Home Buying Tips

Fannie Mae offers new REO platform with HomePath

January 8, 2012

Beginning Dec. 7, Fannie Mae will launch the HomePath Online Offers Program to collect offers and manage the offer-submission process on properties listed on HomePath.com. Agents and brokers representing buyers are now required to submit offers exclusively on HomePath.com. All properties listed in California and Florida are eligible on the designated launch date.

The HomePath Online Offers Program is designed to ease and create transparency during the offer submission process with the following features:

-An easy to use, self-service offer submission system that can be assessed through HomePath.com
-A transparent offer process that keeps Selling Agents informed of the status of their clients’ offers on HomePath properties listed on HomePath.com
-Improved communication between the Selling Agent and the Listing Agent regarding offers on HomePath properties listed on HomePath.com

The HomePath program offers unique financing options for first time buyers and investors. If you are looking for San Diego first time buyer programs or are having a difficult time getting you offer accepted due to your financing, contact Travis Breton today and ask about the HomePath program. With as little as 3% down you can be in your new San Diego home in as little as 30 days! Hard to finance San Diego condos are also financeable with as little as 3% down through the HomePath program.

: Carlsbad Real Estate, Home Buying Tips, Oceanside Real Estate, San Diego Real Estate
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5 key home upgrades for aging in place

November 9, 2011

By Paul Bianchina
Inman News

It’s something we’d all just as soon avoid, but there’s no getting around it: We’re all getting older. And that’s something worth keeping in mind as you plan and remodel your home. The concept of “aging in place” — making changes to your home to make it more comfortable and more adapted to your needs as you age — is one that’s been gaining a lot of popularity, especially in these tough economic times.

There are a number of things you can do, large and small, that will help make your home work for you instead of against you as you age. And many manufacturers are taking note of this trend as well, offering a wide range of innovative and attractive products so your home can also remain every bit as stylish as you’d like.

Doors
Doors can be one of the biggest obstacles to easy movement in the home. Consider opening up smaller doorways to create 34-inch or 36-inch doorways wherever possible. Another alternative is to use a pair of 18-inch or even 24-inch pocket doors to make a nice wide opening that’s also very attractive.

To make doors easier to open, replace doorknobs with levers. Replace exterior steps with simple ramps, or combination step/ramps. With more extensive remodeling projects, also consider making hallways wider — ideally 48 inches.

Toilets
Many companies are now offering “comfort-height” toilets, which are about 2 inches taller than standard toilets. These are easier to get on and off of, especially for people with sore backs or weaker legs. Wherever possible, plan on more free space in front of and to the sides of the toilet to allow for easier movement, especially for a walker or wheelchair.

Grab bars
Grab bars are a very useful addition in the bathroom: in the tub, shower and around the toilet. For safety and security, they need to be properly anchored to solid wood, so if you’re remodeling your bathroom, be sure to install some blocking in the walls; it’s a simple and inexpensive thing to do, even if you’re not planning on installing grab bars right away.

Don’t like the institutional look of chrome grab bars? A growing number of companies are offering them in colors, ranging from bright white to shiny black and everything in between, in both acrylics and powder-coated metal. There are also some sleek new styles available.

Tubs and showers
There are some simple things you can do to make using your tub or shower easier to use. In addition to grab bars, a seat can be a real plus. These can be portable, or one of the fold-up versions that are attached to the wall. There are many different styles available, in everything from plastic to very stylish teak.

Lever-handle controls are easier to grip and turn than ones with smooth knobs. That applies to the sinks as well as shower and tub controls. Think about where you’ll be standing — or sitting — in the tub or shower, and place the controls at a convenient location. Make sure that you install anti-scald valves, and install hand-held spray heads. Also, install a shelf at a convenient location for soap and shampoo, to prevent dangerous reaching or stooping over.

Barrier-free shower stalls are well worth considering if you’re redoing your bathroom. One company I spoke with at the recent Pacific Coast Builders Show was demonstrating a very innovative, dam-free shower pan that’s installed on the floor, then sealed in place with a membrane. The entire bathroom floor and pan are then tiled over, creating a seamless, barrier-free installation that’s sleek, attractive and anything but institutional. You can check them out at www.designwithoutbarriers.com.

