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Helpful Hints

Getting a Loan When You Are Self Employed

Dec 27th, 2011
by Kathy Rain.
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The San Mateo community has a spirit of entrepenuership which helps define our culture. For many, owning their own business and being their own boss sounds like a dream come true. However, if you are self employed you most likely know that owning your own business can be stressful and overwhelming at times.

But while being a business owner is a great deal of work, it is part of the American dream. The downside is that if you are in the market to purchase a new home in San Mateo and are planning on applying for a loan based on your self-employment income, you may be faced with some challenges you weren’t expecting.

Unfortunately the current economic situation has forced many lenders to tighten their requirements and that may make getting a loan more difficult than in past years for self employed home buyers. Here’s the score on what today’s lenders are looking for.

1. Forget about a ‘stated income’ mortgage – you are going to need tax documents, bank records and at least a two year history of business stability for a lender to even consider your application. Even if you are just branching out in the same kind of business that you have done for years, expect tight requirements and nearly perfect credit to move forward with qualifying.

2. Do your homework – research the banks or mortgage lenders you want to approach and find out exactly what paperwork and documentation they require to process a loan for a self-employed borrower. Spend time putting your documents together carefully and thoroughly in advance of your application.

3. Look for lenders who have a track record of accepting self-employed borrowers and try to meet with them in person to review your paperwork and find the right kind of loan package for your needs and situation.

4. Take a break from write-offs for a couple of years – those tax deductions help with your disposable income, but they also take down your gross income level. Lenders want to see a good debt-to-income ratio,not how clever you are about expensing your income away. Direct any questions about how to manage your expenses and write-offs to your CPA.

5. Stay liquid – build your bank account so that lenders can see your ability to make payments even if you have seasonal or other fluctuations in your income levels month to month or year to year. A solid savings plan and liquid assets can be helpful in getting your application approved.

Finally, if you have a strong co-signer, one with great finances and a steady income, you may be able to overcome your lender’s concerns and hesitation when it comes to considering the source and level of your personal income.

Are you self employed and have more questions? Contact me for more information, I would be happy to help!

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Have a Successful Open House!

Dec 20th, 2011
by Kathy Rain.
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                                                                                                                                                                                                                                                                                                                                                           If you’ve been thinking of selling your home in any of the coastal towns of Moss Beach, Half Moon Bay, El Granada, Pacifica or Montara, having an open house is a great way to get buyers in your house! 

  As San Mateo Coastal Real Estate agents; we understand the importance of hosting a great open house.  Buyers want to see the ins and outs of your home and there are six key ways to help your home have a successful open house!

1. Make it Generic- While it’s great to make your home personal, your pictures, children’s art or your to do list on the refrigerator can be a large distraction to potential buyers.  They need to be able to envision themselves in your home, so putting away those personal items will help buyers picture their life in your coastal home.

2. Clear Counters- Look at your kitchen or bathroom counters from a outsiders viewpoint.  Do you have too many appliances cluttering your kitchen counter?  Clearing this space will make their appear to be more room for cooking or their own storage.  If your bathroom counters are filled with perfumes, toothbrush holders, etc… take time to put them in cabinets or drawers so buyers can see the actual size of the space.

3. Set the Table- This may not seem necessary, but having your dining room table set with nice place settings add a touch of class and can help the San Mateo Coastal buyer envision hosting their own dinner parties.

4. First Impressions- Believe it or not, a nice doormat or attractive porch can really set the tone for the entire open house.  If there’s an old doormat , chipped paint or nothing special about the entrance to your home, buyers may feel that you don’t really care.  A welcoming setting from the start will instantly let buyers know that your home is well-maintained and that each area of your home is cared for.

5. Get to the Heart- The best way to appeal to the buyers’ heart is through offering something special when they walk in the door.  Whether you bake fresh cookies, have hot chocolate or coffee in the cooler months, or have lemonade for them on your counter as it starts to get warmer; these added touches will set your home apart.

6. Don’t Stick Around- While it may be tempting to want to hear what the potential buyers have to say, it can be awkward when the seller is present.  They will feel that they can’t openly express their thoughts to the agent and will not feel as comfortable when looking throughout the home.  Even if you take a walk through the neighborhood, being away from the home during an open house can make all the difference.

Hosting an open house can seem like a nerve-wracking process, but it’s the best way to get your home sold.  By taking note of these tips; you’ll be well on your way!  If you have questions about selling your San Mateo Coastal home; please let us know!  You’ll want someone who knows the area, has experience in selling homes on the coast and can be with you every step of the way.  Feel free to contact us with any questions you have or to learn how we can help sell your home!

Selling Your Home During the Winter Months

Dec 7th, 2011
by Kathy Rain.
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Selling your San Mateo home during the winter months might be last on your ’to do’  list with all of the holiday and winter chaos, but there are many reasons why you should consider it! You might be surprised to know that in reality, the winter months can be some of the best months to sell a home.

One reason is that during the holidays more properties are taken off the market then put on. Inventory is lower in the winter so you are not competing with as many homes.  As a new listing your home will stand out over the ones that have been on the market for months.  Buyers will have less to choose from, and if your home is on the market there will be less competition.  More importantly, only Serious Buyers are looking for homes during this time. This means the buyers are really motivated to buy.  Another perk is that that the casual buyers, who only want to look but are not serious about buying, are not out.  Additionally, come January the housing inventory increases dramatically, because everyone else will be putting their house on the market, which could reduce the demand for your home.

Another factor you may want to consider is that homes on the market during the holidays generally show the best. There is nothing better than walking into a home that is all decked out for the holiday season.  Curb appeal is in full force! Or for a Buyer to walk into a home where pine scented candles are burning and chocolate chip cookies are baking in the oven. To make the most of this time, though, you’ll want to make your home is as warm, appealing and inviting as possible. Buyers have more time to look over the holidays and are emotional, which can lead to spending more on just the right house.

A lot of families relocating to California will visit and home shop during the holiday when they are off from work and kids are off from school, so buyers demand will be consistent and most likely increased.

Remember buying a home is not just a huge financial decision; it is also an emotional one. Appeal to your buyers desire to settle down with their family in a new home full of warmth and love — your home! Allow them to visualize their family enjoying their next winter in your home.

Follow this advice and you might receive the best holiday present of all, a sold  sign on your front yard!  Call us today and let’s discuss your goals to buying or selling in the San Mateo market.

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