CAMPBELL, Calif., March 17, 2011 /PRNewswire/ -- While affordable
housing prices, ample inventories, and historically low interest
rates signal 'buyer's market' for investors or move-up buyers in
many U.S. markets, inexperienced first-time buyers may not know if
the time is right to make a move into real estate.
(Photo: http://photos.prnewswire.com/prnh/20110317/LA66598)
"It's not about timing the market. It's about time in the
market," says Steve Berkowitz, chief
executive officer at Move, Inc., (Nasdaq: MOVE), the leader in
online real estate. "Once you know how long you expect to own a
home, look at the historical value performance of properties in the
neighborhood. Be confident about your own job security, down
payment resources and tolerance for upkeep, as well as the
lifestyle you want today and in the near term. While homeownership
may not be for everyone, it is the right choice for hundreds of
thousands of people. Today's housing market, especially for
first-time buyers, makes it almost impossible not to think about
the possibilities."
To help first-time buyers know if they're ready to look for the
home of their dreams as we head into this year's home buying
season, the experts at Move provide a 'reality checklist' designed
to help them decide if the time is right.
GET YOUR FINANCIAL HOUSE IN ORDER
Before you decide to buy a home, it's essential to make sure
your credit is in good shape and repair any damage previously done.
Know your credit score: thirty-five percent (35%) of successful
buyers recently reported they didn't know their credit score when
they went house shopping, according to a national survey fielded
for MortgageMatch.com.(1) Having enough money set aside for a down
payment is a key component to making sure you are ready to purchase
a home. Also, it's important to not put all of your money in the
down payment as other fees or unexpected expenses often arise after
closing.
DON'T FALL IN LOVE WITH A HOUSE YOU CAN'T BUY
Find out how much you can afford: establishing your
purchase power upfront, including how much money will be required
for a down payment and closing costs, is a must for first-time
buyers. Look for special loans available from FHA and
government sponsored loans for first-time home buyers that reduce
the amount of money required to get into a home.
LEARN THE LINGO
Since first-time buyers are new to the market and will finance a
significant portion of their purchase, it's important to get
familiar with the processes and terminology associated with home
buying. Here are a few key terms from MortgageMatch.com to
add to your vocabulary:
- Bait Rate: Misleading mortgages with low rate promises
and no contingencies generally for those with extraordinary credit.
Rates are based on: credit, debt-to-income and
loan-to-value ratios, the size and type of loan, property location,
and the day you lock your rate, etc. The loan isn't locked
until the application is accepted. By then, it may be too late to
find a better rate from another lender.
- Basis Point: A term used in the mortgage industry which
simply means 1/100th of 1 percent.
- Closing Costs: The fees required to process and close
your loan. They're a cash obligation running from three to five
percent of the purchase price. Motivated sellers might pay a
portion of these costs.
- FHA: Federal Housing Administration, the Federal
Government Agency that oversees the US Housing market. FHA Loans
are loans insured by the Dept. of Housing and Urban
Development.
- FRM and ARM: A Fixed Rate Mortgage Loan (FRM) is
a loan where your interest rate stays the same for the life of the
loan. ARMs are Adjustable Rate Mortgages with variable
interest rates that fluctuate based on an agreed-upon index.
- GFE: The Good Faith Estimate (GFE) is a document
explaining all costs involved in getting a loan.
- TIL: The Federal Truth-in-Lending Form is a document
that spells out the costs and fees of the loan.
- Lis Pendens: An official notice that there is a pending
lawsuit over real estate.
- Per Diem Interest: Interest you pay per day, from the
day you close to the last day of the month.
- Underwriting and Underwriting Fees: Underwriting
is a process the lender performs to qualify a borrower for a loan
and the fee is what you pay the lender at closing to cover
evaluating the risk involved with loaning you money.
- Warranty Deed: A legal document guaranteeing the seller
has a right to sell a property, which is very important if you are
considering a distressed or discounted property.
MORTGAGE MUMBO JUMBO TRANSLATED INTO KNOWLEDGE AND
POWER
While national rates on 30-year-fixed-rates mortgages have risen
slightly this year, they are still at historic lows not seen since
1980, according to Freddie Mac.
MortgageMatch.com, an online lending resource where borrowers
can find and apply for real loans with real rates in real time, is
providing access to mortgage quotes and information instantly and
tips on how to get your personal finances in order. Selecting the
right mortgage can be stressful, but the experts at
MortgageMatch.com provide videos, articles and more to help you
find the right fit.
