What Is the Low Down? Housing Prices are Still Continuing to Drop

If you have been keeping your ear to the pavement, chances are you have heard the news. The real estate market was hit hard when beginning of the sub-prime mortgage crisis ensued. The price of homes began to decline as the crisis grew in the mortgage industry. How much these prices would eventually drop was an unexpected result that has shocked everyone.



Home prices are still continuing to decline and the number of foreclosures on the market is on the rise.



Current home prices are estimated to be lower now than they have been for the past five years. And it is not just a handful of cities or states that are experiencing this, lower housing and property prices are evident in almost any area of the country.



These movements in price are greatly affected by a variety of factors. One of the most influential is the number of homes that are in one stage of foreclosure or another. Because there is such a large inventory of foreclosure to choose from, it is almost as if homes and properties for sale have to be offered at a lower and lower price just in order to compete with them.



So a greater supply of homes and properties experiencing foreclosure that could sell for way below their market value is greatly fueling the fire of homeowners racing to sell their homes for less than they would prefer. There are also other factors to consider in regards to the lower cost of housing these days. Take the vast supply of foreclosures and add to that the increasing gas prices, lack of interest on behalf of the buyer, a greater rate of unemployment, and a growing number of people acquiring debt, and you have quite the tasty deal for the hungry investor.



Investors currently have the opportunity to buy prime real estate at much lower prices with the added bonus of a higher return on their initial investment. This is especially true if they are investing in foreclosures, as they tend to sold for practically nothing in comparison to what they would sell for in a thriving market.



So when will the price of housing start its uphill climb? That is a question everyone is trying to figure out. Even with the government stepping in with the housing rescue proposal, which stimulated the economy to some extent, the prices of home and properties did not increase overall.



Most people are under the impression that although is seems like the real estate could not get any worse, in regards to housing prices. The real estate market is going to get worse before it gets better and we have not hit rock bottom just yet. Once that happens, the price of homes will probably start to gradually increase. For that very reason, investors should take advantage of the opportunities available and pounce on all the deals out there in the world of real estate. Houses are proposed to go down for about another year or so, so now is definitely the time to do what you can and invest.



There are some signs to keep your eye out for when researching your local real estate market if you are looking to invest in an area that has been subject to lower pricing. First of all, you have to consider that homes are generally priced comparably to others in their area. As an investor, you should also consider that if there is less of an inventory of homes for sale in a particular area, that many of the deals have already been snatched up.



Checking to see if there are a greater number of mortgage applications can also be a good indicator.



More loan applications typically will lead to less homes being available. This, in turn, leads to better hoe prices. Then there are the benefits available for both the buyer and the seller. Buyers are often offered more incentives to get them to buy, such as the omission of closing costs. Sellers, on the hand, have a better chance of receiving their full asking price, even if it may a bit on the low side.

Home Mortgage Loan Mistakes Most Homebuyers Make

MISTAKE #1: Over shopping your loan



Your credit score is based on the perceived risk associated with extending you credit. Over the years, the credit reporting agencies have determined that a borrower who seeks credit from many different lenders is riskier than others. Therefore, they decrease your credit score each time a lender pulls your credit report.



Each time you call a lender seeking the best possible rate and terms for your home mortgage, he has to pull your credit report.



This is factored into your credit score, and a lower score decreases your likelihood of getting the best rate and terms.



While some consumers are ONLY focused on rates, you should seek the guidance of a National Association of Responsible Loan Officers member that is willing to speak with you about your loan options. There are literally hundreds of loan products available and every borrower has a different financial situation and financial goal. We highly recommend having a consultation with your loan officer so they can tailor a program to meet your individual needs instead of focusing exclusively on rates and points.



You may likely find a better product than the one you were shopping for.



MISTAKE #2: Trying to hide past financial difficulties



One of the important services a responsible loan officer offers is helping you overcome past financial difficulties that may hinder your ability to have your loan approved. Your loan officer is on your side.



Supply the information that will help your loan officer provide you with the best possible rate and terms and minimize the impact of your past credit history. The fact that you have recovered from past financial problems makes you a better risk than others who haven't yet faced challenges.



Overcoming past financial difficulty proves that you honor your commitments and don't give up.



MISTAKE #3: Allowing a loan officer to put misleading or untruthful information about your income, expense or cash available for down payments on a loan application in order to get a loan



Providing untruthful information on a loan application is fraud. Mortgage fraud is prosecuted by federal authorities, and they will find out about the fraudulent information. Do not allow yourself to become an accomplice of a loan officer's fraudulent loan application.



