Due to recent struggle in the real estate market, it’s now more difficult to get approved for a loan. Underwriting standards have tightened, meaning that borrowers need higher credit scores, more income and larger down payments in order to qualify. But that doesn’t mean you can’t buy a new home. Here are the biggest hurdles to home financing and what you can do to overcome them:
Higher credit score requirements – although you may get approved with a 620 credit score, you likely won’t get the most favorable interest rate and fee. The solution?? Contact all three credit reporting agencies—Equifax, Experian & TransUnion, by calling 1-877-3222-8228 or going to www.AnnualCreditReport.com . Once you get your credit reports, check all information for accuracy. If you find any discrepancies, report it to the credit company immediately.
Greater scrutiny of income & assests – mortgage lenders have to verify your information, so be prepared when you apply for your loan by having documentation that supports your income & assets. Have copies of tax returns, paystubs, bank statements and any investment accounts.
With a little preparation, you’ll be able to take advantage of today’s low interest rates and reasonable home prices…and buy the home of your dreams.
The Calif. Assoc. of Realtors (C.A.R.) released the results of a statewide survey on short sales and the challenges REALTORS® face in working with lenders and servicers.
The most frequent problems REALTORS® cited in working with lenders and servicers during the short sale process include unresponsiveness, onerous procedures, and long processing delays. The survey also found that fewer than three of five short sales close in California, illustrating the complexity and difficulty of navigating lenders’ and servicers’ short sale procedures.
“The lack of standardization, long approval process, and lack of lender approvals are hampering what should be a 45-day short sale process,” said C.A.R. President Beth L. Peerce. “Instead we’re hearing the typical response time for lenders is at least 60 days, and in many instances, their response time exceeds 6 months.”
It’s important to work with experienced real estate agents. So call me with your real estate questions. I’ve been helping clients since 1985.
California home sales rose in January, marking three consecutive monthly increases and posting their highest level since May 2010, while the statewide median price declined to its lowest level since June 2009, according to data C.A.R.
“With lower home prices and rates edging up from their historic lows of late last year, prospective home buyers should consider the opportunities in today’s market,” said C.A.R. President Beth L. Peerce.
California home sales rose 5.1 percent in January compared with December, to a revised pace of 520,080 units. Sales also increased 2.5 percent in year-over-year comparisons, marking the first year-over-year sales increase since May 2010. The statewide sales figure represents what would be the total number of homes sold during 2011 if sales maintained the January pace throughout the year. It is adjusted to account for seasonal factors that typically influence home sales.
The statewide median price of an existing, single-family detached home sold in California was $278,900, down 8.6 percent from a revised $305,020 in December and was down 2.0 percent from the $284,600 median price recorded for January 2010. The January 2011 median price was the lowest since June 2009, when it was $274,640.
Here are 5 more ways you can reduce the risk of having your identity stolen.
- Click with Caution. When shopping online, check out the website before entering your credit card number or other personal information.
- Check your bills and bank statements. Open your credit card bills & banks statements right away. Check them carefully for any unauthorized charges and report them immediately. Call if your bills don’t arrive on time…it may mean that someone stole your mail or changed your contact info to hide fraudulent activity.
- Stop pre-approved credit card offers. Those make a tempting target for identity thieves who may steal your mail. Go to: www.optoutprescreen.com .
- Ask Questions. Ask questions whenever your asked for personal information that seems inappropriate for the transaction. Ask how that info will be used or if it’s shared with others.
- Check your Credit Report. One of the best ways to protect yourself is to monitor or credit history. You can get a free report every year for free from each of the three credit bureaus. One source is: www.annualcreditreport.com .
I hope this information is helpful for you.
You can find more information about cyber security and safeguarding your personal information at the California Office of Information Security: http://www.cio.ca.gov/OIS/
Here are 5 good tips to protect yourself from identity theft.
1–Protect your Social Security number. Don’t carry it in your wallet or purse. Also, if your health plan uses your SS number for a medical number, as them for a different number.
2– Fight “phishing” …don’t take the bait. Scam artists “phish” for victims by pretending to be banks, stores, or government agencies. They do this over the phone, in email, & regular mail. Don’t give out your personal information – unless you contacted them. Furthermore, don’t respond to a request to verify your account number or password.
3– Keep your identity from getting trashed. Shred papers that have your personal information before you throw them away. Shred credit card offers and those “convenience checks” that you don’t use.
4– Control your personal financial information. California law requires your bank to get your permission before sharing your financial information with outside companies. You also have the right to limit some sharing of your info with your bank’s own affiliates.
5– Shield your computer from viruses and spies. Protect your personal information on your home computer. Use strong passwords: with at least 8 characters, including numbers and letters. Use a firewall, virus & spyware protection software…and keep it updated.
I hope you pay attention to your identity before someone else does.
Watch for part 2 coming soon.
