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Finally: Home Buying Signals A Recovery

California Home MortgageAccording to an article written by Yahoo! Finance this week, this spring buying season has been pointing towards the much anticipated housing market recovery! Thanks to the uncommonly warm January and February months, we saw the best winter home sales in five years, which has now began to trickle into the spring season.

As we have been posting about for the last couple months, reduced home prices, record low rates, higher rent and better employment options have helped more buyers enter the market. Many experts report that “fear of the economy collapsing” is going away, leading to more confident home buyers.

Take advantage of the home market today, by contacting your home purchase expert to see if you qualify for a new home! Home prices are already beginning to inch upwards!

If your ready to start the home buying process please give me, Robert Sinohue, a call today at (925) 364-5210.

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4 Simple Staging Solutions For An Open House

When showcasing a home for an open house, you know to keep it super clean, clear of clutter and the landscaping top-notch. But whatCalifornia Home Mortgage else can help the home stand out from the rest? Here are a few tips from Realtor.org:

1. Show Off Your Counter Space
Only allow up to three appliances max on the kitchen counter tops. If there’s a center island, make sure to highlight it with greenery and add color throughout the kitchen with kitchen canisters.

2. Fireplaces
Fireplaces are a great selling item and should be highlighted extensively. Make sure to accessorize it with artwork or a mirror over the mantelpiece and use accessories sparingly to add color and variety. Also, get rid of any dated screens to modernize the fireplace quickly. To highlight it further, accent the wall by painting it an earthy color to highlight the wood or choose a color 2-3 times darker than the rest of the room.

3. Don’t Cover Up Unique Home Features
If your home has any unique home features, make sure to highlight it to interest specific buyers.

4. Add Special Touches
Small, special touches can make a big difference when selling a home. Play light music when showing the home, coordinate matching towels in the bathrooms and keep accessories in groups of one, three or five.

If you are ready to apply for a California Home Mortgage contact me today at 925-364-5210

Nevada Relinquishes “Top Foreclosure State” Title

Foreclosures March 2012

According to foreclosure-tracking firm RealtyTrac, foreclosure filings fell to 199,000 in March 2012, a 17 percent decrease from March 2011. Last month marks the first time since July 2007 that foreclosure filings numbered less than 200,000 on a monthly basis — a span of nearly 5 years.

The generic term “foreclosure filing” is used to group all types of foreclosure activity into a single reading. It includes default notices, scheduled auctions, and bank repossessions. 

As in most months, foreclosure density varied by region. 6 states accounted for more than half of the nation’s repossessed homes in March.

  • Florida : 13.6 percent of all bank repossessions
  • California : 12.0 percent of all bank repossessions
  • Georgia : 8.0 percent of all bank repossessions
  • Michigan : 7.5 percent of all bank repossessions
  • Arizona : 6.5 percent of all bank repossessions
  • Illinois : 6.4 percent of all bank repossessions

At the other end of the spectrum, North Dakota and Washington, D.C. were home to the fewest bank repossessions, with 0.03% and 0.02% of the national total, respectively.

Also noteworthy is that the RealtyTrac report revealed that Nevada relinquished its title as Top Foreclosure State after 62 consecutive top-ranking months. In March, 1 in every 301 Nevada homes received some form of a foreclosure filing. The March rate was a nation-topping 1 in 300 in neighboring Arizona.

For San Ramon home buyers, today’s foreclosure market represents an interesting opportunity. 

Homes purchased while in the various stages of foreclosure can often be bought at lower prices relative to homes not in foreclosure. It’s one of the reasons why foreclosed homes now account for 20 percent of all home resales. 

However, don’t confuse less expensive for less costly.

Foreclosed homes are often sold “as-is” and may be in various stages of disrepair. Fixing a foreclosed home to make it habitable could wipe out the money saved on its price tag. Your best real estate “deal”, therefore, may be a non-distressed home in sound, move-in ready condition.

