Category: Buying a Home

Buying a Home After a Short Sale or Foreclosure Just Got Easier!

Home buyers qualify for FHA loan despite short sale or foreclosure

Mortgage borrowers may now qualify for an FHA mortgage under new guidelines established by the Department of Housing and Urban Development (HUD), according to Eli Younes of Viking Realty Group in Pembroke Pines on Tuesday.

As a result of the housing collapse, many homeowners experienced a serious reduction in income or lost their jobs due to the crumbling economy. Some mortgage borrowers were forced to file bankruptcy or short sale their home to avoid foreclosure.

Others were not so lucky and lost their home on the courthouse steps.

The new HUD rules allow borrowers whose credit was damaged due to a temporary loss of employment or income to qualify for an FHA mortgage if they have substantially recovered from that situation and maintained a positive credit history for at least 12 months.

Borrowers who recently experienced a bankruptcy, foreclosure, short-sale, loan delinquencies, deed-in-lieu, debt collections or other situation negatively impacting their FICO credit score may now be able to qualify for an FHA loan.

Recognizing that any number of events may have impacted a borrowers’ credit rating, the Federal Housing Administration (FHA) believes that such catastrophic event does not mean they are not financially stable or unable to make a mortgage payment.

As such, the previous 3-year waiting period required by the FHA on financing a new home has been revised.

“Referred to as the ‘Back to Work’ initiative, this program is designed for borrowers who lost their home through foreclosure, short sale, bankruptcy or deed in lieu and also suffered a 20% or more loss in household income,” Eli Younes of Viking Mortgage told Examiner. “As with most FHA loans, this program only requires a 3.5% down payment and is applicable for all purchase loans other than the Home Equity Conversion Mortgage.”

In order to qualify for a mortgage under the “Back to Work” initiative, there are several steps that must be taken to prove an “Economic Event” that was beyond the borrower’s control.

Employment Requirements:

The lender must verify that the borrower lost at least 20% or more in household income – or became unemployed – for a period of six months prior to the foreclosure, short-sale, or deed-in-lieu. To verify loss of income, the lender must request a written Verification of Employment to show the termination date or loss of income, receipt of unemployment compensation, or signed W-2’s and tax returns detailing the reduction in earnings.

To demonstrate a loss of income for part-time or seasonal employment, the borrower must prove a 2-year history in the same field prior to loss of employment. Borrowers will also be required to prove that they have fully recovered from their hardship, increased earnings and have maintained other credit obligations for a period of 12 months following foreclosure, short sale, bankruptcy or deed in lieu.

Credit Requirements:

When evaluating a borrower for the “Back to Work” initiative following a foreclosure, the lender may deem the borrower eligible if:

1.) The borrower’s credit report is free of any late housing payments within the last 12 months;

2.) All other mortgage accounts must be current for the last 12 months, even if the loan was previously modified to avoid a foreclosure action;

3.) The borrower’s credit report contains no more than a single 30-day delinquency on payments due other creditors; and

4.) The borrower’s credit report contains no current collection accounts or public records. This condition may be waived in instances of identity theft or borrower’s with medical collections.

Bankruptcy Filings:

1.) Chapter 7 Bankruptcy: One year must have elapsed since the bankruptcy discharge. Proof must also be shown that the bankruptcy filing was the result of an “Economic Event” covered within the FHA program guidelines.

2.) Chapter 13 Bankruptcy: Most lenders will require that the bankruptcy filing be discharged with all payments required under the agreement having been made on time. For borrowers currently in bankruptcy, written approval from the court allowing them to enter a new mortgage contract is required.

Housing Counseling Requirement:

For purposes of establishing satisfactory credit following an “Economic Event,” mortgage borrowers’ under the “Back to Work” initiative must:

1.) Receive homeownership counseling or a combination of homeownership education and counseling, at a minimum, one hour of one-on-one counseling from HUD-approved housing counseling agencies, as defined at 24 C.F.R. §214.100; and

2.) Be completed a minimum of thirty (30) days but no more than six (6) months prior to submitting a loan application to a lender, as application is defined in Regulation X, implementing the Real Estate Settlement Procedures Act, 24 C.F.R. §3500.2(b).

The housing education may be provided by HUD-approved housing counseling agencies, state housing finance agencies, approved intermediaries or their sub-grantees, or through an online course. It may be conducted in person, via telephone, via internet, or other methods approved by HUD, and mutually agreed upon by the borrower and housing counseling agency.

Rules for Renters:

Under certain circumstances, renters may qualify under the “Back to Work” initiative. For purposes of establishing satisfactory credit, mortgage borrowers must:

1.) The borrower’s credit report is free of any late rental payments within the last 12 months;

2.) The borrower’s credit report contains no more than a single 30-day delinquency on payments due other creditors; and

3.) The borrower’s credit report contains no current collection accounts or public records. This condition may be waived in instances of identity theft or borrower’s with medical collections.

A foreclosure, short-sale, Chapter 13 bankruptcy or deed-in-lieu will continue to plague a borrower’s credit report at the Equifax, Experian and TransUnion consumer reporting agencies for a period of seven years. A discharged Chapter 7 bankruptcy will remain on the credit report for a period of ten years.

“With the housing crash, many homeowners experienced unemployment or depreciated home values and for one reason or another were not able to make their mortgage payments,” Carlos J. Reyes, a foreclosure defense attorney with the Reyes Law Group in Fort Lauderdale, told Examiner. “The recent changes in the FHA guidelines have finally recognized the financial hardship faced by many borrowers and is allowing them to once again reach for the American Dream through homeownership.”

The new guidelines are in effect immediately and will be in force through at least September, 2016.

 

This is truly great news for people who faced economic hardships during our market down turn.  You have a chance to be a homeowner again.  

 

I read this article at: http://www.examiner.com/article/home-buyers-qualify-for-fha-loan-despite-short-sale-or-foreclosure

Remember to follow our Blog at: https://therealestatebeat.wordpress.com/

Got Questions? – The Caton Team is here to help.  

