Whenever you’re buying a home, there are some things to keep in mind.  Below is a to do list will help you in finding your ideal home amongst those that are available along the San Mateo Coastal cities of Moss Beach, Half Moon Bay, El Granada, Montara and Pacifica. 

1.  Do research the neighborhood- Look at the house, but also look at the neighborhood. Location is the most important thing, so it’s critical to look at more than the home itself. Be sure to make a list of the things you’re looking for in a San Mateo Coastal neighborhood in order to find an environment that fits your style.

2. Do look at several houses before you buy- If you buy a home without comparing it to other listings in the San Mateo area, you’re likely to overpay or miss out on a great nearby home. Walk through at least three homes before you choose. If you still love the first one you saw, make an offer!

3. Do invest in a professional inspection- Sellers don’t always disclose everything that’s wrong with their home to potential buyers, or they might have done a band-aid job to cover up issues after the sale. Many potential problems, like plumbing and wiring trouble, are not visible at a glance.  Home inspectors know what to look for and can do a thorough job so you’re sure to know exactly the type of home you’re buying- which can save you from unwanted surprises down the road.

4. Do buy based on needs, not wants- The average Americas lives in the same home for about 9 years, so it’s crucial that you think about your long-term needs when buying a home. A smaller home with a gourmet kitchen may grab your attention today, but will you still be enamored down the road when your family starts to grow? Make a list of your needs and stick to it to avoid buyer’s remorse in the long run.

We know buying a home can seem like an overwhelming experience, but keeping these tips in mind can help you narrow down your search and stay focused.  Many sellers are hoping to sell their homes before the holiday season hits, making now an even more lucrative time to buy!  San Mateo Coastal sellers may be more willing to work with you on the price and closing date if they know you’re serious about buying their home.  If you have any questions about the current San Mateo Coastal Real Estate market or are ready to start looking at homes on the San Mateo Coast, please let us know!  We’d be happy to help you find your new home!

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Four major institutions project rates: The National Association of Realtors (NAR), Fannie Mae, Freddie Mac and PMI. Here is what each is seeing in the next year.

Bottom Line

If you are looking to buy a California coastside home and are waiting to see what will happen with prices, remember interest rates will also impact your housing cost.

Article from KCM Blog

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SF Peninsula — Our Burlingame offices report a steady to improving market. The Hillsborough market over $2 million is “robust” as long as the price is reasonable and the home is well staged. Hillsborough is often perceived as a bargain compared to other high-end markets on the Peninsula.

Across the hill in Half Moon Bay, our local manager says there has been a noticeable drop in activity on the coast these past couple of weeks. Buyers continue looking but are not writing offers. Our Menlo Park offices say they are seeing strong sales in the over $2.5 mil market – a $3.85 million listing in Menlo Park is getting three offers today!  Buyers are exhibiting even more discretion as the ratio of houses sitting while others go multiple is rising.  Houses sit until the price is reduced and then the buyers jump. The “off-the-market” high-end properties continue to attract buyers. With all the technology we have, word of mouth networking continues to be a factor. One recent off-market sale went for $7.9 million in Atherton. The Redwood City office says inventory is still low.  Open houses, particularly first time opens, are extremely well attended.  The attitude of the buyers seems to be positive. Palo Alto remains a very strong market with more than half of the transactions getting multiple offers. Finally, the San Mateo and the Woodside markets are holding steady. The over $3 million market is doing well with three sales over this price in the last couple of weeks. Woodside is slowly waking up. Portola Valley has been much stronger the last couple of weeks – brisk sales of $1.3 million to $4 million.

In summing up last week’s Bay Area real estate market, Rick Turley, President, SF Bay Area, Coldwell Banker Residential Brokerage added;

“We continue to see a mixed market throughout the Bay.  The common thread seems to be low inventory at the entry level and generally more multiple offers in the entry level. The mid-price market is probably the most perplexing with a lack of move-up buyers.  The increased activity at the Luxury end is certainly a strong sign, but common thread here is that this sector remains very price sensitive; luxury buyers are pulling the trigger when they perceive value.”
If you would like to read the entire report , go online to www.cbsfbaymarketwatch.wordpress.com

Ready to start looking at what is available in the area?  Start your Home Search today by visiting Coastal Real Estate

In short, Fannie Mae’s new guidelines lean more in favor of personal income over personal assets, which means it’s about what you earn and not what you have.  This, of course, can raise issues for those who are self employed.  Mortgage Advisor and Personal Finance Advisor, Andy Block, recently highlighted the main points of the changes.

