Maria Carmen Donaldson's Blog

Houston is indeed in an enviable position.  April brought us an 11th consecutive month of increased sales at 9.6% over last April.  From the activity I am seeing, I think May will be even better.  If you are employed and have a good credit score, now is definitely the time to buy.  Interest rates are at a record low (less than 4%).  Just to put some perspective on this, in the 1980s interest rates were at double digits.  I bought my first home at a 12% interest rate.  Don't let this opportunity pass you buy.  For the full report on April sales, click on this link:

http://youtu.be/ZmN9MtsEpRo

Collection Guidelines for Loans Tightening Up - New FHA (Collection) Guidelines postponed to July 2012

At this time, some guidelines scheduled to take effect in February 2012 with regard to collections have been postponed until July 2012.  These FHA changes have to do with outstanding collections a home loan applicant may have in his/her credit report.  This is how it reads:

“If the total outstanding balance of all collection amounts is equal to or greater than $1,000, the borrower must resolve the accounts (e.g. entered into payment arrangements with minimum 3 months verified payments –paid as agreed) or paid in full at the time of, or prior to closing. …”

This change could put homeownership out of reach for some people but of course, we want to strengthen the market with qualified buyers but sometimes your credit reort make contain errors that need correcting.  If you need help with credit repair, contact me.  I work with a team of qualified professionals who can help.

Well it turns out I was right (see previous blog post).  February was a robust month for sales marking the 9th consecutive month of positive sales.  Inventory reached its lowest level since December 2008.  The market remains balanced because of the fact that interest rates remain at historic lows.  Now is a great time to buy.  For the full report, watch the HAR Market Report Video:

http://youtu.be/um4b7_QXaJo

 

This year’s market activity has gotten off to a great start!  To highlight a few points in the Houston Association of Realtor’s January market report:

 

*January marked the 8^th straight month of increased home sales

*There has been a decline in listings resulting in a balanced market

*Single Family Home sales are up 9.2% over last January with 3,049 units sold

 

For the full January market report go to:

 

http://youtu.be/VoTdVdIZvmU

 

Personally, I have seen a significant increase in business since January and especially February. Many of the realtors I am working with have as well.  One realtor told me had received 3 offers on 3 different listing in the span of just a couple of days.  One of my listings in Northwest Houston sold in 1 week and those clients turned around and purchased a home that had also just been put back on the market.  I cannot wait to hear the February market report to see if the anecdotal accounts pan out. I’d love to hear from other agents out there!

 

How to Find a Rental Property

Looking for a property to rent?  Well welcome to the crowd.  Lots of people are renting and lots of people are looking.

The easiest and most efficient to find a rental property is to work with one Realtor.  Instead of driving around and trying to reach each individual agent on signs, contact a Realtor near you that can work for you. The beauty of this is that you don’t have to pay the Realtor because the seller/landlord pays both his agent and yours.

Find a Realtor who takes the time to listen to your needs and criteria. A Realtor who asks a lot of questions is a good thing.  If you tell your Realtor what you need and want, you shouldn’t have to look at more than 4 homes.  That’s my average.  And don’t be offended by the questions being asked.  Its our job to get to know you in order to act as an advocate for you.

Landlords are generally looking for good rental history and income 3 times the amount of the rent.  They may have varying criteria when it comes to credit scores.  Most landlords understand that a lot of people who are looking to rent have some credit issues.

Also the best time to start your search is a maximum of 4 weeks prior to your target move date.  Give your notice and then start looking.  The majority of landlords will probably not hold a property longer than 4 weeks anyway.  As I mentioned earlier, the leasing market is hot and the landlord knows he can probably get someone in his property pretty quickly if the renter meets the qualifications and his property is in good condition.

After you find what you want, your Realtor should call and talk with the other agent to discuss any special issues you may have.  In that way, you are not paying an Application Fee on a property that isn’t going to work out. 

It’s all about communication, trust and having a process.

  I get really weary of hearing how bad the real estate market is.  I have to remind people that the real estate news that you see and hear reported even on the local level normally reflects the national real estate trends.  Fortunately for us Houstonians, the picture isn’t quite so bleak.

The Houston Association of Realtors just released October 2011 statistics and Houston has just had its straight 5^th month of increased sales.  Sales of Single Family Homes rose about 9% with the average price at an all time high of about $209,000. Houston’s inventory is about 6.6 months compared to national inventory of 8 months. In real estate terms that means it would take about 6.6 months to sell all existing inventory.  A “declining inventory means healthy absorption.”  Of course, some areas within Houston are faring better than others.

Some great Texas news comes in the foreclosure market.  Texas is “far below the national average.”  Here 1 in about 1000 homes is in foreclosure.  In Nevada (with the highest foreclosure rate), 1 in every 180 homes is in foreclosure.  I have been hearing over the past few months that more foreclosures will be let out into the inventory pipeline soon.  That’s a great opportunity for investment properties or buyers who can do the “fixing up” themselves.

For the complete articles, click on these links:

http://www.har.com/mls/dispPressRelease.cfm

http://texasrealtors.wordpress.com/2011/11/10/texas-foreclosure-rate-still-far-below-national-average/

 

Recently I’ve meet many individuals who tell me they need to work on their credit before they buy a home and they have a strong desire to do so. Earlier this year, I met a loan officer (Diane Rifai of Cornerstone Mortgage) who gave me and some of my potential buyers some great information about Credit scoring. Here are some of the tips and information she provided:

One-Third of your credit score is based on the Amount Owed compared to your Total Available Credit (Credit Limit).  Whether you have $1,000 or $10,000 available credit, the best case scenario would be for you not to owe more than 30% of those totals.  So for $1,000 available credit, it's best not to owe more than $300; for $10,000 no more than $3,000.

One-Third of your credit score is based on your Payment History. Are you paying on time consistently? This is so important but obviously not understood. You have made an agreement (a contract) with that company that includes a deadline. Take it seriously. Your level of responsibility is graded through your timely payments.

The other One-Third is affected by Length of  Credit History, New Credit & Types of Credit Used. (Details in a future blog posting.)

Other information you should know:

Every inquiry into your credit can cost you 6-7 points.

If you have collections more than 2 years old and are thinking about trying to get a mortgage, its best NOT to call and try to settle those collections until after you purchase a home.  Calling those creditors will re-open them and affect your score.  It is probably best to pay off more recent collections.

Also, some companies continually RE-REPORT collections so those might be very good to pay off because they can cost you up to 100 pts.

Feel free to call me with any questions. Now, here's to you and your future home purchase!