Category Archives: Buying Homes

Placer County Demographics 2012

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Here is a summary of some of the recent Placer County Demographics for 2012 reported the Economic Development Department of Placer County.

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It’s a Good Time to Sell!

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Believe it or not, this really is a good time to sell.  The inventory is at record lows in the Sacramento area.  There are more buyers than homes on the market, so homes are going very quickly.  I am seeing 10 to 20 offers on homes within the first few days of the listing date.   You might think this is only true for homes price at or below $300,000, but this is NOT the case.  My partner and I had a listing in Roseville recently.  The home was listed at $555,000.  At the end of day two we had 20 offers, so we had to tell the buyers agents that we were not accepting any more offers.  When we asked for everyone’s best and final offer, we received counters back at a higher offer price even though they may have already been above list price in the original offer!  This home was not even a traditional sale, it was a short sale.  Another agent in our office had the same thing happen recently with his listing in Loomis which was priced in the low $700,000’s.

If you have been contemplating selling your home, this is a great time to go for it.  I am not sure how long this window of opporotunity will exist.

Feel free to contact me with any questions.  I would be happy to provide you with a complimentary Compartive Market Analysis on your home.

Sheri Negri
Better Homes & Gardens Real Estate
925 Highland Pointe Drive #140
Roseville, CA 95678
(916) 606-3210

Sheri@LoveForHomesSac.com

But I Thought It’s a Buyers Market

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Although there are unbelievers out there, we really are in a seller’s market right now with below-average level of for-sale inventory.  There are more buyers out there than properties, so we realtors are all showing the same homes and competing with one another.  I am seeing anywhere from 8 to 15 offer come in within days of the listing.  As a buyer it is important to ensure your agent is showing you property as soon as it’s listed so that you do not miss out on any opportunities to put in an offer on a home.

Educating our buyers becomes extremely important in a seller’s market.  Most homes are priced aggressivley to sell (mainly distressed properties), so putting in an offer at list price isn’t going to get you the home.  In most cases buyers will need to offer above list price to get the home (especially if they are asking for concessions).   If buyers need 3% credit for reoccurring and nonreoccuring closing costs, the offer should include at least 3% higher than list price and even more to be the winning offer.  Of course, comps will need to support the offer amount for appraisal purposes.

Sheri Negri
Better Homes & Gardens Real Estate
925 Highland Pointe Drive #140
Roseville, CA 95678
(916) 606-3210
Sheri@LoveForHomesSac.com

Significant FHA Loan Changes in April 2012

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Over the past few years FHA has increased their premiums to cope with mounting losses to their mortgage insurance fund; starting April 1st 2012 they’re at it again. If you go into contract on or after April 1st 2012 the upfront mortgage insurance premium will increase from the current 1% to 1.75%; on a $300,000 loan that’s additional $2250.

The monthly mortgage insurance will also increase 10 basis points.  On a $300,000 loan with a 30yr fixed FHA loan with a 3.5% down payment the monthly premium will jump from 115 basis points or $287.50/month to 125 basis points or $312.50/month; an increase of $25/month.

On loans over $625,500, for all case numbers assigned on or after June 1st 2012, the monthly premium will increase 25 basis points to 140; on a $700,000 loan that’s an increase of $145.84/month.

This change will encourage more potential homebuyers to look into traditional conventional financing with 5% down and lower overall costs.

Understanding Closing Costs

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Many people do not realize how much closing costs can be when buying a home.  If you plan to buy a home soon, here is a list of closing costs that you will need to consider:

Other fees may be including depending on type of property, where the property is located, etc.  Typically closing costs are 3 to 4% if purchase price.

Feel free to contact me if you have more questions about closing costs or real estate in general!

Sheri Negri, Realtor
Lyon Real Estate
Sheri@LoveForHomesSac.com

 

16 Ways to Lose Your Lover & Only 8 Ways to Lose Your Loan Approval

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The mortgage process takes time.  Especially if you are a buyer who put in an offer on a short sale.   Unfortunately most of the waiting times are things our of our control.

While you are in this waiting period, it is important to keep in “good behavior”.  Here are eight things you should absolutely NOT do between your date of application and your date of funding:

  1. Don’t buy a new care or trade-up to a bigger lease
  2. Don’t quit your job to change industries or start a new company
  3. Don’t switch from a salaried job to a heavily commissioned job
  4. Don’t transfer large sums of money between bank accounts
  5. Don’t forget to pay your bills — even the ones in dispute
  6. Don’t open new credit cards — even if you are getting 20% off
  7. Don’t accept a cash gift without filing the proper “gift” paperwork
  8. Don’t make random, undocumented deposits into your bank account

Some of these may be a bit unpractical.  However, some of these things can help you continue to qualify for your loan based on credit score and loan to value numbers which are checked again right before final funding.

If there is any question, it is always good to consult your lender to ensure it will not impact funding your loan!  Sometimes it is not getting approved that is hard–it’s staying approved.

 

Finance FAQs for Home Buyers

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Below are frequently asked questions I get from homebuyers who are in the process of buying a home.

What is a mortgage?

A mortgage is a loan used to buy a home or other real estate property, with the home serving as the collateral for the loan, acting as the guarantee that the loan will be repaid.

What’s in a payment?

Payments are comprised of principal, interest, property taxes, and possibly mortgage insurance. In the cases of condominiums, maintenance fees may apply as well. However, the real question is: how much can you repay over how many years? Consider how quickly you could repay your loan. Is it 15 years, 20 years, 25 years, or 30 years? Typically, the sooner you repay the loan, the more you’ll save on interest payments. However, the longer you extend the term of your financing, the lower your monthly payments may be. When choosing a loan term, consider your budget, your long-term spending patterns, your income over the life of the loan, and how long you plan to stay in your home.

What is a fixed rate (mortgage)?

The interest rate is set for the full length of the loan and doesn’t change.  Therefore, since the monthly mortgage payment for principal and interest stays the same for the life of the loan, it’s easier to plan a budget using this sort of loan.

What is an adjustable rate mortgage (or ARM)?

An adjustable rate mortgage (ARM) usually starts with a lower initial interest rate than traditional fixed rate loans. After a set initial payment period—anywhere from one to 10 years—the interest rate may change periodically based on market conditions. As the rate changes, so does your monthly payment.In addition, ARM loans feature an adjustment “cap” that limits how much the interest rate can go up, protecting you from large increases in your monthly payment. If you plan on being in your home for a shorter period of time, or expect your income to increase over the years, an ARM loan may be right for you.

What is the property appraisal?

A professional appraisal is done to determine the value of the home or other type of real estate. An appraisal is based on the home’s condition and selling prices of comparable properties in the area.

What is the best mortgage for me?

The best mortgage is one that you can afford without cutting in on other necessities, and has interest rates and terms and conditions that give you peace of mind. Use the handy mortgage calculator found at the bottom of each property listing on our site to get a good idea of which mortgage is the most affordable for you.

How much will my mortgage be?

The size of your mortgage and the monthly payments that you will incur are determined by the price of your home minus the down payment, spread over the term of the mortgage at the interest rate chosen.

Article by:  Sheri Negri, Realtor

www.loveforhomessac.com