~ Barry Ripp
On Tuesday, Dec 21 the Alameda County Board of Supervisors will review and adopt a Climate Action Plan (CAP). The CAP is a comprehensive plan to reduce the emission of “green house” gases and will impact transportation, land use, economic development and residential and commercial real estate in the unincorporated communities of Cherryland, Ashland, Castro Valley, Sunol, Fairview and areas south and east of Livermore.
Local Realtors testified at several public hearings about the CAP during 2010 urging the County to encourage property owners to make their homes more energy efficient on a voluntary basis. The final version of the CAP should not include a Residential Energy Conservation Ordinance or point-of-sale requirements. However, pressure from other interest groups could result in these measures being added by the Board of Supervisors at the last minute.
The final public hearing on the Alameda County Climate Action Plan will be held Tuesday, December 21 at 2:00 pm in the County Administration Building Supervisors’ Chamber at 1221 Oak Street in Oakland. Realtors will attend and testify at the meeting.
The City of Fremont (Calif) has their 2011-2012 Community & Dining Guide now available. It includes shopping and dining options located throughout Fremont. This handy guide also includes local activities to try and places to visit. You can call 510-284-4020 or email: econdev@fremont.gov to get your free copy. To download an interactive version, go online to: www.Fremont.gov/CommunityGuide .
FREMONT IS “GREEN, CLEAN AND READY FOR THE FUTURE”.
Fremont was recently showcased in a ‘Green, Clean & Ready for the Future’ video that focused on Fremont as a home to innovative technologies.
Highlights include President Obama’s visit to Fremont’s Solyndra’s solar manufacturing plant and Tesla Motors announcement to build electric cars here in Fremont. To see the video, visit: www.fremont.gov/CleantechVideo .
There’s triple trouble for the Golden State’s struggling real estate market: the usual seasonal slowdown, a weak economy and “unrealistic asking prices” by some sellers, according to a report today from the California Association of Realtors.
Statewide, the seasonally adjusted home sales rate dropped 3.5 percent in October from the month before, the group reported. Year over year, though, sales were down 19.6 percent, although the market last fall was bolstered by federal tax credits for many homebuyers. The median price of a resale single-family house was up 2.3 percent from a year earlier to $304,220.
”We’re really seeing two different housing markets — one at the lower-end driven by first-time buyers and investors, which is keeping prices stable, and one with nostalgic sellers who set unrealistic asking prices,” Leslie Appleton-Young, the group’s vice president and chief economist, said in a news release today.
”Sellers need to consider current market conditions when pricing their home in order to facilitate a shorter time on the market,” she said.
“The housing market is experiencing an uneven recovery, and a temporary foreclosure stoppage in some states is likely to have held back a number of completed sales,” Lawrence Yun, the group’s chief economist, said in a statement. “Still, sales activity is clearly off the bottom and is attempting to settle into normal sustainable levels.”
~ Barry Ripp
information provided by Calif Assoc of Realtors with permission: www.car.org
Back in 2008, when the housing market was in even deeper trouble than it is in now, Congress passed the Housing and Economic Recovery Act to help move a glut of homes off the market. One of the key provisions was a tax credit for first-time homebuyers. That provision would be extended (twice) – and getting in early would have been a mistake.
If you claimed a federal income tax credit for a 2008 home purchase, you’ll probably have to pay it back over 15 years, starting with your 2010 Form 1040 (due next April). In contrast, if you claimed a credit for a 2009 or 2010 purchase, you probably won’t have to pay it back. (Blame Congress’s patchwork legislating.)
It gets much more complicated, so please click the following link to get more information.
http://www.smartmoney.com/personal-finance/taxes/do-you-have-to-repay-your-homebuyer-credit/
~ Barry Ripp
A number of major banks recently have suspended foreclosures in 23 states due to problems with the signing of declarations in connection with judicial foreclosures — foreclosures that proceed through the court system. Bank of America has further expanded its suspension of foreclosures to all 50 states. In California, the vast majority of foreclosures are conducted through non-judicial foreclosure or trustee sales which do not involve a court process.
While California foreclosures are not conducted through the court system, lenders in California must still comply with other legally required procedures for non-judicial foreclosures. C.A.R. is supportive of lenders taking action to ensure homeowners are not improperly foreclosed on and are following state law. We hope they are able to conduct their review expeditiously so as to minimize the impact on California’s housing market.
An update was e-mailed to all C.A.R. members detailing the most recent information available on the foreclosure situation. The update also is posted online at http://www.car.org/tools/smart/foreclosuremoratorium/.
~ Barry www.barryripp.com
reprinted with permission from the Calif. Asso. of REALTORS
Due to recent struggle in the real estate market, it’s now more difficult to get approved for a loan. Underwriting standards have tightened, meaning that borrowers need higher credit scores, more income and larger down payments in order to qualify. But that doesn’t mean you can’t buy a new home. Here are the biggest hurdles to home financing and what you can do to overcome them:
