Archive | Tips for Buyers
Starting January 1, 2012, residential and commercial property sales in all of Placer County must participate in Section 303 of Rule 225, Wood Burning Appliances, Sale or Transfer of Real Property.
Section 303 prohibits the sale of real property with a non-EPA Phase II Certified free-standing woodstove. Non-compliant freestanding woodstoves do not have to be replaced or removed, but must be made permanently inoperable. Fireplaces, inserts, gas stoves, pellet stoves and dedicated cook stoves are exempt.
For more information on this mandatory measure, visit our website.
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It’s a great time to get your dream home, and yes, banks are lending! Currently there is a general perception that banks are not lending. This is not the case. There are many good programs available now.
According to Joni Rose, Mortgage Consultant with a 32 year track record with Wells Fargo, there are many great programs available. “Now is the time to get off the fence! Record low interest rates and the lowest sales prices in years!” Mrs. Rose said. “Buyers purchasing an owner occupied home can use a HomePath loan with 3% down without mortgage insurance. Or you may qualify for an FHA loan with 3.5% down, OR 100% financing for our VETERANS! On both programs the down payment can be gifted. Sellers may also contribute to cover some of your closing costs! Additional programs can be added to go hand-in-hand with FHA that will grant 3% of the sales price as down payment assistance, if purchasing in Sparks and outlying areas. This additional assistance may be NON-REPAYABLE! So, now is the time to take the leap!”
People hear about how difficult it is to get a loan, but a big part of that is clients now have to provide detailed information during the pre-approval process, as opposed to during the escrow. With so many options at your fingertips, it is always best to consult with a professional mortgage consultant. Please contact me if you would like to find out how I can help you achieve your dream home.
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Now that the busy summer buying season is here in the Lake Tahoe/Truckee area as well as in Plumas & Sierra Counties, there is a huge amount of activity for well priced homes and by huge amount, I mean fiercely competitive, with buyers grabbing for bank owned properties with increased knowledge, ready to strike. Buyers need to know that activity levels are strong and that they are not the only ones looking for the best deals out there.
Ideas To Get Your Offer Accepted
1) Price: Anticipate multiple offers and come in strong. Make sure your Realtor® analyzes all comparable properties and advises you on the value range for the subject property. If a given property has a value range of $600K-$650K and it is listed for $580K, do not be afraid to come in over asking price and strong within the value range.
2) Close Of Escrow Period: With bank owned assets, the bank wants to close escrow quickly. For cash buyers, reduce the close of escrow date to the fewest days possible for inspections and to close escrow. If you can make this happen in 10 days, then do it. Your offer will be much stronger than another similar offer with a 30 day escrow. But don’t despair if you are getting a loan; make the offer as strong as possible.
3) Costs: If you want your offer to be strong, then minimize the seller’s costs. Each time you ask to split a cost with the seller or ask the seller to pay for an item, you are flagging your offer as not that strong/desirable.
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If you answered yes to this question or if your are approaching the 3 year mark post short sale this information if for you. If you closed a short sale and it has been 3 years you may be eligible to purchase another home using FHA or conventional financing. Hopefully you have gotten back on your feet and had the opportunity to repair your credit over the 3 year period. If you have you should consider calling a mortgage lender and getting pre-approved for a new purchase. With current market prices at the most affordable in years, low interest rates and no more “designer” loans becoming a homeowner again may be a great move for you. Not only are home prices affording mortgage payments at or below current rents, the mortgage interest tax deduction could save you a large amount on your income taxes.
If you are under the 3 year mark and would like to repurchase when time allows, you may want to consider visiting with a credit counselor to gauge where your credit is at this time and what you might need to work on. I recommend Consumer Credit Affiliates . They can assess your situation and help you formulate a plan to get back on the path to home ownership.
If you are planning to purchase you will need to save a minimum of 3.5% for an FHA down payment and money for closing costs. In some cases you can get assistance from the seller with your closing costs which typically are about 3% of the purchase price. If you need a recommendation to a good local lender contact me.
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Guess what? On April 11, 2011, Fannie Mae announced new buyer incentives in connection with the sale of Fannie Mae-owned properties. (HomePath properties).
What that means to you is that a buyer of a HomePath property that is to be used as the buyer’s primary residence can receive up to 3.5% of the final sales price to be used toward closing costs. Looks like a great time to buy!
The HomePath property buyer must meet the following qualifications to be eligible:
1. Buyers agents must request the incentive upon submission of initial offer in order to be eligible
2. The initial offer must be submitted on or after April 11, 2011 and CLOSE by June 30, 2011. If an initial offer was made prior to the effective date, the offer is not eligible for incentive.
3. The sale must close on or before June 30, 2011. No exceptions will be made to this deadline.
4. Only buyers purchasing a HomePath property as their primary residence may receive up to 3.5% in closing cost assistance. Second homes and investment properties are excluded from the incentive.
5. Buyers must sign the Owner Occupant Certification Rider to the Real Estate Purchase Addendum.
6. If a buyer’s total closing costs are under 3.5% the difference will not be available as a credit to the buyer.
Fannie Mae can give no assurance of the time required to close, but initial offers submitted after May 15, 2011 are particularly questionable for closing by the incentive deadline of June 30, 2011.