Another innovative idea comes from the folks at Kohler, with their new Elevance bathtub. This truly unique tub has a vertically sliding wall in front. The wall drops down to create a chair-height seat for easy access into the tub. Sit down, swing your legs in, then raise the wall — it takes only 5 pounds of force to lift. Fill the tub, and the special double seals snap into place to seal the wall against leakage. When you’re done enjoying your bath, drain the water, then lower the wall for easy access to get out. You can see it here and also get a link to a video of it in action.

: Carlsbad Real Estate, Home Buying Tips, Home Selling Tips, Oceanside Real Estate, San Diego Real Estate

Tips For Maximizing Your Carlsbad Home’s Appraised Value

November 8, 2011

Maximizing your home appraisalA home appraisal is an independent opinion of your Carlsbad home’s value, performed by a licensed home appraiser. Appraisals are part of the traditional Carlsbad home purchase process, and lenders require them for most refinances, too.

Appraisers are trained professionals. First, they derive a base for your Carlsbad home’s value based on the recent sales prices of homes that are comparable to yours in terms of bedrooms, bathrooms, style, and square footage.

Then, accounting for features and amenities that make your home different, the appraiser applies “adjustments” to that base value.

This methodology is called the “Sales Comparison” approach and the result is your Carlsbad home’s appraised value.

It’s the most common appraisal method used by lenders.

As a homeowner in Carlsbad , you can’t affect the sales prices of your home’s comparable properties, but you can help your appraiser understand how your home stands apart from these homes. This, in turn, can affect your home’s adjustments, resulting in a higher appraised value.

With home appraisals, every valuation dollar can matter. With that in mind, here are a few tips for maximizing your Carlsbad home’s appraised value :

  1. Be home for your appraisal so you can answer the appraiser’s question, if there are any.
  2. Mention any new roofing, flooring, HVAC, plumbing, or windows you’ve installed since purchase.
  3. Don’t mention projects or repairs you’re “about to undertake”. Appraisers don’t credit for unfinished projects.
  4. Make minor household fixes prior to the appraisal (e.g.; leaky sink, running toilet, peeling paint). 
  5. Present a tidy home. This can contribute to a higher “overall condition” adjustment.

Lastly, schedule the appraisal for a time that is convenient for your entire household. An appraiser needs to see, measure, and take photos of every room in your Carlsbad home. If a room’s door is closed because of a resting child, for example, the appraiser may need to schedule a second appointment to complete the appraisal, and that can raise your appraisal costs.

: Carlsbad Real Estate, Home Buying Tips, Personal Finance
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Make Your San Diego Mortgage Rate Strategy

November 1, 2011

Comparing the Fed Funds Rate to Mortgage RatesThe Federal Open Market Committee begins a scheduled, 2-day meeting today, the seventh of its 8 scheduled meetings this year, and the eighth Fed meeting overall.

The FOMC is a 12-person sub-committee within the Federal Reserve. It’s the group responsible for setting the nation’s monetary policy and is led by Federal Reserve Chairman Ben Bernanke.

The FOMC’s most well-known role is as the steward of the Fed Funds Rate. This is the overnight rate at which U.S. banks borrow money from each other. The Fed Funds Rate is a unique, “banking” interest rate, and should not be confused with consumer interest rates, a category which includes ”mortgage rates”.

Mortgage rates are not set by the Federal Reserve.

Rather, mortgage rates are based on the price of mortgage-backed bonds. If mortgage rates correlated to the FOMC’s Fed Funds Rate, the chart at right would be linear.

That said, the FOMC does exert influence on mortgage markets.

After its FOMC meetings, the Federal Reserve issues a press release to the public. In it, the central banker summarizes economic conditions nationwide, highlighting threats to the economy and areas of strength.

When the Federal Reserve’s statement is generally “positive”, mortgage rates tend to rise. This is because a strengthening economy invites investors to assume more risk, spurring equity markets at the expense of all bonds types, including the mortgage-backed kind.

When bond markets lose, mortgage rates rise.

Conversely, when the Fed is generally negative, bond markets gain, pushing mortgage rates lower.

The Fed can also influence mortgage rates via new policy.

At its last meeting, the FOMC launched a new, $400-billion round of mortgage-market stimulus known as Operation Twist. The added mortgage-bond support led mortgage rates lower post-FOMC meeting.

The Fed may expand Operation Twist as soon as Wednesday afternoon. It may also take no such steps at all. Unfortunately, there are few clues about what the Federal Reserve may do next, if anything at all. As a result, mortgage rates will be a moving target for the next 36 hours. First, they’ll be volatile before of the Fed’s statement. Then, they’ll be volatile after the Fed’s statement.

