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Rising housing prices see emphasis on location, condition, residential financing

Posted on Monday, March 25, 2013 at 12:19:03 PM

CoreLogic recently reported national home prices have increased for the last 10 consecutive months, with December 2012's average hitting 8.3 percent higher than December 2011. As an increasing number of consumers may benefit by researching residential financing opportunities in the coming year, many should be made aware of the aspects associated with negotiating prices and purchasing property.

"There are many important factors to consider when seeking to purchase a home and negotiate price," said Daniel Murphy, vice president of commercial lending at Home Loan Investment Bank. "When searching, make sure that the town you look in is on solid financial ground. It is also beneficial to have a highly-ranked school system. Those two factors will help ensure stable to increasing real estate values once you own a home in the community. When negotiating price, be sure to factor in repairs or deferred maintenance that you will need to address once you own the home. A professional home inspector can provide you a home inspection report which will assist with your price negotiations."

Along with finding a favorable price for their preferred house, consumers should also consider a variety of residential lending possibilities to facilitate the purchase and their occupancy. Payment plans often span 15 or 30 years, offering homeowners competitive mortgage rates, however, the many options can make the decision-making process hard for many.

"HLIB would recommend a 30-year mortgage for most average middle-class families," Murphy said. "The 30-year provides the most affordable monthly payment. As the borrower gets further along in their earning potential they may choose to refinance to a 15-year mortgage where they pay less interest over the term of the loan. All borrowers should consult with a mortgage professional who can illustrate the differences and help the borrower make the best choice for them."

HLIB is a trusted lender which has helped countless clients successfully navigate the road to homeownership during its many years of operation.