The housing numbers continue to improve for the Greater Kalamazoo Area. Compared to last April, the current data shows encouraging news for the Greater Kalamazoo housing market. Based on the data and graph below, you can see that the overall number of properties sold and the total dollar volume sold was higher in 2012 than in 2011 for the same time period. Other good news is that the average residential sale price increased from $125,686 to $127,478, while the median residential sale price increased from $99,950 to $102,000. Another positive indicator is that the number of pending properties is up in April 2012 to 416 compared to the April 2011 level of 335. These are the properties that are in the process of closing. This number has been increasing for the past ten months and is at a level that has not been reached since April 2006. ...

In last week’s post, we talked about Conventional Loans. Today, we will answers questions about Rural Development. Type of Loan: Rural Development Length of loan in years: 30 year fixed rate Debt to income ratio: 29% housing ratio and 41% debt ratio. Credit score minimum: Minimum is 580. A score of 580-640 will have to meet certain credit requirements to qualify. Can my credit score effect the interest rate: This will depend on the lender. Income minimum or maximum: The maximum income is 115% of the median income for the area. Down payment requirements: There is no down payment requirement. Closing costs, guarantee fee, legal fees, title services, establishing escrow account and other...

In last week’s post, we talked about theMost Common Types of Mortgage Loans. Over the next few weeks we will be giving answers to some of the most frequently asked questions about loans. Type of Loan: Conventional Length of loan in years: Loan terms can vary from 10, 15, 20, and 30 years. Debt to income ratio: This ratio can vary, but typically you want your ratio to be 45% or less. Credit score minimum: The typical minimum score is 620. A score of 740 or above will place the borrower in the best position. Can my credit score effect the interest rate: Yes. Credit Score can have an impact on interest rate....

You decided now is the time to purchase a home. This is the first step and the most important in the home buying process. We congratulate you on making this very powerful and life changing decision. Then you ask yourself “what is my next step?” The answer to that question is talk to a mortgage lender to determine how much you can afford. This is also a very important step in the process and should be done before you have your REALTOR® set up appointments to view properties. The reasoning behind this step is to make sure you can afford to purchase a home. Once that is determined, you want to make sure your real estate professional is showing you homes you can afford to purchase as well as the properties allowing the types of financing you have been approved for by the lender. There are many types of mortgage loans and not...

Meet with a lender to determine how much you can afford. So many times, home buyers look at houses and find one they love without knowing if they can afford it. It’s heartbreaking to fall in love with a house only to find out you cannot afford it. It makes looking at houses in your price range so much harder once you’ve already fallen in love. Below is a list of items that will be needed throughout the loan process. While not all are needed during the initial loan application meeting, they will be needed at some point, so if you have them available, bring them with you to the lender. Copy of Driver’s License or Government Issued Photo ID Copy of your most recent paystub Copy of your most recent year W-2’s for all jobs Copy of your...

The housing numbers continue to improve for the Greater Kalamazoo Area. Month over month improvements are being made comparing 2011 to 2012. Based upon the figures and graph below you can see that the overall number of properties sold and the total dollar volume sold was higher in 2012 compared to 2011 numbers. Another positive statistic for March 2012 is the average residential sales price has increased when compared to 2011 figures and the median residential sales price has also increased compared to 2011. From the graph below you can see that pending sales in 2012 (435 units) are higher than 2011 (338 units) which is a positive indicator as well as the actual number of closing increased in 2012 compared to 2011 (287 units in 2012 vs. 242 units in 2011). The...

When you are considering purchasing a condominium, here are just a few items to investigate before you and your Realtor® set up a showing. Is the association FHA approved? You should already be familiar with the type of financing that you are going to use for your purchase after meeting with a loan officer. The type of financing available for purchasing a condo is very important. While in the past, if an association was not FHA approved, there could be “spot approvals” for a particular condo, but this is no longer available. Make sure that before you view properties it is verified that the association is currently approved for this type of financing....

Home Buyers Insurance Checklist - Reproduced from The Insurance Information Institute While House Hunting Cont’d Determine How Much It Will Cost to Maintain the House Routine maintenance is your responsibility as a homeowner. Losses caused by failing to properly care for your home are not covered by standard homeowners insurance policies. The yearly cost of taking care of your house is another factor to be included in the overall price of owning the home. Call Your Insurance Representative Don’t wait until the last minute to think about insurance. Ask your insurance professional if the house will qualify for insurance, and get an estimate of the premium. The sooner you act, the smoother the process will be. Don’t be shy about asking for estimates on more than one house. Insurance is an important consideration when purchasing a home. If you are uncomfortable with the cost of insuring a particular house, keep looking for one that better fits your financial situation. If you do not already have an insurance agent or company representative, get recommendations from family, friends or co-workers, or consult your state insurance department. ...

Home Buyers Insurance Checklist - Reproduced from The Insurance Information Institute While House Hunting Continued Swimming Pool or Other Special Feature If the house has a swimming pool, hot tub or other special feature, you will likely need more liability insurance. You may also want to consider purchasing an excess or umbrella liability policy to provide added protection in the event someone gets injured on your property and decides to sue you.  BEFORE YOU PLACE A BID ON THE HOME Check the Loss History Report Ask the current owner of the house for a copy of the insurance loss history report, such as a Comprehensive Loss Underwriting Exchange (C.L.U.E.) report from ChoicePoint or an A-PLUS report from ISO, a leading source of information about property/casualty insurance. This is a record of insurance claims on the house that can provide answers to two questions that any savvy homebuyer should ask:...

The housing numbers are improving for the Greater Kalamazoo Area. Month over month improvements are being made comparing 2011 to 2012. Based upon the figures and graph below you can see that the overall number of properties sold and the total dollar volume sold was higher in 2012 compared to 2011 numbers. Another positive statistic for February 2012 is the average residential sales price has not decreased when compared to 2011 figures all though the median residential sales price was lower than 2011. From the graph below you can see that pending sales in 2012 (320 units) are higher than 2011 (243 units) which is a positive indicator as well as the actual number of closing increased in 2012 compared to 2011. The final positives for 2012 vs. 2011 are the number...