Email Sabrina & Susan at: Info@TheCatonTeam.com

Call us at: 650-568-5522 Office: 650-365-9200

Want Real Estate Info on the Go? Download our FREE Real Estate App:  http://thecatonteam.com/mobileapp

Visit our Website at:   http://thecatonteam.com/

VISIT OUR NEW INSTAGRAM PAGE: http://instagram.com/thecatonteam

Visit us on Facebook:   http://www.facebook.com/pages/Sabrina-Susan-The-Caton-Team-Realtors/294970377834

Yelp us at: http://www.yelp.com/biz/the-caton-team-realtors-sabrina-caton-and-susan-caton-redwood-city

Or Yelp me: http://www.yelp.com/user_details_thanx?userid=gpbsls-_RLpPiE9bv3Zygw

Connect with us professionally at LinkedIn: http://www.linkedin.com/profile/view?id=6588013&trk=tab_pro

Please enjoy my personal journey through homeownership at:

http://ajourneythroughhomeownership.wordpress.com

Thanks for reading – Sabrina

The Caton Team – Susan & Sabrina – A Family of Realtors

Sabrina BRE# 01413526 / Susan BRE #01238225 / Team BRE#70000218/ Office BRE# 0149900

4 Ways to Supercharge Your House Hunt — and Get Your Sundays Back

It’s that time of year again – Spring is right around the corner, homes are coming on the market and Sunday’s are getting busy again!   I enjoy reading and sharing Tara’s blog on Trulia.  So I thought I would share this great article regarding how to make the best of your open house weekends.  And if you have any real estate questions – I’d be happy to help – The Caton Team is always here a call or click away.  Enjoy…

4 Ways to Supercharge Your House Hunt — and Get Your Sundays Back

Every buyer-to-be uses open houses differently. For some, they offer a rich looky-look experience at the very, very beginning of their house hunt. This empowers you to learn exactly what sort of place you can get for the money, at various price points and various spots around town. It also allows brand new buyers to figure out how the photos you see online translate into real world, brick and mortar (and stucco and hardwood) properties.

At the other end of the spectrum, serious buyers often use Open Houses as a convenient opportunity to meet up with their agent and cruise through a large number of interesting homes at one time every week without having to go through the rigmarole of setting appointments with every single seller.

Whether you’ve just decided that buying a home is something you want to do or you are a seasoned, serious buyer waiting for that moment when “the one” hits the market, supercharge your Open House hours. See more properties that are real contenders and minimize time-wasting with these four tactical tricks:

1. Prep yourself. Sure, you can just hop in the car, drive around and look for signs. If your market is very active, you can even find an interesting house or two that way. Or you can maximize your time, conserve your energy and make sure you see as many real contenders as possible in a couple of hours on the weekend by doing a little bit of digital research to create a power-packed Open House viewing session.

On the newly beautified Trulia app, you can take a look at any point on the map and see a birds-eye-view of the properties for sale, their list prices and which of them have an upcoming Open House. Tap on any property’s flag to see the property’s photo and a few of the most important details (price, address, bedrooms, and bathrooms), while still seeing the map view. For even more info, tap the image of the home you’re interested in and browse all of its relevant stats, including more pictures.  If a home isn’t checking enough of your “must-have” boxes, cross it off your Open House list for the weekend and pat yourself on the back for saving some serious time. If it is, add it to your calendar right from the app.

Tired of driving around different neighborhoods trying to determine if they’re a good fit for your family? Where’s the nearest grocery store? What’s that shady-looking character doing on the street corner? Now you can do it digitally. View the map of your target areas through a number of helpful lenses, like where schools and restaurants are located, or where crime rates are lowest. With these tools at your disposal, you’ll spend less time pounding the pavement so you can have more of your weekend back.

2. Align with your agent to create an Open House viewing list. Via the app, share the properties that you think you’d like to visit on the weekend with your agent. Ask them to do the same, sharing any properties they think you should view at Open House time with you. Then, check in via phone or email to firm up the list so they can plan out an efficient map, do some deep dive research into any property-specific questions you have in advance, and to make sure you don’t have any surprises in the form of places you really wanted to see that don’t make your agent’s list for whatever reason. Do the prep work and get on the same page with your agent in advance. It’ll make your two hours of Open House Hunting as productive as a less well-prepared buyer’s two weeks worth.

One more thing. Making sure your agent knows you are really excited about a particular property at Open House time allows them to touch base with the listing agent and let them know you might have some interest. That way, if they happen to get an offer from another buyer between the time you mention the place to your agent and Open House time, your agent will probably get a call. This prevents you from getting the awful surprise that happens when a great place goes into contract before you can see it.

3. Take notes, and compare them. After every home you see, spend a moment taking down some notes – ideally in writing or on your app – that just help you remember which property features went with which address/price/listing. Once you’ve seen 5 or 10 or 25 homes, they begin to blur, and it often comes up that you’ll want to look back and reference a particular home you visited in a later conversation with your agent or your partner. Having a few notes on your initial impressions, questions, concerns, loves and dislikes about each property prevents you from being frustrated when you later want to have a conversation about it.

Ideally, after each property you see or, at the latest, at the end of your Open House tour on a given day, you’ll also take and compare your notes about the properties you saw that day. I suggest listing out the good (what you liked), the bad (what you disliked), the ugly (any serious deal-killers) and then also the great elements for each property. Think of the great as being akin to clicking the Facebook “Like” button for a property, if that Like button were amped up to “Love.” The Great are those features – or combination of features – so strong that the property is something you’d consider writing an offer on.

The goal here is three-fold:

▪   to give you the ability to compare properties without relying 100% on memory.

▪   to allow you to give substantive feedback to your agent that will help them help you prioritize new listings as they come on the market and learn what you are looking for at a nuanced level

▪   to allow you to compare notes at the end of each Open House Hunting session with your agent or your partner (whoever you’re buying the property with), and to be able to compare pros, cons and takeaways substantively, rather than just saying you liked it or disliked it.

4. Use Open Houses as a screening tool. Here’s the other thing that taking good Open House viewing notes on each property does: it helps you narrow down all the places that looked kind of interesting to a short list for second takes. Good notes, organized by Great, Good, Bad and Ugly can help if you were hypnotized by beautiful staging or turned off unduly by ugly, easily fixable cosmetics. If you love a place, but it still has a lot of bad or ugly line items, or you dislike a place that actually has a lot of “Great” things about it, you can ask your agent to arrange for a private, second viewing before making an offer or totally crossing it off the list.

Communication with your Realtor is so important!  We cannot read your mind and the more we know about what you want – the better we are prepared to find your dream home!

