Wednesday, October 31, 2012
Tuesday, October 30, 2012
Monday, October 29, 2012
Saturday, October 27, 2012
Credit Score Requirements Ease for Some
By Ruben Gonzalez Jr
Prudential California Realty (DBA)
Tight lending
guidelines have weighed on the U.S. housing market during its ongoing
recovery. Most lending institutions during the past two years raised
their credit score requirements to as high as 650, making it nearly
impossible for many people to obtain a loan.
Wells
Fargo made it a little easier for homebuyers this past year, when the
lender lowered its credit score requirements on FHA mortgages.
“Under its new
policy, Wells Fargo will accept borrowers with credit scores of 500
to 579 if those borrowers can make a down payment of at least 10%,”
said Robert Lentini, a mortgage expert who blogs for the website
thetruthaboutmortgage.com. “For borrowers with credit scores of 580
to 599, borrowers must put down 5%. Borrowers with credit scores of
600 or higher can make a 3.5% down payment.”
Quicken Loans, Inc.
adapted similar policies— dropping to a minimum 580 FICO score.
“There are folks who have steady incomes and a solid payment
history but were temporarily affected by the economy or a life event
in some way. These challenges can lower their credit score
significantly,” said Quicken Loans Inc.’s Chief Economist Bob
Walters in a company statement. “We believe that a credit score, on
its own, is not the sole arbiter of a person’s credit worthiness.
This change will open up credit to a significant group of people and
allow them to again have access to purchase or refinance a home.”
Such developments
have been welcome news to FHA Commissioner David Stevens, who earlier
this year urged lenders to lower their minimum credit score
requirements to help the real estate industry as a whole. Stevens
said that stringent requirements have constrained home sales by as
much as 20% over the past year.
Ruben Gonzalez can
be reached at (562) 507-0754 or Email.
Prudential (dba) is an
independently owned and operated member of Prudential Real Estate
Affiliates, Inc., a Prudential company. Equal Housing Opportunity.
Friday, October 26, 2012
Thursday, October 25, 2012
Wednesday, October 24, 2012
Short Sale Guidelines Are Making a Difference
By Ruben Gonzalez
Prudential California Realty (DBA)
The theory behind
short sales seems simple enough: If a homeowner owes more money on a
house than the house can sell for, and the homeowner is struggling to
pay the mortgage, the lender will allow the house to be sold for less
than is owed.
For
obvious reasons, lenders are not big fans of short sales and often
make it a complicated process.
In April 2010, The
Home Affordable Alternatives Program (HAFA) released new guidelines
designed to streamline the short-sale process and allow more
delinquent homeowners to sell their homes and move on with their
lives.
In its first year,
participating servicers initiated 12,266 HAFA agreements and
completed 5,447 transactions.
According to the
National Association of Realtors, the share of distressed
homes—bank-owned properties and pre-foreclosure short sales— in
April 2011 dropped to 37% of total sales volume, down from 40% in
March and an average of 39% over the first quarter.
HAFA complements
the Home Affordable Modification Program (HAMP), a loan modification
program designed to reduce delinquent and at-risk borrowers’
monthly mortgage payments by providing alternatives for borrowers who
don’t qualify for or don’t complete a trial modification.
“[HAFA short-sale
guidelines] are designed to help people who are unable to keep their
home under the HAMP loan modification program,” said Jeff Lischer,
managing director for regulatory policy for The National Association
of Realtors. “Let’s say you can’t keep your property under
HAMP, the next step is a short sale, which is better than a
foreclosure.”
It’s estimated
that lenders lose about 40% of a property’s value on a foreclosure,
whereas the figure is reduced to about 19% on a short sale. Moreover,
the short sale is a graceful exit from the ownership, which is better
for people’s credit scores.
New rules also add
incentives for the short-sale process. One incentive helps sellers
relocate by providing them with $3,000 for moving expenses. A second
incentive is for mortgage servicers, who receive $1,500 from the
federal government for each completed short sale. Under new
guidelines, homeowners can secure a short sale approval in advance
from the bank representing a minimum net amount the bank will accept.
