Tri-Valley Home Buyers Archives - Page 6 of 6

Baby Boomers Buying Houses in the Tri-Valley

November 21, 2016 by Dale Corpus Leave a Comment

Baby Boomers are Buying in California’s Tri-Valley area more and more.

Good idea or scary move?

It all depends on where you are in life, financially and physically. Should you downsize or invest? Move out or move up? These can be a lot of scary questions as baby boomers hit their retirement age. You may have made a lot of money over the past 30 years but with the drop in home prices over the last 8 years you may have lost a lot of it too. So where does that leave real estate investments today?

Many baby boomers have actually been delaying retirement for the basic fact that selling and downsizing just isn’t an option. They may owe more than the home is worth and this keeps them hanging onto it until it bounces back. Well, it has. Maybe not with the vengeance some would like but stronger certainly than we have seen in the past 4 years. The number of existing homes sold is up about 8% nationwide according to the S&P and prices have reached over 12% higher than they were this time last year. So now baby boomers are toying with the idea of selling or renting out and downsizing. Which is the best option and which makes the most sense financially? – How to Choose the Right Lender

Generally speaking, we know it’s better to own than rent but that’s usually if you are going to stay in your home more than 5 years. Is that something baby boomers want to consider at this time? It all comes down to ease of living which has many implications as far as maintenance, finances and responsibility. If age 65 is no longer the retirement age, keeping a home or investing in new real estate may be well within the realm of possibility for baby boomers. Buying a new home is sometimes a strain on the cash flow, not just in the down payment but in monthly taxes, insurance, fees and the mortgage payment. Even if buyers plan on paying cash, they must consider the inevitable costs associated with owning real estate. One smart plan may be to buy a good rental investment, live in it for a while, and then rent it out when you are ready to move on. The equity remains and collects while the retirees are off enjoying the freedom.

[5 Things to Know Before Buying a “For Sale By Owner” House]

So what makes the most sense for you? It really comes down to all the many variables associated with your specific retirement plan. I would love to talk to you about the options that might work when it comes to real estate in San Ramon, Pleasanton, Danville or Dublin. Call me today and let’s talk.

5 Home Nightmares Buyers Don’t Think About Until They Need to Sell

November 3, 2016 by Dale Corpus Leave a Comment

Buying a house with the idea of selling it isn’t usually something most homebuyers think about when browsing properties and looking through listings. However, there are things that you might not think about as being bothersome as a homeowner but could be someone else’s nightmare when it comes time to sell. Here are five resale issues many buyers don’t think about when purchasing property.

#1. Power lines.

Myths, perceptions and superstitions carry enough weight to make a buyer back out. Power lines are one of those issues. You might not have considered power lines being a problem when you moved in but many people feel that living too close to high-voltage power lines could make them sick or even give them cancer. However, there has been no research found that supports this claim. However, perception is an issue and if people don’t like power lines, you may have a heckuva time selling your home if you live close by. You might want to consider this before purchasing a property close to high-voltage power lines.

#2. Close to a business.

This is a tricky one; studies have shown that homes close to a Starbucks or Trader Joe’s actually increase in value but being too close could have the opposite effect. Living close to a grocery store that gets its deliveries all night long could be a nightmare for people trying to sleep. Businesses can be loud and disruptive so take this into consideration when purchasing a home close to just about any type of business.

#3. New subdivisions and developments.

This again might not seem like an issue at all. Many homebuyers love brand-new properties but, they can also be a drawback if the development is still being constructed. Construction noise, construction workers, large trucks and dangerous equipment could be a drawback to many potential buyers. If you’re planning on buying and then selling within a couple of years, you might face a lot of problems, especially if the subdivision is still being developed. Many buyers will simply go to a brand-new home in the development rather than a resale home in the same neighborhood.

#4. Privacy.

It’s important to consider privacy when purchasing a home and how future buyers would perceive it as well. A home that backs to a busy road or highway might be private but you also have to deal with the noise. Some buyers prefer a long, private drive but this can also have it’s issues with safety; a well-lighted neightborhood may seem much safer than a dark and quiet road.

#5. Environmental issues.

This all depends on where you are located, but things to consider would be a home in a forest it area could run the risk of forest fires or downed trees during windstorms; and exposed home with no trees and a west facing backyard that gets blisteringly hot in the summer. These are subtle features for sure, but they can be a big deal once you’ve lived there for a while.

