The Most Common Mistakes Home Buyers Make

1) Timing Problems. Not planning the move to coincide with the end of their lease often creates budget problems. Check with your landlord about an early release clause from your lease if you are considering buying a home. This way you save yourself the headache of potential problems that may arise.

2) Looking at Homes You Can't Afford. You might find that when you do a reality check and start looking in your price ranges, that the houses are rather disappointing. Get pre-qualified and then stick within your budget.

3) Buying the Wrong Sized Home. Consider how long you plan on being in the property and plan for any lifestyle changes that could possibly happen.

4) Buying in a Neighborhood You Know Nothing About. Think about whether or not this neighborhood will make you as happy as the house does. Do your homework.

5) Operating on a First-House-is-Best Theory. Season your eyes by inspecting different types of homes. This will help establish your objectivity after coming from a renting situation.

6) Buying a Property That's Difficult to Resell. Walk yourself through all the negatives of the property.

7) Overextending Your Budget. Avoid feeling pinched - just because you have been pre-qualified to a certain level doesn't mean that is where your comfort zone is for payments.

8) Being Indecisive. Take all the time you need, but don't be afraid to make a commitment when you've found your dream home.

9) Choosing the Wrong Mortgage. The thirty-year fixed rate is not the only or necessarily the best answer. Have your lender show you on paper how much each program will cost you and how they compare with each other.

10) Under-insuring the Property. Forgetting to increase insurance coverage as the home appreciates in value or neglecting to properly insure the replacement value of the contents.

--

Thank You!

Ricardo Bueno - Residential Commercial Construction Investment Advisor

Toll Free: 866.934.3444 Cell: 323.810.2175

Ricardo Bueno is a Mortgage Advisor & Team Leader with Wilshire Financial, Inc. A diversified mortgage brokerage located in Pasadena, CA.

Wilshire Weekly Mortgage Update - July 30th

Let's Recap:
The average 30-year fixed rate dropped to 6.69%, down from 6.73% last week.

The average 15-year fixed rate dropped only slightly to 6.37%, down from 6.38% last week.
The 1-year ARM on the other hand dropped to 5.69%, down from 5.72% from last week.

We can attribute this slight decrease in interest rates to weak Economic Reports from last week and continuing credit concerns; low Home Sales reports reflected a weakening housing market. We're seeing a slight decrease in interest rates because as we know, lower interest rates boost home sales.

Let's take a look:

Seasonally-adjusted home sales are down for the 4th consecutive month. They have now reached the lowest levels since November of 2002.

New Home Sales have encountered the heaviest decline since January.

Total Existing Home Sales (in the first half of this year), are 9.3% lower than sales in the first half of last year.

Year-to-date New Home Sales are down 21.7% from last year.

The Fed Funds Rate:

The Fed Funds Rate is currently holding at 5.25%. As previously stated in earlier weeks, we do not anticipate a change to the Fed Funds Rate during August 7th's meeting.

The Week Ahead ~ Outlook:
Continuing credit concerns are deterring investors and combined with continued housing market weakness (especially after this last week's Home Sales reports), we can anticipate slight interest rate cuts. But don't get excited just yet, we're still seeing continued bond market volatility and we're in line for another busy week full of Economic Reports.

For a view of the Economic Calendar, you can visit http://www.bloomberg.com/ or visit Ana Connell's (your Burbank Real Estate Specialist) version of The Week Ahead for a clearer description of what to expect.

Recommendation: As I mentioned last week, there still exists bond market volatility amongst continuing subprime market concerns and continued housing market weakness. I would still advise to lock-in a rate if it works for you (the consumer), or for your borrower (if you're an agent representing a buyer). If you're going to float, do so with caution! I'd be happy to advise you of any positive inter-day rate changes, simply send me an email at rbueno@wilshire-financial.com

Related Articles:
Credit concerns are spreading, says Bernanke By Krishna Guha inWashington and Richard Beales, Michael,MacKenzie and Saskia Scholtes in New York

Other Interesting Articles:
100% Financing On Jumbo & Super Jumbo Loans w/No PMI - Here's How
2nd Mortgages v. Home Equity Lines of Credit (HELOCs)
Free 24-Hour Recorded Information All About Mortgages












Thank You!
Ricardo Bueno- Residential Commercial Construction Investment Advisor
866.934.3444

Ricardo Bueno is a Mortgage Advisor & Team Leader with Wilshire Financial, Inc. A diversified mortgage brokerage located in Pasadena, CA - The City of Roses!