Lenders
participating in the HAFA program maintain the following requirements
for homeowners considering short sale: The loan must be less than
$729,750, made before Jan. 1, 2009, and the home must be the owner’s
primary residence. Also, the homeowner must be delinquent and unable
to pay the mortgage, and the homeowner’s mortgage payment must be
more than 31% of his or her before-tax income.
Ruben Gonzalez can be reached at (562) 507-0754 or Email.
Prudential (dba) is an
independently owned and operated member of Prudential Real Estate
Affiliates, Inc., a Prudential company. Equal Housing Opportunity.
Tuesday, October 23, 2012
Saturday, October 20, 2012
Seeing the Light
By Ruben Gonzalez
Prudential California Realty (DBA)
Most
homeowners claim to be eco-friendly and want to help the environment, yet they worry
that making changes in their home will be costly or inconsequential. This is
especially true for someone who is in the process of selling their home and
doesn’t want to make any substantial changes to a place they hope to be leaving
soon.
However,
making-energy efficient home improvements doesn’t have to mean sweeping changes
and, by creating a better carbon footprint for your house, you will attract
green-conscious homebuyers.
Recent
studies have reported that 80% of homebuyers identify energy savings and
comfortable surroundings as key factors when deciding between listings, so more
agents today are working with home sellers on innovative energy, environmental
and ecological approaches and opportunities for selling the home.
One
simple and easy change concerns the lighting in your house. Today’s green
lighting isn’t limited to the fluorescent light bulbs to which most people have
quickly adapted. There are plenty of other options including LED gaining in
popularity as a viable and affordable home-lighting source.
LED
is a energy-efficient, semi-conducting light source that started growing in
popularity in 2007. In the past, LED lighting appeared as unattractive blue
hues but today’s LED lighting offers the same bright white output as
incandescent lighting. Plus there is an affordable price tag to go with it and
people understand the value of it.
LED
lighting can also be used in some areas of the home that will better showcase
features when one looks around. From track lighting over the fireplace to under-counter
cabinet lighting to can lighting in the hall, LED fixtures can cast dramatic
light on your home’s best features.
There
are plenty of other benefits as well. LED lighting uses 75% less electricity
than the standard incandescent light bulbs, and LED bulbs last 50 times longer
than standard bulbs, saving you money.
Energy-efficient
lighting should also be used in exterior locals of the home, such as around any
deck, pool, patio or garden. These low-energy emitting lights are perfect
complements to any outdoor features you want to show off.
Of
course, once someone buys a home, they can just make the changes themselves,
but a savvy real estate agent will tell you that a homebuyer will judge your
eco-friendly actions in a positive light and may be more inclined to deal with
you.
Taking
advantage of these modern lights will not only let you help the environment,
but it may benefit your pocketbook as well.
Ruben Gonzalez can be reached at (562) 507-0754 or E-mail me.
Prudential (dba) is
an independently owned and operated member of Prudential Real Estate
Affiliates, Inc., a Prudential company. Equal Housing Opportunity .
Friday, October 19, 2012
Thursday, October 18, 2012
Wednesday, October 17, 2012
Say it with Pictures
By Ruben Gonzalez Jr
Prudential California Realty (DBA)
They
say a picture paints a thousand words and when it comes to selling your home,
you want those words to end with “sold.” It’s no secret that better-presented
homes get more traffic and more buyer interest, therefore selling faster.
That’s
why it is essential that you showcase your home through images in the best way
possible.
According
to the National Association of REALTORS®, nearly 90% of all
homebuyers begin shopping for homes online. Many flip through photos of the
homes and send a list of those they want to see to their agent. In fact, homes
with few or no photos are often passed over simply for that reason, even if the
home’s description matches a buyer’s ideal listing.
Many
agents believe that apart from staging, no other marketing investment is as
important as professional photography in marketing a property effectively. So,
to generate more buyer interest, there has been a dramatic increase in the use
of professional real estate photographers in the past few years.
The
best photographs are most likely to come from someone who has an eye for the
underlying beauty of the home’s structure and spaces; has specialized equipment
and techniques for lighting and perspective control; and uses workflow
processes for post-processing of the images for use on the Web and in
publications.
Let’s
face it, as much as we all like to think we take great photos, a professional
has an eye for seeing the best vantage points and lighting options and also has
better equipment to make the photos bright, clear and sharp. A professional
photographer will most likely use a 10mm lens that can capture up to 85% of a room
and lighting that can illuminate the entire room.