It’s not my job to choose the home for the buyer but I do want them to know that if they purchase a home with an unchangeable adverse situation, it could potentially sell for less than similar homes. Buying with the idea of selling can help you make a wise decision not only now but for your future.

How to Understand the Seller’s Disclosure Report

September 26, 2016 by Dale Corpus Leave a Comment

The seller’s disclosure report or form will be filled out by the homeowner/a seller before listing the property explaining in detail any known issues, remodels, renovations or problems that the house currently has or has had in the past and has been fixed. Anything that the seller knows about a property must be disclosed on this form. Seller’s disclosure forms vary from state to state will have some of the basics that buyers will need to know or understand before purchasing the property.

Here are some of the basics of most sellers disclosure forms or reports have that buyers need to understand.

The age of the roof.

This is more than simply knowing that the roof is 10 years old; it’s knowing what type of roof it is that you know the lifespan of that material. If you are only 10 years into a 40 your roof, you know that the roof will have some life left to it for quite some time. If you are unsure about the life of a particular roof material ask your real estate agent or home inspector. They can give you tips and advice as to how long a particular roof will last.

Plumbing.

Sellers should be able to explain any and all plumbing issues that they know what. You want to know the age and type of the pipes, whether it’s copper, galvanized steel or brass. Some of these can last up to 100 years but polybutylene or lead pipes could mean trouble. Some of these materials may need to be replaced before you move in.

Heat pumps, furnaces and water heaters.

Most gas water heaters usually last about 10 years and electric ones about 15. Most water heaters don’t need to be replaced until the leak or fail. HVAC systems or heat pumps work harder the older they get so a 20-year-old HVAC system will be working about 50% harder and less efficient than a new system. While this may not be something to replace, it is something to be aware of for your future in the home.

Renovations and remodels.

If the seller had conducted any remodels or major renovations they should be able to produce a building permit. If no permit was done on a major remodeling issues that require a permit for your city or state, you could be liable for mistakes in the future. Anything that was done that should have had a building permit needs to be signed off on before you agree to purchase the property. This is for your safety and liability.

Cracks in the wall and foundation.

Cracks can be structural damage but they also could simply be a settling. Newer homes are notorious for getting cracks in the ceiling, walls and corners simply because they have settled now that people have moved into the home or the foundation and ground around the home has settled. While this may not be cause for concern it is something to ask your home inspector about. Read more: Do New Homes Need Inspections?

Animal damage.

Sellers should be able to tell you if there’s been any major animal damage while the home was under their ownership. This could mean past issues, where they have hired an exterminator, major damage, rats, mice, snakes or other issues that may have caused damage to the house under the seller’s ownership. Make sure all of these items have been addressed and taken care of before you take ownership.

Asbestos and lead paint.

Sellers need to answer honestly of they know that the home has asbestos or lead paint. But, most homeowners have not owned the home for the last 40 years total so whether or not the property has lead paint in it or not, the seller is not going to know. The seller may know if there is asbestos but anything that they do know, they have to disclose.

Understanding the seller’s disclosure form doesn’t have to be difficult but if there is anything you don’t understand don’t hesitate to ask your real estate agent or the listing agent. They can identify and explain any detail and unfortunately if the seller simply does not know about an item dues to issues happening before they owned or if it is an investment rental property, there’s not much the buyer can do about it.

This post previously had a disclosure image that was creative commons and has since been pulled into a license photo. The image has been removed.

Do New Homes Need Inspections?

September 6, 2016 by temineth Leave a Comment

Buying a new home is an exciting venture. New home/new you! Despite being very exciting, homebuyers may think they can skip the inspection because if something is brand new it should be perfect. Right? Just as a brand new car may have issues, new homes can too and that inspection can be a real revelation.

Not only should you conduct a final walk-through of your new home, but also have a non-biased home inspection. If you are customizing the house, you want to make sure the builder or developer used the correct materials and finishes you chose. Perhaps the tile is the wrong color, slightly crooked or the carpet should have gone down the hall instead of stopping at the top of the stairs. These little details are obvious to homebuyers that chose the materials but there are things that go far deeper than cosmetics in new homes that a professional home inspector should check out and correct before you sign on the dotted line.

