Tips for Buying a Home in San Diego…

Many people do not really know the best way in which to purchase a home and in many cases go about it backwards. This can and does cause headaches down the road. This step-by-step process should help you buy the home of your dreams in San Diego and ensure that you can keep your home, if you follow the guide.

1. Sit down and go over your financial situation. Do not just over it in your head and say okay, let’s go buy a home. You should make a list of all money coming into the household and going out for an entire year. The reason for this is that some months you may have more out-going than other months such as car insurance that may only be paid every three months. Once you have your list, you can tally up how much you can afford to pay monthly for your new home loan.

2. Apply for a pre-qualifying mortgage. Visit a mortgage company or your bank and apply for a home loan. Explain that you desire to have a pre-qualifying letter to know how much money you can receive to purchase a home. You will have to give them some idea of how much you would like to receive that is within your budget. In some cases, mortgage companies may qualify you for more than what you can really afford. You need to stick to your guns or you will be in trouble farther down the road in making your payments. If you get behind in payments, foreclosure is just around the corner.

3. With your pre-qualification letter in hand, you will now know what price range you can afford for your new or existing home. Now, you can go shopping.

4. Choose an area of San Diego that you would like to call home. Look for a neighborhood that is pleasing, one close to schools, one that has a fast route to work, or other specifications that you desire for the perfect location. Next, check out the neighborhood. You can learn the crime rate, the costs of taxes, the report card for the schools in the area and other important facts. This should help you to decide if this is the area, you really want to live in.

5. Look at various homes in your price range in the area you have chosen. Bring along a pen and paper to jot down likes and dislikes about each home. If you look at several homes in one day, you may forget the amenities or other things you liked or disliked. Things you might wish to write down include the layout of the rooms, the color of the rooms, appliances, square footage, and if the yard is fenced. You may think of other things that are important to you and your family such as the amount of bathrooms, etc…

6. When you find a home you love, it is time to pay for a home inspection. Many times falling in love with a home is not a good idea if you do not plan on checking out every nook and cranny to ensure there are no major problems with such things as the roof, plumbing, etc…

7. Time for negotiating. You should now have an idea how much your mortgage payments will be, but you must consider other expenses along with these such as insurance, closing costs, and repairs if needed. You can always try to get the homeowner to reduce the price of the home for any repairs you think the home may need. This does not mean the homeowner will negotiate but in many cases, they will if the repairs are legitimate.

8. When it comes down to signing the final sales agreement, be sure to read it over carefully. You want everything that you have agreed upon to be in writing along with your signature and the signature of the seller.

The New Year and Market Trends…

Economists, real estate agents, and stock analysts all predict what they believe the stock market will do in the coming months and on into the coming year. All the rest of us, sit back, wonder, and wait to hear the good or bad news when it comes to housing prices, interest rates, and their prediction on homes sales new and existing.

When you take a look at The Pending Home Sales Index (PHSI), which is a forward looking indicator that is based on contracts that were signed a couple of months in the past you can get a feel for what may be ahead. If we look at the month of October throughout the United States, we can see that the PHSI is pretty much on the rise. In the Northeast there was increase of 16%, which brought the PHSI to 80.6, however, this is still 11.1% below where it was in 2006. In the West, the PHSI rose 8.4%, which brought it to 87.3; once again, this is 16.9% below last year. In the Midwest, the PHSI decreased 1.4% bringing it to 85.5, which is still 11.7% below last year at the same time. In the South, the PHSI decreased as well 7.8% bringing it to 91.6%, which is 25.3% below 2006.

Even though we are still seeing a decrease in the Midwest and the South, we must remember the slump in the housing market began in the North and this is where the change will begin to occur as the real estate market starts looking up.

Home sales at this time are up during this term and are believed to hit a total of around 5.67 million for 2006, which is the fifth highest on record. In 2006, there were 6.48 million homes sold. The median price of homes throughout 2007 is estimated to be around $217,600 for the entire country. Realtors and analysts both agree that homes sales will increase in 2008 and the amount is believed to hit around 5.60 million. It is also estimated that the median home price will rise 0.3 percent to end up around $218,300 for 2008.

The prediction for new home sales for 2007 is at 788,000 and heading downward to 693,000 for 2008. The median price for new homes is predicted to be around $239,100 in 2007, which is a 3.0% decrease and will decline 0.2% in 2008 bringing the median price to around $236,600 for 2008.

The trend for existing homes sales is predicted to head upward in 2008, however, new homes sales will more than likely not recover until 2009.