The
same holds true with taking video of your home to add to a website listing. An
amateur can show what each room and yard looks like, but a video professional
will make the strongest elements stand out and provide a much better video
narrative of the home. Plus, you don’t have to worry about any shakiness or
dullness that someone not that experienced with a video camera may give you.
Before
bringing in someone to photograph or video your home, it’s essential that it is
clean and de-cluttered so the pictures entice a buyer to want to see the home
in person. You don’t want clothes, pets or anything else distracting people
from the photo at hand.
Indeed,
homes showcased with the best photographs and videos will attract more sellers
and help speed the home-sale process to a successful conclusion.
Ruben Gonzalez can be reached at (562) 507-0754 or E-mail Me.
Prudential (dba) is an independently owned and operated member
of Prudential Real Estate Affiliates, Inc., a Prudential company. Equal Housing
Opportunity .
Tuesday, October 16, 2012
Monday, October 15, 2012
Saturday, October 13, 2012
Home Sellers: Five Tips to Make Your Bathroom Stand Out
By Ruben Gonzalez Jr
Prudential California Realty (DBA)
Every
homebuyer has a vision of their perfect house and the rooms that are most
important to them. Because of their relatively small size in comparison to the
rest of a home, bathrooms are often overlooked in the staging process, but for
many, it could be the most important room in a buying decision.
A
bathroom is more than just a place for grooming; it’s a sanctuary. It’s a place
one can relax in a hot bath and escape the stresses of daily life for a few
moments at a time.
Updating
a tired-looking bathroom is one of the best things you can do to increase a
home’s resale value and the fixes are not too costly or labor intensive.
Easy
fixes include adding new, luxurious-looking towels, replacing the shower
curtain and adding candles around a bathtub. However, with a little more money
and effort, your bathroom can become a talking point of the house.
Here
is a look at five great ways to upgrade a bathroom.
1.
Beautify: By adding decorative
glass, stone tile or accents to the bathroom, it will stand out among the other
houses in the neighborhood that are for sale. Extra-wide wall tiles are popular
these days and wood cabinets can be beautifully embellished with intricately
carved wooden inlays.
2.
Lighting: Add more lighting options
around the room, especially around the vanity to reduce shadows and glaring.
This is something that isn’t too expensive and can really highlight the
positive features of a bathroom. Mood lighting around the tub area is also
increasing in popularity.
3.
Bath/Shower: It’s not too often you
hear someone complaining about a bathtub being too large, and that’s because
there’s nothing better than coming home from a hard day’s work and relaxing in
a big soothing tub. By putting in a new tub and creating more of a spa-like
atmosphere, you will have buyers imagining themselves washing their cares away.
Adding a massage element to the showerhead or one that replicates rain showers
is also something that will appeal to buyers.
4.
Update Fixtures: Not as costly as
some of the other tips, changing out the fixtures in a bathroom can add a great
deal. From cabinet handles to faucets, the addition of brushed nickel or other
metals that are polished and elegant are always a huge hit. And if space
permits, add a second sink.
5.
Think Green: The bathroom is a prime
place to start putting those environmentally friendly devices to work.
Installing fixtures that save water, such as a low-flow showerhead, a low-flow
faucet aerator, and a dual-flush toilet, can save thousands of gallons of water
each year. Adding energy-efficient windows is another easy option, since the
size of bathroom windows are relatively small. Another fix that is both
decorative and energy efficient is the addition of natural stone flooring,
which helps the bathroom stay cool during the summer, and warmer during the
winter.
When
buyers walk into a renovated bathroom that exudes quality and offers an
intimate, contemporary feel, it’s one of the top things that people will
remember about a home.
Ruben Gonzalez can be reached at (562) 507-0754 or E-mail.
Prudential (dba) is an independently owned and operated member
of The Prudential Real Estate Affiliates, Inc., a Prudential company. Equal
Housing Opportunity .
Friday, October 12, 2012
Thursday, October 11, 2012
Wednesday, October 10, 2012
Floor the Competition
By Ruben Gonzalez Jr
Prudential California Realty (DBA)
When people enter
your home they usually look down before up, so that first step is vital for
attracting a homebuyer and making a great first impression. This is one reason
why more people are installing hardwood floors in their homes.
