Time to Buy! (refinance, appliances, house)

[PacketHauler]

Originally Posted by Nypafl4u

Congrats PocketHauler. You are in a good position now with equity building and living in a nice, convenient area to boot. I heard about those changes and they are supposed to protect the buyers at each step if there is a change in paperwork for any reason. I can see how this could cause a seller to walk if it happens several times.

Thanks!

Based on the way home prices have been skyrocketing within the last few months, I hope we aren't at the top end of the range. After 2006 (and us being burned by it), that thought always creeps in.

There is a form you sign now if you want anyone else in the room with you during closing besides the closer, including having the buyer's realtor there. Something to do with preventing identity theft because of all personally identifiable information on the closing documents.

[Nypafl4u]

We are not at another high yet. Inventory is still low, the economy is still growing and jobs are more plentiful. The space program is humming along and there will be a new President, which should stir some economic activity just due to change. Now with the little Fed rate hike today, it will be interesting to see where the mortgage rates go. I feel a small increase in rates will actually help. Rates have been artificially too low for so long. Everyone for the most part refinanced and are now content to sit tight with their great, hopefully locked in rate. The new comers to the market will feel some pressure to buy now, before the rates go up again. This will dry up the market a bit more, raising prices a bit and allowing more homeowners to consider selling to take advantage of the higher market prices. If too many come on the market (unlikely), prices may drop a bit. If interest rates shoot up fast (unlikely as well), we can see a dip. But these things will adjust themselves. I think we are on an upward price trend for the next two years, depending on which party wins the election and baring any unforeseen disaster. The rise will be steady, but upward. Just my opinion of course.

[PacketHauler]

Originally Posted by Nypafl4u

We are not at another high yet. Inventory is still low, the economy is still growing and jobs are more plentiful. The space program is humming along and there will be a new President, which should stir some economic activity just due to change. Now with the little Fed rate hike today, it will be interesting to see where the mortgage rates go. I feel a small increase in rates will actually help. Rates have been artificially too low for so long. Everyone for the most part refinanced and are now content to sit tight with their great, hopefully locked in rate. The new comers to the market will feel some pressure to buy now, before the rates go up again. This will dry up the market a bit more, raising prices a bit and allowing more homeowners to consider selling to take advantage of the higher market prices. If too many come on the market (unlikely), prices may drop a bit. If interest rates shoot up fast (unlikely as well), we can see a dip. But these things will adjust themselves. I think we are on an upward price trend for the next two years, depending on which party wins the election and baring any unforeseen disaster. The rise will be steady, but upward. Just my opinion of course.

The interest rate that I have on my house right now, (even though it's an FHA loan), is still much lower than the mortgage I had in 2006, I think that one was 6.275%. That was on top of the bubble price before it burst.

[1insider]

Originally Posted by PacketHauler

Thanks!

Based on the way home prices have been skyrocketing within the last few months, I hope we aren't at the top end of the range. After 2006 (and us being burned by it), that thought always creeps in.

There is a form you sign now if you want anyone else in the room with you during closing besides the closer, including having the buyer's realtor there. Something to do with preventing identity theft because of all personally identifiable information on the closing documents.

This is part of the new "Know Before You Owe" TRID program designed to "help" consumers. The effect so far is delayed closings, confusion and lenders reluctant to issue pre-approval letters for fear of triggering additional disclosures or venturing into actual "application" status rather than "pre-approval" status. Like many government efforts to make life better, this one will cost some consumers money. A closing delay in a time of rising rates can have significant cost.

I used to get an advance copy of the settlement statement before closing and often caught mistakes or overcharges to my clients which I could have corrected prior to closing. Now I am no longer sent an advance copy of the statement and, unless the client forwards me a copy, they are on their own making sense of the numbers. "I'm from the government and I'm here to help." Right.

I agree with Nypafl4u on market direction here. Barring an unknown macro event, I expect the steady appreciation of the last five years to continue.

[PacketHauler]

Originally Posted by 1insider

This is part of the new "Know Before You Owe" TRID program designed to "help" consumers. The effect so far is delayed closings, confusion and lenders reluctant to issue pre-approval letters for fear of triggering additional disclosures or venturing into actual "application" status rather than "pre-approval" status. Like many government efforts to make life better, this one will cost some consumers money. A closing delay in a time of rising rates can have significant cost.

