The first and most important step in purchasing a home is securing financing. This is especially true today, in the light of tightening credit standards and risk-based pricing.

Before you begin your search on the internet for your dream home, it would be wiser for you to speak with a qualified lender regarding today’s mortgage market.

I recommend that you chose a lender that not only offers conventional financing but is an FHA approved lender as well. Your lender should also know what local and state home-buying assistance programs are available.

Most states and even some counties and cities offer first-time buyers assistance when purchasing a home. This may be in the form of a tax credit or down payment assistance. The Housing and Economic Recovery Act of 2008 has approved a temporary tax credit for first-time buyers.

Due to the onslaught of foreclosures many changes have occurred in the mortgage industry. Actually, for the most part lenders are returning to the old fashioned practices of years ago, lending on credit stability and savings ability.

One of the most significant changes in the mortgage industry is risk-based pricing. Your credit score will not only affect your ability to qualify for a loan but will also affect how much a loan will cost.

Today’s, buyer is much more savvy than in years past and that is a good thing. It is not a good thing to assume you know how much you can afford in a home or that all you have to do is have good credit.

Talking with family and friends is helpful but you will need to speak with a loan specialist to understand how the mortgage market has changed and what those changes will mean for you.

Speaking with a good lender will help you determine what price range you can afford, what you will need in available funds, how to secure a home loan, which financing option is the best for your particular financial needs as well as a plan to meet these goals.

It is a very confusing time for John Q. Public. Half the economic forecasts say there will be a recession or inflation, while another segment is predicting that we will see neither but the economy will recover slowly.

Half of the personal financial advisors are advising buyers to take advantage of the current real estate market, while the other half is advising that “a wait and see” approach is the wiser option.

It is true that home values could depreciate even further, but that does not make purchasing a home today an unwise choice.

It is a sure bet that rental costs will increase in the next 30 years. However, with a fixed rate mortgage loan, you will know exactly what your housing budget will be for the next 30 years. Owning a home offers certain tax advantages as well.

As a long term investment, purchasing a home is a wise choice. Almost all financial advisors include owning a home as part of your financial portfolio.  An investment in a home today has the potential to yield a large cash return in 30 years. 

Currently home prices are affordable, interest rates are low, affordable financing is available. If interest rates increase even one percent, you could lose tens of thousands of dollars in purchasing power. If home prices would further depreciate, but interest rates would rise, the cost in interest payments would by far out-weigh the savings in purchase price.

A home is much more than an investment. It is a a place to be, a place to live – your own little corner of the world.

Let me start by saying fixing is like the old adage “beauty is in the eye of the beholder”.

Some buyers will not consider buying a home that requires minimal work such as paint and carpeting, while others are willing to take everything down to the bare walls and, in essence, start over to make the home reflect their personal style. Some buyers are willing to do work at a later date in order to purchase a home below market value.

If you are willing to except a home that is not in turn-key condition, then please read further because I am going to tell you about a special financing program for homes that need anything from a “touch up” to homes that need revitalizing.

This loan program allows buyers to do repairs; as simple as cosmetic repairs such as carpeting, paint or landscaping to major renovations such as replacing windows, energy systems and even room additions. This loan program does not require any interim loans or require that the repairs be completed before the escrow closes.

FHA has recently formed the Streamline-K Loan program which allows buyers to borrow funds for the purchase of a property and obtain money for repairs all in one easy loan.

The Streamline-K Loan program is not the same as the FHA 203-K program (which is still available). The Streamline-K Loan program has done exactly what its name implies, it has streamlined the very complicated 203-K process, making it a great option for home buyers.

The Streamline-K Loan program offers the same benefits as the standard FHA loan: low interest rates (fixed or adjustable), flexible loan guidelines with regard to credit and low down payments (minimum 3%).

If you are considering a home purchase in the Fresno-Clovis area, this is a wonderful opportunity to expand your home options in a market that is already allowing you the best affordability in years.

Contact an FHA approved lender for pre-approval and for more details regarding the Streamline-K Loan program.