Defects can happen and many new homes come with warranties to guard against such things. Nevertheless, if you do not know about them, you cannot argue for them. If you have never lived in the home, you may not know that you can hear people walking on the second story, or that the pipes knock when using the washing machine, or that the back door rattles when the front door closes. While a home inspector may not be able to catch all these issues, they can inspect places most homeowners will never tread. This includes the crawl space, attic, roof, and under sinks for plumbing issues.

Home inspectors will be able to tell if the installation was proper. Most new homes have builder grade materials and appliances but a new homeowner may not realize some appliances are not adequate for the size of the home. We inspected a 3,000 sq. ft. home and found that the installed furnace only heated 1500 sq. ft. This would have cost the homeowner hundreds if not thousands in heating and cooling costs! Most homeowners would not realize this until they are calling the electric company wondering why their bill is through the roof.

You would be shocked to discover what some of our inspectors have found; missing siding, unattached ductwork, broken roof trusses, raised roof shingles and more! These things should be fixed before homeowners take residence.

Having a building inspection and signing off on a permit is not the same as a home inspection designed specifically for the future homeowner. It pays to have this type of inspection done; every. single. time…. Do not neglect it!

Contact me today to find a home inspector in your area for your new construction home.

10 Tips to Make Your Move Really Easy

August 22, 2016 by Dale Corpus Leave a Comment

Nobody likes to pack up the entire house and move but most of us do it at least once or twice in our life. If you’re looking at moving or relocating to the Tri-Valley area or maybe you’re moving out of the area, you may be researching some of the best tips and tricks to make your move so much easier. Here are 10 easy tips that you may never have thought of before they can make your relocation that much easier.

#1. Box of essentials.

Many people pack the wrong way. You want to make sure that the items you want to get to quickly are at the back of the truck or the easiest to obtain. This could mean your coffee maker, important documents or records. But you also want a box of essentials to go along with you, especially if you are relocating a long distance. These essentials could be blankets and pillows, toiletries, a first aid kit, any medications, phone and tablet chargers, toilet paper and paper towels, paper plates and utensils, pet food and bowls, credit cards, passports, Social Security card and credit cards.

#2. Hook up TV and the Internet as soon as possible.

Many utilities only require a phone call to get things switched over to your new location so you want to make sure that your Internet and TV are some of the first things to be hooked up so that you can start getting your email, have access to the Internet and some entertainment if necessary.

#3. Bring something for the kids.

Kids can find moving to be extremely boring so you want to make sure you have items for kids such as coloring books, crayons, games, tablets or other items that can keep them entertained, especially if you have a long way to go.

#4. Nextdoor.

The online company Nextdoor is a great way to network with your new neighborhood. You can ask questions about the neighborhood, find babysitters and handymen and a little bit about your particular neighborhood before moving in.

#5. Don’t forget to leave important items with your last house.

This could be all the keys that you have, your garage door opener that you may have stuck in your visor and forget that you have it, any other items that the new homeowner will need to operate their new home.

#6. Changing the locks.

You never know who may have a house key to your new house out there so it’s always a good idea to change the locks before you move in.

#7. Call a cleaning service before hand.

If you’re moving a long distance, call a cleaning company and have your real estate agent let that cleaning person in for a thorough cleaning before you even arrive.

#8. Pack the essentials last.

Just like we had an essential box for the trip, make sure that your coffee maker, any documents, taxes, phone numbers and close are easily accessible as soon as you get to your new house.

#9. Ask about movers insurance.

If you are hiring a moving company to move your items, ask about their insurance policy and get at least three quotes from different moving companies and if they do in-home assessments so your estimate is as accurate as possible. You also want to make note that moving expenses can be tax-deductible.

#10. Research schools and kennels ahead of time.

Before moving you want to see what school your children will be in so you are prepared to get them in school right away if you’re moving during the school year. You may also want to make note of doggie daycare is in the area, kennels, doctors, dentists and other places that you may frequent.

These are just some simple items that a lot of people forget to do. If you’re relocating to the Tri-Valley area of California contact my office today for more tips and tricks to moving and finding the right house for your needs and budget.

How to Really Finance Your Dream Home

August 16, 2016 by temineth Leave a Comment

You’ve put in your time in a small townhouse, smaller home or condo and built up some equity but now you’d like to make that dream home a reality! How can you go about financing the home so you get what you want and still stay on budget?