If you’re buying foreclosures — or even considering it — be sure to talk with a real estate agent first. The process of buying a foreclosed property is different from buying a “regular” home. You’ll want somebody experienced on your team.

Single-Family Housing Starts Slip 0.2% In March

Housing Starts Tuesday, the government released its March 2012 New Residential Construction report. 

The report is made up of three sections, each related to a phase of the “new home” market. The report’s first part is Building Permits; the second is Housing Starts; the third is Housing Completions.

Of the three sections, it’s Housing Starts that gets the most attention from the press — mostly because, of the triad, it’s the simplest for a layperson to understand. However, the manner in which Housing Starts data is reported can be misleading.

Today’s newspapers offer up an excellent example.

According to the Census Bureau, total Housing Starts fell by 6% in March as compared to the month prior. 654,000 units were started on a seasonally-adjusted annualized basis.

For Housing Starts, it’s the lowest reading in 5 months, a statistic suggesting that the housing market may have lost some momentum. Much of the press covered the story from a “housing is slowing” angle.

A few published headlines include : 

Although these headlines are accurate, they tell just half of the story.

Housing Starts did drop in March, but if we remove a subset of the data — structures with “5 or more units”; a grouping that includes condominiums and apartment buildings — we’re left with Housing Starts for single-family residences only. It’s this data that matters most to buyers in Pleasanton and nationwide. 

Few home buyers buy entire apartment buildings. Most buy single-family homes. 

In March, single-family Housing Starts were down 0.2% from the month prior, or just 1,000 units on a seasonally-adjusted, annualized basis.

That’s hardly a drop at all.

Homebuilder Confidence Slips 3 Points In April

NAHB Housing Market IndexFor the first time in 3 months, homebuilder confidence has slipped. 

As measured by the National Association of Homebuilders, the Housing Market Index dropped three notches in April to a reading of 25. The report measures homebuilder confidence in the newly-built, single-family housing market. 

When the Housing Market Index reads 50 or better, it reflects favorable market conditions. Readings below 50 reflect unfavorable conditions.

According to the scale, not since April 2006 have housing market conditions have been deemed “favorable” but, recently, homebuilder confidence has picked up. Between September 2011 and March 2012, confidence doubled.

April’s reading remains that second-highest since 2007.

So what does “builder confidence” mean? The formula is a little bit tricky.

The Housing Market Index is actually a composite figure. It’s the combined result of three separate surveys sent to homebuilders monthly. The surveys ask about current single-family sales volume; projected single-family sales volume over the next 6 months; and current home buyer “foot traffic”.

The NAHB compiles the results into the Housing Market Index.

In April, builder responses worsened on all 3 questions :

  • Current Single-Family Sales : 26 (-3 from March 2012)
  • Projected Single-Family Sales : 32 (-3 from March 2012)
  • Buyer Foot Traffic : 18 (-4 from March 2012)

At first glance, the data reveals a weakening market for newly-built homes and this may be true; we won’t know for another few months whether April’s confidence setback is an historical blip or the start of a trend. The change in builder psyche, though, is a change that today’s new home buyers in San Ramon can exploit.

Two months ago, builders expected 2012 to be a banner year for home sales. Today, they’re not so sure.

Buyers of new construction, therefore, may find it easier to negotiate with builders for price reductions, “free upgrades”, and/or other concessions. Plus, with mortgage rates still resting near historical lows, financing a newly-built home is cheaper than at any time in recorded history.

The Spring Buying Season is underway. For buyers of new construction, there are deals to be found.

Four Easy Steps To A Guaranteed Rate Mortgage

Being a first-time home buyer can be exciting and intimidating! At Guaranteed Rate, we want to make the process as easy to understand as possible in an attempt to remove your fear, so you can enjoy your new home! But what exactly happens during the mortgage process?

