Category Archives: Changes In Real Estate

Achieving The American Dream

Achieving The American Dream

The American Dream. Having a loving family, attaining a stable job, and most importantly possessing your own home, even if it’s not in Santa Maria, California or somewhere near the Central Coast. All of these accomplishments can be challenging at times, especially taking the next step of  having your own home. With financial planning and legalities, it all starts with a bit of knowledge of the industry and some research.

Purchasing a Home in the United States

The United States Real Estate market is tremendous, especially the Santa Maria Real Estate area since it is continuing to grow. One thing to keep in mind is that each state has their own unique set of policies, set of laws, and not to mention taxes. So don’t be surprised when you notice different tax rates in various cities and states. Also Keep in mind that their are many incentives for individuals such as veterans who have served our country. Veterans qualify for loans known as VA Loans and many lenders out there offer these kinds of incentives that better help them achieve the home of their dreams.

Property Taxes

As mentioned above, taxes vary by state. So when you are asking yourself how much house can I afford, do not forget to include property taxes as the tend to add up. They are used to fund public projects such as schools, parks, and things such as law enforcement. Knowing ahead of time what kind of taxes you will be paying will give you a better picture of the cost of living in your new home, especially if you are planning on moving out of state; do some research.

Educate Yourself On the Real Estate Market

One should also know what exactly drives house prices in the market, especially in the Central Coast Real Estate area because it has gained popularity in past years. Instability in house prices vary from state to state and from region to region. For example, a home in the Arroyo Grande, California will not have the same price as a beach from property in the Pismo Beach, California area even though their proximity is not to far apart. Same applies to locations such as Los Angeles, California and New York (especially within the city). We at Greater Mortgage Solutions and Valley Hills Realty want to teach you about the macro and micro trends that influence the real estate market. That way you can make a better decision when making a mortgage deal that is being offered to you.

So when you, a family member, or a close friend of yours is ready to achieve The American Dream, consider allowing one of our team of experts at Greater Mortgage Solutions and Valley Hills Realty help you attain the precise mortgage and the home you have always wanted. We are filled with team members that are ready to help you every step of the way.

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5 Common Mistakes That New Homeowners Make

Are you getting ready to purchase your first home? This can be exciting but grueling and challenging at time. Not to mention the fear that comes along with it. Renting a place is much different, you have less responsibility and worries but when you purchase a home, many things come into factor. For most people it may seem easy, they find a house that they love at a reasonable price but it is not that simple. Many of those people make common mistakes that hurt them in the long run. This article provides you with some of the common tips that most first time home buyers make when purchasing a home.

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1. Not Knowing What You Can Afford

One of the first things that you need to know is how much can you afford. If you are a first time home buyer in your early 30’s, maybe save your money for future investing because this is your first home but it will certainly not be your last. We suggest that you keep track of your monthly expenses and plan for any upcoming expenditures that may arise such as homeowners insurance, realtor fees, and loan payments. Keeping track of your current expenses is the key to figuring out how much you can afford.

2. Skipping Mortgage Qualification

Another big mistake that first time home buyers tend to make is to skip their mortgage qualification. Make sure to get pre-approved for a loan before placing an offer on the house of your dreams. This is especially true if you have little to no credit or an unstable income.

3. Not Considering  Further Expenses

Upon being a homeowner, you will encounter expenses on top of your monthly mortgage payments. Unlike renting, you’ll be now responsible for paying property taxes, home insurance and making any repairs the house needs.

4. Neglecting to Inspect

Before going into Escrow and close on the sale, you have to know what kind of shape the house is in. Just like buying a used car, you must give it a thorough inspection in order to know the car is fully functioning. This will allow you to avoid unexpected repairs that cause headaches to say the least.

5. Not Choosing to Hire an Agent or Using the Seller’s Agent

Walking into an open house without a qualifies real estate agent is one of the worst mistakes on can make. Real Estate Agents are held responsible to act on both the seller’ and buyers’ best interest so we suggest that you contract an agent of your own so that you two build a mutual relationship that is long lasting.

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Once you’re seriously shopping for a home, don’t walk into an open house without having an agent (or at least being prepared to throw out a name of someone you’re supposedly working with). Agents are held to the ethical rule that they must act in both the seller and the buyer parties’ best interests, but you can see how that might not work in your best interest if you start dealing with a seller’s agent before contacting one of your own.

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The Benefits of Renovating Your Home

Having thoughts on whether or not to remodel your home? Well it is time to put those thoughts into action. Home renovation can have many benefits, both financially and aesthetically. Here are 3 innovation ideas that will certainly add value to your home.

1. Increasing the space

Expanding the space within a home will make the house seem bigger, allowing you to do your things more freely. Giving your home some breathing room will provide you the benefit of having guests over in a comfortable manner.

2. Comfort

As mentioned above, comfort is one of the many benefits of renovating your home. It can make your house seem safer and increase the likeliness of a buyer to commit.

3. Energy Efficiency

Going green is the new trend going on in the real estate industry. More home buyers are searching for houses that are energy friendly. Start thinking about energy and environmental pleasant renovations that will certainly attract more buyers and save you money on monthly bills.

