Amy Myers\’s Blog

You shop around when buying a house, so you should seriously consider shopping around for your mortgage. If you want to get a great deal on the house, you should also try to get the best deal possible on the mortgage. Here are some tips to help you in the process:

1. Shop for the best rate possible. Pay close attention to the points you will be charged. This can save you thousands of dollars over the life of the loan.

2. Ask the lenders to give you a good-faith estimate (GFE). This statement will itemized the closings costs for you. Ask the lender any questions you may have regarding any of the fees.

3. Prepayment Penalty. Make sure you do not have a prepayment penalty. Life changes and you may need to resell. In addition, you may want to refinance or pay additional or your principle loan amount.

4. Be comfortable with your lender. This can avoid closing time surprises. Make sure your lender is responsive and gets back to you in a timely fashion.

5. Find a lender that can work with your specific situation. Not all lenders know how to run all types of loans. Some can work with tough credit and some can’t. Some now how to run through state programs and some not. Ask specifically if they can help you with the kind of program you need. Ask multiple lenders these questions.

6. Ask how long your rate lock period is. Each lender has a different lock rate period for you to choose the rate. The lock length rate can vary from 30-90 days. Some lenders charge a fee if you want to change the rate once locked in. Interest rates may be increasing during the time you are applying for your loan. So keep a close eye on rates and ask your lender to assist you. They know the market’s rate history and trends well.

Many new and second homeowner’s use FHA loans. The market can be confusing and here are some helpful facts to help you in your home buying process. Qualified Lenders offer FHA loans, considered mortgages, and these mortgages are insured by the Federal Housing Administration (FHA). Many buyers still do not totally understand the benefits that can be had from FHA Loans.

Here are some interesting facts.

1. Low-income borrowers are not the only one’s to benefit from FHA Loans.   There is no maximum income restriction.
2. FHA loans can be for more than first-time home buyers.
3. FHA loans are not only for lower priced homes. Loan amounts for FHA can be almost $800K. The loan amount cap was originally around $363,000 and increased to almost $800K to help stabilize the housing market.
4. FHA does not have anything to do with low-income housing. Simply FHA loans are mortgages that are insured by FHA.
5. FHA loans, in many cases, are more affordable conventional loans and allow the borrower to have a smaller down payment.
6. More lenders are willing to loan to to FHA (the federal government) that assures repayment.
7. FHA loans can be assumed. This means a new buyer can take over the payments as long as they bring the seller’s current equity (cash in the home) to the table. This works well when interest rates have risen greatly compared to what the seller’s current mortgage interest rate is.

Read More at RISmedia

Pittsburgh has been making headlines especially in the last two years. The city has done it again. Pittsburgh also has a strong university presence. There are over 12 Universities here in Pittsburgh. This equates to great employment opportunities and livability as these schools are large employers.

The following is quoted from Forbes.com

“Pittsburgh has a really great cultural scene. We have a great ballet and a great symphony that travels the world and performs to packed houses, and there’s a restaurant scene that’s much more diverse than it ever was when I was growing up,” says Wendy Hermann, director of student services for master’s programs and a Pittsburgh native. “And it’s an easier sell, now that the Steelers and Penguins won their respective titles.”
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Indeed, Pittsburgh’s art scene, job prospects, safety and affordability make it the most livable city in the country, according to measures studied.

Are you considering the home buyer tax credit?   If so you have less then 60 days to put your home under contract.   With the new extension that took place last November, you now do not have to be a first time home buy to qualify.   You do not even have to have your current home sold when purchasing that step up home.   Another key point is, that if you have qualified for the tax credit already, and your taxes have been completed for 2009, you do not have to wait until next year.   You can file to amend your taxes and get the money now.

1)   As long as you stay in your qualified home for 3 years, you don’t have to pay it back the credit back.

2) This is a dollar for dollar tax credit, it is not a deduction.   It will be a reduction in your owed taxes of up to $8,000 for first time home-buyers and up to $6500 for qualified buyers who are repeating the process.   Repeat buyers must have lived in the home at least 5 consecutive years during an eight year period by the closing date of the new home.

3)   The income limit qualification has been expanded to include more buyers.

So hurry if you are planning to take advantage of this home buyer tax credit, you must have a contract in place by April 30, 2010 (with closing to take place by June 30, 2010), so call your real estate agent today!

Tax Credit Details

Additional Tax Credit Details from Realtor.org

Frequently Ask Tax Credit Questions

AKHome.info Tax Credit Archives

It is really interesting to me to hear about other real estate markets and what things sell for around the country and the world.   One of my favorite TV channels is HGTV.   I love watching people compare and pick out houses.       I also enjoy seeing how they decorate them after a few months of living there.   It also gives you a really interesting view of these various markets.   Sometimes you can see some very strange and exotic things.

