Lehigh Valley Real Estate Blog

Lehigh Valley Home Mortgage Interest Rates Drop!

Interest rates dropped almost 3/4 of a percent today as the FED announced plans to buy up to $600 Billion in debt. The 30 year conventional interest rate on a Lehigh Valley home mortgage dropped to 5.5%.

It has been said for a while that home mortgage interest rates had a "risk" factor built into them. The drop in rates as the FED decides to back some of these mortgages adds truth to this. The risk factor has gone down so the interest rate goes down.

This puts buying a house totally in the hands of the Lehigh Valley Home Buyer. With low interest rates and sellers that need to sell, now may be the best time to purchase a home. 

Visit Lehigh Valley Homes Online for more information.

Waiting to Buy that Lehigh Valley Home?

Is waiting to Buy that Lehigh Valley Home a mistake? Has the market bottomed out? Should you wait until next year?

These are all valid questions but there is another way to look at it. Right now, there are a lot of buyers waiting to purchase a home. They hear the media saying prices are going down so they'll wait until the market bottoms out.

The problem with this thinking is that you won't know we have hit the bottom until after it happens. Once real estate prices start rising, all of the home buyer's will probably make a dash to purchase a home. Now, the ball will be back in the home seller's court.

The offer that favors the buyer and that the Lehigh Valley Home Seller may have been willing to accept a few month earlier will get rejected. The repair that the seller might have done will get skipped.

The Lehigh Valley Real Estate Market has already declined. Should the potential Home Buyer wait any longer?  Will it actually be in their best interest?

Asbestos Removal and Greener Alternatives in Lehigh Valley Homes

There are many things to consider when remodeling or purchasing an older home in the Lehigh Valley. Homes built before 1980 have the strong likelihood of containing asbestos. Due to a steady progression of technology and green sustainable methods, there are many ways to ensure your home or property is asbestos free. If you are interested in saving money, remodeling and improving your carbon footprint, here is some information to get you on the right track.

Used in millions of homes throughout the last quarter of the 20^th century, asbestos insulation can become a real dilemma for homeowners due to causing a variety of health problems, including Peritoneal Mesothelioma and Malignant Mesothelioma. These types of cancer take the lives of thousands each year. 

Non-regulated asbestos material can be legally performed by homeowners, regular contractors, or licensed asbestos abatement contractors as long as the National Emissions Standards for Hazardous Air Pollutants (NESHAP) are not violated. Asbestos removal in public facilities, homes and workplaces must be undertaken by a licensed asbestos abatement contractor. Once the removal is complete, green insulation options should be given serious consideration, such as: Cellulose, Cotton Fiber and Lcynene.

The United States Green Building Council (USGBC), in a study conducted in 2003, estimated a savings of $50-$65 per square foot for well-constructed green buildings in the U.S. during that year. The numbers continue to improve as more eco-friendly options become available, and those kinds of figures have finally begun to attract those who thought eco-friendly construction was just a bunch of hogwash.

Will That Lehigh Valley Home Sale Appraise?

So, the Lehigh Valley Home Seller gets the price they asked for but can the price be justified. If a mortgage is being obtained to purchase the house, an appraisal will be required as part of the purchase. Do the comparable sold properties support the price?

When a home seller decides to sell their house, it is typical to get a real estate agent to do a CMA or Comparable Market Analysis on the house to determine a price range for the listing price. A CMA is not an appraisal but both use available, under agreement, and sold comparable properties to determine the price being paid for a home.

To be safe, a home seller should have at least 3-5 SOLD "comparable" properties that justify the price on their house.

Now, on the other end, there is a buyer interested in purchasing the property. Before making the offer, the buyer should have their real estate agent provide comparable properties to determine a correct offering price.

So, with this in mind, the home seller and the home buyer should be armed with comparable properties if any questions come into play about the price. 

If Seller's Assist is needed for the Buyer's closing costs and appraisal problems occur it can cause a major problem. If the house appraises for more than the seller is getting but less than is needed to include the Seller's Assist, the seller may not be willing to accept less money to cover the buyer's closing costs. The buyer may not be able to obtain the difference.

Each situation is unique but in a market in which some areas are flat, some are increasing and others are decreasing the agents and the home buyer and home seller should be aware of the current market conditions and price the house accordingly. 

Lehigh Valley Mortgage Problems

With the tightening of the lending, mortgage companies are still willing to lend a potential home buyer money but home buyers must be prepared to offer up everything asked for including their first born.

All joking aside, the mortgage companies are making sure every "i" is dotted and every "t" is crossed. If there is a possibility that they want to sell the mortgage, they want to make sure that there is no reason for it to be denied.

As a result, the mortgage companies are looking more carefully at gift's from a 3rd party (they may require that it be a family member) as well as appraisals and FHA Inspections/guidelines.

Even so, Lehigh Valley Home Buyer's are still getting Pre-Approved for the mortgage, looking for and purchasing homes.