Three Reasons to Buy a Home Now

Stocks are up 50 percent from the March 2009 bottom. Some commodities have risen dramatically. The only asset class left in the cellar is real estate.

As a result, investors should buy now for these three reasons:

(1) Desperate sellers. Both home owners and lenders are eager to unload a flood of foreclosed and underwater properties.

Buyers with the patience to push through these complex deals can save a bundle.

(2) Little competition. Because most people don’t have what it takes to negotiate their way through short sales and REOs, patient investors are winners.

(3) Low rates. Mortgage rates are at their lowest level in 40 years. If you believe inflation is inevitable, lock in now.

To search homes on San Diego MLS, click the link: www.SDCoastProperties.com/MLS
or call us at (619) 993-0687 to start looking for your next home.

Good-faith estimates get real

Good-faith estimates on mortgage closing costs are more accurate, but at a higher cost. Mortgage lenders must now pay the difference if a loan's closing costs come in higher than they estimated, which means no more lowballing to lure customers.

Lenders face new penalties if they lowball estimates of upfront mortgage costs, which has resulted in lenders and brokers coming clean about how much borrowers will pay.

As a result, the so-called good-faith estimates that mortgage providers must give to prospective customers show closing costs soaring 36% this year.

The main reason for the increase: Lenders are giving more accurate estimates because they now must pay to cover the difference if they underestimate the costs.

The Worst Is Over, Some Experts Conclude

With housing recovering slowly, most economists predicted in a recent survey that it will take at least five years for average home prices to climb back to the levels they commanded in 2006.

This year, some hard-hit areas may see another dip, but properties values will most likely rise.

"Softness in the summer months will be followed by firming conditions and momentum as the year unfolds and the economy strengthens," says Robert Denk, an economist for the National Association of Home Builders.