I read this article at:  http://tips.truliablog.com/2014/02/4-ways-to-supercharge-your-house-hunt/?ecampaign=cnews&eurl=tips.truliablog.com%2F2014%2F02%2F4-ways-to-supercharge-your-house-hunt%2F

Remember to follow our Blog at: https://therealestatebeat.wordpress.com/

Got Questions? – The Caton Team is here to help.  

Email Sabrina & Susan at:  Info@TheCatonTeam.com

Call us at: 650-568-5522  Office:  650-365-9200

Want Real Estate Info on the Go?  Download our FREE Real Estate App:  http://thecatonteam.com/mobileapp

Visit our Website at:   http://thecatonteam.com/

Visit us on Facebook:   http://www.facebook.com/pages/Sabrina-Susan-The-Caton-Team-Realtors/294970377834

Yelp us at: http://www.yelp.com/biz/the-caton-team-realtors-sabrina-caton-and-susan-caton-redwood-city

Or Yelp me:  http://www.yelp.com/user_details_thanx?userid=gpbsls-_RLpPiE9bv3Zygw

Connect with us professionally at LinkedIn:  http://www.linkedin.com/profile/view?id=6588013&trk=tab_pro

Please enjoy my personal journey through homeownership at:

http://ajourneythroughhomeownership.wordpress.com

Thanks for reading – Sabrina

The Caton Team – Susan & Sabrina – A Family of Realtors

Sabrina BRE# 01413526 / Susan BRE #01238225 / Team BRE#70000218/ 01499008

Financial Benefits of Home Ownership – Great Article I had to share…

Great article I was very excited to share. Sometimes I see buyers pass an opportunity since the cost of owning is higher than renting. However, with the rental prices in the Silicon Valley going up – it may be time to consider a more secure future by buying your own home. The Caton Team is always here to answer your questions. 650-568-5522 or info@TheCatonTeam.com  – Enjoy this article.

 

Freshen Up On The 7 Financial Benefits of Home Ownership This Tax Season

The financial benefits of homeownership are evident year round, but particularly around tax time – they seem to jump off the page. Let’s examine how homeownership makes “cents” –  from the tax benefits, to good old fashioned financial stability.

1. Homeownership Builds Wealth Over Time

We were always taught growing up that owning a home is a financially savvy move. Our parents knew it, and their parents knew it. But this past decade of real estate turbulence has shaken everyone’s confidence in homeownership. That is why it’s so important that we discuss this again now that we’re in a ‘new market.’ Homeownership can be a very savvy financial move – but only if people buy homes they can actually afford. In 2014, this idea of sticking to a home you can afford to gradually build wealth is a “rule” that just happens to be new and old at the same time.

2. You Build Equity Every Month

Your equity in your home is the amount of money you can sell it for minus what you still owe on it. Every month you make a mortgage payment, and every month a portion of what you pay reduces the amount you owe.  That reduction of your mortgage every month increases your equity. That is especially true now with the elimination of risky mortgages like negative amortized and interest-only loans – thanks to the new “Qualified Mortgage” rules. The way mortgages work is that the principal portion of your payment increases slightly every month year after year. It’s lowest on your first payment and highest on your last payment. Thus, as the months and years go by, your equity grows!

3. You Reap Mortgage Tax Deduction Benefits

▪   Mortgage deduction: The tax code allows homeowners to deduct the mortgage interest from their tax obligations. For many people this is a huge deduction, since interest payments can be the largest component of your mortgage payment in the early years of owning a home.

▪   Some closing cost deductions: The first year you buy your home, you are able to claim the points (also called origination fees) on your loan, no matter whether they are paid by you or the seller. And because origination fees of 1 percent or more are common, the savings are considerable.

▪   Property tax is deductible: Real estate property taxes paid on your primary residence and a vacation home are fully deductible for income tax purposes.

4. Tax Deductions on Home Equity Lines

In addition to your mortgage interest, you can deduct the interest you pay on a home equity loan (or line of credit). This allows you to shift your credit card debts to your home equity loan, pay a lower interest rate than the horrendously exorbitant credit card interest rates, and get a deduction on the interest as well.

5. You Get a Capital Gains Exclusion

If you buy a home to live in as your primary residence for more than two years then you will qualify. When you sell, you can keep profits up to $250,000 if you are single, or $500,000 if you are married, and not owe any capital gains taxes. Now, it may sound ridiculous that your house could be worth more than when you purchased it after these past several years of falling house prices. However, if you purchased your home anytime prior to 2003, chances are it has appreciated in value and this tax benefit will come in very handy.

6. A Mortgage Is Like a Forced Savings Plan

Paying that mortgage every month and reducing the amount of your principal is like a forced savings plan. Each month you are building up more valuable equity in your home. In a sense, you are being forced to save—and that’s a good thing.

7. Long Term, Buying Is Cheaper than Renting

In the first few years, it may be cheaper to rent. But over time, as the interest portion of your mortgage payment decreases, the interest that you pay will eventually be lower than the rent you would have been paying. But more importantly, you are not throwing away all that money on rent. You gotta live someplace, so instead of paying off your landlord’s home or building, pay off your own!

As always, you must look very hard at your personal situation before making the big decision to buy. Stay tuned to Trulia Tips as we explore more on this topic.

ALL: What’s your favorite benefit of home ownership?

I read this article at: http://www.trulia.com/tips/2014/02/7-financial-benefits-of-home-ownership/?ecampaign=cnews&eurl=www.trulia.com%2Ftips%2F2014%2F02%2F7-financial-benefits-of-home-ownership%2F

Remember to follow our Blog at: https://therealestatebeat.wordpress.com/

Got Questions? – The Caton Team is here to help.  

