Change of View October 18, 2008
Posted by Chris Zanger in Bay Area News, Campbell, Campbell Real Estate, Economics, Home Design, Housing, Inventory, Investments, Los Gatos, Real Estate, Real Estate Expert, Santa Clara County Real Estate, Saratoga, Technology, The Zanger Team, Uncategorized.add a comment
Two years ago, this open modern home was just a cottage-really. It was an accumulation of bits and pieces added over the years with a vine-entwined colonnade to make the front entry. Located in a first-ring suburb outside Minneapolis, it was built in the 1940s and had one intimate room after another filled with floral prints. But homeowners Robbie and Patti Soskin, sweethearts since high school, were reinventing themselves (not for the first time). Their change would also affect their three children-Jorie, 22; Zach, 16; Maddie, 15-and Edith, a Havanese (a member of the bichon family, and the national dog of Cuba).
Patti explains, “When my business partner and I opened our restaurant [Yum! Kitchen and Baker, in nearby Saint Louis Park] in 2005, it gave me a new perspective on modern. I liked the open, clean space. I began to feel comfortable with stainless steel-even the scratches. That was the turning point to do the house.”
Then, when a growing Zach began to hit his head on the ceiling of his bathroom in 2006, the conversations about a renovation got serious. The Soskins knew about Julie Snow’s work: Julie Snow Architects had designed an addition to their children’s school and done work for a friend. Noted for modern, open and light-filled commercial spaces, Snow takes very few residential projects each year (she spends a lot of time in Cambridge, Massachusetts, where she’s a visiting professor at Harvard University’s Graduate School of Design). But the Soskins were persistent.
“I first met Robbie and Patti in their home,” says Snow. “It was a warm, sweet cottage filled up with some very nice personal collections. It had seen many additions over the years and was really a jumble of structural elements. There were even two garages, on different sides of the house. They said to me, ‘We’re into a more open, modern lifestyle.’ Well, I looked around at all their stuff and said, or thought, ‘Really? Are you sure?’”
Then, she recalls, Patti, (an amazing cook and hostess) said, “We have 50-60 people here for Thanksgiving dinner.” Snow tried to imagine where. But Patti went on to describe how the family lived-or wanted to live-in their home.
They touch and hug all the time. They cuddle on sofas. They cook and eat together every day and have guests for dinner several nights a week. Lovingly demonstrative is their lifestyle of choice. It is their way with friends as well as family, and they needed a home that would express that spirit of togetherness, of invitation, of casual, abiding celebration.
Finally, Snow was convinced they weren’t kidding, and a match had been made. The Soskins had outgrown the home-not in size (it was already almost 50,000 square feet) but in style. Enclosed rooms that keep people apart would no longer do.
The Soskins’ design team from Julie Snow grew to include designated project architect Tyson McElvain and interior designer Connie Lindor (who has also trained as an architect). The builders, Streeter and Associates, came on board early to manage budgets and structural matters, which project manager Bob Near credits with the success of the final product.
“There was a question at one point whether there should just be a new house,” says Snow, “but the Soskins were into taking the bones of their own home and reinventing it.” The plan was never to enlarge the home significantly, but to maximize the existing footprint. In the end, the living room was bumped out five feet, and only one room was added-a screened porch near the family’s media room. But the existing footprint was radically reconfigured, and every single surface was transformed.
The Soskins were intimately involved in the process. “Robbie claims to be a novice at modernism,” says McElvain, “but he helped make decisions on a few key elements.” To that, Robbie, who is a partner at Compass Marketing in Minneapolis, responds, “We laid out a standard: Design, not decoration. It was the guiding principle. We were learners. And it was an amazing process.”
Then things got personal. “We loved where they were going,” says Patti, “but Maddie kept saying, ‘Why are we changing our house? It’s perfect the way it is.” She, especially, always feels cold and needs a warm home. We needed this modern house to be warm and inviting in feeling.”
Building on themes of dark and light, the architects began to select materials to address the matter of warmth (while avoiding traditional red wood tones). They liked the dark floors, a carryover from the cottage, so they specified Brazilian walnut and stained it twice in an ebony tone for an almost opaque, paint-like finish. From the ground up, materials lighten. A single natural is wood is used throughout the home for cabinetry-wenge, known for its fine, straight grain and naturally dark, rich color. Whitewashed oak strips are used as sliding doors, particularly in the kitchen, but have the presence of a movable wall. Selected walls are finished with ethereal white Venetian plaster buy decorative painter Darril Otto.
The kitchen, which Patti helped design based on her professional restaurant experience, is long and layered. Each and every surface and utensil was given careful design and consideration. The result is handsome and efficient with lots of choices for sitting-for eating, working or socializing.
Connie Lindor worked with the Soskins on furnishings while construction was coming to a close. They began by taking an inventory of everything the family owned, from the 1940s vintage art to collections of dishes and fabrics. “I have never seen people transform so dramatically from one style to another,” says Lindor. She encouraged her clients to keep a few things they valued. The vintage glass collection that landed on the dining table and some inherited and handmade dishes displayed in the kitchen cabinets tether the Soskins to their past life.
Of the furniture, Lindor says, “It was very important that it be flexible. One night they’re on the sofa watching a movie. The next night, it’s a party for 50. The furniture we chose is modular and can easily be moved.” Favorite resources included Arkitectura in Situ in San Francisco for the Italian upholstery and occasional tables. Patti had a picture of a dining table, and Lindor recognized it immediately as a piece from BDDW’s collection (the company has a showroom in New York City)-but they had it custom-sized to seat 12.