For starters, you want to set realistic goals about the house you’re looking for. These are basic and broad goals such as do you want to live in a certain school district? Do you need a certain amount of square footage? How many bedrooms and bathrooms do you need? What type of neighborhood do you want to live in? These are large, broad requirements for your dream home. From there, you can narrow things down to certain details that you really love such as, large kitchen, updated bathrooms? Large backyard, mature landscaping, fenced yard, and any other little details you may want in a particular property.

Keep your broad, large items at the top of your focus and then narrow the homes down to items you love within those particular homes. From there, you can determine what you really want, what you can really afford, and if you’re ready to make the move to a dream home.

When it comes to financing a large purchase you may need a jumbo loan. Depending on how much equity you’ve built in your current home will determine how much down payment you can make on your next home. If you’re currently renting, you’ll need to come up with a certain amount of down payment. Speak to your lender about the exact figures you’ll need in order to qualify for your dream home.

Other items you’ll need when it comes to financing a large loan is secure information. Your credit report will be one of the most important pieces of information that will get you either the home you want or rejected. You can request your own credit history for one of the three major credit bureaus in the United States: Equifax, Experian, and Trans Union. Typically getting one report should have every piece of information you need to verify your credit history, score and to correct any mistakes or errors.

Determine whether you want to buy your dream home or build a home.

In the Tri-Valley area, there are many new subdivisions and communities popping up all over the place in places like Livermore, Pleasanton, and Oakland. Are you considering buying an existing home, putting the final touches on a custom built home or building a home from the ground up on your own land? Financing changes for each one of these situations so you’ll need to talk to your lender about your plans and your real estate agent about what you’re looking for to find you the right home in the right lending program for your needs.

Determine your financial limit.

What you might think is your financial limit, lenders may disagree. Lenders will take into account all of your assets, liabilities, debts and income to determine a comfortable amount that can go towards financing each month. Typically no more than 30% to 35% of your income should go towards your housing payment each month. There are different programs and plans that may allow for more but remember, putting too much strain on your finances means that you won’t have any money for those emergency issues that may arise as a homeowner.

[More: 8 Money Tips for Home Buyers]

Perhaps you’re in a similar boat to a lot of people; you already own a home but if the right dream home comes along you would consider selling and moving. To prepare yourself for the situation it’s important to have some reserve funds set aside for the down payment, earnest money deposit, and home inspection. You’ll be ready if the right home becomes available and you already have done your financial homework necessary to afford the home.

Start first by talking to a real estate agent about your needs. I can set you up with an alert system that sends you an email when a home that meets your search criteria and price becomes available. Secondly, speak to a lender about your credit history and your chance of getting a loan for the type of home you want. They can set you up to be in a good position, ready to make an offer, complete with a preapproval letter that can be updated monthly if necessary.

10 Important Things to Do Before Buying a House

July 12, 2016 by Dale Corpus Leave a Comment

In today’s real estate world more and more homebuyers are being informed and educating themselves on the process, the transaction and the details. This is great and it helps buyers understand and feel more comfortable with their purchase. Before looking and buying a home there are some things that you should do so that you are prepared, well-informed and assured you are ready to buy. Here are 10 things all potential homeowners should do before buying a house.

#1. Know your own finances.

Before applying for a home loan, looking at homes or touring open houses, understand your credit history, score and your own finances. You certainly don’t want to be surprised when a lender discovers that you have a low credit score and that loan you took out 10 years ago never got paid off. Make sure there are no surprises and if you find any errors on your credit history correct them or write a letter of explanation before applying for a home loan.

#2. Shop for the right lender.

There are lots of lenders out there and you should be shopping them just as much is you would shop for a house. The rates, points, fees and costs can all vary from lender to lender so let them know your shopping them so that you get the best deal.

#3. Understand homebuying expenses.

There are a lot of zero down home loans or low-cost home loans out there making it fairly easy for first-time homebuyers to purchase a property however, there are expenses that you need to know about such as out-of-pocket earnest money costs, appraisal fees and home inspection costs. It’s important to have several thousand dollars for these items but talk to your lender and your real estate agent about how much exactly you’ll need in order to buy a house.

#4. Get your own buyers agent.