Email Sabrina & Susan at: Info@TheCatonTeam.com

Call us at: 650-568-5522 Office: 650-365-9200

Want Real Estate Info on the Go? Download our FREE Real Estate App:  http://thecatonteam.com/mobileapp

Visit our Website at:   http://thecatonteam.com/

VISIT OUR NEW INSTAGRAM PAGE: http://instagram.com/thecatonteam

Visit us on Facebook:   http://www.facebook.com/pages/Sabrina-Susan-The-Caton-Team-Realtors/294970377834

Yelp us at: http://www.yelp.com/biz/the-caton-team-realtors-sabrina-caton-and-susan-caton-redwood-city

Or Yelp me: http://www.yelp.com/user_details_thanx?userid=gpbsls-_RLpPiE9bv3Zygw

Connect with us professionally at LinkedIn: http://www.linkedin.com/profile/view?id=6588013&trk=tab_pro

Please enjoy my personal journey through homeownership at:

http://ajourneythroughhomeownership.wordpress.com

Thanks for reading – Sabrina

The Caton Team – Susan & Sabrina – A Family of Realtors

Sabrina BRE# 01413526 / Susan BRE #01238225 / Team BRE#70000218/ Office BRE# 0149900

4 Saving Solutions for Buyers on a Budget – had to share this article

Buying – rather saving to buy a home, especially on the San Francisco Peninsula take time and patience.  I too am in the same boat as my clients while I save for our next purchase.  That will explain why you don’t see me out to dinner as much!

I came across this article from Tara at Trulia and thought it easier to share than write my own.  Great points made to save and get a better picture of your monthly financials.  Enjoy and share your thoughts!

 

4 Saving Solutions for Buyers on a Budget

Most folks do all the math they can find online about how much house they can afford. Then they think about what they are currently paying in rent and how much they’d be comfortable going up from there, if any. Finally, they hit up the mortgage broker, have them run the numbers and get some final, definitive answer on what the bank will allow them to finance and spend.

Somewhere amongst all those numbers they pick a price that sits well in their heart, their mind and, hopefully, their monthly budget, as a maximum home purchase price – complete with its corresponding monthly expenses like taxes and insurance.

Unfortunately, there are a few critical line items that commonly slip through the cracks of one or more of these calculations. Our mortgage pros only know what they have in front of them, which is mostly based on expenses that show up on our credit reports or loan applications. Additionally, when it comes to our DIY budgets, we often create our household spending plans based on our ideal spending patterns, vs. our actual ones.

One critical exercise to do before you lock in a price range is to look back at your bank statements and spending breakdowns from the preceding few months to see how your actual spending measures up against what you think it should be. Find the places where you need to either adjust your spending or your budget to reflect reality before you buy a home. The other critical exercise is to understand what expense categories should be factored into your calculus on how much house you can afford, even though they are commonly viewed by budget software and banks as discretionary or even luxury line items.

Here are four of those overlooked expense buckets to make sure you consider:

1. Essential “Extras.” Sometimes what we say is important to us is slightly different than what is really important, but I believe you can tell what someone values by what they invest their time, energy, love and money in. So, it’s no surprise that there are lots of meaty expenses that some home buyers-to-be see as essential which a bank or even a financial planner might not have on their radar screen.

Just a few of those items include:

▪   Charitable giving and religious tithes, dues and offerings

▪   Expenses related to caring for an aging parent

▪   Non-western health cares and therapies that are not covered by your insurance, like acupuncture, massage and chiropractic.

I call these out in particular because they are categories which millions of Americans spend hundreds or thousand of dollars on every month – and because there might be no place to even enter such an expense on a loan application or budget software. If you invest a great deal of cash into these items and value them enough to keep doing so after you close escrow, make sure you factor them into your own decision making about what you can afford. It’s permissible – even advisable – for your personal price max to be a lot lower than what the bank deems your top dollar.

2. “Superfluous” Cushion Stuffing. Ding dong, the recession’s over, folks! And we made it through. But during those long, dark years, many people cut back on investing and saving for rainy days and retirement days alike. If that’s you, and your personal economy has recovered enough to support buying a home, congrats! Just make sure you circle back to those recession-era cutbacks and correct for them before you increasing your monthly housing spend. You might want or need to save more than traditional financial guidelines would suggest in order to reposition your retirement or to fluff your cash cushion back up to your personal comfort level.

Make sure you don’t overextend yourself on a home without accounting first for stuffing the cushion(s) you’ll need in the future.

3. Enriching Experiences. Buying a home is one of the single-most high ROI (return on investment) life enriching experiences a person can have, if it’s done smartly and sustainably. But lots of us also invest lots of dough into other enriching experiences, and want to avoid being so cash poor we can’t afford any of them after escrow closes.

Some of the big-ticket items that you might be expending cash on to engage in include:

  • Travel, vacations and family outings
  • Trainers, coaches and therapists
  • Yoga and mind-body wellness activities
  • Retreats and workshops
  • Schooling, conferences, basic and continuing education

If you decide you’re willing to cut back on these sorts of things or forego them entirely to redirect those funds into your home, that’s fine. Just make sure you go into that decision with eyes wide open, while you still have time to decide to spend less so you can continue to engage in these enriching activities.

4. Kid-related Cash Outlays. The honest-to-goodness truth about kidlets is as follows: they cost. Sure, the rewards of parenthood are well worth the cash expenses, but the costs are considerable and are often overlooked when it comes time to list out the line items relevant to how much you can afford to spend on housing. The big ones generally get on the list, like monthly child care for very young children and private school and college tuition for the older ones.

Lots of others get lost in translation of your ideal spending categories and allocations against where your money really goes on a monthly basis. Items that often get underestimated or flat-out omitted in this category include:

  • Extracurriculars – language lessons, music lessons, clubs and classes
  • Gear and equipment – all the gear they need to engage in the above, but also things like pricey school books and educational electronics
  • College Savings – Whether or not you have a formal 529 plan, if you have children you hope to help pay for higher education, you should be allocating some level of regular savings for this.

ALL: What sneaky expenses have you underestimated when trying to build out a budget or understand what you can really and truly afford to spend on housing?

I read this article at:  http://www.trulia.com/tips/2014/03/4-saving-solutions-for-buyers-on-a-budget/?ecampaign=cnews&eurl=tips.truliablog.com%2F2014%2F03%2F4-saving-solutions-for-buyers-on-a-budget%2F

Remember to follow our Blog at: https://therealestatebeat.wordpress.com/

Got Questions? – The Caton Team is here to help.  