Even if a loan officer fills in the information for you, if you do not believe the loan application is 100% truthful, you should refuse to sign it until the loan officer corrects the application. While many loan officers try to "help" borrowers by misstating the facts, the truth is that they are simply getting themselves and their borrowers into a lot of trouble.



MISTAKE #4: Borrowing more than you can repay



All of us understand that we may have to stretch our monthly budgets a bit to afford the homes we want.



However, you will put your entire financial health in jeopardy by buying a home you simply cannot afford.



If you buy an expensive home and find you cannot make the monthly payments, you could face a huge loss when you have to sell that home quickly to get out from under your mortgage. Or worse, you could be forced into foreclosure or bankruptcy.



It is much better to be patient, buy a home you can comfortably afford, make payments, build equity and then transition into a larger home after a couple of years.



Yes, the larger home will cost more then, but the home you purchased will also have appreciated during that time. Most importantly, you will have built a successful financial foundation that allows you to experience all of your dreams, including that dream home.



MISTAKE #5: Relying on interest rate advertising



Some loan officers use interest rates to get your attention; however, they may actually end up costing you more. Such rates are often derived by using a 30-year mortgage coupled with an accelerated payment plan.



You may decide you like that option, but you cannot directly compare the interest rate on that mortgage to other opportunities. This loan could cost more than other mortgages with seemingly higher interest rates.



It is critical to find a loan officer you can trust to review the options available to you and the best possible rates for your financial situation. Only a responsible loan officer can give you all of your options in an understandable way.

Mortgage Loan - Find the Right Mortgage

If you are shopping for a mortgage loan it is often difficult to know which loan is best for you. You do not have to be a financial wizard to find a good mortgage; you simply have to know what to look for. Here is what you need to know to find a good mortgage.

Many people assume you have to have good credit in order to get a good mortgage. This is simply not true; if you take the time to do your homework you can find excellent mortgage offers even with poor credit.



You will need to shop from a variety of mortgage lenders and brokers to find the best mortgage for your situation.

You need to understand all of the fees associated with the mortgage offers you are considering. Many homeowners make the mistake of just looking at the interest rate for the mortgage offers they are considering. If you neglect to compare all of the other fees and closing costs for each offer you will most likely overpay for your mortgage.



Lender fees and closing costs are subject to negotiation. Be sure and ask each lender for a "good faith estimate" of these expenses. When you are comparison shopping based on the Annual Percentage rate and the figures from the good faith estimate do not be afraid to haggle with mortgage lenders over these expenses.

Prepare a budget before you shop to determine how much you can afford each month. Using a mortgage calculator will help you plan your budget; make sure you are using a mortgage calculator that includes property taxes and insurance, this will give you a better picture of the actual mortgage payment.



By doing you homework you will be able to avoid common mortgage mistakes like neglecting to protect your credit rating while shopping for a mortgage. To learn more register for a free mortgage guidebook.

To get your free mortgage guidebook visit RefiAdvisor.com using the link below.

Louie Latour specializes in showing homeowners how to avoid common mortgage mistakes and predatory lenders. For a free copy of "Mortgage Refinancing - What You Need to Know," which teaches strategies to find the best mortgage and save thousands of dollars in the process, visit Refiadvisor.



com.

Claim your free guidebook today at: http://www.refiadvisor.com

Chicago Mortgage Refinance

Exclusive Mortgage Leads On The Internet

For loan officers and mortgage brokers looking for exclusive mortgage leads, receiving them over the internet is the way to go these days.



By buying exclusive internet mortgage leads over the internet you will be receiving them on-line and in real time, or fresh.



This means you will be receiving your leads hot off the press. And, because they are exclusive, you will be eliminating your competition.



But before you go and make a move with a mortgage lead company, be sure to do your homework.



You want to be absolutely sure that you are getting your money's worth, so check out your potential prospect's web site thoroughly, than call the lead company and speak with someone in customer service.



If they don't give a number for you to call, than move onto the next lead company. Think of it this way, who are you going to call when you need a refund for a questionable lead?



Ask the person in customer service how they obtain their leads.



This is what you will want to hear.



You will want to hear that they obtain their leads through web sites they own and operate on their own.



This pretty much guarantees the real time quality that you are looking for.



This is what you don't want to hear.



If they tell you that they obtain their leads through third part vendors, than they are recycling leads. Or pretty much selling what is know in the industry as junk.



Keep in mind, you work hard for your money, so take the time to make sure that you will be getting what you pay for.