Archive for July, 2009

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Organize Your Finances Before You Start the Buying Process

Friday, July 31st, 2009

Before you start searching for a property to buy in Cardiff, Encinitas, Carlsbad, Oceanside, Vista, or San Marcos, it’s wise to take some time and get your finances in order. Here are some tips:

Try to reduce your debt as much as possible. Lenders usually do not want your total debt to be more than 36 percent of your income. Since this figure includes your mortgage which is usually about 25 to 28% of your income, the rest of your debt should be no more than 8 to 10% of your income. That 8 to 10% includes car loans, student loans, and credit card balances.

If you need to, try to increase your income. That’s what lenders look at. Look for a second parttime job or ask someone else to go on the loan with you. You need to get your income at a high enough level to qualify for the home you want.

Save for a specific downpayment. Be aware of the lending programs out there, find out exactly how much you need to put down, and establish a fund to save for that amount.

Finally, establish a very good credit history. Your credit score may easily make or break your loan application. If you don’t have a credit card, get one and make all of the payments by the due date. Be sure to pay off the total balance promptly on all of your bills.

If you follow these steps to prepare to organize your finances, then your meeting with your lender when your are ready to buy a home in Cardiff, Encinitas, Carlsbad, Oceanside, Vista, or San Marcos, will be a productive one and you’ll be ready to go with a pre-approved letter.

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Do You Want to Move to Cardiff, Encinitas, Carlsbad, or Oceanside?

Friday, July 31st, 2009

Would you like to buy a property in one of the coastal beach communities of Cardiff, Encinitas, Carlsbad, or Oceanside? If you think this is a down market, then now may be the time for you to move up and buy real estate in the North County of San Diego.

One of the very best times to move to these coastal communities is after they have been hit by decreases in price. And price decreases, such as those we are now experiencing, rarely happen along the coast. If you carefully analyze your situation, you will find it most likely that a 20% lower sales price on the inland home you live in now is more than offset by a 20% decrease in the price of a coastal home in Cardiff, Encinitas, Carlsbad, or Oceanside.

If you want to move to a larger home and don’t care about moving to the coast or the beaches, now is still a prime time to explore your options while the media is suggesting  that the San Diego real estate market is at the bottom. But if you have always wanted to live at the coast and want to explore the coastal communities of Cardiff, Encinitas, Carlsbad, or Oceanside, there couldn’t be a better time.

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How to Buy in a Competitive Market

Friday, July 31st, 2009

If you are a buyer in Cardiff, Encinitas, Carlsbad, Oceanside, Vista, or San Marcos, you have probably seen that sometimes it’s tough to buy in a good buyers’ market. There are some great property values out there, but by the time you submit your offer, five other people have submitted theirs, and you may lose out. How can you win in such a competitive market?

Most important, get pre-approved for a loan before you begin searching and writing offers. Sellers and agents only take seriously those buyers who are pre-approved. Spend the time to get pre-approved.

Stay in touch with your agent and be informed of new properties that meet your criteria right when they go on the market. In areas like Cardiff, Encinitas, and Carlsbad, everyone is looking, and you want to be ready to go when the appropriate property comes along.

When you find the house you want, be ready to submit a competitive offer. You don’t have to offer the list price, but don’t submit a “lowball” offer either just to test the waters. Sellers are looking for serious buyers.

Don’t write an offer with lots of contingencies. If you have to sell your home first, try to sell it and then write an offer. Don’t ask for lots of extras–long escrow period, special repairs, etc. Keep it simple.

San Diego’s coastal areas, especially Cardiff, Encinitas, Carlsbad, and Oceanside, are very popular right now. If you want to live there, be prepared to write the best offer when the property you want comes along.

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Moonlight Amphitheater in Vista Gets Makeover

Friday, July 31st, 2009

If you are a Vista resident or if you are a buyer interested in buying property in Vista, you are probably familiar with the Moonlight Theater. For many years, the Moonlight Theater has been a wonderful Vista community resource, providing Vista residents with the chance to sit outdoors, bring a picnic, and enjoy presentations of musicals such as “42nd Street” and “Les Miserables.”

Now the Moonlight Theater has completely expanded its home behind the scenes. Audiences don’t see a big differrence, but what used to be a concert shell around an outdoor stage is now a full theater with air conditioning, bathrooms, dressing rooms, and rehearsal rooms.

Set installations and lighting have also been modernized. People used to have to roll set pieces on and off the stage; now electrical lifts take things on and off in all directions. And the new improved stage allows Moonlight personnel to use all of the sets necessary to stage a large production, not just part of them.

The Moonlight Theater is just one more reason you should consider buying real estate in Vista. Vista is a vibrant community, offering something for everyone — restaurants, shopping, theater, and even properties for horses.

Posted in Vista Community | 3 Comments »

Sellers of Luxury Homes Watch Prices Fall

Friday, July 31st, 2009

Throughout the country, sellers of luxury homes are having a harder and harder time finding buyers for their properties.The current recession has hit consumers in the upper brackets particularly hard, and the would-be buyers have lost much money in the stock market. The numbers of buyers available to buy in the $1M plus categories is smaller and smaller.

As a result, sellers are adding perks to their houses to help them sell. Besides lowering prices, sellers are offering to pre-pay property taxes and are including furniture and other amenities with their properties.

Another factor adding to the difficulty is that lenders are hesitant to approve so-called jumbo loans that are necessary for some buyers to finance a million-dollar-plus property. Investors are needing to come up with cash outside of the traditional loan route.