DTI RATIO
- The new maximum debt-to-income ratios will drop to 45% from 55%, which could make it more difficult for some buyers to secure a mortgage loan.
- Borrowers who are at the end of their current mortgages with 10 or fewer payments will now have these remaining balances counted in the DTI ratio, which is a departure from previous Fannie Mae rules.

MISSED PAYMENT - Buyers who miss a payment will have 5% of the total balance added to their debt-to-income ratios. (Previously, Fannie Mae ignored a missed payment or required that the lender add a few percentage points to the total balance when calculating the DTI ratio.)

BORROWERS WITH FORECLOSURE EXCLUDED FROM FANNIE-BACKED LOANS FOR 7 YEARS- Borrowers who have gone through a foreclosure will be excluded from obtaining a Fannie-backed loan for seven years (up from four). This change was announced separately from the gift and debt rules, but will also take effect in Fannie Mae’s automated underwriting systems next month.

GIFTS/GRANTS TOWARDS DOWN PAYMENT
- Buyers can use grants from nonprofit groups or gifts from family members for their minimum 5% down payment (which is the threshold set by Fannie Mae). Previously, borrowers had to contribute a minimum 5% down payment from their own funds, but additional down payment money could be from a gift (though never from a home seller). The exception was for borrowers who put 20% down: all that money could come as a gift. The gift rules apply only to single-family principal residences, including town houses, co-ops and condominiums, and covers mortgage amounts in excess of 80% of the property’s value.

FANNIE LOAN LIMITS THROUGH SEPTEMBER 30, 2011 - Fannie Mae has indicated that the general loan limits for mortgage loans originated on or before September 30, 2011, will remain unchanged from 2010 limits, which means $417,000 for a one-unit property in the continental U.S. and $729,750 for designated high-cost areas for a one-unit property in the continental U.S. For mortgage loans originated after September 30, 2011, revised “permanent” high-cost area limits will apply.

As always, we’re here to help!  If you have questions about the new Fannie Mae guidelines, please let us know!  Buying a home in any of the charming coastal cities such as Moss Beach, El Granada, Pacifica, Half Moon Bay or Montara is a great investment and a large decision.  It can be overwhelming to attempt to navigate the San Mateo Coastal Real Estate market on your own, so let experienced San Mateo Coast Real Estate agents help!  We can make the home buying process a smooth and efficient one.  We look forward to hearing from you!

Kathy & Michael Rain
Your San Mateo Coastal Real Estate Experts

San Mateo Coastal Real Estate
View San Mateo Coastal Listings
Visit Our Website
Email Us

Whenever you’re buying a home, there are some things to keep in mind.  This short To Do list will help you in finding your ideal home amongst those that are available along the San Mateo Coastal cities of Moss Beach, Half Moon Bay, El Granada, Montara and Pacifica.  Let’s take a quick look!

1.  Do research the neighborhood- Look at the house, but also look at the neighborhood. Location is the most important thing, so it’s critical to look at more than the home itself. Be sure to make a list of the things you’re looking for in a San Mateo Coastal neighborhood in order to find an environment that fits your style.

2. Do look at several houses before you buy- If you buy a home without comparing it to other listings in the San Mateo area, you’re likely to overpay or miss out on a great nearby home. Walk through at least three homes before you choose. If you still love the first one you saw, make an offer!

3. Do invest in a professional inspection- Sellers don’t always disclose everything that’s wrong with their home to potential buyers, or they might have done a band-aid job to cover up issues after the sale. Many potential problems, like plumbing and wiring trouble, are not visible at a glance.  Home inspectors know what to look for and can do a thorough job so you’re sure to know exactly the type of home you’re buying- which can save you from unwanted surprises down the road.