Email Sabrina & Susan at:  Info@TheCatonTeam.com

Call us at: 650-568-5522  Office:  650-365-9200

Want Real Estate Info on the Go?  Download our FREE Real Estate App:  http://thecatonteam.com/mobileapp

Visit our Website at:   http://thecatonteam.com/

Visit us on Facebook:   http://www.facebook.com/pages/Sabrina-Susan-The-Caton-Team-Realtors/294970377834

Yelp us at: http://www.yelp.com/biz/the-caton-team-realtors-sabrina-caton-and-susan-caton-redwood-city

Or Yelp me:  http://www.yelp.com/user_details_thanx?userid=gpbsls-_RLpPiE9bv3Zygw

Connect with us professionally at LinkedIn:  http://www.linkedin.com/profile/view?id=6588013&trk=tab_pro

Please enjoy my personal journey through homeownership at:

http://ajourneythroughhomeownership.wordpress.com

Thanks for reading – Sabrina

The Caton Team – Susan & Sabrina – A Family of Realtors

Sabrina BRE# 01413526 / Susan BRE #01238225 / Team BRE#70000218/ 01499008

 

Think You Cannot Afford to Buy in the Bay Area – Think Again…

When the SF Chronicle published that in order to buy a home in the Silicon Valley a buyer needs to earn a minimum of $150,000 a year, the groan was heard across the Bay Area as 1st & 2nd time homebuyers cringed when they looked at their w-2’s.  Trust me – I know the feeling.  Born and raised in beautiful San Carlos I knew it was only a matter of time before our property values would tip $1,000,000.  Of course I was just 16 when I made this prediction and sadly no one listens to the young.

Now that I am a professional Realtor, going on 11 years in this competitive industry, people start to listen.  Finally!

Yes, in order to buy a 3 bedroom 2 bath home on a 5000 sqft lot in just about any town on the peninsula it is going to take a lot of pretty pennies.  But before the 1st and 2nd time homebuyers give up – lend me your ear for just a second.

As a 2nd time homebuyer myself.  (Just sold my 1st place last year), I’ve been saving my money like crazy – and it doesn’t seem to add up to much when homes in the area are selling for over their listed price with multiple offers.  Trust me, I feel the sadness so many buyers are feeling right now.  However there is hope!  We just need to change our goals.

So the Silicon Valley is getting very very pricey.  When clients think about buying their first place, they often think of buying the home they plan on living in for the next 10 years.  Which is a wise plan, but if you are not raking in the $150,000 income – don’t think you cannot buy.  Just think outside the box.

I recently sat down with my broker to chat about my plans to buy another property and the sentiment I’ve heard from prospective home buyers around the peninsula.  His advice – buy investment properties.  Maybe not in the immediate area, but down South or the East Bay where there are MANY well-priced opportunities to buy.  So you might not be planning to live in Antioch – but there are many people who are and buying an investment property gets your foot in the Real Estate door.  Yes, you will become a landlord with home responsibilities.  But then again, if you wanted to buy a home in the first place you are pretty much signing up for a lifetime of being your own landlord and caring for any property you purchase.  So the flip side here is – you are the landlord and you reap the benefit of INCOME on your investment property.

That income can be used to buy another property.  Once you become an investor, you can 10-31 exchange one investment for another, convert it to a primary residence (consult with your tax advisor for restrictions) or simply continue to pay the mortgage and keep collecting your income.

Don’t have enough money to invest by yourself?  Find other like-minded individuals with capital and form an investment group.  There are some restrictions so I do advise you consult a Realtor (I am always available)  and a Real Estate Attorney to draft an investment agreement.

The benefits of buying your first investment property are similar to buying your own home.  There are tax incentives and there are headaches.  But in the game of Real Estate – the only way you can advance is to become a player in the game.

What are your thoughts on investing in Real Estate or forming an Investment Group – I’d love to hear YOUR opinions!

I wrote this article – thanks for reading – Sabrina

 

Remember to follow our Blog at: https://therealestatebeat.wordpress.com/

Got Questions? – The Caton Team is here to help.  

Email Sabrina & Susan at:  Info@TheCatonTeam.com

Call us at: 650-568-5522  Office:  650-365-9200

Want Real Estate Info on the Go?  Download our FREE Real Estate App:  http://thecatonteam.com/mobileapp

Visit our Website at:   http://thecatonteam.com/

VISIT OUR NEW INSTAGRAM PAGE:  http://instagram.com/thecatonteam

Visit us on Facebook:   http://www.facebook.com/pages/Sabrina-Susan-The-Caton-Team-Realtors/294970377834

Yelp us at: http://www.yelp.com/biz/the-caton-team-realtors-sabrina-caton-and-susan-caton-redwood-city

Or Yelp me:  http://www.yelp.com/user_details_thanx?userid=gpbsls-_RLpPiE9bv3Zygw

Connect with us professionally at:  LinkedIn:  http://www.linkedin.com/profile/view?id=6588013&trk=tab_pro

Please enjoy my personal journey through homeownership at:

http://ajourneythroughhomeownership.wordpress.com

 

Thanks for reading – Sabrina

 

The Caton Team – Susan & Sabrina – A Family of Realtors

Sabrina BRE# 01413526 / Susan BRE #01238225 / Team BRE#70000218/ Office BRE# 01499008

10 Things Today’s Buyers Look for in a Home

I love sharing interesting articles I’ve read along the way.  As a full time Realtor, and almost a Millennial – I enjoyed learning what my clients are looking for and why.  Enjoy!

10 Things Today’s Buyers Look for in a Home

While David Letterman’s Top 10 lists generally culminate in a No. 1 ranking, the following list includes in no particular order 10 things that are important to buyers today, especially Millennials who represent a significant buyer niche in today’s market.

Quality of the neighborhood – The National Association of Realtor’s 2012 Profile of Buyers and Sellers revealed that neighborhoods are really important to buyers, but that neighborhood choice varies by household composition.

Convenience to job – Commuting is a necessary evil, but homes that are close to work enhance work-life balance, a growing priority for many Americans, especially Millennials.

Overall affordability of homes – With job markets tight and retirement funds depleted or eroded thanks to the Great Recession, it has never been more important to keep housing related costs as low as possible, ideally no more than one third of your pre-tax income.

Quality of schools – A recent survey by realtor.com revealed that nearly 45 percent of today’s buyers are willing to pay a premium for quality schools

Homes suited for the next 15 years – Just five years ago, buyers were looking to stay in their home about 10 years. Today, buyers expect to stay closer to 15, so it’s important to find a home that can support lifestyles as they evolve through that time period.

