Better start saving_ buying a home today takes planning, persistence _ las vegas review-journal

Many people were buying houses they could otherwise not afford, gambling on the chance that prices would continue to rise, allowing them to eventually refinance or sell at a profit.

In between the creative financing, looser credit standards and easy loans was a chance for them to attain stability and security — until homebuyers realized they had played the wrong cards.

“Everyone wants to realize the American Dream,” said Jodi Mobley, director of housing programs at Nevada Partners.

Noodles and company application “When you have someone telling you, ‘I can make that a reality for you,’ well, that’s exciting. Pt noodles menu And that’s what they (the lenders) were counting on — that excitement. Noodles and company gluten free When first-time homebuyers go into this very intimidating and daunting transaction, they expose themselves to the predators in the mortgage industry.”

Almost 10 years later, Las Vegas is still barely escaping the grip of the subprime mortgage crisis. Noodles & more In its wake, it left a trail of foreclosures, underwater mortgages and broken dreams. Noodles and compan From the time the Great Recession began, many would-be buyers had left their ambitions of owning their own home to rot, but now people are slowly bringing those dreams back into focus.

The pre-2007 housing market was a predatory environment driven by greed and risks. Noodles and company hunt valley In the time leading up to 2008, people could qualify for a home loan with a credit score of less than 600, Mobley said, adding that, at the time, nontraditional mortgages were popular, with adjustable-rate mortgages (ARMs) accounting for roughly 60 percent of loans (they now account for 5 percent).

The ARMs were particularly attractive because they had a lower interest rate to start than a 30-year, fixed-rate mortgage. Noodles catering menu Many homebuyers were opting for 2/28 ARMs and interest-only mortgages that offered low introductory rates and minimal initial costs, such as no down payment.

“You could make the mortgage payment, or you could pay just the interest, or you could pick your payment, which would result in what they called ‘negative amortization,’ or owing more than what you borrowed,” Mobley said. Noodles and company wiki “Primarily, it was an environment where anybody can get a loan even if you didn’t quality.”

After the housing market bubble burst and prices dropped rapidly, mortgages reset. Noodles and company munster Numerous homeowners were unable to refinance to lower rates, as there was no equity being created as prices fell. Noodles and company southlands Instead, they were forced to reset their mortgage at higher rates, which many could not afford, and they had to default on their loans.

Foreclosures continued to increase through 2006 and 2007, according to Investopedia, a website for investing education, personal finance, market analysis and free trading simulators.

“I think that, back then, there was no education; the environment was just so different,” said Rene Coreas, a participant in Nevada Partners’ homebuyer education program. Noodles and company oak creek “Back in 2005, I bought a house that was overpriced. Noodles and company oswego It was a huge mistake. Go noodles com I invested all of my money in it, and I lost the house in 2007.”

Although the housing industry has started to revitalize, the rate of underwater mortgages is still an issue. Noodles advertisement According to online real estate database company, one in four Las Vegas metro homeowners with a mortgage — more than 83,000 — are in negative equity, or underwater, meaning they owe more than the home is worth, and Las Vegas remains one of the highest metros nationally at 22.1 percent.

In order to unload an underwater home, the owner needs to bring money to the closing table to satisfy the difference between the outstanding loan and the sale amount, or work out a short sale — an often lengthy and complicated process (short sales occur when lender and borrower decide selling the property for less than what is owed and absorbing a moderate loss is preferable to the borrower defaulting on the entire loan).

“The economic outlook is looking pretty strong,” said Edward Coulson, director of the Lied Institute for Real Estate Studies at UNLV. Noodles & company san diego ca “There’s lots of good movement. Noodles and company encinitas Unemployment is down, and incomes and wages are up. Noodles & company There’s a lot of strength right now in the economy, and it’ll be interesting to watch it unfold in the next couple of years.”

Fast-forward to 2016, and real estate agents are optimistic. Noodles and company waldorf The Greater Las Vegas Association of Realtors (GLVAR) reported the median price of existing single-family homes sold during December 2015 in Southern Nevada was $217,000, up 6.4 percent from one year ago. Noodles and company chicago The price dipped slightly from November to December after holding steady at $220,000 from August through November.