4. Do buy based on needs, not wants- The average Americas lives in the same home for about 9 years, so it’s crucial that you think about your long-term needs when buying a home. A smaller home with a gourmet kitchen may grab your attention today, but will you still be enamored down the road when your family starts to grow? Make a list of your needs and stick to it to avoid buyer’s remorse in the long run.

We know buying a home can seem like an overwhelming experience, but keeping these tips in mind can help you narrow down your search and stay focused.  Many sellers are hoping to sell their homes before the holiday season hits, making now an even more lucrative time to buy!  San Mateo Coastal sellers may be more willing to work with you on the price and closing date if they know you’re serious about buying their home.  If you have any questions about the current San Mateo Coastal Real Estate market or are ready to start looking at homes on the San Mateo Coast, please let us know!  We’d be happy to help you find your new home!

This program provides 100% financing and requires a 3.5% (2.25% for refinances) Guarantee fee (a fee charged by the USDA Rural Development Agency) that is rolled into the loan amount.   In addition, closing costs and pre-paids may also be rolled into the loan providing that the total loan amount doesn’t exceed 103.5% of the homes appraised value for purchases and 102.25% of the homes appraised value for refinances.   (Please note this is not a farm or acreage type loan contrary to what the loan name suggests. )   Below are just a few of the highlighted terms of the USDA Guaranteed Rural Development loan:

- 100% Financing
- No Mortgage Insurance
- No Minimum Fico Score
- Flexible Credit Underwriting
- No Reserve Requirement
- No Maximum Seller Credit
- No first Time Homebuyers Requirement
- Single Family Homes and Condos

If you are interested in reading more about this new loan, you can visit the USDA California website or contact us with any questions you may have!  Buying a new home in the beautiful communities of Half Moon Bay, El Granada, Moss Beach or Montara is a great decision and we would love to help you each step of the way.  We have years of experience with both buyers  and sellers in the San Mateo Coastal area and understand each communities’ real estate market.  Don’t miss out on this new loan opportunity; contact us today!

Kathy & Michael Rain
Your San Mateo Coastal Real Estate Experts

San Mateo Coastal Real Estate
View San Mateo Coastal Listings
View San Mateo Area Open Houses
Visit Our Website
Email Us

Just a few years ago, homes in foreclosure were rare and many didn’t fully understand all was entailed in having a home become “bank owned.”  Today, “foreclosure” seems to be the markets’ buzz word as many are seeing loss of jobs and the markets’ decline in home sale prices.  Consequently, this environment has brought a new term to the surface: underwater homes.  Underwater homes are those that have mortgages that are greater than the home’s current worth on the market.  This, in turn, is resulting in an increase in foreclosures.

Recently, CoreLogic, a Real Estate date provider, noted that there were  11 million homes with underwater mortgages at the end of June.  Of course, this seems to be good news since the number of underwater homes at the end of March was 11.2 million.  However, these homes are simply turning into foreclosures instead of proving that the market is actually turning around.  Typically, underwater homes rise when the market sees falling home prices.

An article by CoreLogic explained, “In all, 23 percent of U.S. homes with mortgages were underwater at the end of June.  Another 2.4 percent of homeowners with a mortgage had less than 5 percent equity in their home, making them more likely to end up underwater if home prices drop further.  The total number of underwater mortgages represent roughly $2.9 trillion in mortgage debt.”

Once homes are underwater, homeowners have a harder time recovering.  They oftentimes are unable to qualify for mortgage refinancing and therefore find themselves just scraping by to make payments in order to keep their head above water.   California is in the top five states for underwater mortgages and has therefore become one of the top states in the nation for foreclosures.

We’ve seen some changes in the San Mateo Coastal area, but are happy to see the numbers are not as drastic as other areas in our state.  Below are current numbers of active and foreclosed listings in our market.

If you have any questions regarding underwater mortgages or are facing a prospective foreclosure; please let us know!  We have years of experience in the San Mateo Coastal area and can help guide you each step of the way!