Even if the Fed does nothing, mortgage rates will change so your safest play is to lock a mortgage rate ahead of Wednesday’s 2:15 PM ET adjournment.

There too much risk in floating.

: Federal Reserve, Home Buying Tips, Mortgage Rates, Mortgages, The Economy
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Pending Home Sales Index Slips For 4th Straight Month

October 28, 2011

Pending Home SalesNationwide, fewer homes are going under contract to sell.

According to the National Association of REALTORS®, the Pending Home Sales Index fell 5 percent last month. September marks the fourth consecutive month in which the index has dropped. 

The Pending Home Sales Index is a monthly index which measures the number of homes under contract to sell, but not yet closed. As such, it’s among the few “forward-looking” housing indicators; a data set meant to predict future home sales. 

80% of homes under contract close within 2 months so, if the September Pending Home Sales Index is to be believed, we should expect home sales to decline through October and November. 

And that’s before we account for cancelled contracts.

Also from the National Association of REALTORS®, we learn that 18 percent of homes under contract failed to close in September. This is double the failure rate from September 2010 and it, too, should drag Existing Home Sales volume lower this fall.

On a seasonally-adjusted, regional basis, the Pending Home Sales Index fell everywhere. 

  • Northeast Region: -4.7% from August
  • Midwest Region : -6.2% from August
  • South Region : -5.5% from August
  • West Region : -2.1% from August

For home buyers and sellers, though, regional data remains too broad to be useful. Housing markets are local, meaning that each block on each street on each city has its own distinct economy. When 9 states are grouped into a single “region”, it’s neither helpful nor relevant to people making buy/sell decisions.

That said, the Pending Home Sales Index remains important because it’s about housing, and housing is a keystone of the U.S. economic recovery.

The market looks ideal for buyers. Home prices are rising, but slowly; and mortgage rates remain near rock-bottom levels. Home affordability is high and should remain that way for the next few weeks.

If you’re shopping for a home, it’s an excellent time to go under contract.

: Carlsbad Real Estate, Home Buying Tips, Home Selling Tips, Housing Analysis, Oceanside Real Estate, Real Estate News, San Diego Real Estate
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Homebuilder Confidence Rises on Surging Sales Volume and Foot Traffic

October 19, 2011

Homebuilder Confidence 2009-2011Homebuilder confidence is rebounding sharply.

Just one month after falling to a multi-month low, the Housing Market Index rebounded four points to 18 for October. It’s the highest reading for the HMI since May 2010 — the month after last year’s homebuyer tax credit expiration.

The Housing Market Index is published monthly by the National Association of Homebuilders and is scored on a scale of 1-100. Readings above 50 indicate favorable conditions for homebuilders. Readings below 50 indicate unfavorable conditions.

The index has been below 50 since May 2006 — a 66-month streak.

The Housing Market Index is a composite reading; the result of three separate surveys sent to home builders each month. Builders are asked about current single-family home sales volume; projected single-family home sales volume over the next 6 months; and current “foot traffic”.

In October, builder responses were stronger in all 3 categories :

  • Current single-family sales : 18 (+4 from September)
  • Projected single-family sales : 24 (+7 from September)
  • Buyer foot traffic : 14 (+3 from September)

Meanwhile, of particular interest to today’s home buyers is that builders expect volume to surge over the next two seasons. And, with current sales volume rising and foot traffic strengthening, the fall and winter months could be strong ones in the new homes market.

In addition, the builder trade group press release states that rising costs for materials are squeezing building profit margins.

For buyers, it all adds up higher home prices ahead. As builders grow more confident about the housing market, they’re less likely to make concessions on pricing or upgrades. Rising building costs fortify that argument. The “great deal” will be tougher to negotiate. 

At least mortgage rates are low.

Low mortgage rates are keeping homes affordable nationwide. If you’re looking for the right time to buy new construction, therefore, this month may be it.

: Carlsbad Real Estate, Home Buying Tips, Housing Analysis, New Home Communities, Oceanside Real Estate, San Diego Real Estate
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What’s The First Thing You Should Do After A Home Purchase

October 12, 2011

Change your locks when you buy a new homeDid you remember to handle the most basic safety precaution for your new San Diego home?

When people buy homes , there’s a tendency to think “Big Picture” on home improvements. Flooring, painting and furniture are common “just-moved-in” purchases, as are cable television and utilities packages.

The most important move-in purchase, though, may also be the least expensive — deadbolts for your doors.

