“Five things to know when house hunting in the Silicon Valley” was a recent headline in the San Jose Mercury. In my opinion, the five points would apply to house hunting in most parts of the Bay Area. While the article pointed out the pitfalls, it was short on advice.
No doubt the last three years have left both buyers and sellers uncertain about the best strategy. Interest rates are low, but likely to head up, and while housing prices are also low, they’re already inching up in some areas. So how about some advice to go along with the challenges.
1. Expect stiff competition for some homes.
That is the steepest learning curve for buyers. Buyers still seem to think that homes are available for the picking and quite frankly they are not. Inventory is low and there are plenty of qualified buyers. Did you know that nearly 50 percent of houses sold in Santa Clara County in May, and 41 percent in San Mateo County, sold for more than their asking prices in May. Remember, prices are lower than they were a few years ago, rates are low and inventory is lower yet. Seek the advice of a real estate agent that knows the market and when you find the home for you, act decisively!
2. Getting a loan may be more complicated and time-consuming than you expect.
Now that’s an understatement. Complete income documentation is required and good credit is a must. Since it is likely that you will not be the only one interested in a nice, well priced home, consider that having your loan pre-approved a requirement if you expect to be a successful buyer. You need a capable loan officer working on your behalf.
3. Buyers, be prepared to try, try again.
If you’re trying to buy one of the least-expensive homes in a particular neighborhood, be prepared to make offers on a few homes before yours is finally the winning offer. This is where the right combination of agent and loan officer will pay off.
4. The appraisal process can throw a monkey wrench into a sale.
No question an abundance of caution is being exhibited by appraisers and lenders. Add the rules change that took place with the implementation of HVCC and you end up with appraisals taking more time and uncertain outcome. No one wants to overpay for a home and that’s why your agent should have given you a good indicator of value when you made your offer.
5. Completing a “short sale” can be a hassle.
It is typical for banks to take up to a few months for sellers to get approval from their lenders to accept an offer that’s less than what is owed on their mortgage. Sellers who have a second mortgage and need a second approval should expect even more delays. If there are liens against the property, such as for unpaid property taxes or judgemnets, you guessed it — delay. Best advice is to only make an offer on a short sale after the price has been approved by the lender.
With the complexity in today’s real estate market you will benefit from the advice and guidance of an experienced and knowledgeable real estate professional. I’m always available to answer your questions or discuss your concerns. Just text, call (650 325 7877) or email me for a prompt response.
If you are in the San Francisco Bay Area, I invite you to take a look at our Resource Center, www.AboutBayAreaHomes.com. There you will find links for active home listings, including bank owned and short sales, home loan information, market activity reports, home seller strategies, staging and decorating, a suite of 19 calculators, plus my book, “Let’s Make a Deal, The Insiders Guide to Buying and Selling Real Estate” and more.
Russ Boyd and his team professionally assist buyers, sellers and homeowners in the Peninsula Communities of the San Francisco Bay Area. They serve clients in San Mateo, San Francisco, Santa Clara, Alameda and Contra Costa counties. Licensed as a Real Estate Broker by the California Department of Real Estate, 01264240. National Mortgage License (NMLS) 230411.
Posted via email from brokerruss’s posterous
The Intero Foundation partnered with EarthCare Recycling by offering an eWaste Collection Center at Intero Real Estate San Mateo the week of August 9, 2010. 
EarthCare Recycling will donate 50% of the proceeds from all the recycled EWaste to the Intero Foundation. 
The Intero Foundation provides grants to local non profits that are dedicated to helping children in need and children in crisis. The Foundation has funded grants totaling more than $50,000 so far this year and over $1.5 million since its inception. 
New Mortgage Regulations add More Time and Money to Consumers Costs
By Russ Boyd on August 28th, 2010
Mortgage Rates are Way Down While Loan costs have Risen Dramatically
As I’ve reported over the past year there have been untold changes to the way mortgage loans are being regulated and underwritten. While all the new regulations are in place to provide more transparency and consumer protections, unfortunately, the result is increased time and costs to the consumer. While I’m sure this is not the result the regulators were seeking, the proof is now available with the release of Bankrate.com’s annual mortgage fee survey.
First, the good news…California is not the most expensive when it comes to mortgage fees and costs. That dubious honor goes to New York. In fact, California is the fifth most expensive state in the survey results. All in all, according to Bankrate.com’s survey, which used a $200,000 loan model, costs increased by an incredible 36% year over year.
And I can understand why. In my business, I can see that appraisal costs have increased by some 25% and the increase is not going to the appraiser that is doing the work, as a matter of fact, appraisers are making less while the increase is going to the “appraisal management companies” or AMC’s that are mandated by the appraisal regulations implemented known as HVCC. Loan processing has increased by about 20%, simply because of the increased underwriting appetite for every piece of documentation available and the more time consuming preparation of disclosures. Add what is known as Fannie Mae’s “Loan Quality Initiative” which dictates that every single loan go through a detailed pre and post funding quality assurance process that begins when a file is received in underwriting.
As a loan originator, I am not only required to be licensed by the State of California, I am now subject to the rules under the National Mortgage Loan Registry. This year, I have had to pass both a state and a national exam, be fingerprinted, have a background check done by the FBI and complete affidavits that required in depth personal and business information. All of this cost me about $1500 out of pocket.
As a real estate and mortgage professional, I take my responsibility to my clients very seriously. I am always available to answer your questions or discuss your concerns.
With the complexity in today’s mortgage and real estate market you will benefit from the advice and guidance of an experienced and knowledgeable mortgage and real estate professional. I’m always available to answer your questions or discuss your concerns. Just text, call (650 325 7877) or email me for a prompt response.
If you are in the San Francisco Bay Area, I invite you to take a look at our Resource Center, www.AboutBayAreaHomes.com. There you will find links for active home listings, including bank owned and short sales, home loan information, market activity reports, home seller strategies, staging and decorating, a suite of 19 calculators, plus my book, “Let’s Make a Deal, The Insiders Guide to Buying and Selling Real Estate” and more.
Russ Boyd and his team professionally assist buyers, sellers and homeowners in the Peninsula Communities of the San Francisco Bay Area. They serve clients in San Mateo, San Francisco, Santa Clara, Alameda and Contra Costa counties. Licensed as a Real Estate Broker by the California Department of Real Estate, 01264240. National Mortgage License Registry 230411.
Posted via email from brokerruss’s posterous