financing – Page 4 – LA Loft Blog

Before seeing homes or meeting with a real estate agent, prospective Downtown LA home buyers should be aware of some of the most common problems and how to avoid them.

These problems include: lawsuits, litigation, loft and condo lending problems, getting trapped by a real estate agent, missing out on the best deals, losing out to other buyers, failing to negotiate the best price and terms, delays due to failed inspections, HOA move-in delays, unpermitted improvements, risk of losing deposit and no electricity. Here’s how to make the home buying process go more smoothly and to profit in DTLA:

10 IMPORTANT HOME BUYING TIPS:

The #1 mistake that we have seen since 2011 is prospective buyers delaying a home purchase. Prices have been going up about 1% every 6 months for the last several years, with rents going up about the same. Homeowners have gained an average of more than $200,000 in equity, while renters have really lost out in terms of net worth.

Place the highest and best offer on the very first day of a listing. Prices and terms are negotiable. Buyers may ask the seller to pay some of the expenses such as closing costs. If buyers asks for too much, they may lose to another offer. Buyers should get a list of comps, recently sold comparable homes, in the building or neighborhood so that he buyer can see first hand what buyers have paid recently for a similar home. #dtla #buyermistakes

Most purchases entail delays and unexpected miscellaneous expenses. Some transactions fail after incurring expenses for the prospective buyer. Some borrowers are unable to obtain financing. Loft purchase may require a loft specialist lender. They can be found at www.LALoftLoan.com.

Delays are common. Be sure to allow plenty of extra time for moving, and extra money for unanticipated costs.

Ensure that the seller has installed a carbon monoxide detector before the inspections.

For condos, HOA move in fee, move out fee and HOA move in security deposit are often required; ask HOA for details. A move in appointment and information form is required by most HOAs. Contact the HOA well in advance to make move in arrangements.

For houses, always ask seller for any permits pertaining to additions and major improvements. Buyers can get a free floor plan at MyFloorPlanFree.com.

Removing contingencies places the buyer’s deposit at risk. Do not sign off on all contingencies until sure that the transaction will be completed. Buyers must usually remove contingencies before seller completes repairs.

Electricity may be turned off before or right after the purchase. Order utilities in advance of move-in.

Buyer’s can avoid most mistakes simply by hiring at no cost a Downtown area specialist who is knowlegable about the buildings and neighborhood issues. A good local agent will take down the buyer’s home buying criteria, to help to get priority access to hot new listings, to aid the buyer in receiving proprietary information such as unlisted properties, and to show several homes when possible. A free home buyer consultation is the first step to a successful home purchase.

Buyers should pay nothing for this service, and there should be no obligation to buy a home. To expedite the process, buyers should give the agent proof of funds (a statement of an account with some down payment funds, black out the account number). Also, buyers will get priority service from agents and owners if buyer is preapproved for a loan. Get a free list of Downtown loft lenders who can finance a live-work loft, Mills Act loft, and other homes converted under the Los Angeles Adaptive Re-Use Ordinance. Fill out the online form:

<a href="https://laloft.wufoo.com/forms/x1aom04w05tl8g4/" target="_blank" rel="noopener noreferrer">Fill out my Wufoo form!</a>

UTILITIES DOWNTOWN L.A.

Call DWP to turn on electricity
ladwp.com
800-dial-dwp

SoCal gas
1-800-427-2200

Cable tv is usually
http://www.timewarnercable.com/
888-tw-cable
(or)
AerioConnect http://www.aerioconnect.com

LOFT & CONDO LISTINGS DOWNTOWN LA [MAP]

LOFT & CONDO LISTINGS DOWNTOWN L.A. [MAP]

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So The Fed Increased Rates

Many analysts weighed in regarding the “after-effects” of the first rate increase by the Federal Reserve in almost a decade. At least initially, these predictions seem to be bearing out. For example, according to Freddie Mac’s chief economist, Sean Becketti, interest rates should remain at “historically low levels” throughout 2016, in spite of whatever moves the Federal Reserve is expected to make. “We take the Fed at its word that monetary tightening in 2016 will be gradual, and we expect only a modest increase in longer-term rates,” Becketti said. “Mortgage rates will tick higher but remain at historically low levels in 2016.”

Yes, we experienced the first increase in the prime rate of banks in almost a decade. But with regard to long-term rates, these rates have barely moved in the weeks after the Fed’s action. The rate on the 10-year Treasury note averaged 2.26 in November. On January 5, the rate was 2.25. Of course, world events have intervened to help lower rates as well. Keep in mind that if the Fed continues to raise short-term rates in 2016, it is expected that long-term rates will eventually drift upwards. This would include an increase in rates on home loans.

However, though many are expecting more increases, intervening events such as world conflicts may very well tie the hands of the Fed with regard to their ability to move as quickly as some are predicting. Domestically, the most recent employment report released Friday is a good indicator of future activity absent of such world influences. The increase of jobs of _____________ was __________________ and it will help _______________________. The message? Though rates are low right now, those who wait too long to purchase a home may be paying a higher price for that home and higher financing rates as well

Rates on home loans were mixed this past week, with 30 year fixed rates below 4.0% once again. Freddie Mac announced that, for the week ending January 7, 30-year fixed rates fell to 3.97% from 4.01% the week before. The average for 15-year loans increased slightly to 3.26%. The average for five-year adjustables rose one tick to 3.09%. A year ago, 30-year fixed rates were at 3.73%, lower than today’s levels. “Concerns about overseas economic developments have dominated financial markets to start the year. U.S. Treasury bond yields fell amidst a global equity selloff and flight to safety. In response, the 30-year mortgage rate dipped 4 basis points to 3.97 percent.” Note: As of January 1, Freddie Mac is no longer providing survey data for 1-year adjustables. Rates indicated do not include fees and points and are provided for evidence of trends only. They should not be used for comparison purposes.

Current Indices For Adjustable Rate Mortgages
Updated January 8, 2016

Index	Jan 7	December
6-month Treasury Security	0.46%	0.50%
1-year Treasury Security	0.66%	0.65%
3-year Treasury Security	1.22%	1.28%
5-year Treasury Security	1.61%	1.70%
10-year Treasury Security	2.16%	2.24%
12-month LIBOR		0.981% (Dec)
12-month MTA		0.322% (Dec)
11th District Cost of Funds		0.644% (Nov)
Prime Rate		3.50% (Dec)