May 25, 2008
I was just reading a news letter I received about financing Boise RealEstat and thought I would pass it on to you. It talks about some of the new lending guidlines.
"Changes to Fannie Mae Guidelines
Fannie Mae has announced a new underwriting model to take effect June 1. There are several changes, some for the better and some for the worse.
Fannie Mae generally sets underwriting standards for "conforming loans". Other than FHA, VA, and a small number of other programs, meeting Fannie Mae guidelines is necessary for the homebuyer to get a "good rate".
Although the conforming universe has tightened considerably in recent months, financing is still readily available at very good rates for the well qualified borrower. These changes have not been directly related to the subprime and Alt A problems, and they have been far less drastic.
Among the changes:
- Maximum allowable debt-to-income ratio will be lowered in many situations.
- Time since a foreclosure will be five years. The old rule is two years.
- 60 days late on a mortgage within the past year will be a deal killer.
- Minimum credit score will be 580. Many lenders have already gone to this.
On the positive side:
- Several "A minus" credit situations, which had been ineligible, will now be eligible, including manufactured home purchases and cash-out refinances on rentals.
- Self-employment will be treated a bit more favorably.
The transition from old rules to new will be handled as follows (according to at least one lender; expect practices to vary): New files initiated before June 1 will be usable through September. Thus, I would encourage anyone looking for financing to begin the process before June 1. Then, the old rules would apply. New applications after June 1 are stuck with new rules.
IN OTHER WORDS, SOMEONE WHO EXPECTS TO NEED FINANCING ANYTIME SOON SHOULD BEGIN THE PROCESS ASAP. This will keep all their options open.
Rates are Still Good
Rates have been bouncing around. But 30 year fixed rates are still very attractive - under 6% as of this writing for qualified borrowers. Adjustable rates, for the right buyers, are also very good.
Although the weaker borrowers continue to be sqeezed out of the system, attractive terms and plentiful supply of financing are still available to those who are qualified."
Hope you have a Terrific Day! Tom Zumwalt 208-861-2344
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May 24, 2008
Wow, It's already memorial day weekend! Time seems to just fly sometimes. I was just reading an article about marketing homes in the Boise RealEstate market and marketing yourself as a Boise Real Estate Agents. Sometimes we seem to forget that we are here to provide you a service. It is my job to assist you in finding a home or selling your home and help guide you through the whole process and hopefully assist in your education about these real estate transactions. I'm not there to just stick a sign in the yard, list your property on the Boise MLS, and just wait. Part of my job is to continue to provide you with information about what is going on in our ever changing market and assist you in coming up with a realistic price for your home. On the buying side, I'm here to provide you with listings that meet your criteria, show you homes, negotiate a contract, and guide you through the process of purchasing a home. One of the best tools I have found in assisting home buyers is my websites and the home search on them. The home search allow you to look at homes that are listed on the Boise Idaho MLS that are current and update daily.
So, I hope you have a wonderful Memorial Day weekend and come visit me this weekend at Sienna Creek Subdivision. There's a CBH Homes subdivision next door, (Woodburn), that I can show also.
Hope you have a Terrific Day! Tom Zumwalt 208-861-2344
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May 20, 2008
Short Sales!! Yea, Short Sales. I've been dealing with one short sale now for about 3 months and today I got an email from the seller's agent informing me that they had been trying to get the bank to delay the auction on this place. Well tomorrow it's going to be auctioned off. In talking with other agent in the Boise Real Estate Market, they are telling me that they are having the same problem. About 1 in 3 short sales are not making it to closing. It seems one of the biggest problems is trying to get the 2nd mortgage holder to agree to sign off on the short sale. They are the one that ends up loosing the most and alot of the 2nd mortgage holders won't even answer their phone or call back when you leave them a message. Sometimes the 2nd mortgage holders don't get anything out of a short sale and could care less if they co-operate or not. Now I have some upset buyers wanting to know how they can do that and all of these contracts on short sales state that the sales contract is "Subject to Lender Approval", so you really don't even have a contract until the bank/lender signs off on it even though the seller signed the contract agreeing to sell the property. By the time most homes go to short sale the foreclosure proceedings have already started and at that point to stop the foreclosure the bank/lender has to agree to the sale. Enough about Short Sales. Just remember there are a lot of short sale in the Boise Id Real Estate area and if you do not have patients, don't even think about buying a short sale. My broker says he won't even deal with them anymore.
Hope you have a Terrific Day! Tom Zumwalt 208-861-2344
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May 16, 2008
The Boise Real Estate market is number 20 on the Hottest Real Estate Markets in the Nation for 2008 according to Housing Predictor.Com. They predict that Boise Idaho Real Estate will appreciate 3.5% in 2008. Housing Predictor’s forecasts were 86% correct in 2007 and were within a 1 to 2 percent margin. Boise's biggest attraction is the same as many other cities, people are moving to smaller less urban area that provide a better quality of life. Idaho is also one of the most business friendly states in the nation and that is helping to attract companies looking for a place to call home. Boise is headquarters to a handful of nations largest companies and their employees enjoy the quality of life in the Treasure Valley.
So, it sounds like 2008 is a good time to buy Boise Real Estate! Buy before the prices really start going back up. If you have good credit there are still ways to get a 100% loan with a good interest rate.
Hope you have a Terrific Day! Tom Zumwalt 208-861-2344
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May 13, 2008
I was just look at the statistic for Ada County Real Estate and the number of homes sold in April is up from March this year. That one more sign that the Boise Real Estate Market is improving. The hottest market has been in NW Meridian where 64 homes sold last month. 22 new homes and 42 existing homes. That's almost 2 existing homes to one new home! So the existing home market is doing well. Overall in the Ada County Real Estate Market Existing Home Sales make up 77.43% of all the homes sold in Ada County in April 2008. That's good news for the existing home market. You can take a look at all the Statistics by clicking here. The average days on the market has actually increased from March to April 2008. In April the average days on the market for an existing home was 69 days and the average days on the market for a new home was 83. If your home is listed for sale and is priced according to what the market statistics say it should sell for than that's about how long it should take for it to sell.
Hope you have a Terrific Day! Tom Zumwalt 208-861-2344
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