A mortgage – In today’s tight credit environment, getting a mortgage can be a challenge. Buyers should be willing to consider homes below what they may quality for in order to bump up the loan to value ratio.

Energy efficiency – The National Association of Homebuilders surveyed buyers to see what was most important to them in new home construction and energy efficiency topped the list. Four of the top most wanted features involve saving energy: 94 percent of home buyers want energy-star rated appliances, 91 percent want an energy-star rating for the whole home, 89 percent want energy-star rated windows, and 88 percent want ceiling fans.

Open floor plans – Spaces that are great for entertaining mean quality time with friends and family, something especially important to Gen Y.

High ceilings – Taller ceilings are not only aesthetically pleasing in that they impart a grandness to the home, they also promote greater air circulation and more natural light than lower ceilings.

Technology – Can you run your home from a cell phone? Then market to a Millennial, who prizes a homes’ technological amenities prized over curb appeal.

This post was originally published on the ERA Real Estate blog, Owning the Fence. 

I read this article at: http://rismedia.com/2013-10-15/10-things-todays-buyers-look-for-in-a-home/2/

Remember to follow our Blog at: https://therealestatebeat.wordpress.com/

Got Questions? – The Caton Team is here to help.  

Email Sabrina & Susan at:  Info@TheCatonTeam.com

Call us at: 650-568-5522  Office:  650-365-9200

Want Real Estate Info on the Go?  Download our FREE Real Estate App:  http://thecatonteam.com/mobileapp

Visit our Website at:   http://thecatonteam.com/

Visit us on Facebook:   http://www.facebook.com/pages/Sabrina-Susan-The-Caton-Team-Realtors/294970377834

Yelp us at: http://www.yelp.com/biz/the-caton-team-realtors-sabrina-caton-and-susan-caton-redwood-city

Or Yelp me:  http://www.yelp.com/user_details_thanx?userid=gpbsls-_RLpPiE9bv3Zygw

Connect with us professionally at LinkedIn:  http://www.linkedin.com/profile/view?id=6588013&trk=tab_pro

Please enjoy my personal journey through homeownership at:

http://ajourneythroughhomeownership.wordpress.com

Thanks for reading – Sabrina

The Caton Team – Susan & Sabrina – A Family of Realtors

Sabrina BRE# 01413526 / Susan BRE #01238225 / Team BRE#70000218/ 01499008

Want to Sell Your Home? The Spring Selling Season May Be Coming Early This Year

I enjoy sharing articles instead of writing my own just so I’m not stuck up on my soap box.  But this article really got my blood pumping.  The local San Francisco Peninsula Real Estate Market has been amazing to watch this year.  San Carlos is one of the hottest cities on the Pen and it’s amazing how quickly homes are selling right now.  So if you are thinking of selling – give The Caton Team a call, and if you’re thinking about buying – we’re here for you as well.  Enjoy this and let me know your thoughts!

 

Want to Sell Your Home? The Spring Selling Season May Be Coming Early This Year

 

If you’re considering selling your home in 2014, now is the time to get ready. Not next month, not next week, not tomorrow. Right now.

Why? Because buyers are already on the hunt.

The Internet is the new curb appeal
Last month will likely be remembered for polar vortexes, widespread snow, and historic traffic jams. Lost in the shuffle is that while American’s were sitting inside trying to stay warm, they were looking at houses for sale on the Internet.

Experian Marketing Services released its monthly most visited real estate website rankings earlier this week for web traffic in January. The results are eye popping.

Web traffic to real estate websites was up 25% from December to 364 million visits. Zillow (NASDAQ: Z  ) led the way with over 57 million visits and Trulia (NYSE: TRLA  ) limped into second at over 30 million visits.

If you’re considering selling and your home is not yet online, then every day you’re missing out on thousands (or even millions) of potential buyers viewing your home.

Even more incentive for buyers
Spring is coming, and that is certainly driving a lot of the interest in homes currently listed for sale. But there are other factors at play.

Mortgage rates have declined over the past month and are currently trending back toward 4% for traditionally structured, well qualified loans. This is a significant development for buyers, as interest rates are a huge driver of home affordability.

For example, a traditional 30 year, $150,000 mortgage at 4.5% would have a monthly payment of $760. If rates declined to 4.25%, the payment would change to $738.

For borrowers on the edge of qualifying for a mortgage, that $22 per month savings could make the difference between getting a loan approval or not. Over the life of the loan, that 0.25% difference saves the borrower $7,963!

For buyers, the time is now!
Buy low and sell high, right? For buyers, the time to buy low is quickly ending, creating a sense of urgency to buy now before prices rise too high or interest rates return to more historically normal levels.

According to CoreLogic and reported by Realtor.org, home prices in 2013 saw the largest percentage increase across the board since 2005, north of 11% as of December. The appreciation was most pronounced in the states that were hit hardest in the real estate collapse: Nevada rose 23.9%, California 19.7%, and Michigan 14% rounding out the top three.

Buyers are ready. Are you?
The spring selling season will be in full swing sooner than you think. Rates are low, there is urgency to buy now, and buyers are already coming out of their winter slumber. If you’re planning to sell you home in 2014, you need to be ready now. Don’t miss out on the perfect, well qualified buyer because you waited a moment too long.

 

I read this article at:  http://www.fool.com/investing/general/2014/02/15/want-to-sell-your-home-the-spring-selling-season-m.aspx

Remember to follow our Blog at: https://therealestatebeat.wordpress.com/

Got Questions? – The Caton Team is here to help.  