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What Are The FHA Changes For 2013

Reality is that interest rates are still extremely low and depending where you are at in the nation even home prices are still very low.  They may have come up a bit as compared to a year ago but over all they are still low.  Not mention depending on where you live you can probably buy a home with a monthly payment that is the same or even less than what rent will cost you.  I know in Santa Maria, Ca. that holds true for most homes here for sale.   But I also know there are tons of people that can buy a home now but are waiting for one thing or another.   At the same time there are others that have issues with their credit that could buy a home if they just took care of the issues holding them back but for what ever reason still have not done a thing.  Everything is about timing and for those that may need some financing and need to get an FHA loan are going to find it more expensive,  failure to do something can cost you some money.

 

The important thing to know about FHA making these changes, are due to losses that they have been taking.  Right now FHA is in the red $ 32 Billion that is a Billion with a “B”.  In order to keep this loan program afloat and not another bailout deal they have to raise funds and pass those savings on to the new potential borrowers looking to get a home loan.   Right now Mortgage insurance is 1.25% of the loan spread out over the year.  But may be increasing to 1.35 % next  year.  On a 200k loan that is roughly $208.00 vs $225.00, not a big deal right?  Just a $17.00 extra month .. but that is also $204.00 extra a year.  Here is where it gets good, right now mortgage insurance drops off after 5 years.  Well new changes with an FHA loan is that it becomes permanent for the life of the loan and they only way to get rid of it is to refinance into a conventional loan showing that you have more than 20% equity.  So now you can see the cost because even a refinance is not free that alone will cost you at least 3k if you want to get rid of that Mortgage insurance.  But it does not end there.

They will be more additional new consumer counseling programs to insure that consumer knows they are getting into a home loan and can budget accordingly for a home purchase.   Yes this will cost you money as well, reality is nothing is really ever free.   Aside from that there are a few additional changes that will affect underwriting and how easy or not it will be to get that loan.   For example as of next year the Frank Dodd act goes into effect which will limit the debt ratio to 43% a person can have to qualify for a home loan.  What doe that mean anyways?? Debt ratio.  Simply put you make a $ 1,000.00 your  total expenses, credit cards and your new mortgage payment cannot exceed $430.00 a month.  Right now if you decent reserves, you can go as high as 55% debt ratios.   Basically you are going to have make more money  to buy the exact same house next year.

Everything is subject to change but for now this is what is coming.  Basically it will cost you more money to get a home loan and it will get harder.    If you want to see what you can qualify for give me call.

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New Law Giving Prospective Renters In California Foreclosure Warning

Coming into next year there will be many new laws in California regarding foreclosures and giving consumers more rights.  Some of these rights are for the renters that have fallen victims to the homes they were renting being foreclosed on without warning.  Some of these new laws are giving the home owners protection due to the scrupulous ways the banks have handled the foreclosure process and loan modification process.

 

Senate Bill No. 1191
CHAPTER 566
An act to add and repeal Section 2924.85 of the Civil Code, relating to
landlord-tenant relations.
[Approved by Governor September 25, 2012. Filed with
Secretary of State September 25, 2012.]
legislative counsel’s digest
SB 1191, Simitian. Landlord-tenant relations: disclosure of notice of
default.
Existing law generally regulates the hiring of real property, including,
among other things, specifying certain obligations imposed on landlords
and obligations imposed on tenants. Existing law, until January 1, 2013,
requires a tenant of property upon which a notice of sale has been posted
to be provided a specified notice advising the tenant that, among other things,
the new property owner may either give the tenant a new lease or rental
agreement, or provide the tenant with a 60-day eviction notice, and that
other laws may prohibit the eviction or provide the tenant with a longer
notice before eviction.
This bill would, until January 1, 2018, require every landlord who offers
for rent a single-family dwelling, or a multifamily dwelling not exceeding
4 units, and who has received a notice of default that has not been rescinded
with respect to a mortgage or deed of trust secured by that property to
disclose the notice of default in writing to any prospective tenant prior to
executing a lease agreement for the property. The bill would provide that a
violation of those provisions would allow the tenant to void the lease and
entitle the tenant to recovery of one month’s rent or twice the amount of
actual damages from the landlord, and all prepaid rent, if the tenant voids
the lease and vacates the property in addition to any other remedies that are
available. The bill would also provide that if the tenant elects not to void
the lease and the foreclosure sale has not yet occurred, the tenant may deduct
a total amount equal to one month’s rent from future rent obligations owed
the landlord who received the notice of default. The bill would specify the
content of the written disclosure notice, and would require the notice to be
provided in English and other languages, as specified. The bill would exempt
a property manager from liability for failing to provide the written disclosure
notice unless the landlord notified the property manager of the notice of
default and directed him or her in writing to deliver the written disclosure.

For more information on this bill and additional information follow the following link.

http://www.leginfo.ca.gov/pub/11-12/bill/sen/sb_1151-1200/sb_1191_bill_20120925_chaptered.pdf

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