Here are the four steps you’ll go through towards becoming a first-time home owner once you’ve completed your mortgage application:

1. Kick Off Processing
This is where it all begins. First, you’ll receive pre-approval, Guaranteed Rate’s commitment to issue you a mortgage specific for your desired home. To do this, your home purchase expert will verify your employment, check your credit and your debt.

As processing continues, your home purchase expert will collect other various documentation such as your credit report and other loan disclosures to verify your financial data.

You may be contacted multiple times during processing for any additional information that’s required for your specific mortgage or financial situation, so make sure you are available. To help speed up processing, provide your home purchase expert with as many organized documents as you can. Your mortgage cannot be processed without all necessary documents, including an appraisal and sales contract.

Your home purchase expert will update you during each step of the process.

2. Underwriting
A separate person knows as an “underwriter” will ensure that the property is in good condition and that you are able to repay your loan. In addition to making sure all necessary documentation is available, an underwriter will analyze your mortgage application to decide if your loan is a good investment for the company.

Based off this review, a formal loan decision will be made and your home purchase expert will contact you shortly afterwards.

3. Clear-To-Close
Your mortgage is fully approved and you are ready to set up a date to close your loan! This date should be determined by you and the sellers of the home, along with any real estate agents involved in the home purchase.

4. Closing
At your closing you will be joined by your home purchase expert and real estate attorney who will ensure that your final mortgage documents are neat and tidy. During your closing, you’ll sign a wide variety of documents, including your mortgage note and HUD-1 Settlement Statement, the final document detailing the transaction between the buyer and seller.

When complete, you’ll walk away a homeowner!

How To Use Newspapers To Kill Garden Weeds

Kill weeds with newspapersApril 22 is Earth Day, a day to raise awareness about, and to celebrate, the Earth’s natural environment. It’s also a day for people of San Ramon to do something good for the planet.

There are lots of ways to help the environment, including by reducing your net electricity usage, by conserving fresh water supplies, and by planting trees. You can also reduce the use of chemicals and pesticides in your home’s garden or yard.

One such trick is replace chemical-heavy pesticides used for weed killing with your local newspaper instead. Newspapers can be effective in killing weeds, and preventing new ones from growing, while also protecting the Earth from contaminants.

The method is basic — use a wet newspaper “carpet” blocks both sunlight and oxygen from reaching the soil, starving weeds that have already grown, and those that have yet to break soil.

Here’s how to do it :

  1. Confirm that your newspaper uses soy-based ink — most local dailies do.
  2. Stack a dozen pieces of newsprint and thoroughly wet it
  3. Place the wet pages on the area affected by weeds
  4. Cover the wet pages with a thin layer of mulch

That’s it. Over several weeks, the covered weeds will decompose into the soil, providing nourishment to other plants and vegetation. If you find that the initial newsprint stack “failed”, repeat the above steps, doubling up on the number of news pages and mulch.

Make sure that your newsprint is the “standard” newsprint, too. Avoid glossy circulars and coupon pages which use different paper and often use less Earth-friendly ink.

Do You Have What It Takes To Be A New Home Buyer?

What’s the most valuable thing you can have as a new home buyer? Patience. Surprised? You shouldn’t be; patience canDo You Have What It Takes To Be a Home Buyer help you out throughout the entire home buying process.

Here are three examples of when patience will be your key to home buying success:

1. It can seem like the houses with the best deals keep getting snapped up quicker than you can even decide if it’s a house you’d like to make an offer on. That’s because investors tend to buy foreclosure listings quickly – but they don’t plan on making them their home.

Home buyers need time and patience to decide on the home they want to live in. That’s why you should be patient and put in the necessary time to learn the community you wish to live, helping you learn about the type of homes that are available.

2. Once you find a home, continue to keep patience in mind as you make an offer. As you try to make deals with the seller, your offer may be declined and you’ll be back looking for homes. But keep that home in mind; if it sit on the market after your initial offer has been declined, approach the seller again a few months later with the same offer, but with, perhaps, better terms and you may see a change in heart!