Email Sabrina & Susan at:  Info@TheCatonTeam.com

Call us at: 650-568-5522  Office:  650-365-9200

Want Real Estate Info on the Go?  Download our FREE Real Estate App:  http://thecatonteam.com/mobileapp

Visit our Website at:   http://thecatonteam.com/

Visit us on Facebook:   http://www.facebook.com/pages/Sabrina-Susan-The-Caton-Team-Realtors/294970377834

Yelp us at: http://www.yelp.com/biz/the-caton-team-realtors-sabrina-caton-and-susan-caton-redwood-city

Or Yelp me:  http://www.yelp.com/user_details_thanx?userid=gpbsls-_RLpPiE9bv3Zygw

Connect with us professionally at LinkedIn:  http://www.linkedin.com/profile/view?id=6588013&trk=tab_pro

Please enjoy my personal journey through homeownership at:

http://ajourneythroughhomeownership.wordpress.com

Thanks for reading – Sabrina

The Caton Team – Susan & Sabrina – A Family of Realtors

Sabrina BRE# 01413526 / Susan BRE #01238225 / Team BRE#70000218/ 01499008

 

7 Signs of An Up-and-Coming Neighborhood

I truly enjoyed this article – had to share…

7 Signs of An Up-and-Coming Neighborhood

Live in a town large enough for a time long enough, and you’ll undoubtedly be made privy to a story of the one that got away. The neighborhood that got away, that is – the neighborhood that all the locals saw as down for the count, pshawing away little sprouts of area upturn, until one day the formerly downtrodden district was teeming with new businesses, new residents, new life – and newly high property values, to the advantage of those few brave souls who decided to go all in before the place actually arrived.

Maybe you’re a first-time buyer trying to squeeze every iota of value out of your precious house hunting dollars, or you just love the prospect of being an early settler in your city’s Next Big Neighborhood. In any event, it can be daunting and even scary to try to figure out whether a neighborhood is up-and-coming or down-and-out. Home value increases are an obvious indicator, but by the time values are up it’s often too late to get in on the early advantage of buying in a neighborhood before it’s potential has been realized.

If you’re ready, willing and able to take on the challenge of buying in a diamond-in-the-rough type neighborhood, here are some signs to look for before property values shoot through the roof.

1. On-trend businesses are moving in. In my neck of the woods, when a co-working space, a Whole Foods or a Blue Bottle coffee moves into the neighborhood, it’s a sign that the nature of things might be changing. This is just as true for small, local businesses that attract people with disposable income as it is for businesses that sell the basics with flair. In fact, most larger businesses do a fair amount of economic research and projections on the neighborhood before moving in. Watching big industry and business moves can be a great way to spot emerging areas with strong fundamentals way before you might otherwise be able to see them yourself.

2. Uber-convenient location in a land-impacted metro. If you live in a densely populated metro area – especially one that is coastal – or an urban setting with intense governmental restrictions on building, demand for homes will continue to grow as the population does, but the supply will remain somewhat limited. In many of these situations, neighborhoods that have been downtrodden but have very convenient proximity to employment centers, public transportation, freeways and bridges tend to be prime for whole-neighborhood remodeling in times of population growth or rapid real estate price rises in already-prime areas.

3. Downsides have an expiration date. If there’s one major issue that has caused an area to be less desirable for decades, and that issue is being eliminated or ameliorated, it could set the neighborhood up for a turnaround. For example, striking crime decreases or a major employer moving into the area where none were before can spark a serious real estate renaissance in an area which has some of the other desirable features on this list.

Also, keep in mind that a new generation of home buyers has a new set of values, and might simply not be concerned or deterred by things their parents might have viewed as turn-offs. Living above a commercial unit might have been a deal-killer for my parents, but my son thinks it’s cool – even desirable, depending on the business on the ground floor. Similarly, gritty and urban might not be the descriptors of your dream home, but some twenty-something first-time buyers in major metros are seeking exactly that feel.

4. Architectural themes with a following. Many up-and-coming neighborhoods find themselves pulled by aficionados of the particular type of architecture that characterizes the neighborhood. Often, down-at-the-heels neighborhoods that are riddled with Tudors, Victorians, Spanish-style homes or even Mid-Century Moderns will see a surge of revitalization when a fresh generation of frugal home buyers falls in love with the style and realizes the deals that can be had there vs. other, already prime areas in town.

5. At least one major economic development is brewing. Never underestimate the power of a major economic development to overhaul a neighborhood’s fate. From Google and Microsoft building cloud storage data centers in Des Moines to a new light rail station going live in Denver, one large-scale employer or infrastructure development can be a very early, very strong sign that an area will see it’s real estate fortunes rise. (That said, areas dependent on one near-obsolete employer or industry can see their fates decline rapidly. Look for industry-wide investment in an area, vs. a single company’s investment.)

6. Fixing is in the air. When you see that an area long known for its rundown homes has a number of homes being renovated and rehabbed from the inside out, this can be a sign of fledgling neighborhood turnaround. If you spot these sorts of projects visually, it might be worth taking a trip down to the City Building Permit counter to see whether the staff has seen the same uptick in individual owners’ investment in the area, and if so, what they think the story of the neighborhood might be – or might become. City staffers often have a wealth of information at the ready, everything from pending commercial development applications that could change the whole landscape of an area to projects the city itself has funded or will prioritize due to its own development initiatives.

7. Slow but steady decrease in DOM. Ten years ago, I listed a charming, pristine home on a not-so-charming, less-than pristine street – the location was its fatal flaw, and the place just lagged on the market as a result. Now, Millennials buying their first homes are salivating over that precise location, for its mix of urban feel; new trendy restaurants and yoga studios; and complete convenience to both the subway and the Bay Bridge. In between now and then, though, those who were watching carefully would have noticed how homes that once took 90 days to sell gradually were selling in 45, then in a couple of weeks – and would have noticed that this decline in the number of days an average listing stayed on the market (DOM) occurred way before the home prices themselves increased. A slow, steady decrease in DOM is a smart, early sign that a neighborhood might be poised on the precipice of up-and-coming status. Ask your agent to help clue you in as to where precisely those areas might be, in your town.

BUYERS: Are you looking to move into an up-and-coming neighborhood? If so, what’s your motivation?

SELLERS: Was your neighborhood an up-and-coming one? Share your experience!

I truly enjoy sharing these articles – hope you did too – would love to hear your input!

 

I read this article at: http://tips.truliablog.com/2014/01/7-signs-of-an-up-and-coming-neighborhood/?ecampaign=cnews201401D&eurl=tips.truliablog.com%2F2014%2F01%2F7-signs-of-an-up-and-coming-neighborhood%2F

Remember to follow our Blog at: https://therealestatebeat.wordpress.com/

Got Questions? – The Caton Team is here to help.  

