Homebuyers should know credit situations

The mortgage market can be a confusing place, but for the sake of the housing industry, it may be a good idea to ensure that potential homebuyers know what they are getting into when it comes to credit, according to 

Silicon Valley Community Newspapers.

Nearly 20 percent of members of the National Association of Realtors noted contracts failing in September. This is approximately twice as high as the previous year, the news source reported. Many reasons are attached to it, but a lot of the failings may be connected to people not understanding their credit situation.

Some industry experts have already stressed to consumers what needs to be done to make the situation better.  "Your credit score can affect where you work, what car you can drive, how much you pay for insurance and where you live," Chandra Hall, a Realtor from Colorado, told the news source. "It's imperative to know how credit scoring works and how to achieve the highest possible score."

Industry professionals may want to help increase consumers' knowledge of credit scores and the more abstract aspects of the mortgage market. This could help prevent foreclosures and loan rejections later.

Title Source Named as a 2011 Detroit Free Press Top Workplace

Third time's the charm! 

Title Source was named as a Top Workplace by the Detroit Free Press for the third year in a row. “We are honored to be named in the top 10 of the Detroit Free Press’
‘Top Workplaces in Michigan’ list,” said Title Source President Jeff Eisenshtadt.
“The active involvement of our team members in creating the solutions we provide to our clients is reflected in our team’s satisfaction and the success of our growing company.”

Rankings were determined by employees’ anonymous responses to a set of 24 questions about key workplace factors such as managers, working conditions and career opportunities. This year’s Top Workplaces competition attracted 212 companies and organizations that employ more than 172,000 Michigan workers.

Poll: Americans want to stay with families when they retire

A recent poll from LifeGoesStrong and The Associated Press found that more than 70 percent of those who plan to retire in the future want to live closer to their family.

Approximately one-quarter of those polled made it a priority to live in a residential community with other people their age, the poll found. Half of those polled noted that they rated living in a home near their children as extremely important. This doesn't mean they will remain in the same home, though. Only four in 10 consumers noted if they do remain close to home, they will stay in the same house they currently live in.

"It's easy to understand why mid-lifers are interested in being near family and staying close to home during retirement," said Barbara Corcoran, real estate entrepreneur and contributor to LifeGoesStrong.com. "It's also important to note that most boomers currently live in a suburb, and that group is more likely to have lost money on real estate since the economic downturn began."

The intentions of many people nearing retirement to purchase a new home may aid in spurring on the residential housing market in certain areas.

Homebuyers uneducated about home values

A recent study from Zillow found that more than four in 10 Americans think their homes' value will increase by 7 percent annually, which is one of many fallacies believed by consumers about the residential housing industry.

Typically, home values appreciate by 2 percent to 5 percent on an annual basis, the study noted.

"It's troubling that we're still in the midst of one of the worst housing recessions in history, and yet prospective buyers continue to have such high expectations for home value appreciation," said Dr. Stan Humphries, chief economist at Zillow.

More than 35 percent of respondents think homeowner's insurance is not mandatory, the study found. Actually, the opposite is true, as the insurance is more for the lender than the buyer. Another 47 percent noted that they would own the home after signing the contract, which is false. A consumer does not own the home until after the closing of the sale.

It may be a good idea for lenders to help consumers better understand the ins and outs of homebuying, as it could make the process easier for all parties.