TIP: Don’t waste your time with sellers who have no strong motivation for selling. Without a strong motivation, the above most likely won’t happen.

3. Lastly, you should definitely have patience during your contract negotiation and closing. While every transaction is unique, it is very common for glitches to appear during this stage, such as an unexpectedly low appraisal, which could possibly leave you back at square one.

For more things that could hold up your home purchase, check out this article from Inman News. To see if you are pre-approved for a home loan click here.

 

 

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Mortgage Rates Fall For Third Straight Week

Freddie Mac Mortgage Rates

After a brief surge north of 4 percent last month, mortgage rates have settled down, near their lowest levels of all-time.  

According to Freddie Mac’s weekly Primary Mortgage Market Survey, for applicants willing to pay 0.7 discount points plus a complete set of closing costs, the average 30-year fixed rate mortgage rate fell to 3.88 percent this week.

0.7 discount points adds $700 to your mortgage closing costs for each $100,000 borrowed.

Mortgage rates are down this week on “safe haven” buying. The move is triggered by Wall Street’s concern that Spain and Italy will have trouble servicing their respective sovereign debt. In response, investors are selling risk-heavy assets and using the proceeds to purchase U.S. government-backed bonds.

This creates demand for mortgage bonds which, in turn, pressures mortgage rates lower.

The storyline is similar to what transpired in Greece last year, and, at least for now, it gives San Ramon home buyers reason to cheer. So long as economic uncertainty remains, mortgage rates may stay low.

Of course, like all things in real estate, though, mortgage rates are local. Rates offered by banks varied by region.

Freddie Mac’s survey of 125 banks showed the following regional breakdown :

  • Northeast Region : 3.88% with 0.8 discount points 
  • West Region : 3.85% with 0.8 discount points
  • Southeast Region : 3.91% with 0.8 discount points
  • North Central Region : 3.89% with 0.6 discount points
  • Southwest Region : 3.90% with 0.8 discount points

The best mortgage “deals” are currently available to North Central Region residents. The most expensive loans are for those in the Southeast.

Relative to history, though, all mortgage rates look inexpensive. Conforming 30-year fixed rate mortgage rates have never been as low as they are today. It’s a bonus for home buyers because cheap mortgage rate yield cheap mortgage payments. Home affordability remains near all-time highs.  

If you’re unsure of whether now is a good time to buy or refinance, the answer is yes. Talk to your loan officer to review your mortgage options.

Tax Tips : What To Do With Your Tax Refund

The typical U.S. taxpayer will receive roughly $3,000 in federal income tax refunds this year — an average of $250 per month. So, what would you do with an extra $250 monthly? This segment from NBC’s The Today Show offers some advice. 

Whether you’ve already filed your annual taxes for 2011, filed an extension, or will squeak by on the deadline, you could probably be doing more with your taxes. The above video shares some tips. It’s four minutes of solid insight on tax refunds, tax withholdings, and reducing your household’s overall “bad debt”. There’s something for everyone.

Among the points covered in the tax refund piece :

  • Consider changing your personal payroll exemptions so your 2012 refund is $0
  • Remember that refunds are not “free money” — it’s your money. Spend wisely.
  • Use your tax refund to fund retirement accounts

Advice is also shared about how to use your tax refund to fund a reserve account, or emergency fund. As a homeowner or home buyer in San Ramon , applying tax refunds to a savings accounts in this manner can go a long way. When you’re a homeowner, maintenance costs can be sudden and unexpected. A furnace can explode, for example; or, a roof could spring a leak. Having money set aside for crisis is essential.

Having a savings account will also improve your household’s long-term financial stability. 

As a reminder, in most years, federal income tax is due April 15. However, with Tax Day falling on a Sunday and with the federal government closed for a holiday the following Monday, U.S. taxpayers in California and nationwide get a reprieve until Tuesday, April 17, 2012.

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