Email Sabrina & Susan at:  Info@TheCatonTeam.com

Call us at: 650-568-5522  Office:  650-365-9200

Want Real Estate Info on the Go?  Download our FREE Real Estate App:  http://thecatonteam.com/mobileapp

Visit our Website at:   http://thecatonteam.com/

Visit us on Facebook:   http://www.facebook.com/pages/Sabrina-Susan-The-Caton-Team-Realtors/294970377834

Yelp us at: http://www.yelp.com/biz/the-caton-team-realtors-sabrina-caton-and-susan-caton-redwood-city

Or Yelp me:  http://www.yelp.com/user_details_thanx?userid=gpbsls-_RLpPiE9bv3Zygw

Connect with us professionally at LinkedIn:  http://www.linkedin.com/profile/view?id=6588013&trk=tab_pro

Please enjoy my personal journey through homeownership at:

http://ajourneythroughhomeownership.wordpress.com

Thanks for reading – Sabrina

The Caton Team – Susan & Sabrina – A Family of Realtors

Sabrina BRE# 01413526 / Susan BRE #01238225 / Team BRE#70000218/ 01499008

 

Why 2014 is a Good Year to Buy a Home

Why 2014 is a Good year to buy a home…

If you didn’t buy a home in 2013, you may be kicking yourself now. Home prices climbed nationally an average of 13.6 percent in the past 12 months, according to Tuesday’s release of the Standard & Poor’s/Case-Shiller 20-city home price index.

Don’t make the same mistake in 2014, suggests Benjamin Weinstock, real estate attorney and partner at the firm Ruskin Moscou Faltischek in Uniondale, N.Y.

Market forecasters predict that 2014 will be another year of gains for the real estate market, even though the rapid pace of sales in 2013 cooled off a bit at the end of the year. On Dec. 30, The National Association of Realtors said its pending home sales index, based on contracts signed last month, rose 0.2 percent in November, below the 1 percent rise forecast.

Home prices are expected to rise about 5 percent next year, says Weinstock. Higher mortgage rates will dampen the pace of both sales and price gains, but not bring them to a halt. The average rate on a 30-year fixed mortgage is expected to rise from 4.5 percent to 5 percent in the next year.

Even aside from expected price gains, buying a home is almost always a good investment in the long run, says Weinstock. Tax benefits are not to be overlooked.

“When one rents, at the end of the year he or she has a pile of 12 cancelled rent checks,” Weinstock says. “However, the homeowner has a pile of 12 cancelled mortgage checks that are nearly fully tax deductible in most cases.”

I read this article at:  http://www.cbsnews.com/news/why-2014-is-a-good-year-to-buy-a-home/

Remember to follow our Blog at: https://therealestatebeat.wordpress.com/

Got Questions? – The Caton Team is here to help.  

Email Sabrina & Susan at:  Info@TheCatonTeam.com

Call us at: 650-568-5522  Office:  650-365-9200

Want Real Estate Info on the Go?  Download our FREE Real Estate App:  http://thecatonteam.com/mobileapp

Visit our Website at:   http://thecatonteam.com/

Visit us on Facebook:   http://www.facebook.com/pages/Sabrina-Susan-The-Caton-Team-Realtors/294970377834

Yelp us at: http://www.yelp.com/biz/the-caton-team-realtors-sabrina-caton-and-susan-caton-redwood-city

Or Yelp me:  http://www.yelp.com/user_details_thanx?userid=gpbsls-_RLpPiE9bv3Zygw

Connect with us professionally at LinkedIn:  http://www.linkedin.com/profile/view?id=6588013&trk=tab_pro

Please enjoy my personal journey through homeownership at:

http://ajourneythroughhomeownership.wordpress.com

Thanks for reading – Sabrina

The Caton Team – Susan & Sabrina – A Family of Realtors

Sabrina BRE# 01413526 / Susan BRE #01238225 / Team BRE#70000218/ 01499008

 

New VA Loan Limits

New VA Loan Limits

The Department of Veteran Affairs announced new Veteran Administration (VA) loan limits effective January 1, 2014.

VA loan limits are determined by the median home price in each county as reported by the Federal Housing Administration. For 2014, some limits increased, some stayed the same and a few decreased.

VA loans can help eligible borrowers purchase owner-occupied homes often without requiring a down payment or private mortgage insurance. A variety of VA home loan guaranty programs, including a refinancing option, are offered for active duty servicemembers, veterans, surviving spouses of veterans who died in active duty or as a result of military service, and National Guard and Reserve members.

VA Loan Benefits Include:

Cash Out Refinance Loans let buyers take cash out of their home equity to take care of concerns like paying off debt, funding school, or making home improvements. Learn More.

Interest Rate Reduction Refinance Loans (IRRRL), also called Streamline Refinance Loans, can help buyers obtain a lower interest rate by refinancing an existing VA loan. Learn More.

The Native American Direct Loan (NADL) Program helps eligible Native American Veterans finance the purchase, construction, or improvement of homes on Federal Trust Land, or reduce the interest rate on a VA loan. Learn More.

Adapted Housing Grants help Veterans with a permanent and total service-connected disability to purchase or build an adapted home or to modify an existing home to account for their disability. Learn More.

Other Resources: Many states offer resources to Veterans, including property tax reductions to certain Veterans. Learn More.

I read this article at: Ray Avanzino of Prospect Mortgage

Remember to follow our Blog at: https://therealestatebeat.wordpress.com/

Got Questions? – The Caton Team is here to help.  

Email Sabrina & Susan at:  Info@TheCatonTeam.com

Call us at: 650-568-5522  Office:  650-365-9200

Want Real Estate Info on the Go?  Download our FREE Real Estate App:  http://thecatonteam.com/mobileapp

Visit our Website at:   http://thecatonteam.com/

Visit us on Facebook:   http://www.facebook.com/pages/Sabrina-Susan-The-Caton-Team-Realtors/294970377834

Yelp us at: http://www.yelp.com/biz/the-caton-team-realtors-sabrina-caton-and-susan-caton-redwood-city

Or Yelp me:  http://www.yelp.com/user_details_thanx?userid=gpbsls-_RLpPiE9bv3Zygw

Connect with us professionally at LinkedIn:  http://www.linkedin.com/profile/view?id=6588013&trk=tab_pro

Please enjoy my personal journey through homeownership at:

http://ajourneythroughhomeownership.wordpress.com

Thanks for reading – Sabrina

The Caton Team – Susan & Sabrina – A Family of Realtors

Sabrina BRE# 01413526 / Susan BRE #01238225 / Team BRE#70000218/ 01499008