Hardwood
flooring enhances the look of any room and can create a classic ambiance that
will beautify the interior design of your home. Residential real estate agents
agree that homes with wood floors hold their value better, sell faster and
fetch higher prices.
Last
year, 99 percent of real estate agents responding to a national survey conducted
by the National Wood Flooring Association agreed that homes with hardwood
floors are easier to sell. The survey also found that 82 percent believe that
homes with hardwood floors sell faster and 90 percent said they would sell for
more money.
The
American Hardwood Information Center adds that restoring hardwood flooring in
the home is one of the best long-term investments to be made.
“Hardwood
floors are environmentally friendly, forever fashionable, and will last for
generations,” said Pembroke Jacobs, president of the Hardwood Manufacturers
Association. “Plus, with an expected life span of up to 100 years for certain
premium hardwood flooring, you can be assured that that the hardwood really is
a one-time investment with a very long-term payoff.”
Real
estate agents also agree that carpeting does not impress potential buyers, but
hardwood floors are always a draw. Engineered wood floors impart warmth, depth
and richness to a home’s decor that cannot be matched by carpeting, tile or
vinyl flooring.
Despite the existence of modern architectural trends in flooring, hardwood can still compete with floor tiles and other artificial materials. It comes in a variety of colors and grains; light, medium, or dark shades; and a variety of sizes, styles, finishes and species.
Despite the existence of modern architectural trends in flooring, hardwood can still compete with floor tiles and other artificial materials. It comes in a variety of colors and grains; light, medium, or dark shades; and a variety of sizes, styles, finishes and species.
Maple,
mahogany and oak are the most popular woods, but some homeowners are investing
in exotics such as Brazilian cherry and purpleheart.
The
Environmental Protection Agency has said that indoor air quality is one of the
top health threats and wood floors can help contribute to a healthy living
environment. In fact, a recent EPA study found that pesticides used in gardens
and homes accumulate on floors and other surfaces in the home, but that wood
floors greatly reduce the accumulation of such toxins. Hardwood floors also do
not trap or harbor dust mites or molds.
Though
wood floors will probably need to be refinished at some point, when properly
taken care of they are much easier to maintain than other floor surfaces.
The
NWFA recommends regular sweeping of hardwood floors with a soft-bristle broom
or dust mop to remove surface dirt and debris. If your floor contains beveled
edges, it recommends using a vacuum with a soft bristle brush attachment to
remove dirt and debris from between the floorboards.
Having
hardwood floors could be the difference between selling your home or watching a
potential buyer walk out the door on a less-appealing type of flooring.
Ruben Gonzalez can be reached at (562) 507-0754 or E-mail.
Prudential (dba) is an independently owned and operated member
of Prudential Real Estate Affiliates, Inc., a Prudential company. Equal Housing
Opportunity.
Tuesday, October 9, 2012
Monday, October 8, 2012
Saturday, October 6, 2012
Consumers Are Returning to the Real Estate Market with an Age-old Question: Buy or Sell First?
By Ruben Gonzalez Jr.
Prudential California Realty (DBA)
Residential real estate is
gaining stability in concert with the recovering U.S. economy. Consumers, drawn by
one of the most attractive buyers’ markets on record marked by historically low
interest rates and lower home prices in many areas, are returning to the market
to move up, trade down, improve location and otherwise enhance their share of
the American Dream.
When it comes to home buying, the
ideal situation would be to find a new home, just as you receive an offer on
your existing home. You would then be able to close concurrently and move into
your new home a few days prior to closing on your previous home. This does
happen more often than not, but anyone looking to buy a new home needs to
consider all the possible scenarios.
Should you buy or sell first?
There are many schools of thought on this subject. Ultimately, it depends on you and your
situation. For instance, can you afford to pay two mortgages in the event your
previous home does not sell by the time you move? Would you consider a bridge
loan (a short-term, high interest loan that let you borrow against the value of
your old home to covers the bills until you secure the new, larger loan)? Are
you willing to move twice to find the home of your dreams if you sell first and
can't find the dream home fast enough?