Who is IndyMac and what does that mean to you?

IndyMac Bank was the largest lender to Alt-A borrowers. The mortgage giant has in effect gone out of business. The Bank will still be operating but under Federal supervision and will no longer be issuing mortgage loans.

Unfortunately, this means a tighter credit crunch in the mortgage industry and possibly higher rates for Alt-A borrowers. What is an Alt-A borrower? It is the average American, the one who does not have perfect A1 credit.

There will still be loans for Alt-A borrowers but they may be much harder to find and more expensive in regards to interest rates and loan fees.

In the near future, other Alt-A lenders will either come to fill in the gap or they will follow IndyMac’s lead and leave the business as well.

July may be the best time for you to purchase a home, before all the fallout from the exit of IndyMac as a mortgage lender, occurs.

Have You Been Waiting For The Bottom of The Market? Your wait may soon be over.

Data Quick Information Systems (which monitors real estate activity nationwide) reports sales are up not only in California but throughout the country. The figures that are being published indicate that the bottom of the market seems to have been reached in many of the nation’s areas.

California, including the Central Valley, is still seeing a decline in homes prices but the rate of decrease per month does seem to be leveling off. Sellers know that they are facing stiff competition in pricing, due to the high rate of foreclosures on the market and the number of buyers in the market place. Sellers know that buyers are going to do what buyers have always done, shop the market for the best value. Existing homes sales are in the sellers favor at this time. Established landscaping and interior décor can save buyers thousand of dollars making pre-existing homes more desirable than new homes. Resale homes sales increased by 40% in April.

A few weeks ago the Fresno Bee reported that sales were up 2% in April from last year. That trend continued through May. Even the hard hit counties of Riverside and San Bernardino have seen sales volume rise.

Buyers are finding that home prices are becoming more attractive as prices roll back to near the same values as four years ago. Selection of homes styles is also a positive for buyers, The excess in current inventory is giving buyers more choices in finding a home which matches their lifestyle.

Another factor in increased sales is the relocation buyer. Home values are so much more attractive here, than in the Bay Area or the Greater Los Angeles area, many people are opting to relocate to the Central Valley.

According to Data Quick, the areas seeing the best increase in sales are the regions where home prices have declined the most. The California Association of Realtors reports that home affordability in Fresno County has risen for 44% in 2007 to a current rate of 56%.

Interest rates are still historically low. In May they began to inch upward but in the last few weeks this trend has reversed. Interest rates are expected to increase by the end of the year. The economy will be playing an important roll in the Federal Reserves position in regards to future rates.

The worst of the mortgage crisis has been worked through and the bottom of that unfortunate debacle has been reached according to many experts. There will still be foreclosures in the high numbers but the flood is beginning to recede, although the flood waters will recede slowing. It will be at least another year before Riverside and San Bernardino Counties will see any recovery in their market.

When a real estate market goes through a downturn, the way back up is always a little shaky. Solid footing may still be a ways off in the future, there is still a high inventory rate and we need to see a decline in the number of foreclosures entering the market each month.  According to historic indicators it does appear that recovery for the real estate market is on the horizon.  The economy, rising fuel prices and the forth-coming elections will all have their influence on what will happen next.

Personally, I believe this is an excellent time to buy, prices are down, inventory for buyers is at its best and interest rates are reasonable. Motivated buyers working with motivated sellers make it a win-win situation for everyone

Relocating? Come Home to Fresno.

Fresno is located in the center of Central California in the lush surroundings of the San Joaquin Valley and is rich with agricultural traditions. Fresno is the midpoint between San Francisco Bay and Los Angeles. Fresno is the educational, commercial and financial center for Central California.

640,000 call Fresno home, many are “home-grown” and, like myself, couldn’t imagine living anywhere else. Like any other city, we have residents from all over the nation and the world, but the largest group of people choosing to work and live in Fresno are from the San Francisco Bay Area and the Los Angeles Basin. With so many people choosing Fresno to be their home, our economical diversification is steadily growing.