Kathy & Michael Rain
Your San Mateo Coastal Real Estate Experts

San Mateo Coastal Real Estate
View San Mateo Coastal Listings
View San Mateo Area Open Houses
Visit Our Website
Email Us

1. Be expedient and thorough- When initiating a loan, and throughout the loan process, it is imperative to provide complete documentation to your Mortgage Advisor as quickly as possible. For instance, if all pages of the bank statement are requested, it really means all pages. While you and I might not think it’s necessary to include the reconciliation page of the statement, the lenders do. And, when they receive only five of the six pages of said bank statement, the loan process can become inefficient and stalled.

2. Keep detailed financial records- If it is necessary to transfer funds from one account to another or to sell stock for a down payment, keep a detailed paper trail of all transactions, deposits and liquidations. Lenders will request it.

3. Spill the details- Be sure to notify your Mortgage Advisor of any changes to the purchase transaction. Unidentified last minute changes, such as escrow holdbacks, seller credits or termite work can wreak havoc with closing dates.

4. Keep your day job- Lenders always contact your employer just before the loan funds. If you have left that company (quit, moved to a new company or retired), the lender will stop the loan from funding and recording.

5. Know the facts- If you are in the process of divorcing, most lenders will not approve or fund a mortgage loan until the final decree (settlement terms) is recorded.

6. Safeguard your social security number- Talk to your Mortgage Advisor before making any significant credit or purchase decisions. Lenders rely on using credit scores to assist in mortgage credit decisions. Incurring new debt during the loan process increases your debt-to-income ratio and could reduce the amount you can borrow. Each credit inquiry – whether you ultimately make a purchase or not lowers your credit score. The same holds true for pre-approved credit card offers that you receive in the mail; responding to them will result in a credit check.

7. Be available- Be sure to leave a contact phone number with your Mortgage Advisor if you are traveling for business or on vacation. Until all the loan approval conditions are met, you may be required to provide additional documentation or information.

We understand that buying a home is a huge investment! The paper work, hoops to jump through and getting everything you need in order can be a lot to handle. Using these seven tips will help cut down on the stress and will help streamline the process. If you are looking to buy a home on the San Mateo Coast, we can help! We’ve had years of experience and would love to help you find the home of your dreams! There are many great homes in the San Mateo Coastal Area from which to choose. Contact us and we’ll be happy to answer your questions and give you a tour of the homes in the area!

Kathy & Michael Rain
Your San Mateo Coastal Real Estate Experts

San Mateo Coastal Real Estate
View San Mateo Coastal Listings
View San Mateo Area Open Houses
Visit Our Website
Email Us

Some of the good news…

The Median Sales Price in April was $670,000, up 30.7% from $512,500 in April of 2009 and down -10.7% from $750,000 last month. The Average Sales Price in April was $683,262, up 25.3% from $545,500 in April of 2009 and down -14.2% from $796,667 last month. April 2010 ASP was at a mid range compared to April of 2009 and 2008. Click the links below for the full reports.

Some sample graphs:

Click your preferred area to download the full PDF:

• Pacifica, CA
• El Granada, Half Moon Bay, Montara & Moss Beach

According to the National Association of Realtors, a recent report gave a resounding “No” to this question.  Since the tax credit had already been expanded and extended twice since it’s conception two years ago; it is very doubtful that this will be extended again.  A spokesman for the National Association of Realtors (NAR) notes that, “It’s time for the housing market to stand on its own two feet.”  It may be that we are seeing an increase in the housing market activity that we no longer need the push from the government.

However, California has offered a tax credit of $10,000 (see our previous post from Mortgage Advisor Andy Block) and is willing to walk with its’ residents a few more steps of the way.

If you have any questions on the California Tax Credit, please let us know!  We have been in the San Mateo Real Estate market for a while and are up to date on all the latest happenings.  It can be tricky to navigate through and we are committed to helping buyers or sellers every step of the way!   We look forward to hearing from you soon!

Kathy & Michael Rain
Your San Mateo Coastal Real Estate Experts

San Mateo Coastal Real Estate
View San Mateo Coastal Listings
Visit Our Website
Email Us