According to the latest data on national real estate trends for June 2011, the market is recovering, slowly but surely. The median price for a single family home, condo, or townhouse remained steady in June 2011 in comparison with the same time last year, but has risen slightly from May. The median list price is showing steady growth from August 2010. This is a positive trend showing the market beginning to stabilize.

However, overall “for sale” inventories of these same types of properties declined last month and
are below the trend for the same time in 2010, when foreclosures brought large numbers of these
properties into the market. Experts believe that foreclosures will continue to slow the growth
of “for sale” inventories. This trend can be viewed as a positive factor toward market stability,
but with high unemployment rates plaguing the nation, the situation remains unpredictable.

Another positive sign toward market stability is how long these types of properties have been
on the market (age of inventory). According to research the average age of listings on “for sale”
properties was 93 days in June, which is about where it was in 2010. That being said, the average
age of inventory in the latter half of 2010 had risen significantly to 120 days on the market, but
has steadily decreased by 25 percent since January of this year.

While there are signs of overall improvement compared to one year ago, the median list price
was down by one percent or more on a year-over-year basis in the majority of markets covered
by this report (i.e., 79 markets, or 54.1 percent) and 37 markets (25.3 percent) had declines of
five percent or more. In contrast, just 31 markets (21.2 percent) experienced a year-over-year
increase of one percent or more, and only 13 markets (8.9 percent) had an increase of 5 percent
or higher. The remaining 36 markets (24.7 percent) did not experience a significant change in
their median list price on a year-over-year basis.

About ThinkHouses
SELL: ThinkHouses provides house-sellers alternative methods to sell their house. If you need to sell a house quickly, and/or have little, no, or negative equity, ThinkHouses can make a fast cash purchase with no cost to you.
BUY: ThinkHouses also provides house-buyers with alternative methods to buy a house, even with no credit or bad credit. If you would like to buy a house, but cannot qualify in today’s market or have no credit or bad credit, ThinkHouses can help with that, too (with Rent-to-Own and Owner/Seller Finance programs). When you need to sell or buy a house, ThinkHouses.com.

In order to qualify for a home loan in today’s post-bubble real estate market, it would behoove a potential buyer to know the rules before shopping the rates. Several factors are taken into consideration when qualifying for a home loan in 2011 such as income, debt ratios, and of course, the almighty credit score. In addition, something new to consider these days when qualifying for a home loan is having enough money in the bank for move in.

Income
Not much has changed with regard to a potential buyer’s need to provide proof of steady income and employment. This may mean gathering a couple months of check stubs and bank statements so that lenders can see financial trends. The same holds true for those buyers who are self-employed. Those buyers can expect to provide at least two years of tax returns and bank statements for income verification.

Debt Ratios
The debt ratio qualifier can be a challenging obstacle to overcome for many Americans. Generally, a lender is looking for debt that does not exceed 30 percent of the consumer’s income. So, if a household that made an income of $200,000 annually, their debt could not exceed $60,000. This debt might include, but is not necessarily limited to: credit cards, student loans, car payments, and other recurring payments. Most Americans, on average, carry as much as 50 percent debt and this can be a major factor in being denied a home loan. The goal would be to pay down the debt or ask creditors to increase credit limits, thereby showing higher “available” credit and making the bank more comfortable in lending funds for a home.

Credit
A consumer’s credit score can be the Achilles heel in the qualifying process. Should a consumer have a credit score of less than 620, more than likely they will be denied for a home loan. The days of subprime loans, those loans made to consumers at a higher rate who typically have lower credit scores, are gone. Not only must the consumer have a high credit score, but their report must be free of major derogatory items in the past two years. This means no late payments, no collections, no missed payments, and no judgments. If these items do exist on the credit report, and the consumer cannot justify them, they will not be approved.

Bank Account
Before the real estate bubble burst, many financial institutions did not use the money in a consumer’s bank account as a qualifying factor. But now, in 2011, the money a potential buyer has set aside for closing costs and move in will need to be supplemented with proof that the first mortgage payment can be made after closing. If the consumer does not have these funds available, closing could be a problem.

Alternative Solutions
If you have all of the above (great credit, proper debt ratio, employment history, 10% down payment, etc, then you can take advantage of some of the lowest interest rates in history. If not, you may want to explore alternative options like ThinkHouses.com.

About ThinkHouses
SELL: ThinkHouses provides house-sellers alternative methods to sell their house. If you need to sell a house quickly, and/or have little, no, or negative equity, ThinkHouses can make a fast cash purchase with no cost to you.
BUY: ThinkHouses also provides house-buyers with alternative methods to buy a house, even with no credit or bad credit. If you would like to buy a house, but cannot qualify in today’s market or have no credit or bad credit, ThinkHouses can help with that, too (with Rent-to-Own and Owner/Seller Finance programs). When you need to sell or buy a house, ThinkHouses.com.

Current sellers who bought their homes in 2007 or later, an analysis of the site’s home listings shows, are overpricing their properties by an average of 14 percent.

Read the New York Times article by Ann Carnns.

About ThinkHouses
SELL: ThinkHouses provides house-sellers alternative methods to sell their house. If you need to sell a house quickly, and/or have little, no, or negative equity, ThinkHouses can make a fast cash purchase with no cost to you.
BUY: ThinkHouses also provides house-buyers with alternative methods to buy a house, even with no credit or bad credit. If you would like to buy a house, but cannot qualify in today’s market or have no credit or bad credit, ThinkHouses can help with that, too (with Rent-to-Own and Owner/Seller Finance programs). When you need to sell or buy a house, ThinkHouses.com.