There are many reasons why someone chooses a particular community to call home. The top reasons: quality of life, climate, educational opportunities, location, economic growth and stability, and the ever-increasing concern, affordability.

Lifestyle:

Fresno is a city which offers all the advantages of a small town community and wide open spaces, making it a great place to work, live and raise a family.

The Fresno area is alive with cultural and recreational opportunities. Surrounded by lakes and mountains, Fresno offers outdoor activities in all four seasons. Residents enjoy fishing, mountain climbing and hiking, horseback riding, and water sports are some of the activities offered in the nearby lakes and mountains. The winter months bring skiing, snowboarding and ice skating to the list of things to do.

The Fresno area also offers residents and visitors the sights and wonders of three world renowned national parks: Kings Canyon, Sequoia and Yosemite.

Cultural offerings are just as plentiful. Concerts can be enjoyed at the Save Mart Center. Fresno also has its very own Philharmonic Orchestra, Grand Opera and professional ballet company. Fresno is home to the Chaffee Zoo, the Downing Planetarium and the Aquarius Aquarium.

The new hip word this summer is staycation, for those planning vacations close to home due to high gas prices. There is no better location for a staycation than Fresno!

Climate:

The climate in Fresno is ideal with blue skies and great air-quality. There are over 200 days of sunshine. Rain falls mostly in the winter months with an annual average rainfall of 10 inches. Summers are hot but the evenings cool down to a very enjoyable and pleasant temperature. The hottest month is August with an average day temperature of 92 degrees.

Education:

Fresno offers its residents a quality school system and top-ranked educational institutions. Some of the schools of higher education are:  Fresno City College,   Fresno State, Fresno Pacific University, Heald College, San Joaquin Valley College and the San Joaquin College of Law.

Commuting:

The average commute in and around town is 20 minutes. Traffic is almost unheard of.  Now you see why so many from the S.F. Bay Area and the L.A. Basin want to relocate to Fresno.

Our location not only gives us access to beautiful national parks, but to all of northern and southern California. When living in Fresno, you are able to enjoy every scenic and recreational offering the beautiful state of California has to offer.

Economy:

Fresno enjoys a strong business economy which is becoming increasingly diversified. Large businesses are able to draw from a strong skilled labor pool. Small business thrives in the Fresno area; 86% of the businesses are small companies. Fresno is the #1 agricultural economy in California as well as the nation, providing a large variety of jobs to the community.

Affordability:

A great advantage of living in the City of Fresno is the affordability. Cost of living and housing is one of the lowest in the state, all without sacrificing a quality life style.

In recent years, many retirees have sold their high-cost homes in the Bay Area and the L.A. Basin to buy a home offering small town living, low crime and no mortgage payment.

Fresno, located at the foot of the gorgeous Sierra Nevada Mountains, is California’s best kept secret.  Fresno offers the absolute best in California living.

Recently, I was interviewed by Fresno’s news station KMPH (Fox 26) in regards to a piece they were doing on the slow housing market and first time buyers. I would like to emphasis that investing in real estate during a slow market is a smart move for everyone.

Remember the old saying: “buy when everyone is selling and sell when everyone is buying”.

I believe in the validity of that statement and I believe in the value of homeownership. Historically, when a community has a majority of homeowners, it has a stronger community base and better schools. That is a wise investment in our children’s future.

Good market or slow market, none last forever. Already, we are beginning to hear the first positive reports that the real estate market is changing. Here, in the Central Valley, prices continued to decline but sales volume is definitely up.

Most of the nation is now experiencing a stable market and many areas are seeing a steady increase in values.

Two years ago, 53 real estate markets were considered over valued. Now there are only 8. This means that the majority of real estate is now priced exactly where it should be.

I believe we will be seeing the pendulum swing in the other direction fairly soon. Real Estate will again increase in value and this is why I believe now is the time to invest in your future.

To learn more about the advantages of purchasing property in the Central Valley, contact me. I work with a select team who, like myself, delivers only the best in service. To determine your buying power, you may contact me and I will put you in touch with a lender that will assist you in achieving the “American Dream”: Homeownership.

