Shopping for Your Home

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.

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.


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.

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.



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.

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.
            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.



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 Opportunity

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. still contain lead paint.
            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.