California Love!

Happy Holidays from Comet Realty

Interest Rates at an All Time Low!

With interest rates at an all time low, it's a great time to buy or refinance. 

Contact your favorite Comet Realty Realtor® to find out more.

GREEN HOMES SELL FOR MORE!

According to an article in USA Today, green-certified homes sell for 9% more than regular homes in California. 


According to the University of California research department, single-family homes with green certifications sold for an average of $34,800 more! These statistics were taken from comparable homes from 2007-2012 when average California home was $400,000. 


The study finds the premium is also highest in the hottest places, suggesting buyers value green labels because of the lower utility bills. 1.6 million home sales were looked at, including 4,300 that earned certifications from Energy Star, GreenPoint Rated or the US Green Building Council's LEED for Homes program. 


If you are interested in finding out how you can get your home green certified, contact your favorite Comet Realty agent today (see list to the right!) 

California Median Home Prices - Summer 2012

GREEN TIP: Packing Materials

Styrofoam packing peanuts, bubble wrap, and foam are useful during a move, but not for the environment. 

To go green on your next move, try using old newspapers to wrap fragile items, and then recycle the paper when you unpack. Wrap pieces of furniture and art with blankets to ensure they do not get damaged during the move instead of packing them in foam. If you must use non-biodegradable packing materials, ask around to see if anyone has any from a past move to give you. 


Reusing is always better than buying new––for the environment AND your wallet.

Mortgage Rates Continue to Set New Record Lows!

Mortgage rates continue to set new record lows, leaving many home buyers and refinancers wondering how low rates can go and how to capture the best rates now.

Making sense of the story:

• Many economists are forecasting that mortgage rates will rise again later this year as the American economy gradually improves and as more global investors turn to the U.S. as a safe haven for money.
  
• The average rate on a 30-year fixed-rate mortgage averaged 3.66 percent the month of June. This is the lowest price since the long term mortgages began in the 1950's!
  The rate had averaged 3.9 percent three months earlier and 4.5 percent a year earlier.
  
• According to one economist, rates could possibly fall further, perhaps as much as a quarter of a percentage point, but it is more likely that they would start a “slow drift” upward.
  
• Those planning to refinance or buy a home in the next two or three months might want to consider locking in a mortgage rate now.
  
• Borrowers with rate locks, with a built-in deadline, often receive priority treatment from lenders, because the borrower is telling the lender that he or she is serious about closing soon.
  
• Lock-in costs and policies vary widely, and are based partly on the time frame the borrower wants covered. Most borrowers will need a 60- to 90-day lock.
  
• If interest rates continue to fall during the lock period, borrowers can ask the lender to rewrite the rate lock at an additional cost, or obtain a “float-down” provision in the original agreement.  A lock with a float-down agreement allows the borrower to change the rate, often only once, before closing on the mortgage. This option is generally more expensive than a standard lock.

Comet Realty works with MANY terrific lenders. If you are looking to refinance (or buy a new home), please contact us for a good referral - somebody local who will have your best interests in mind. 

805-546-9925, or INFO@CometRealty.com.

Information taken from NY Times

Reliable but not guaranteed

Advantages of Pre-approval

The housing market is warming up in many areas, with multiple offers becoming more commonplace. Buyers who want an advantage in the bidding process will need more than a mortgage prequalification – they will need a pre approval.

Making sense of the story

• The differences between mortgage prequalification and preapproval are significant. Prequalifying for a mortgage is based solely on what a borrower discloses to the loan officer or broker about his/her earnings, credit score, and total assets, including what is available for a down payment. By contrast, a preapproval requires a borrower to provide documentation of his/her income and assets.

• The lender typically pulls the borrower’s credit report and score, while the borrower gathers together almost everything else needed for the actual mortgage underwriting: W-2 wage statements; 1099s; recent pay stubs; bank statements; and statements from Individual Retirement Accounts and 401(k)s; and other assets that could show the borrower has the resources to buy and maintain a home.

• At one of the country’s largest mortgage lenders, Wells Fargo, the first quick review provided by an underwriter constitutes an agreement to lend.  Other lenders may treat preapprovals as more of an opinion on the person’s ability to borrow, not a guarantee to lend.

• With so many homes receiving multiple offers, a preapproval is more important in today’s marketplace. 

• The preapproval letter should include the amount a borrower is qualified to borrow, as well as the loan officer’s contact information.  Some letters may have an estimated monthly payment, but details about the loan time and interest rate are not included.

• Timing also is important.  Buyers should aim for obtaining a preapproval letter from a lender within 30 to 60 days of the expected purchase date.  That is because some letters expire in 90 days.

taken from an article in the New York Times June 2012

Comet Realty works closely with several top lenders in our area. If you don't have a favorite yet, let us help you choose an excellent one. Give us a call at 805-546-9925, or email INFO@CometRealty.com.

Comet Realty's Photo of the Day

What is wrong with this picture? 

Let me count the ways:

1. A wood stove
2. Made out of wood

3. Guaranteed to burn 4 hours

4. Made in Poland

5. Only $48.95

We found this in a machine shop in a very unique house we were showing to one of our clients. It could barely be seen through the dust of the years (and I mean years). We dusted it off and sure enough, it said what we thought it said. 

Firewood costs $5/bundle. It burns for about 4 hours. 

Or, you could just send off $48.95 (+shipping/handling) to this company in Poland, get yourself a real wood stove, and have yourself a fire in style. Your friends will be amazed (probably at your stupidity, but amazed, none-the-less).

Or, if you have some scrap wood laying around the house and a lot of time on your hands, perhaps you could make your own, amazing and dazing your friends. In fact, if you do it, I'd pay you at least $19.95.