In Southern California, particularly in areas such as Rancho Santa Fe, the luxury market is also being hit hard. Sellers of multi-million dollar homes are dropping their prices up to half.

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Real Estate Buyers Should Be Aware of New Mortgage Act

Friday, July 31st, 2009

Today, July 31st, there was an important change to federal mortgage regulations that may affect your closing date when you buy real estate. The Mortgage Disclosure Improvement Act (MDIA) amendments to the Turth in Lending Act (TIL) –also known as Regulation Z — that will allow you , the buyer, to have plenty of time to review all specific information related to your loan.

You will now have a required seven-business-day waiting period between the time you get your initial loan disclosures and the time when you sign closing documents.

You cannot be charged up-front loan fees until you have received the initial disclosures.

If during the time of your escrow, your interest rates change more than .125%, then you must be sent a new Truth in Lending statement which you must received no fewer than three business days before your closing.

As a buyer of homes in Cardiff, Encinitas, Carlsbad, or Oceanside, you must realize that these new lending regulations have been established to protect you from changing rates and fees during the time of your escrow. Also, please remember that your escrow closing date may be extended if your fees and disclosures change.

Now is a great time to buy real estate in Cardiff, Encinitas, Carlsbad, or Oceanside. Just know and understand the new lending regulations and you will be well protected.

Posted in Buyers, Mortgages | No Comments »

Lenders May Prefer Foreclosures to Loan Modifications

Friday, July 31st, 2009

In a front-page article on Thursday, July 30th, the San Diego Union Tribune reported that often lenders do not grant loan modifications to strapped borrowers because they make more money collecting fees on delinquent loans.

If a home goes into foreclosure, lending companies collect fees out of the foreclosure proceeds. The longer a borrower is delinquent, the greater the time for the lender to collect fees. The Federal Reserve Bank of Boston recently said that mortgage companies are reimbursed for expenses while loans are delinquent, and they may have an incentive to foreclose rather than modify a loan.

In the meantime, many borrowers who are delinquent on their loan payments continue to negotiate with the bank holding their loan to try to negotiate a loan modification. Often they face a lengthy process as they wait up to 60 days or more to be assigned a negotiator, and even then, they don’t know if their loan modification will be approved. It’s a tricky situation at best.

Posted in Mortgages | No Comments »

New Appraisal Rules Cause Problems for Lenders and Buyers

Friday, July 31st, 2009

Three months ago, new rules for appraisals, called the Home Valuation Code of Conduct, have driven up the cost of appraisals for borrowers trying to buy a real estate property. An appraisal that used to cost $275 to $300 now costs $375 to $500 under the new policy. That’s because buyers are now paying a middle man to work between the mortgage broker and the appraiser.

The Federal Housing Finance Agency sasys this new code is necessary to make sure homes are appraised correctly and fairly. Before the code went into effect, mortgage brokers could choose their own appraiser, and appraisers could be transferred from one lender to another. Now, if the buyer wants to try a different lender, they must pay for a second appraisal. The appraisal remains with the lender, not with the broker.

Before the code went into effect, many appraisers felt pressure from a mortgage broker to produce a desired value on a property so that the escrow could close. Appraisers were afraid they might lose business if they didn’t produce a certain value. Now, mortage brokers are no longer able to order, select, or pay appraisers.

Whatever lenders or appraisers think about the new code, it is a good start to addressing the practices of appraisers’ valuing properties higher than they were really worth. More accurate appraisals will protect buyers, the potential real estate property owners, and produce prices that are more realistic for the home buying market.

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Low-price foreclosure properties trigger bidding wars for buyers

Friday, July 31st, 2009

Lower priced homes are triggering bidding wars, and many first-time buyers are being beat out by investors in the current market. The problem is centered in newer, lower-priced communities that first-time buyers, who are often young families, can afford. Many of these homes are foreclosures and offer the first-time buyers a much lower price than these same homes sold for just a few years ago.

In San Diego County, many areas of Oceanside, Vista, and San Marcos are affected by these bidding wars. Often, buyers put in offers on as many as 10-15 houses, and they still don’t have their offer accepted.

These low-priced properties often attract investors who buy many of them at one time. These same investors bought real estate during the boom period and now they are stocking up on real estate properties and often buying them with cash which beats out the first-time buyers.

Often, these houses are sold for well above the list price, because so many offers drive up the price. First-time buyers must come with a pre-approved, very solid loan and be ready to close escrow in as short a time as possible. These situations will continue as long as the high number of foreclosed homes continues to move through the market.

Posted in Homes Foreclosure | No Comments »

Single family properties in Oceanside

Tuesday, July 28th, 2009

Here are the 7-day market statistics for single-family properties in Oceanside as of July 24, 2009. If you are a home buyer in Oceanside, these statistics are very important for you to know.

The median list price is $359,950.  This number reflects the large number of distressed properties (short sales and foreclosures) on the market. The distressed properties are pulling down the median price.

The total inventory of homes available in Oceanside is 222. 38 homes have been listed in the last seven days. The average days on the market is 135 which again reflects the longer time it takes to sell a distressed property.

If you are a home buyer in Oceanside, you should take advantage of this current buyers’ market. There are some incredible bargains out there, and Oceanside is becoming such a popular area to live. South Oceanside has some older houses with great charm and character, and the rest of Oceanside offers great restaurants, shopping, easy access to major highways.

Posted in Homes Foreclosure, Oceanside Real Estate | No Comments »

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