Yes, it looks like a very good time to buy! Call us for more details.
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While still too early in the year to make bold predictions, Truckee-based Clear Capital, a real estate valuation firm, says that there is a slight uptick in home prices – the first since mid-August 2010. The Clear Capital spokesman cited that this is the first “non-incentivized” change in prices since the economic downturn began.
Based on sales transactions through the end of January, the company’s report says “national home prices have turned the corner.” Clear Capital adds that this observed change in prices is especially meaningful as the first months of the year are typically affected by the seasonal slowdown in sales activity.
Additionally, Clear Capital cites that one reason for the increase in prices might be the slowing rate of sale of REO properties. According to the company’s latest report, the most recent rolling quarter for REO saturation has slowed considerably after gaining 3.2 percent during Q3 2010, with national REO rates only climbing 1.4 percent.
“A decrease in REO saturation indicates that an increasing proportion of fair market transactions are occurring, and as the level of distressed transactions decrease, prices tend to increase since the overall market value for an area is less affected by distressed comparable sales,” Clear Capital explained.
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Good news for home buyers – particularly those without a lot of down payment cash on hand. Wells Fargo and Quicken, two of the largest FHA-approved lenders, have backed off their “overlay” requirements on FICO scores of potential home buyers. Lender overlays are qualifications that have been more stringent than FHA’s own requirements – something that has proven quite controversial.
Now both lenders will loan to applicants with FICO scores as low as 580, with 3.5% down payments.
This bodes especially well for the real estate market as a whole, as loan applications will surely be on the rise again as the door to home ownership is opened wider for more buyers. Wells is the largest originator of FHA-insured mortgages and Quicken, the third largest. Wonder what #2 has to say about all this?!
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What You Need To Know!
1. Buying a foreclosure involves hidden costs
2. The home may continue to lose value after purchase
Consider the following prior to purchasing a foreclosure or REO property:
AS IS – what this means to a bank is just as written. Most banks have no interest in providing repairs even if they are safety and health issues. If the property you are considering appears to have problems make certain you get the appropriate inspections. Often times utilities are turned off at bank owned properties but sometimes you can get the utilities turned on for inspections by asking the listing agent or paying for this yourself.
DISCLOSURES – In the course of a standard sale, the sellers are required to provide you with all information regarding the property that they are aware of, as is the listing agent. The bank has no such obligations and most of the time might not be aware of any problems, so again, get the utilities on and get the property inspected.
CONTRACTURAL OBLIGATIONS – Contracts written by banks do not necessarily protect you from losing your deposit as in a standard sale. Be certain your real estate agent understands the timeframes in the bank contract so your deposit is safe should you decide to back out of the purchase.
EXPECT SOME CHAOS – Typically banks like to work with their own escrow and title companies and might hurry you on deposits and then take what seems like forever to get the necessary signatures on documents for you. Again, make certain your real estate agent understands the system and will always be prepared for the unexpected to keep the deal on track.
Above all, be patient and know your buyer agent is doing everything to close the escrow for you.
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Kind: adj. warmhearted, friendly; kindness n.
In the 13th century “kind” was used to mean “wellborn” and “of good nature”; in other words “possessing all the (good) qualities usually attributed to those of good birth”. Today – the meaning is the same, yet the actions in today’s day and age may not…
Or are they? In the Real Estate world, the best showing of kindness may be hearing the Seller say, “of course we’ll fix that”; or the Buyer who accepts the terms even if “they don’t include the snow blower” (a commonly used piece of machinery in Truckee/Tahoe); the agent who willingly travels across town for a signature; not to mention the local Title Company who prints out documents over the week-end in order to facilitate for the out-of-area-Buyer. What’s kindness to you…?
The Chinese say – …”never filling your own cup but always filling that of someone else, who would return the favor” – now that’s kindness to me…..
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Once you’ve winterized your home it’s time to curl up by the fire and enjoy the snow outside, right? Almost. There are still some important safety tips to follow to keep you and your home safe throughout the colder months.
The Home Safety Council urges homeowners to protect themselves against house fires by using portable space heaters safely and properly using and maintaining fireplaces and wood-burning stoves. Keep flammables away from both, ensure that they are in clean and good working condition, and never leave them unattended. Read more about fire safety here.
Snow safety is important as well. Storms in Truckee-Lake Tahoe can drop feet of snow at a time. Ensure your pantry is stocked and you have plenty of fresh drinking water in case it takes more than a few hours for snow to be cleared. Sometimes snow and ice can affect power lines and cause power bumps or loss. Keep candles and flashlights handy, along with board games and cards, to keep your family in the light and entertained until power is restored. Oh, and remember to keep lots of cozy blankets handy too.
As you shovel snow around your home be sure to knock loose any large accumulations along the edge of your roof as well as large icicles which may drop and cause hazardous conditions. Carefully sweep snow away from propane and gas tanks and nozzles to prevent accidental damage and gas leaks. And last, be sure to salt or sand walkways to prevent ice accumulation and slippery conditions.
Read more about weather safety and awareness and get tips for driving in inclement weather.
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Tuesday, December 27, 2011 By: Gigi & Corky Heckendorn
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