I can't make this kind of stuff up. I love my job. 

How to pump up your credit score

To avoid another real estate bubble, many lenders have tightened their mortgage requirements.  According to a report by the Federal Reserve, a majority of banks are less likely to offer loans to people with a FICO score of 620 and a 10 percent down payment than they were in 2006.  Lenders were also less likely to do so even for those with a score of 720.  The good news though is there are some tactics that consumers can employ to raise their scores.

Making sense of the story

• First, it is worth noting that median credit scores are rising, as people reduce debt and spend less in tight economic times.  Some 18 percent of Americans now have scores of 800 to 850, while 15 percent are below 550, according to FICO data.

• Often lenders will review FICO scores from the three big credit agencies, and they use the middle number to evaluate the borrower.  That number becomes the borrower’s “risk number.” 

• Borrowers can figure out their risk number by obtaining their three credit reports, available free once a year at AnnualCreditReport.com, and studying them carefully for errors or omissions.

• According to FICO, the two biggest factors in a credit score are payment history, which accounts for 35 percent of the score, and the amounts owed, accounting for 30 percent.

• Knowing that information, one can raise his/her credit score by reducing balances on credit cards.  However, if an account is in collection, it is too late to improve the credit score by paying it off.  The notation that an account is in collection is what lowers the score, so consumers may get more mileage by paying down active credit-card balances and other debts first.

• Though mistakes and bankruptcies may stay on a credit report for seven years, lenders will generally be more likely to overlook late payments that happened two or more years ago than more recent ones.

• Improving one’s credit score could take three to four months, or it could take as long as 18 months.

Posted with permission from C.A.R.'s Market Matter.

Warbirds, Wings & Wheels Show in Paso Robles May 19, 2012

Comet Realty will be proudly showing Buckwheat at Warbirds, Wings & Wheels 

Saturday, May 19, 2012

Come check it out - it's gonna be fun! 

Mention you saw our blog and get a free t-shirt! 

Quote of the Day

Real estate is at the core of almost every business, and it's certainly at the core of most people's wealth. In order to build your wealth and improve your business smarts, you need to know about real estate. 

~ Donald Trump

Six Must Haves for Mortgage Approval

Interest rates are hovering around historical lows, and low interest rates increase affordability, making it easier for buyers to qualify. Yet stories of buyers waiting months to gain loan approval and home purchase transactions not closing on time due to lender's strict underwriting are all too common.

Some buyers are turned down for illogical reasons. For instance, if you have investments -- even if they're performing well -- an underwriter might deny the mortgage because your portfolio doesn't fall into the underwriter's risk assessment model.

One couple was turned down because the husband had worked at his current job for less than a year -- even though he was making more money at the new job than he was before.

These buyers were well-qualified. The wife had worked several years for one employer and was able to qualify for the loan on her own. So, the transaction closed, although two months late. 

Generally, it's more difficult to qualify now than it was a year ago. Most conventional lenders require a 20-25 percent down payment. For the lowest interest rates, your credit scores need to be in the 700 range. You need to have verifiable income and cash reserves in addition to your down payment and closing costs.

You could run into underwriting problems if you're self-employed, as W-2 income is much easier to verify. Other hurdles are lapses in employment and owning a lot of property. Some lenders won't lend to buyers who have more than three or four residential properties.

If you're buying a new home before selling your current home, you'll need to have 30 percent equity in your current home. This needs to be verified by the lender's appraiser. Also, the lender will want to see a copy of the cashed check from the tenant for the first month's rent to verify rental income if needed to qualify.

HOUSE HUNTING TIP: As soon as you're serious about buying a home, find the best mortgage broker or loan agent you can to assist you. Don't make your selection based on interest rates alone. A good track record counts for a lot.

Closing the deal should be your primary goal. If you have to pay 0.25 percent more to assure your transaction closes on time and that you're not turned down at the last minute, it's worth it.

Be candid with your loan professional about anything in your financial picture that might impact loan qualification. A good loan agent or broker will be able to assess your financial situation and anticipate what you'll need to do to satisfy the underwriter.

Be aware that appraisal issues can impact your loan approval. For example, if a previous owner added square footage without a building permit, the additional square footage probably won't be included as livable square feet.

If the appraisal comes in for less than the purchase price, the lender might not lend you enough to close the deal. Include an appraisal contingency in your contract.

There are more jumbo financing options available now. Adjustable-rate mortgages that are fixed for 10 years and then revert to an adjustable have a starting rate about 0.25 percent less than a 30-year fixed jumbo. A five-year fixed starts about 0.5 percent to 0.75 percent lower, but is riskier.

THE CLOSING: Because of the risk factor, the lender may want you to have a large cash reserve. Your retirement account counts toward this.

Dian Hymer is a real estate broker with more than 30 years' experience and is a nationally syndicated real estate columnist and author.

FOR SALE: 1938 Bungalow in Downtown Templeton

This terrific 1938 bungalow is located in downtown Templeton, California at the corner of First & Main. Currently used as an office, this quaint property offers hardwood floors, coved ceilings, arched doorways, plaster walls, and a remodeled period style restroom. It has recently been painted with updated wiring and insulation. Exterior features include great visibility, custom concrete walkways and patio, landscaping, 2 beautiful heritage oak trees, garage, shed, and a large parking lot.

100 S. Main in Templeton has amazing potential. Contact your favorite Comet Realty agent to see the inside! 805.546.9925 or Info@CometRealty.com.

THE POSSIBILITIES ARE ENDLESS! 


This is currently listed with Shannon Fitzpatrick, who can be reached at 805.801.5436.