Why your credit score is important to your home purchase

Did you know your credit score can affect your home purchase? In Keith Loria’s BHG story recently, he discussed this idea.

credit score 2As he points out, “having a good credit score can be the difference between obtaining the mortgage you need to buy your dream home—or settling for less because you didn’t qualify for the money you need.”

This is important as many buyers don’t consider their credit score until they’re already involved in the process. At that point, it’s usually too late to fix anything that might be wrong with your score. So think ahead and monitor your credit score!

Don’t like your credit score?   Paying off debts is the fastest way to up your score, but if you are in the process of applying for a loan, check with the lender first. Missing deadlines on your credit payments are huge hits to your credit score!

credit score 1
Image by www.CafeCredit.com: https://www.flickr.com/photos/cafecredit/27321078025/

I also spoke with my local lender, Jay Vorhees of JVM Lending, about this, and he gave me a few benefits to having a high credit score :

  1. Borrowers with higher credit scores usually get lower interest rates (especially when loan-to-value ratios are higher)
  2. Borrowers are allowed to make smaller down payments, if necessary
  3. Underwriting requirements become less onerous because there are fewer conditions and requirements
  4. Second mortgage financing is easier to obtain, if necessary

If you have any questions about credit scores, purchasing a home, or the market in general, please feel free to reach out. I’m happy to help or guide you to the right person!

Open House this weekend: 1326 San Carlos Ave. in Concord

Don’t miss this cozy, updated gem! Just a couple blocks from the Concord BART station and close to Todos Santos Plaza, you’ll feel right at home in this 2-bedroom, 1-bath (with an extra bedroom and bathroom in the converted garage) property.

Fresh paint, new bamboo floors, skylights, granite countertops and a big backyard with a spacious shed top the list of eye-catching features this property has to offer.

You can use that converted space as an AirBNB income-generating room that can be locked off from the rest of the house, and it even has its own little private side yard!

The open kitchen/dining room concept, complete with skylight and dark, beautiful cabinetry, flows into a separate living room with a fireplace and recessed lighting. Both main bedrooms open to the deck and backyard.

Speaking of, both main bedrooms open to the massive deck and backyard. You’ll have plenty of space to entertain friends and family. And you’ll love the huge tree in the front yard casting much-needed shade over the house in the summer.

Come see for yourself how so much can fit into such a beautiful space!

Visit our Open House this weekend from 1-4 p.m. both Saturday (7/30) and Sunday (7/31)!

You can see a virtual tour of 1326 San Carlos Avenue here.

How to Ensure a Smooth Home Purchase

5 steps 3If you’re planning on purchasing a home this year, you’ll will want a transaction as smooth as possible. That’s what us agents are for! We want to help you find the perfect home and then ensure the process becomes as pain-free as possible.  You don’t realize how important this is until you have the transaction from Hell!

Taken from a Better Homes and Garden’s article and repurposed with some of my insights, here are five tips for a smooth home purchase:

Tip 1: Communicate with Your Agent

You spend a lot of time with your agent in a finite window, so, you should work with a real estate agent you are comfortable with. They should be straight up and express everything you want and need in your new home. By communicating your desires from the beginning, your agent won’t waste time showing you homes that don’t fit your criteria. If you know you want an updated kitchen or two baths, make that clear. It is also a process; sometimes what you want and what your budget can afford creates a discovery process, but when it comes to finding that perfect home, clear communication is key. And if you run into any problems along the way, be sure to speak with your agent to iron out any issues.

Tip 2: Be Reasonable with Expectations

If you’re searching for a three-bedroom home located in a certain neighborhood that has the right schools, and your agent shows you a property with a color you don’t like that only has 1.5 baths, don’t simply write off the home. When searching for the home of your dreams, you may have to give something up or make some changes once you move in. No home will be perfect and, again, it is a process to find that out.

Tip 3: Don’t be Discouraged

Don’t expect to find your dream home overnight. Buyers often get frustrated because nothing pops up in their price range for two weeks or they have written five offers and none of them were accepted, but remember, it is a process. And, this is the Bay Area! 5 steps 2Buyers usually course correct, change their expectations, get a quick education on the market and – voila! – the universe unfolds, the right house pops up and your offer is accepted! Woo-hoo! Now the rubber hits the road and you are in contract!

Tip 4: Play the Money Game

If you offer $375,000 on a home that’s listed at $400,000 and the seller refuses to budge, be prepared to negotiate. Wait!!! This is the Bay Area! When you offer $650,000 on a home listed for $620,000 and you are one of nine offers, you need to have some wiggle room for a counter offer. Before making an offer, discuss your strategy with your agent as he or she will be able to tell you whether your offer is fair or not. It’s also important to check out comps in the neighborhood so that you can make a reasonable offer from the get-go. Don’t forget how important a good lender is and the reputation they have with other agents. This may make the difference in your offer getting accepted over the other eight.

Tip 5: Get Your Mortgage Pre-Approved

This could be the smartest thing you do all year. By having a mortgage approved before you even begin looking at houses, you’ll be ready to make an offer as soon as you find the home of your dreams. Not all lenders are equal, and a good lender may give you the upper hand over other buyers who may be interested in the same house. Can they closer faster than 30 days? Do they get all the paperwork upfront and desktop underwrite you so there are no surprises? Are they responsive to your calls?

If you have any interest in purchasing a home this summer, and are looking for an agent who can guide you through the process smoothly, I am at your service and I have a great lender or two to refer!

Why Are the Interest Rates So Low?

buy a houseThere have been a lot of articles about interest rates and the stock market recently. First, the German 10-Year Government Bond Yield has hit negative territory. In layman’s terms, this means that Germany gets paid interest to borrow investors’ money, the same thing is happening in Japan. Thus, Germany and Japan are getting paid to borrow money.
On the surface, this seems silly. Why would investors take a negative yield or pay somebody to borrow their money? Because it’s safe. Investors will put money wherever they can in order to ensure they can safely recoup it in the future.
How does this help the real estate market? First, the demand for bonds keeps rates very low, making real estate leverage much cheaper (The Brexit will also have an impact, which will be a different post). When investors have a lot of cash and are looking to put it somewhere, real estate investing becomes a good place to do so.
According to the National Association of REALTORS®, the number of homes that went under contract to be sold in April was the highest in more than a decade. It was also the strongest month in more than eight years for new home sales – with a 16.6% jump from the previous month. We do tend to see a bit of a lull in the summer as families head off for vacation.
If you are a buyer, it might be a great time to jump into the real estate market! Give me a call if you would like some help.

Broker Tour Today! Open House This Weekend!

madeira 3Join us for a broker tour today from 10:30 a.m .to 1:00 p.m. at both 2899 Madeira Way in Pleasant Hill and 1655 Endriss Dr. in Martinez. We’ll have some goodies to share at these beautiful properties!

Also, at the home on Madeira Way, we’ll have an Open House both Saturday and Sunday (June 25th and 26th) from 1:00-4:00 p.m. The updated 4-bedroom homemadeira 2 has new hardwood floors, plantation shutters in every bedroom and a large backyard with a patio perfect for entertaining.

The master bedroom is downstairs, just off the living room and dining room, which buttresses a nice kitchen with granite countertops. Upstairs, there are three bedrooms with one currently being utilized as a spacious personal office.

Come wander through this lovely home in a great neighborhood with us this weekend. Hope to see you there!

You can see a virtual tour of 2899 Madeira Way right here.

 

Hot Housing Market This Summer

It is unlikely the Federal Reserve will be increasing interest rates this month after a weak May job report (only 38,000 jobs created, 117,000 less than expected and the worst month for job creation in nearly six years). According to experts, the likelihood of a rate hike is down to a measly 4 percent, and that trend may carry over into July.

Thus, this summer could prove to be the hot time to buy or sell a home. In California – specifically the East Bay – selling season tends to be in the spring. Once we move into the middle of May, buyers and sellers become distracted with graduations, weddings, etc.

And once school is out everyone moves into vacation mode through mid-August, before families start getting ready for going back to school. Usually, we see an uptick in the number of homes that are on the market in the summer compared to the  the spring. With continued low rates, this summer might buck that trend with buyers out to purchase.Beautiful white, blue and beige living room.

To prepare, buyers should be pre-qualified for a mortgage before they start shopping and, ideally, desktop underwritten. It is best if buyers don’t make an offer contingent on the sale of their own home. For sellers, they should be ready to make themselves and their homes available for show. At minimum, have a staging consult done. Try to have your home staged before a showing.

 

Statistics show clean and pristine homes that are staged properly sell faster and for more money than ones that are not. Necessary improvements, such as new painting, replaced fixtures and refreshed house plants are huge for staging.

It is about getting it show and picture-worthy and keeping it neutral, not spending a lot of money on upgrades. As is the case with personal preferences, “What you think is a nice improvement is another man’s gold shag carpeting.”

Celebration of Closing on a Home!!!

One of the greatest joys of my job is presenting my clients with the key to their new home or telling a seller their home is SOLD.  Below are  some pictures of celebrating with my happy clients as they receive those keys, sign their loan documents and enjoy their congratulatory “let’s celebrate” baskets after closing!

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1777 Park Place Rd. Open House

park pl 3The perks to this beautiful home are endless! Located in the Summer Lake neighborhood of Oakley, this new property (built in 2012) is close to hiking and jogging trails, and just one mile from the Delta. The neighborhood boasts the lake, a pool, tennis courts and playgrounds.

It gets even better when you go inside – enjoy a home office, open-floor plan between the eat-in kitchen and livingPark Pl 2 room, and an upstairs den that is perfect for the kids! One of the master suites is on the first level, and the other is upstairs for total privacy. That was not a typo; there are two master suites in this home! And still, there’s more – in the backyard, you can relax near the pond or have a drink around the outdoor gas fireplace.

Don’t let this one pass you by. Stop in and see the Open House this weekend! We’ll be open from 1-4 p.m both Saturday (3/12) and Sunday (3/13).

You can see a virtual tour of 1777 Park Place Rd. right here.

6864 Waverly Rd. Open House

6864 blogDon’t miss this gem! Storybook charm in the desirable Virginia Hills neighborhood with all the bells and whistles! This property is move-in ready with a recently updated kitchen and added deck off the living room. On a corner lot, near Pleasant Hill Schools, with separate family and living rooms.

Plus, there’s a large yard – perfect for entertaining! Conveniently located within walking distance to local parks and shops.

Stop by this beautiful home at its great location on the border of Pleasant Hill and Lafayette, and see for yourself! We’ll have an Open House both Saturday and Sunday this weekend (2/20 & 2/21) from 1-4 p.m.

You can see a virtual tour of 6864 Waverly Rd. right here.