"Buyers who prepare themselves financially before they start
looking for a home will have a better chance of succeeding," says
Sue Stewart, senior vice president
for Move, Inc. "If you want to land the best mortgage that fits
your needs, start early, educate yourself on your financial
situation, get your documentation together and find a lender you
trust."
FIND A REALTOR® AND GO SHOPPING
For those ready to buy, REALTOR.com® has the tools and tips to
help you find a REALTOR® and, ultimately, the right home. Finding a
licensed real estate professional in your area will make the
process smoother and easier to understand. Once you find an agent,
share your realistic budget and what you're looking for in a home.
Stay in constant contact with your agent and look for homes
whenever you have a spare moment by using the Realtor.com iPhone,
Android, and Windows 7 apps.
FIRST-TIME HOME BUYER RESOURCES
For more tips designed to help the first-time buyer navigate the
home buying process, the experts at Move have provided an abundance
of helpful information that's just one click away:
- Reality checklist – Are you sure you're ready to buy? Here's
how to know!
- How to Guide: Buying Your First Home – Everything you need to
know about buying a home
- Get Prequalified Now – Get prequalified for a mortgage before
you begin shopping
- Realtor.com Blogs– Connect with Realtors® to help you navigate
the market
- MortgageMatch.com News – Answers questions about finances and
mortgages
- Move.com Home Finance – Equips first-time buyers with tools,
guides, advice, and more
IF NOW ISN'T THE RIGHT TIME, PREPARE FOR YOUR FUTURE
PURCHASE
If now isn't the right time to buy a home, make a plan with a
target date for when you expect to be ready. Improving your credit,
paying down debt, stabilizing your work history, and calculating
exactly how much you can afford, are the best ways to prepare for
your future home purchase. It's also important to refrain from
making any new large purchases or applying for new credit.
For more information about Move's First-Time Homebuyer
Campaign, visit the media page.
ABOUT MOVE, INC.
Move, Inc. (Nasdaq: MOVE) is the leader in online real estate
with 11.596(2) million monthly visitors to its online network of
web sites. Move, Inc. operates: Move.com, a leading destination for
information on new homes and rental listings, moving, home and
garden and home finance; Realtor.com(R), the official web site of
the National Association of Realtors(R); Moving.com;
SeniorHousingNet; Top Producer Systems, and ListHub. Move, Inc. is
based in Campbell, California.
ABOUT MORTGAGEMATCH.COM
MortgageMatch.com is operated by Move, Inc. (Nasdaq: MOVE).
Through a partnership with a national mortgage banker d/b/a
Mortgage Match, a variety of quality loan products are offered to
home buyers interested in financing the purchase of a property or
current homeowners interested in refinancing their current
mortgage. Consumers can access such products at
www.mortgagematch.com.
ABOUT REALTOR.COM®
Realtor.com®, where the world shops for real estate
online, is operated by Move, Inc., (Nasdaq: MOVE) and is the
official web site of the National Association of Realtors®.
Ranked as the #1 homes-for-sale site, Realtor.com® currently
offers potential home buyers access to over four million property
listings, as well as the most brokers and agents. It also provides
Realtors® and the home sellers they represent with the
Internet's largest real estate marketplace, reaching more than
9.971(3) million consumers in January
2011. Agents and companies have the power to customize
Realtor.com® resources to maximize their brand and
productivity.
This press release may contain forward-looking statements,
including information about management's view of Move's future
expectations, plans and prospects, within the safe harbor
provisions under The Private Securities Litigation Reform Act of
1995. These statements involve known and unknown risks,
uncertainties and other factors which may cause the results of
Move, its subsidiaries, divisions and concepts to be materially
different than those expressed or implied in such statements. These
risk factors and others are included from time to time in documents
Move files with the Securities and Exchange Commission, including
but not limited to, its Form 10-Ks, Form 10-Qs and Form 8-Ks. Other
unknown or unpredictable factors also could have material adverse
effects on Move's future results. The forward-looking statements
included in this press release are made only as of the date hereof.
Move cannot guarantee future results, levels of activity,
performance or achievements. Accordingly, you should not place
undue reliance on these forward-looking statements. Finally, Move
expressly disclaims any intent or obligation to update any
forward-looking statements to reflect subsequent events or
circumstances.
Android, Android Market, and Google Maps are trademarks of
Google, Inc.
(1) "Survey Shows Access to Mortgages Seen as a Serious National
Problem." Move, Inc. Press Release. February 8, 2011.
http://news.move.com/index.php?s=11609&item=25809
(2) comScore Media Metrix, February
2011
(3) NAR Existing Sales 11/2010, Case Shiller Q3 Home Price Index
11/2010, Altos Research – Chart of the Day 12/30/10
SOURCE Move, Inc.