I used to get an advance copy of the settlement statement before closing and often caught mistakes or overcharges to my clients which I could have corrected prior to closing. Now I am no longer sent an advance copy of the statement and, unless the client forwards me a copy, they are on their own making sense of the numbers. "I'm from the government and I'm here to help." Right.

I agree with Nypafl4u on market direction here. Barring an unknown macro event, I expect the steady appreciation of the last five years to continue.

Sure enough that is exactly what happened to us. I had scheduled the utilities to cut over on our original closing date, so I ended up paying utilities for 1.5 weeks on a house I didn't own. Thankfully it was empty, so those first bills will be low. I can't even imagine how this would've gone had we not been good friends with the sellers after delaying 2 times. It also didn't help that our closing was supposed to be right after the Thanksgiving holiday.

Our Realtor didn't get any closing statements from the lender directly. I had to forward that to her every time I received a disclosure from the lender. Also the language on the new final closing disclosure is much more confusing to read than the HUD-1 was. "Consumer friendly". That's laughable.

[Nypafl4u]

So sad when the government interferes and makes things worse. I imagine if things continue to go poorly with closings, there will eventually be change again. Our tax money being used once again, for questionable reasons.

[Nypafl4u]

Another example of a flipper house that is listed at more than twice the purchase price just months before:
550 Needle Blvd. Merritt Island, sold for $82,500 on 6/1/15, just listed today for $214,900 post gut renovations.
This is listed for about $35,000 more than what a canal house across the street went for about three and a half years ago, (550 is not on the canal and is 300 sq. ft smaller to boot). I am curious how much more prices will rise in the next 12 months. I see a steady upward trend continuing through 2016. Time will tell. Get those tools out, renovate and make some $$$ now.

[chopchop0]

Originally Posted by Nypafl4u

Another example of a flipper house that is listed at more than twice the purchase price just months before:
550 Needle Blvd. Merritt Island, sold for $82,500 on 6/1/15, just listed today for $214,900 post gut renovations.
This is listed for about $35,000 more than what a canal house across the street went for about three and a half years ago, (550 is not on the canal and is 300 sq. ft smaller to boot). I am curious how much more prices will rise in the next 12 months. I see a steady upward trend continuing through 2016. Time will tell. Get those tools out, renovate and make some $$$ now.

Fed already started raising rates. That sucks the wind or of real estate as more income has to go to interest and less to principal for any given borrower. Not sure how much more room there is to run

[Nypafl4u]

Originally Posted by chopchop0

Fed already started raising rates. That sucks the wind or of real estate as more income has to go to interest and less to principal for any given borrower. Not sure how much more room there is to run

I believe the small rate hike will not slow things down. It was long overdue and if anything should actually push buyers to grab something now, before rates go up again. That will reduce inventory even more and create higher pricing as well as allow potential sellers to jump into the market and try to make a few dollars. Steady is the key here. I doubt the Fed will raise rates again for awhile. Look how long it took for them to do it after talking about for the last couple of years. I could be wrong, but I think real estate will continue this upward trend baring some unforeseen disaster (natural or man made). Oil pricing is a curios one and may have more impact on our economy long term than a small rate hike. But that is a whole other discussion . I say enjoy what is happening and try to take advantage of this upward market (if you can of course of course, without putting yourself into high debt to do so).

[1insider]

Originally Posted by Nypafl4u

Another example of a flipper house that is listed at more than twice the purchase price just months before:
550 Needle Blvd. Merritt Island, sold for $82,500 on 6/1/15, just listed today for $214,900 post gut renovations.
This is listed for about $35,000 more than what a canal house across the street went for about three and a half years ago, (550 is not on the canal and is 300 sq. ft smaller to boot). I am curious how much more prices will rise in the next 12 months. I see a steady upward trend continuing through 2016. Time will tell. Get those tools out, renovate and make some $$$ now.

The new price is probably justified. It was a total uninhabitable dump when it sold as a foreclosure for $82,500. It is now a showcase. Pretty much new everything, landscaping, fencing, roof, AC, pool, entire interior. The flipper did a killer job and spent a ton of money on the house. The price increase has less to do with market appreciation than it does with improvement in condition of the specific property.

This is what it looked like when it sold for $82,500






Here's what it looks like now.