“Now is the time to buy,” said Scott Beaudry, GLVAR president. Noodles asian “Although forecasts are hard to predict, I think we expect a similar housing market (in 2016). Noodles prices We still have plenty of market overhang. And noodles We have some vacancy issues, but it’s not nearly as bad as it was three to four years ago. Noodles andco On the other hand, not a whole lot of new construction is coming in the market, either.”

Beaudry said that, as of January, there is about a three-month housing inventory — which is low, considering a six-month supply is perceived as a balanced market.

While it does present a challenge for new homebuyers looking for variety, home sales continue to see a steady increase. Noodles and company olathe For 2015, GLVAR reported a combined total of 38,578 single-family home, condominium, townhome and high-rise condo sales, up from 35,806 in 2014. Continental noodles woodbridge hours The total number of existing local homes, condos and townhomes sold in December was 3,290, up from 2,734 in December 2014.

Sean Hulsey, area sales manager at Wells Fargo Home Mortgage, said there are numerous up-and-coming communities in the valley, with Henderson and the Summerlin area the most popular.

“Those are considered the hot spots because they are communities where you can live, play, eat and work,” he said. United noodles hours “They are very community-centered, and you don’t have to drive more than five minutes to do any of those things.”

In recent years, GLVAR has been reporting fewer distressed sales and more traditional home sales, where lenders are not controlling the transaction. Noodles and company yonkers That continued in December, when 6.8 percent of all local sales were short sales, down from 10 percent of all sales one year ago. Noodles and company bel air Another 6.9 percent of all December sales were bank-owned, down from 8 percent one year ago.

Since the housing calamity, the federal government created the Consumer Financial Protection Bureau, an independent agency that helps consumers make informed decisions and enforce rules.

“Knowledge is power,” Mobley said. Noodles and company houston “The more you know, the more powerful you are. Noodles chicago I tell all homebuyers that they are in charge of putting together a team, and they are the leader of this team, which consists of a lender, Realtor, title company officer, appraiser and inspector. Noodles and company las vegas They are there to answer your questions. Noodles and company florida If at any point you feel uncomfortable during the transaction, make sure that they address that feeling.”

Potential homebuyers are now encouraged — and even required with certain programs — to attend new homebuyer education classes. Noodles and company menu The housing crisis also taught people that buying a home takes more than a dream and a few signatures.

“I’m preparing more now and getting information about buying a home,” said Adriana Torres, who took part in a recent Nevada Partners homebuyer class. Noodles delivery “When I first applied for a home in 2004, they approved us for a house that was honestly way over our heads. Noodles & company normal il We came in with our eyes closed and said yes because we wanted to have confidence in them. Noodles and company racine They made us lose our house. Noodles and company sioux falls Now, I’m trying to learn all that I can about this process.”

There are a few tips homeowners are advised to keep in mind. Menu for noodles Hulsey said the biggest challenge in retaining a loan today is demonstrating the ability to repay by showing proof of all income.

Home loans are either insured by the Federal Housing Administration, or as is the case with conventional loans, by a private lender. Noodles and company germantown Mobley said an FHA-insured mortgage has a 3.5 percent down payment required, as opposed to the less than 20 percent down required by a conventional loan. Dc noodles menu Another difference, she said, is that FHA loans focus primarily on whether the borrower can afford the mortgage, whereas conventional loans focus on credit score.

Nevada Partners encourages new homeowners to follow the 70/20/10 rule, meaning that 70 percent of one’s income should go to everyday expenses such as rent, food and clothing, with another 20 percent going into savings. Noodles and company kansas city That leaves 10 percent for debt.

Hulsey added that the borrower’s total debt should not exceed 36 percent of gross pay — so, for someone with $1,000 in monthly income, monthly debts should not exceed $360.

One’s credit score is an important factor in homebuying. What is noodles and company Different loans require different scores, though Mobley said, for the most part, a score of 640 or higher is standard for conventional loans.

Obtaining an annual credit report can give the potential buyer an idea of what is being reported about their credit, be it collections or bad debt, which may need to be explained to a lender. Noodles and company eldersburg Nevada Partners tells potential buyers that they can improve their credit by using a credit card a few times a month and paying the balance off every month.

Although it’s not always required, potential homebuyers should also be able to show a down payment of at least 20 percent, in addition to having at least six months’ worth of savings, Hulsey said.

“Not only can we show them 100 percent of all available properties, but we’re their advocates,” he said of the homebuyer. Noodles and company edina “We make sure they are safe.”

