The following post is Courtesy of KCM Blog

Why Do American Families Buy a Home?

kcmblog.com/2013/09/09/why-do-american-families-buy-a-home/

The KCM Crew

There is a plethora of opinions voiced by real estate gurus as to why the dream of home ownership is so important to most Americans. However, study after study reveals the same five reasons families decide to buy a home. They…

1. Want a good place to raise children
2. Want a place where their family feels safe
3. Want more living space
4. Want control of that living space
5. Realize that owning makes better financial sense than does renting

(For those who question the validity of  number five after the recent housing crisis, Harvard University just finished a study on the issue)

If you are considering purchasing a home, look at the five reasons mentioned above. If any of them apply to you and your family, perhaps it is time for you to take the plunge. With both prices and interest rates rising, waiting will only increase your monthly cost as we move forward.

Housing Data: Past and Future

Infographic Courtesy of KCM BLOG

Homeownership still the American Dream

The following article Courtesy of KCM BLOG:

Harvard: Homeownership Still the American Dream

kcmblog.com/2013/09/04/harvard-homeownership-still-the-american-dream/

The KCM Crew

A big question facing the real estate industry over the last few years is how the housing crisis would impact the public’s belief in homeownership as a major component of the American Dream. Many felt the tragedy experienced by so many families would force them to reconsider their desire to ever be a homeowner again.
A recent study by the Joint Center for Housing Studies at Harvard University addressed this question. Their paper, Reexamining the Social Benefits of Homeownership after the Housing Crisis, revealed some interesting findings:

Homeownership Still Preferred Over Renting

“Even after the dramatic loss of equity and the high foreclosure rates, the early evidence suggests that people seem to believe that, over the long run, owning is still preferable to renting…The long term cultural preference for owning seems to have weathered the recent housing crisis.”

Americans Still Expect to be Homeowners

“The research on home-buying expectations supports the conclusion that very large percentages of Americans still expect to buy a home at some time in the future.”

Younger Americans More Desirous of Homeownership

“Moreover, the finding that younger renters and owners are more likely than their older counterparts to expect to own bodes well for the future of the housing market.”

Even after one of the most difficult decades in this country’s real estate history, the belief that homeownership is a part of the American Dream still lives on.

Prudential Real Estate - J.D. Power Triple Crown Winner

Distressed property numbers are diving

Infographic Courtesy of KCM Blog

5 big home mortgage mistakes to avoid

NORFOLK, VA, Aug 28, 2013—Applying for a mortgage can be a daunting task. It takes many hours, lots of paperwork, and possibly a headache or two. Below are several mistakes to avoid when on the hunt for a mortgage.

Not checking your credit. “This should be your first step in applying for a mortgage,” says Louis Eisenberg, Associate Broker REALTOR ABR SFR of Prudential Towne Realty. Check your score months before applying for a mortgage so you know where you stand, and have time to make any changes if necessary.

Not getting pre-approved. A mortgage pre-approval is one of the best things you can do to ease the home-buying process. During pre-approval, your bank checks your credit and examines your income, assets, and employment. “Before shopping for a home, get pre-approved,” advises Eisenberg. “Many sellers won't take you seriously otherwise.”

Applying for new credit AND a new mortgage. “Do not apply for a new line of credit before or during the mortgage application process – it hints at financial instability, and you're seen as a greater risk,” says Eisenberg.

Changing jobs. If you're thinking about switching jobs, then hold off on the mortgage application, or stick out your current position for longer. “While a change in the same field doesn't necessarily mean you will be rejected, a big change - like a brand new career - can be a red flag,” notes Eisenberg.

Not seasoning your assets. Uncle John is giving you $10,000 to put toward your mortgage? Terrific. Make sure it's in your account months before you apply for a mortgage. New funds do not equate to financial stability, and your underwriter will catch on.
For more information on obtaining a mortgage, please contact Louis Eisenberg, Prudential Towne Realty, 109 E. Main Street, Norfolk, VA 23510, leisenberg@prudentialtownerealty.com, (757) 572-7244, or www.LouisEisenberg.com

Sales of foreclosed and short sale homes are significantly lower

Infographic Courtesy of KCM BLOG