Jayson asked:


Last week, the Federal government stepped in and introduced new measures which should assist buyers and sellers of Victorville California homes and the California housing market in general. A lack of prospective buyers, caused by a severe credit squeeze that began last August, has combined with a general lack of consumer confidence to reduce the number of house sales and lower the median price of the sales that are taking place.

The credit squeeze of the past few months has made it far more difficult for potential buyers to satisfy the criteria required to obtain new mortgages. But there is – it seems – some light at the end of the tunnel. Last Wednesday, President Bush signed off an economic stimulus package that will increase the limits for Freddie Mac, Fannie Mae and FHA-backed mortgages. This is expected to have a positive impact on the Victorville California homes sales market.

This new easier availability of FHA-backed mortgages will significantly assist first-time buyers who had previously been pushed out of the mortgage market by the turmoil of the sub prime lending problems of the last few months. The lack of available mortgages for those with little money for down payment had stalled the lower end of the housing ladder, which had a ripple effect right through the Victorville California homes market.

This new availability of larger mortgages should greatly assist in turning around the California housing slump. If youre searching for Victorville California homes, the current market presents some excellent opportunities. The recent slump in sales now means theres a huge selection of houses available for purchase. Whereas previously the area was very definitely a sellers market, its now turned 180 into a buyers market. With such a large choice of homes available, a buyer can afford to shop around for a real bargain.

Lower interest rates will also help boost the ailing market, and the new incentives announced by the President will last for just one year. Therefore, its expected many people who have been sitting on the fence waiting to see what happens with the Victorville California homes market, will now see that theres been a clear change of circumstances that will benefit them. This, in turn, should provide the much-needed stimulation to restart the local housing market.

Many developers are offering large, incentive packages on new and resale homes. Buyers now have an excellent choice of properties to sift through. In addition, over the past few months, many big-time home builders have slashed prices by around 25% – there are approximately 5400 brand new homes sitting vacant in San Bernardino and Riverside alone, providing a rare opportunity for home buyers to snap up one of the many Victorville California homes bargains now available.

When youre thinking of a new home mortgage, you will not only be considering the interest rates, the new principal amount, the length of the term, or even the costs associated with them. Most of all, you should keep in mind the company where youre getting it.

Honesty always remains the best policy, even in your new home mortgage. You definitely need a broker who can tell you straight in the face your optionsthe best method to deal with your new loan as well as the possible expenses you may have to pay. So you can pick the best lender or broker for your new loan, consider the following qualifications:

1. Steer clear from brokers who are working closely with a lender. With your new home mortgage, you can either go to a broker or a lender. The difference is that the former earns a living through commissions he gets from referrals. If youre working with them, make sure that he isnt really affiliated with only one lending company. As a matter of fact, you can ask them of how much theyre getting from the referrals. Real pros will never hesitate answering your questions. You want a broker who can direct you to the lending company that can provide you the most appropriate home loan.

2. You must have various new home mortgage options to choose from. The main concern of a lending company should be you: what you need and want. Thus, if youre going to be selecting one, ensure that it can provide you more than one home loan option. In fact, the lender must have the ability to customize a package according to your needs.

3. All information should be divulged. Everything should be transparent when it comes to your new home loan. These may include the costs of obtaining the loan, the interest charges that you may have to pay, the time frame of your mortgage, as well as the penalties that you may incur just in case you decide to cancel the loan before its actual scheduled completion. Moreover, you also need to know the kind of support the company can extend to you as their customer. Can you have access to their 24-hour customer care hotline? Can they offer free quotes for you?

4. Confirm the qualification of your lending company. There are some agencies that govern the operations of lending companies. Even the federal government is vigilant against lending scammers. You dont want to get a new home mortgage to one that is not licensed to operate or those composed of financial advisors that are not certified or professionals. This means that the business doesnt have the capacity to help borrowers when it comes to loans. Before you decide to borrow money from them, double-check their background. It is at this point, too, that its better to work on with your present lending company if you decide to secure a new home loan. Nevertheless, if it cannot provide you a better deal, dont be afraid to look for another one.

Joshua Ferris asked:


After the real estate market hit a steady decline in mid 2006, home builders turned to incentives as a way to attract home buyers to their communities and to help differentiate themselves from the competition. When you start looking for a new home be sure to compare builder incentives as much as the communities themselves.

To help you choose, I have created a list of the top 7 new home buying incentives you should look out for:

Military or Civil Service Incentive – As a thank you to the individuals who serve in the military or are veterans of the military in addition to firefighters, police officers, EMTs and hospital staff, national home builder K. Hovnanian is offering $5,000 off the asking price of their homes, for a limited time, to people in these fields. Other large builders also offer similar incentives to teachers and civil service positions.

Lower Asking Price on “Spec Homes” – Depending on your moving situation, this is the golden egg of builder incentives. Most new home builders will construct a set number of homes in their community as “spec” homes or homes built on speculation that people will purchase the homes and move in quickly.

Once these homes are finished the builder won’t want to sit on a large inventory of homes so they will offer spec homes with predetermined upgrades included at a lower asking price than if you were to build the home from scratch and add those upgrades.

Incentives Tied to Builder’s Mortgage Company – Builders and on-site sales representatives enjoy working with their established banking relationships because they feel it will make the mortgage process easier and less stressful for everyone than if you were to use an outside lender. In this scenario I’ve seen builders offer to pay closing costs and up to one year of Homeowner’s Association fees for buyers who purchase using their mortgage company.

Lot Premium Reductions – Like a rare platinum ring, highly desirable lots tend to come with a premium attached. Builders often place premiums ranging from a few thousand to nearly $100,000 on the most desirable lots in the community. Lot premiums are not set in stone and under the right circumstances can be negotiated much like everything else.

Reduced Option Prices – With the average new home buyer spending about 10% of their purchase price on upgrades you should look to get the most bang for your buck with the limited budget you have set for options. When evaluating the standard features list for a community, check into the cost for all of the options you would want in the home and see if the builder is providing special pricing on select options.

Standard Features… and then some! – To make homes more appealing than the standard features list will allow, builders are now including previously optional home upgrades like granite countertops, expanded suites, swimming pools and sun rooms as an incentive to buy in their community.

“Free Gifts” with Home Purchase – Sometimes it takes more than granite countertops and hardwood floors to make a home stand out. Some builders are going the extra mile and including in-home luxuries like plasma screen tvs and offering car leases to draw in prospective buyers. For soon to be commuters, a two year lease on a new car might be the perfect way to help ease into life in the suburbs.

When you are ready to start looking for a new home your best bet is to get in touch with a real estate agent who specializes in new home communities. This agent should help you cross shop communities and serve as a third party to help advise on the best deals and the potential pitfalls of incentives. Because incentives vary greatly, you will need to weigh the pros and cons of each community before making a final decision on the home that’s right for you.