He also added that it’s important for new homebuyers to have patience and to not settle for just any home but to make sure they feel 100 percent comfortable with their purchase.

“Most people are intimidated by the homebuying process, but getting that loan and securing that loan is the easy part when it comes right down to the truth,” Mobley said. Noodles and company shorewood “The hard part is maintaining homeownership; that’s where the work comes in.”

Realtor: A licensed real estate professional who is a member of the National Association of Realtors and subscribes to the association’s code of ethics.

Seller’s Agent: The person who has a contract or listing with the seller of a house to advertise the property for sale and represent the seller when offers are made. Noodles and company menu calories A listing agent legally represents the seller, is required to get the best terms and condition for the seller, and usually is paid by the seller a commission that is a percentage of the purchase price.

Buyer’s Agent: Works exclusively for the buyer and legally represents the buyer. Yellow noodles A buyer’s agent is required to get the best terms and conditions for the buyer and is usually paid by sharing the sales commission with the listing agent. Noodles and company 27th st Sometimes the buyer’s agent is paid directly by the buyer. Noodles and company hours of operation Some buyer’s agents require written agreements to represent buyers.

Loan Originator: Conducts initial interview, completes the loan application for borrower and has responsibility for the loan from application through closing.

Loan Servicers: Collect monthly payments, escrow deposits and other fees once the loan closes. Noodles denver The loan servicer is responsible for paying the mortgage insurance, real estate taxes and homeowners insurance when due, if escrowed.

Appraiser: Determines the fair market value of a property by comparing the house the buyer wants to purchase with a house like it that has sold recently in the same area.

Attorney: A professional who specializes in real estate law and can write the real estate contract, search the title, conduct closing and/or settle disputes, depending on the state.

Escrow Officer: An independent professional who works for both the buyer and the seller and manages the escrow process between the date a purchase contract is signed and the date the closing takes place.

Title Officer: Researches the history of a home’s previous owners through public records and provides a title report, or abstract of the chain of title.

Mortgage: A debt instrument, secured by the collateral of specified real estate property, that the borrower is obliged to pay back with a predetermined set of payments. Noodles order Mortgages are used by individuals and businesses to make large real estate purchases without paying the entire value of the purchase up front. Noodles a Over a period of many years, the borrower repays the loan, plus interest, until he/she eventually owns the property free and clear. Fast food noodles Mortgages are also known as “liens against property” or “claims on property.” If the borrower stops paying the mortgage, the bank can foreclose.

Underwater Mortgage: A home purchase loan with a higher balance than the free-market value of the home. Noodles and compsny This situation prevents the homeowner from selling the home unless he/she has cash to pay the loss out of pocket. Noodles and company owner It also prevents the homeowner from refinancing in most cases. Noodles and company hicksville Thus, if the homeowner wants to sell the home because he/she can’t afford the mortgage payments anymore, perhaps because of a job loss, the home will fall into foreclosure unless the borrower is able to renegotiate the loan.

The Great Recession: The sharp decline in economic activity during the late 2000s, which is generally considered the largest downturn since the Great Depression. Noodles and company lakewood The term “Great Recession” applies to both the U.S. Noodles and company carmel recession (officially lasting from December 2007 to June 2009) and the ensuing global recession in 2009. Noodles menu The economic slump began when the U.S. Noodles by noodles housing market went from boom to bust and large amounts of mortgage-backed securities and derivatives lost significant value.

Foreclosure: A situation in which a homeowner is unable to make full principal and interest payments on his/her mortgage, which allows the lender to seize the property, evict the homeowner and sell the home, as stipulated in the mortgage contract. Noodles and company deer park One month after the homeowner misses a mortgage payment, he/she is in default and will be notified by the lender. Noodles and complany Three to six months after the homeowner misses a payment, assuming the mortgage is still delinquent and the homeowner has not made up the missed payments within a specified grace period, the lender will begin to foreclose. Noodles number The farther behind the borrower falls, the more difficult it becomes to catch up, since lenders add fees for payments that are 10 to 15 days late.

Real Estate Short Sale: Any sale of real estate that generates proceeds that are less than the amount owed on the property. Noodles restaurante A real estate short sale occurs when the lender and borrower decide that selling the property and absorbing a moderate loss is preferable to having the borrower default on the loan. Noodles and company cost It is therefore an alternative to foreclosure.