Find a buyers agent that has this profession as a full-time business. It’s fairly easy to get your real estate license so many people real estate and have a full-time day job however, they may not understand the changes, rules and regulations of purchasing property so it’s best to go with an experienced and seasoned real estate agent so you have someone on your side throughout the process.

#5. Don’t max out your budget.

Just because you can’t afford a $500,000 house, doesn’t necessarily mean you need to max out that budget. Looking for a home around $450,000 will give you a little bit of breathing room and allow you to save money for those home repairs that will now need to deal with in the future.

#6. Don’t let your emotions rule you.

I’ve dealt with many people that fall in love with the house and want it at all costs even though after the home inspection the property is in dire need of repairs and could even be hazardous. Try not to let your emotions get the better of you and try not to completely fall in love with the house until you know it’s going to be yours.

#7. Ask about the homeowners association.

HOA, or homeowners associations are very common in the bay area and Tri-Valley area so you want to double check on how much you’ll be paying monthly for the homeowners association. Single-family homes, residential neighborhoods and condo associations can all have an HOA, so make sure you agree with it before signing on the dotted line.

#8. Consider plans for the future.

For first-time homebuyers it can be difficult to think long-term but the home you by now probably will not be your only home. Consider resale value, location, school districts, and what it would take to sell the property in the future if need be.

#9. Try to look past cosmetics.

Some of the best homes with the greatest deals out there may have peeling, outdated wallpaper, older appliances and wood paneling. But, you can get a great deal and if you look past the cosmetics and see the house for what it really is, you may be getting a diamond in the rough.

#10. Don’t sabotage your finances.

Once you’ve applied for a home loan do not make any large purchases or take out another loan. This can greatly affect your interest rate and even your ability to get the loan at all. Consider putting all of your finances on hold and freeze them until the transaction is complete.

For more information or to get started on any of these steps contact my office today.

More: Ask a Realtor® – What comes with the house?

5 Major Benefits to using a buyer’s agent

Buy First, Sell First? Which Comes First?

June 28, 2016 by temineth Leave a Comment

Oh that tricky question; what should you do first? List the home? Make an offer on another one? Is it okay to buy and sell simultaneously? What’s the risk and what happens is one falls through?

This can be a stressful situation but it’s not uncommon. Many homeowners buy and sell at the same time. It can be a bit easier if you’re doing the swap in the same town. Out of town or even out of state can be very stressful but not if you plan ahead and be strategic about the move.

Here are some simple tips anyone can do when buying and selling at the same time.

Talk to your agent about what is the best move.

Simply talking to your agent about the marketing, the desirability of the neighborhood and how fast your home might sell can help you plan for this transition. If the market is hot, you might consider finding a home first and locking that in before listing. If the market is slow, consider listing first and finding a home later. Your agent will tell you honestly which direction to try first.

Should you go contingent?

Contingent is when you put in an offer on a house with a condition that you can’t finalize the payment until after your home sells. There may be some stipulations to this as well, such as, the home must already be listed, accepted offer, etc..

Contingent offers are also pretty tricky. Many homeowners in a hot market will not accept a contingent offer because they know about your offer is probably right around the corner. They are much less desirable and many listing agents will tell their sellers to decline a contingency offer.

This doesn’t mean that sellers won’t consider a contingent offer but it might be very risky and you may lose out on the home you really want. Each situation is unique and even micromarkets in particular communities and neighborhoods can vary from place to place, so it’s extremely important to be in top communication with your real estate agent about the best move for each house.

What about a bridge loan?

A bridge loan or even a home equity line of credit, can offer a loan extension from one house to another. A bridge loan, allows you to tap the equity in your current home with short-term financing in order to buy your new home before your old house sells. You’re basically financing to homes at the same time but just temporarily. Once your current home sells you can pay off the temporary bridge loan and move into your new home.

The downside is that very few lenders offer these types of homes. They’re more likely to recommend a HELOC, home equity line of credit, in order to make the down payment. Remember though, with a HELOC you will be paying two mortgages.

I typically recommend that my homeowners put their home up for sale first and then once they’ve negotiated an accepted offer, they can get serious about finding and purchasing a new home. This can be a tricky situation however, especially if you’ve found the home you love before you’ve even listed your current home. This is why I recommend not looking at homes until you’re ready.