One of show that really sticks in my mind is a House Hunters.   The couple on this show was looking for a home in the Mediterranean.   I cannot remember if it was Greece or not.   They picked a house that I thought they would not because the long walk and steps to the door on the side of the hill was lengthy.   This couple ended up buying it for $750,000 US right on the sea and believe it or not it still needed fixing up.   It was practically ruins and had no plumbing.   I wonder how they dealt with that on the side of a hill.   I have no idea how they would get their furniture up there but they may need a mule.

Here is another interesting house that sold recently in NY City called the Skinniest House that was reported by Realtor.org and the Associated Press

” ‘Skinniest House’ Sells for $2.1 million;” A property dubbed New York City™s skinniest house sold recently for $2.1 million. The two-story Greenwich Village property is 9.5 feet wide and 42 feet long and has two bedrooms and two baths. The townhouse was listed last August for $2.7 million by Alex Nicholas, senior vice president of the Corcoran Group. It last sold in 2000 for $1.6 million. It is now for rent for $10,000 per month.”

Also see this Article From Washington City Paper, where the photo is from – by Ruth Samuelson.

The housing market has had its ups and downs this past year, but if you live in Pittsburgh, PA or the surrounding area, you are in a great place.   Pittsburgh never had a housing bubble and is expected to be number one this year with growth in the housing market.

If you are not from the area and are thinking of moving to a new city, what a great opportunity for one of your biggest investments, your home.

“If there’s a bright spot, it’s pockets of the Midwest — states like the Dakotas, Kansas, and Nebraska, which have stronger economies based on agricultural and energy industries.

Then there’s Pittsburgh, which didn’t have much of a housing bubble to begin with and is the only market projected to grow next year, up 0.41%.”       -Quoted from CNN/Money.com

According to this article above Pittsburgh is the number one city in the Nation for increased price change projection form 2010.

The Pittsburgh area with its seven counties generally ranks in in the top 50 most affordable US housing markets according to the National Association of Home Builders/Wells Fargo Housing Opportunity Index (HOI).

Photo Copyright, 2009, Amy S Myers

Hope you are keeping warm this season. This is the most snow that I have seen in my life over the Christmas season living in the Pittsburgh Area (or NJ where I grew up). It was so cold last night and the snow was glistening out the back door. So before heading up to bed I had to shoot some snowflakes. They did not come out too bad considering a macro lens was not used. The photos are only cropped. No color editing was done. Happy New Year!

photos copyright 2010, Amy S Myers

Many calls come in from first time home buyers not knowing where to start when getting ready to buy a home. Some are not sure how much they can afford or should afford. Here are some helpful tips:

1) One of the first thing to do is to locate an agent that you feel comfortable with and that has your best interests in mind. Interview them if you do not know someone personally, even if you are looking to have representation as a buyer.

2) At the same, time find a loan agent. Check with your agent as he or she may have many contacts from mortgage companies and banks. Quite often I find that Mortgage companies may have better programs and lower rates, although not 100% the case.

3) The next thing is to do a budget after getting pre-approved with your loan agent. Many of my buyers says to me, “I am approved for this amount but I don’t want to go that high”. They would like some breathing room.

Below you will find a link for a home affordability calculator for the NAR (National Association of Realtor’s). If you need assistance, have your loan officer, real estate agent, tax advisor sit down and go over your figures with you. Happy House Hunting. Tax Credit deadline to be under contract is April 30, 2010.

Home Affordability Calculator

Today was the big day in Leechburg, PA near my office. The newly built McDonald’s opened. As I drove by later in the afternoon today, the place was packed (not an open parking spot) and people were lined up around the building for the new double drive-in. On September 1, 2009 the old McDonald’s on Hyde Park road was torn down along with a vacant Long John Silver’s building. From start to finish in less than three months.

As I stopped to get get photos last night, the freshly new place was perfectly lit up. There were young kids hanging out already by the door and some had duffel bags. I thought rather strange. Later after talking with some locals, I heard unconfirmed reports that the first 100 people in the door would get free Big Macs for a year. Rumor also has it that it is one of the most high tech McDonald’s in the area.

Photos Copyright, 2009     Amy S Myers

Pittsburgh and the Metro Area proves time and time again a great section of the country to live.   Home prices and Mortgages are stable and affordable in the region. The days on market are lower than other cities.

Top Cities that were least effected by the Recession from Forbes:

“To identify these cities, Forbes magazine ranked the 100 largest Metropolitan Statistical Areas by employment rates, the conventional mortgage home price index, and the average days on the market for properties currently for sale.

The top cities on Forbes list were:”

* Omaha/Council Bluffs, Neb.
* San Antonio, Texas
* Austin-Round Rock, Texas
* Pittsburgh
* Harrisburg/Carlisle, Pa.
* Dallas/Fort Worth
* Rochester, N.Y.
* Houston
* Raleigh/Cary, N.C.
* Baton Rouge, La.”

Quoted from Realtor.org and Forbes, Francesca Levy (11/19/2009)

Heinz Stadium, Pittsburgh, PA

Photo Copyright, 2009 Amy S Myers