Staging a home is a key element in the sale of your house.  However, getting an Oscar-worthy performance out of your house doesn’t take a star’s budget.  There are simple things you can do to create appeal without going into your savings to get it done.

1. Roll out the red carpet.  Curb appeal is important.  Make sure that the landscaping is kept up.  The mailbox needs to be fixed properly in place and even painted, if necessary.  Remove any dead plants and debris that clutters up the place.

2. Curtain call.  People often neglect the entryway.  Invite people in with a clean entryway.  Beautiful potted plants, a mirror or a water feature can add a cozy touch to visitors.  A new light or door fixtures and a quick coat of paint can spiff up the front door.  Purchase an inexpensive welcome mat to make the entry shine.

3. Dress the set.  Simply rearranging the furniture you have can create a whole new feel to a room.  Instead of focusing the family room around the fireplace, show off the view to the gorgeous backyard pool.  A few candles, flowers or pieces of art scattered around can create a wonderful atmosphere.

4. Blockbuster changes.  If possible, upgrade your appliances.  This is not only visually appealing, but can add value to your home.

5. The dressing room.  Give the bathroom a “spa”-like feel by adding new fluffy towels, lighting a few candles, providing extra hand towels near each sink and even purchasing travel-size shampoo, conditioner and lotion for that 5-star hotel look.

6. Clear the set.  Clean up any clutter.  This means throwing away trash, packing up those old clothes you never wear and donating them (great tax write-off, as well), putting away the knick-knacks that tend to populate shelves and clearing the kitchen countertops of all but the absolute basics so that you can show off all available counterspace.

These are just a few of the great, easy ways you can create a warm and inviting home that someone will want to call their own. 

Despite what Kermit sang about, it actually IS easy to be green.  At least, it’s easy to live green.  Just remember the 3 R’s: reduce, recycle, reuse.  While separating trash is very helpful and, in fact, many counties across the country are requiring residents to do so or get fined, there is so much more you can do to help ease your carbon footprint (how what you do affects the planet) that is simple and easy.  Here are four easy tips on how you can save money and help the environment:

1. Find out exactly what your carbon footprint is by visiting www.carbonfootprint.com.  This fantastic site helps you calculate what your carbon footprint really is and gives you tips on how to reduce your footprint.

2. Eat food that is only grown or raised locally (within a 100-mile radius of where you live).  Just about every city nowadays holds a local farmers’ market at least one day a week.  This helps reduce our dependence on foreign oil by not having produce or meat transported into the city and keeps money in the local economy.

3. Ditch the plastic bags at the grocery store.  Bring in your own fabric bags from home to bag those groceries.  Some stores even offer a credit for each bag you bring.

4. Unplug when not in use.  Many people don’t realize it, but, even when an appliance is turned “off”, it is still using electricity by being plugged into the socket.  Unplugging an appliance completely from the wall instead of simply turning it off can save you as much as 5% off your electric bill.

I hope you have found this blog helpful.  Please contact me anytime to discuss all your Fresno real estate needs.

Welcome to gorgeous Fresno County!  There is so much greatness here, where do I begin?  Fresno has that beautiful sunny California weather everyone raves about over 300 days a year!  This allows for some magnificent outdoor activities.  However, if you want the white stuff, Fresno County includes the beautiful Sierra Mountains which are a great place to get your ski-groove on.  With over 90 different nationalities inhabiting the area, Fresno County can truly be called a “melting pot”.  Parents and teachers have made the educational system here a priority.  In fact, over 40% of the schools in the Clovis Unified School District received a National Blue Ribbon Schools recognition and 50% of the schools in the district are part of the state’s Distinguished Schools Program.  To understand how impressive this really is, only 4% of all schools in the nation have received one of these great honors.

Carole Jacoby wants to be your Realtor for the Fresno real estate area.  Contact her today to find out why she is the residential and relocation specialist in the Central Valley.