This is where the advice of a
real estate sales professional is invaluable. Real estate sales professionals
know the current market conditions. They are trained and experienced in working
with home buyers and sellers to determine an ideal time to buy and sell.
It is generally less stressful to
sell your home first, because you won't have to worry about owning two homes at
one time. The market will dictate how long it will take your home to sell, as
will your location and the time of year. As a rule of thumb, it is a good idea
to put your home of the market as far in advance as possible when purchasing a
new one. But, since interest rates are low and confidence is returning to the
market, there’s a good change your home will sell faster if priced properly. (Again,
your real estate professional’s advice is critically important here.) In that
case, you may want to purchase a new home first.
What if your present home sells
before you find a new one, putting pressure on you to find the right house for
you more quickly? You may then decide to make an interim move or request to
rent back your home for a specified amount of time as you continue to look for
your new home. Those may be worthwhile options if you have your heart set on a
specific location or type of home or if you are purchasing a home that is under
construction.
If you buy a home before selling
your present home, you may end up with two mortgages. Under those
circumstances, you may be able to apply for a bridge loan to assist you in
making two mortgage payments until you sell your first home. Your real estate
sales professional can assist you in finding a lender.
So should you buy or sell first? This
is a challenging question regardless of real estate cycles, yet your own
circumstances and a knowledgeable real estate professional will help you make
the right decision.
Ruben Gonzalez can be reached at (562) 507-0754 or E-mail.
Prudential (dba) is an independently owned and operated member of Prudential Real Estate Affiliates, Inc., a Prudential Financial company. Equal Housing
Friday, October 5, 2012
Thursday, October 4, 2012
Wednesday, October 3, 2012
Complying with Lead Laws
By Ruben Gonzalez Jr
Prudential California Realty (DBA)
Back
in the days before anyone knew better—we’re talking pre-1980—much of the paint
used in homes contained lead. Over time, the paint would chip or crumble and
the resulting dust caused serious health issues, especially for children and pregnant women.
Lead-based
paint was used both inside and outside of homes, most notably on windows,
baseboards, trim and doors. Many layers of lead-based paint have been disturbed
through the years during remodeling or home repair and it’s necessary for
anyone selling a home to be aware of this.
The Environmental
Protection Agency issued a report revealing that lead can
affect children’s brains and developing nervous systems, resulting in reduced
intelligence, learning disabilities and behavioral problems.
In a study released by the Department of Health, the
agency reported that about 75% of all homes built before 1978 contain some
lead-based paint. Furthermore, it’s estimated that more than 38 million homes
in the U.S.
So, a chief concern of anyone buying or selling a
house should be to address the possibility of any lead paint in the home and
it’s vital that anyone dealing with paint in older homes treat it as if it is
hazardous material.
Real estate agents and their sellers are required to
disclose any presence of known lead paint and lead hazards during the sale or
rental of housing. The same holds true for renovation and remodeling
contractors, who are required to warn customers of the hazards of lead paint.
Last year, the first
federal regulation on the remodeling industry was enacted concerning this
important hazard.
To ensure that all
lead paint is removed safely and effectively, the U.S. Environmental Protection
Agency’s “Lead: Renovation, Repair and Painting” rule governing the work
of professional remodelers in homes where there is lead-based paint was
published in the Federal Register on Earth Day, April 22, 2010.
The law requires that anyone who is paid to renovate a home
that was built before 1978 be trained and/or certified to follow lead paint
safety practices. The new rule lists prohibited work practices, including open-torch
burning and using high-heat guns and high-speed equipment such as grinders and
sanders unless equipped with a HEPA filter. It also requires a cleaning
inspection after the work is completed.
For homeowners who are
unsure about their homes, sometimes it's easier to replace windows, doors, or
woodwork than it is to remove the lead-based paint. This way, all traces of any
paint will have been removed from the home.
Agents know that
there’s no question that a home is worth more if they can say for certain that
it contains no lead paint, so for the peace of mind of everyone involved, deal
with all lead paint issues as soon as possible.
Ruben Gonzalez can be reached at (562) 507-0754 or E-mail.
Prudential (dba) is an independently owned and operated member
of Prudential Real Estate Affiliates, Inc., a Prudential company. Equal Housing
Opportunity .
Tuesday, October 2, 2012
Monday, October 1, 2012
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