Again, it all comes down to timing and understanding the individual markets that you’re buying in and selling in. Talk to your real estate agent before making any serious moves so that you can plan ahead, strategize the right plan of action and be prepared for a roller coaster ride over the next couple of months.

The right agent can certainly make all the difference in the world. Contact me today and let’s get started finding out what would be the best option for your situation and your location.

Best Places for Young Families in Northern California

May 12, 2016 by Dale Corpus Leave a Comment

Northern California has a reputation for pricey living, but young families are still finding affordable homes and good public schools in the suburbs of Sacramento and Fresno, as well as areas east of San Francisco.

Half of the 10 best places for young families in Northern California are clustered in suburbs of the state capital, NerdWallet found. Three other communities in our top 10 are in the eastern part of the Bay Area, where the tech industry is booming, and two are farther south, in the Fresno area.

NerdWallet’s analysis

By statistically comparing such factors as home prices, education, income growth and a crime risk score, NerdWallet identified the best places to start your search for the Northern California community that’s right for you and your family. We crunched the data for 202 places in Northern California — cities, towns and census-designated places with at least 10,000 residents. Not every place got top marks in all the categories we looked at, and housing affordability is an issue in some places.

Key takeaways

Family-friendly places came in pairs: Three sets of spots on the top 10 list are neighboring places — Rocklin and Roseville; El Dorado Hills and Folsom; and Dublin and San Ramon.

Second “bests”: Half of the cities on this year’s top 10 list also appeared on NerdWallet’s lists of the Best Cities for Young Families in Northern California 2014 or the Best Cities for Young Families in California 2014.

Best places for young families in Northern California

1. El Dorado Hills

El Dorado Hills, just east of Sacramento, earned a crime risk score of “most safe,” the highest possible mark. Homes aren’t cheap here — the median home value is $472,000, compared with the Northern California median of $304,650 — but median family income here is high, too, at $129,292. El Dorado Hills students are served by Buckeye Union School District, Rescue Union School District and El Dorado Union High School District. Top community attractions include El Dorado Hills Town Center and the area’s more than 200 acres of parks and open space.

2. Folsom

Folsom’s claim to fame may be its prison, but this suburban Sacramento city has a lot to offer families as well. Median family income in Folsom is high at $116,527, and it’s a community with plenty of young families — 30% of families include at least one child under the age of 18. Folsom earns a “safe” crime score, and poverty rates are low. Folsom Cordova Unified School District serves students in the area. The city offers a wealth of opportunities for outdoor recreation, and family attractions nearby include the historic district’s Sutter Street, the Folsom Railway Museum, Folsom’s Pioneer Village and the Harris Center for the Arts.

3. San Ramon

Living in San Ramon isn’t cheap; the San Francisco suburb’s median home value of $722,700 is the highest in our top 10. But families in the Contra Costa County city also earn a high median income of $151,494. San Ramon’s crime risk score is “most safe,” the highest possible, and 43% of families include at least one child under 18, the most in our top 10. Students here attend the award-winning San Ramon Valley Unified School District. Top attractions in San Ramon include the San Ramon Performing Arts Center, the San Ramon Art & Wind Festival as well as the city’s many trails and parks. San Ramon recently began a $4.45 million expansion and renovation of its main library, which will reopen in early 2017.

4. Dublin

Dublin, in Alameda County, is located on the BART train line, allowing for a car-free commute to San Francisco, and its crime risk score of “most safe” is the highest possible. Median family income grew 54.88% in Dublin from 1999 to 2014, the second-highest amount in our top 10. The Dublin Unified School District is expanding: A new kindergarten complex at James Dougherty Elementary School is scheduled to be completed in fall 2017, and a new K-8 school in the Jordan Ranch development is scheduled to open in fall 2018. Each year Dublin hosts Splatter, a popular food, art and wine festival for the whole family. The city is home to a wide range of parks and open space areas, including the 654-acre Dublin Hills Regional Park.

5. Kingsburg

Kingsburg, in Fresno County, has the lowest median home value in our top 10, at $219,700. Median income grew a whopping 57.15% on average from 1999 to 2014, the highest such jump in our top 10. Kingsburg is a “less safe” city according to its crime score, which is just under the state median. Elementary schools in Kingsburg operate on a charter system, which also includes one junior high school and Central Valley Home School. Kingsburg High School operates its own school district. Kingsburg pays homage to its heritage with its Swedish Village and annual events including the Kingsburg Swedish Festival and Julgransfest Christmas Tree Lighting.

