• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to footer

Sonoma County Mortgages

Contact Us About Mortgage Financing

All financing provided by New American Funding

(707) 217-4000 | Prequalify Now

Search Sonoma County Mortgages

  • Home
  • Purchase
    • How Much Down Payment To Buy A Home?
    • How Much Income You Need To Buy A Home
    • How Much Should I Save For Buying A Home?
      • How Rates Affect Payment
    • No PMI Mortgages
    • FHA Loans
    • Sonoma County Disaster Loans
    • Jumbo Loans
  • Refinance
    • Mortgage Rates
    • Does It Make Sense To Refinance?
      • Get Your Refi Paperwork In Order
    • How To Pay Off Your Loan Faster
    • How To Remove PMI
    • How Lenders Price & Quote Loans
  • Loan Programs
  • Payment Calculator
    • Mortgage Affordability Calculator
  • Blog
  • Videos
  • About SCM
  • About Scott Sheldon

Primary Sidebar

Sonoma County Mortgages is a part of New American Funding

New American Funding - NMLS #6606

Get Your Latest Rate Quote Now!

Why 2013 Will Be The Year To Buy A House

December 23, 2012 by Scott Sheldon

Share on Facebook Share on Twitter Share on Pinterest Share on LinkedIn Share on Email
5 things that will kill your home purchase

As we round up the fiscal year 2012 and move into 2013, the next 12 months is showing compelling reasons why would-be home buyers are going to be buying more homes. In the beginning of 2012, the consensus was the real estate market was low, even flat in some parts. In summer 2012, purchase business began to grow significantly and as we end the year, home buying opportunities are scarce, creating intense demand in conjunction with other compelling factors.

Home Purchase Facts

  • Low home supply creating multiple offers, houses selling for “over-asking” due to intense competition
  • Cash investors have advantage in multiple offers scenarios
  • Reo/foreclosure properties (bank owned properties) are available in limited quantities
  • Short Sales (banks agreeing to short original dollars lent) are more abundant, taking average 4 to 6 months to close
  • National unemployment rate continues to fall monthly since November 2012 showing a stronger labor/wage market
  • Inflation remains virtually nonexistent
  • Federal Reserve Bank has no reason to tighten (raise short-term rates), in fact they are committed to purchasing over $1 trillion in mortgage-backed securities through 2013 promoting a stronger housing sector

Factors That Will Motivate Would-Be Home Buyers To Buy Houses

If you are a first-time home buyer– have good credit, stable job and a down payment?  Buying a house means there’s a good chance your mortgage payment will be less than or equal to your rent payment.

Did we mention rents are on the rise? They are, on the end of the spectrum, we have homeowners who’ve lost their homes in short sales or foreclosures who haven’t moved, who still need a place to live, and those people are creating demand for rental properties driving the prices of rents up. Buying a house also meas a tremendous tax advantage for deducting mortgage interest and property taxes.

If you are already a home owner– as prices continue to rise, rates are still favorable. If you don’t purchase a house now, you could end up being priced out of the market for that second home or vacation property in your desired location. As the job market continues to strengthen, prices will continue to rise.

If you plan on purchasing income property–in most cases you can put 20% down and cash flow your investment after expenses. Consider the return on your dollars. If you can achieve an annualized 5% return on your money, secured by real estate, how does that compare to the yields at your financial institution?

The Cost Of Mortgage Money Is  Now Lower

The .625% interest rate translates to an additional $31,008 in interest paid over the life of 360 months. In other words, all other factors aside, a $300,000 house costs less now than it did in 2012 based on interest expense alone. While rates rates are cheaper, if you have to pay an additional $31,008 more in purchase price for the house even with a lower interest rate, that is equivalent to paying less for the house with a higher interest rate, in either scenario the cost is the same.

Home Buying Signs You Are In An Appreciating Real Estate Market

  • Days On Market (DOM)- looking at single family residences less days on the market translates to a stronger/rising market
  • List Price Vs. Sold Price- if there’s a 10% spread in price up or down, combined with less days on the market, translates to a stable market
  • Highest & Best Offers- is an indicator of too many offers on any one house (by process of elimination-listing agent asks all buyers’ agents to submit a second offer for their highest and best offer for final consideration)

If you are thinking about buying a house, need mortgage loan financing? Fill out our online mortgage rate quote for complementary payment and cash needed figures. Let 2013 be the year you get into the real estate market.

 

 

 

 

Related Mortgage Advice from Scott Sheldon

  • How Loan To Value Affects Interest Rate

    Many of the mortgages being made today contain higher loan to values. These loans contain…

  • Comparing Mortgage Rates In Sonoma County

    What to look for in comparing mortgage rates in Sonoma County. The Federal Reserve came…

  • 6 Reasons To Buy Income Property Now!

    This real estate market is continuing to produce many fantastic opportunities including a very make…

  • be careful getting a mortgage with a bankruptcy
    FHA loan limits for 2017 rise

    Just before Thanksgiving the Federal Housing Finance Agency released the conforming loan limits change for…

Filed Under: Economic News, First Time Home Buyers, Invesment Properties/Second Homes, Pre-Approval Tagged With: 2013 Home Buying, 2013 Real Estate Market, home buying, Low Rates, preapproval to buy a home, sonoma county home buying

Get Sonoma County Mortgages News and Updates in Your Inbox

Footer

SCM on Facebook

SonomaCountyMortgages.com

Connect on Facebook

SCM On Instagram

Follow Sonoma County Mortgages on Instagram

Follow on Instagram

SCM on Zillow

Zillow Reviews for Scott Sheldon, New American Funding

See Reviews on Zillow

Location & Contact

Sonoma County Mortgages and New American Funding are an Equal Opportunity Housing Lender

Scott Sheldon, Senior Loan Officer
NMLS ID# 287389
2455 Bennett Valley Road C107
Santa Rosa, CA 95405
1-707-217-4000
View SCM Map | Email Us!

Map of Sonoma County Mortgages New American Financing Office

View Map on Google

Copyright 2010–2023 SonomaCountyMortgages.com · About Us · Sonoma County Loans · Privacy Policy · Terms Of Use · Legal · Site Map

NMLS Consumer Access © New American Funding. All rights Reserved. NMLS ID#6606.
Corporate Office 14511 Myford Road, Suite 100, Tustin, CA 92780. We at New American Funding take great pride in our customer service and make it our number one priority. We encourage you to contact us for complaint resolution or any post-closing questions you may have regarding the servicing of your loan. We strive to have your experience with New American Funding a stellar one. In the rare case that our service did not meet your expectations, please call our customer care hotline at 1-800- 450-2010, ext. 7100 or you may contact us by email customerservice@nafinc.com. Please leave a detailed message and we will follow up with you no later than the end of the next business day. If you are using a screen reader or other auxiliary aid and are having problems using this website, please call 800-450-2010 Ext. 7100 for assistance.

State Licensing (Opens in New Window) | Privacy (Opens in New Window)
Terms of Use (Opens in New Window) | Electronic Consent Agreement (Opens in New Window)
Opens in new window Opens an external site Opens an external site in a new window