Every home has at least one — and sometimes up to dozen — keyed points of entry. And until you change those locks, there’s no telling just how many people may have access to your San Diego home.

For example, your home’s prior owners may have shared house keys with any/all of the following people :

  • San Diego Real estate agents
  • Neighbors and friends
  • Parents, brothers and sisters
  • Home cleaning service
  • Dog walkers and pet sitters

Those keys will still gain entry into your home until you change the locks. This is why your first act as a new homeowner should be to replace all your San Diego home’s keyed entries with new locks and/or deadbolts.

Locks and deadbolts come in a variety of designs and finises, with varying price points. A basic single-cylinder, keyed deadbolt costs less than $15, and a powerful digital-entry, keyless system sells for $200-plus. There are a bevy of models at prices in between, too.

Regardless of which lock system you choose, don’t procrastinate on installation. Ideally, your locks should be changed on the same day of purchase, as close to closing’s completion as possible.

Hardware stores carry most deadbolt varieties and many can be installed with just a screwdriver. For complicated installations, talk to a San Diego locksmith.

: Around The Home, Home Buying Tips
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Some things to know about San Diego HOA management companies

October 6, 2011

Existing law requires homeowners associations (HOAs) to provide specific documents to prospective purchasers of homes in a CID — a form of real estate ownership in which each homeowner has an exclusive interest in a unit and a shared interest in the common area property.

In addition to the standard residential property disclosures that must be provided to purchasers of residential property, purchasers of a unit within a CID must receive basic information about the structure, operation and management of the homeowners association that operates the CID.

Current state law requires that this information come from the HOA and prohibits it from charging fees in excess of what is “reasonable,” not to exceed the actual cost of processing and producing these document.  HOAs generally provide the documents for approximately $75 to $250.

Assembly Bill 771 (Butler, D-Torrance) addresses this situation by specifying that only fees for the required documents may be charged when such documents are provided, effectively prohibiting any “bundling” of fees for other documents with these fees.

AB 771 into law by Gov. Brown

Article and information provided by C.A.R

: Home Buying Tips, Real Estate News

When income is freelance

September 27, 2011

After the financial market downturn in 2008, getting approved for a mortgage loan became even more difficult.  Combine that with the fledgling economy, which left many people turning to freelance work, and the challenges involved in qualifying for a home mortgage increase exponentially.  However, with a little extra work, home buyers using freelance work as proof of income still can qualify for a new loan.

Making sense of the story

Borrowers who earn most of their income on 1099s should be prepared for extra preparation, paperwork, and discussion of their financial standing when applying for a mortgage.

It’s important that independent contractors show that their income is stable and increasing. For some, that may mean declaring all their income on their tax returns, and not, say, carrying anything over to the next year, even if it means paying more taxes.

Consistency in income is key, so those applying for a mortgage this fall or winter should be prepared to provide proof for year-to-date income. 

To increase the chances of getting a mortgage approval, borrowers should pay off other debts, including balances on credit cards.

Pinpointing the source of the down payment also is helpful.  If the down payment will be a gift from a relative, borrowers are advised to submit an account statement showing the funds are available and awaiting the home purchase.  Same goes for borrowing from a 401(k).

Freelancers also should be prepared for a more in-depth analysis of their ability to repay the debt.  Submitting tax returns from the last three years and explaining any significant differences in income is advised.

Article and information provided by C.A.R.

: Home Buying Tips, Mortgages
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Fannie Mae releases August consumer indicators

September 22, 2011

Nearly 80 percent of Americans (78 percent) say the economy is on the wrong track and 27 percent believe home prices will go down over the next year, according to findings from Fannie Mae’s August National Housing Survey.  Additionally, 22 percent of Americans polled expect their financial situation to worsen over the next year – the highest levels of pessimism for both indicators since August 2010.

For the third consecutive month, Americans reported they expect home prices to decline over the next year. On average, Americans expect home prices to decline by 0.5 percent, compared with an expected decline of 0.3 percent in July.
While 69 percent of respondents say it is a good time to buy a home, only 9 percent of those polled say it is a good time to sell one’s home.

The number of Americans who expect their personal financial situation to worsen over the next year increased for the fourth month in a row, rising to 22 percent in August compared with 20 percent in July.

Article and information provided by C.A.R.

: Carlsbad Real Estate, Home Buying Tips, Home Selling Tips, Oceanside Real Estate, Real Estate News, San Diego Real Estate
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