Methodology

We analyzed 202 places in Northern California with populations of 10,000 or more. Northern California was defined as all counties in California, excluding the 10 southernmost counties of Imperial, Kern, Los Angeles, Orange, Riverside, San Bernardino, San Diego, San Luis Obispo, Santa Barbara and Ventura. Certain places were excluded because of missing data. Our methodology focused on four factors:

Home affordability. Home affordability, 30% of the total score, was calculated by averaging index scores for median home value and median selected monthly owner costs. The lower the costs, the higher the score. Data came from the American Community Survey, a division of the U.S. Census.

Growth and prosperity. Growth and prosperity are 20% of the total score. The two metrics were growth in family income from 1999 to 2014, and median family income in 2014. Data are from the American Community Survey.

Family friendliness. To measure whether an area is a good place for families, which is 20% of our total score, we looked at the percentage of married couples with at least one child under age 18, the average crime score as provided by NeighborhoodScout, and the percentage of families in poverty with at least one child under age 5.

Educational quality. Using data from SchoolDigger.com, every place was given a percentile score relative to other places in the state. Education is 30% of the total score.

Anna Helhoski is a staff writer at NerdWallet, a personal finance website.

This article originally appeared on NerdWallet.

Dale Corpus

925-380-1657

Dale@KeytotheBay.com

What is California Mortgage Insurance?

March 7, 2016 by Dale Corpus Leave a Comment

Mortgage insurance, also referred to as PMI, or private mortgage insurance is typically only found on loans where the borrower did not make a minimum 20% down payment. This can be a big hurdle, especially for first-time homebuyers, to come up with a large down payment of at least $10,000 or more depending on the price of the home. A 20% down payment on a $500,000 home is $100,000, something very few first-time homebuyers are able to save. This is where mortgage insurance comes into play. Lenders will allow a borrower to make a down payment of less than 20% on certain types of loans including an FHA loan or VA loan and because of the lower down payment there needs to be some sort of mortgage insurance for the lender themselves. This is known as a private mortgage insurance or lenders mortgage insurance.

Lenders want to make sure that if a borrower defaults on the loan and the lender has a risk of losing money, mortgage insurance will protect the lender by providing the money payable to the lender only to recoup any losses. Lenders tend to think that buyers who are unable to put 20% down might be more inclined to default on their loan. While this is true or not, lenders would still need to recoup the cost if the borrower defaults.

Mortgage insurance typically does not protect the borrower but it can still benefit the borrower. It allows the borrower to make a payment of less than 20%, which means that many borrowers would be able to be homeowners far sooner than have they saved the 20%. And even though it benefits the lender primarily, it is the borrower’s responsibility to pay the premium.

Mortgage insurance rates are based on the mortgage amount, loan terms, the down payment size, the borrower’s credit score and history. On average, the mortgage insurance rates are about $50 per month per $100,000 borrowed. Premiums can be paid up front or incorporated into the loan. Some insurance providers may offer discounts to borrowers with more modest incomes or higher downpayments but these are things to check with your lender about.

One good thing about the mortgage insurance is that it won’t last for the entire life of the loan. It is only required until the loans principal balance reaches 80% of the value of the home. Ironically the same amount should the borrower had put 20% down to begin with.

In 1998 the US Homeowners Protection Act required lenders to cancel the borrower paid mortgage insurance when the loan reached 78% of the appraised value or a sale price, whichever is less. This would mean that a borrower typically needs 22% equity in their home to have it automatically canceled. However, borrowers can call and request cancellation after a year or two of paying it or if the home can be appraised or valued at 80% of the loan.

Private mortgage insurance is also tax-deductible and is usually the least expensive option for low down payment borrowers. However, the Congress extends the tax break on a yearly basis so be sure to check with your lender on if this is still the case each year.

Private mortgage insurance can definitely benefit borrowers and that they don’t have to have the full 20% in order to buy a home but, you have to remember to cancel it when you can so that you don’t have to keep paying it when you don’t have to.

For more information on the different types of loans, lenders or options contact my office today.