.

1. Start the home buying process early. If your goal is to purchase a home in 2012 you should start getting prepared now. Get a free copy of your credit report from AnnualCreditReport.com.

2. Contact a lender (loan officer). After you get your report contact a lender and tell him/her that you want to review your credit report so you can become mortgage ready. I have my clients met with lenders up to a year in advance to get prepared for homeownership. When you start the process early this will allow you time to increase your credit scores so you can get the best pricing (better interest rates). Most people wait until their lease is about to expire and then they decide to purchase a home instead of renting, but they are not what we call “mortgage ready.”

3. Follow the game plan. If you follow the game plan your lender and I provide this will help your odds of getting financing with less stress. The market has changed since the so-called boom your loan must make sense to the lender.

If you start early, get your report, meet with a lender and follow the game plan you can make the process a lot easier on yourself and more enjoyable. If you need a good lender to guide you through the steps contact me and I will send you a list.

Now is a Good Time to Buy!

Naji Rashid — Thu, 23 Jun 2011 21:27:42 +0000

A recent survey backed by the National Association of Home Builders (NAHB) found that Americans see beyond the immediate housing market to the enduring value of homeownership which still remains essential to the American dream. The Chairman of NAHB reported that 75 percent of those polled said owning a home is worth the market fluctuations and 95 percent of homeowners say they are happy with their decision to own.

I assist many first-time home buyers with the purchase of their first home and I can say that 100 percent of my clients were happy with their purchase. I contact my clients after they settle in their new homes to see how they are doing and even in this economy all of them were happy with their purchase. No house is perfect and sometimes things happen unexpectedly, but I have not had a client who said “I wish I had not purchased this house.” This tells me that homeownership is a good thing and still the American dream for many people. Buying a home is not as easy as during the real estate boom and can be challenging as the Federal Reserve Chairman, Ben Bernanke reported last week at the international monetary conference in Atlanta, Georgia. He stated that, “despite historically affordable home values, many buyers are unable to access financing due to tightened lending standards.” This is true so you need to prepare for homeownership. If you are thinking about purchasing a home next year you need to get started now. In my next blog post I will show you how to prepare so getting financing from your lender is not so difficult.

Happy New Year! Happy House Hunting!

Naji Rashid — Wed, 19 Jan 2011 23:04:46 +0000

It’s now 2011! Will this be the year you finally start the process of purchasing your new home? I believe there will be great deals still available in 2011. Don’t wait until interest rates get to 6% before you decide now is the time to buy. My last client that settled on December 29,2010 received an interest rate of 4.50%. I don’t know how long rates will remain so low. As the economy gets better and consumer confidence begin to increase so will interest rates. We still have a lot of short sale and foreclosure properties on the market. I don’t see us having a reduction of distress properties for at least a couple of years. My clients received good deals on short-sales and foreclosures in 2010. Bank are trying to get as many of these properties off of their books as possible. Interest rates are still low, inventory is plentiful, Banks as well as sellers are willing to work with buyers the best they can. This will create good opportunities for buyers again this year.

Buyers What Are You Waiting For? 30-Year Mortgages Fall to 4.19%!

Naji Rashid — Thu, 14 Oct 2010 20:33:06 +0000

Can you believe it! 30- year mortgages has fallen to 4.19% The average rate on a 30- year fixed mortgage is now the lowest it has been in six decades. Freddic Mac’s weekly rate report says a 30-year fix fell to an average of 4.19 percent in the week ending October 14, down from 4.27 percent last week, the lowest since at least 1951 based on FHA data back to 1948.

The last time this happen was before my time and I do not believe interest rates will go this low again in my life time. Buyers what are you waiting for? I guarantee you that now is a good time to buy and those who wait will regret they did one day.

CDA (DSELP) Providing Up To $5,000 To First-Time Home Buyers!

Naji Rashid — Fri, 20 Aug 2010 16:57:06 +0000

An individual or family who are approved to purchase a home using a CDA first mortgage loan can apply for a DSELP. DSELP is a Downpayment and Settlement Expense Loan Program. This program helps eligible borrowers by funding a portion of their closing costs. DSELP was allowing buyers to borrow up to $3,500 but has increased the amount buyers can borrow to $5,000. DSELP is a deferred loan that is repayable when you payoff or refinance the home or upon sale or transfer of the house you financed through CDA.

DSELP can only be used with a CDA first mortgage and some counties require that a buyer take a homebuyer education workshop and have a housing counseling certificate before the buyer signs a contract of sale. Check out www.mmprogram.org for more details. Also you can contact me and I will review the process with you. The current interest rate for CDA is 4.25% with 0 Points.

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.