Naturally, the design team came to know the Soskins over the two years they created together-shopping for furniture, then stopping for wine and dinner in San Francisco, selecting finishes over Patti’s cappuccinos and homemade chocolate-chip cookies. They observed Robbie and Patti Soskin’s warmth for each other, counting the numbers of people who move and out of the home daily-which Robbie explains: “We don’t look at it as entertaining. It’s just how we live. We love sharing this place.” Even daughter Maddie, who hates the cold, likes the new home. Says Maddie, “It’s like living in a snow globe in the winter.”
Meanwhile, Snow had a life lesson in the intangibles of modern living that can’t be qualified in the architecture. “This place isn’t about a glass curtain wall,” she says. “Patti and Robbie gave modernism a warm name. No one is coming here to look at the art. Although it is good, this is not a museum. Here, the dog is on the sofa; there are no worries about red wine. People eat at this table every night. It is vivid living.” Clearly, change is good.
~Metropolitan Home (November 2008)
Beggar’s Delight October 17, 2008
Posted by Chris Zanger in Bay Area News, Campbell, Campbell Real Estate, Economics, Foreclosure, Home Design, Housing, Inventory, Investments, Loans, Los Gatos, Market, Real Estate, Real Estate Expert, Santa Clara County Real Estate, Saratoga, Technology, The Zanger Team, Uncategorized.add a comment
“Halloween seems wasteful. Are there ways to make it more green?”
Danny Says: You can make a difference by knowing how to recycle, reuse, and repurpose all the Halloween tricks and treats.
Pumpkins: Crack open gourds and pumpkins with a hammer, and place the broken pieces in the woods or a field far ways from your house. Deer and other animals will feast on the flesh and seeds. You can also air dry pumpkin seeds as bird feed; our feathered friends crave the high-protein treat.
Barley Hay: Buy barley hay bales to decorate your front porch. Barley hay is a natural deterrent of algae in ponds and water gardens because it releases natural oxygenators to clear the water. Just gather barley hay into small bundles, stuff them into a netted bag, add a rock for weight, drop it in your pond, and forget about it. Hay can also be used as mulch in the garden.
Candy: Give leftover wrapped candy to local charities such as Meals on Wheels or an agency that works with children. Hard candy-like peppermints and butterscotch-can be crushed with a rolling pin and sprinkled on rolled cookie dough before baking for a yummy glaze.
Costumes: Donate last year’s outfits to local Goodwill or Salvation Army stores where they’ll sell them and raise money. After this year’s festivities, ask local children’s hospitals if they would like lightly worn costumes for the kids.
~Better Homes and Gardens (October 2008)
One Splashy Bath October 17, 2008
Posted by Chris Zanger in Bay Area News, Blogroll, Campbell, Campbell Real Estate, Economics, Foreclosure, Home Design, Housing, Inventory, Investments, Loans, Los Gatos, Market, Real Estate, Real Estate Expert, Santa Clara County Real Estate, Saratoga, Technology, The Zanger Team, Uncategorized.1 comment so far
Keeping unnecessary waste out of landfills scores high in our book, and this bath does exactly that. Designed by Libby Langdon for the Better Homes and Gardens Living Green Tour, it teaches several reuse lessons.
Rehab Old Furniture
The vanity was first an antique dresser. Look for a piece that can accommodate plumbing; you may be able to reconfigure drawers to salvage storage.
Be Creative with Scraps
The original dresser top was removed, cut into strips like molding, and crafted into a simple mirror frame.
Choose Eco-Smart Surfaces
Countertops and backsplash tiles made of recycled materials are durable and decorative.
Note: The Living Green Tour has traveled coast-to-coast this year, sharing ideas and inspiration on green living at home. It makes its final three stops this month, but you can see photos of the entire exhibit anytime at BHG.com/livinggreen.
~Better Homes and Gardens (October 2008)
Don’t Delay Home Repairs September 16, 2008
Posted by Chris Zanger in Bay Area News, Blogroll, Campbell Real Estate, Economics, Foreclosure, Home Design, Housing, Inventory, Investments, Loans, Market, Real Estate, Real Estate Expert, Sales Statistics, Santa Clara County Real Estate, The Zanger Team, Uncategorized.2 comments
Home maintenance ranks low on many homeowners’ priority lists. When the washing machine breaks, you might fix it to keep from having to go to the Laundromat. But, if there’s no pressing need, home maintenance chores are often put off.
In the current real estate market, homeowners may be less inclined to pay money to make repairs around the house. However, the key to preserving the value of your home is keeping it in good condition.
Home maintenance is a necessary part of home ownership. The cost varies depending on the age of the home, its overall condition when you buy it and the climate. For example, in coastal California the alternation between fog and blistering sun takes its toll on exterior paint. Houses with a western exposure may need painting more often than those that face the east.
Homeowners can have a hard time coming to terms with the fact that they can’t recoup the cost of home maintenance when they sell. Home maintenance is a cost of ownership, as are property taxes, homeowners insurance and mortgage expenses.
Even though you can’t tally your home maintenance expenses and expect a buyer to reimburse you, you do benefit when you sell by keeping your home well maintained. Buyers tend to pay more for homes that are in top condition, particularly in a buyer’s market.
Also, if you don’t take care of deferred maintenance, buyers are likely to adjust the price they’ll pay for your home accordingly. The burden of making the repairs will be on them, so they will factor this into the cost of the house.
You can cut down on home maintenance by buying a condominium or townhouse in a planned-unit development where the homeowner’s association dues cover some of these costs. If you rent, your landlord is usually responsible for making repairs.
As a homeowner you can keep your home maintenance costs down by staying on top of correcting minor problems before they become major. For instance, if a threshold is cracked and showing signs of wear, it’s best to have it replaced before it causes water damage to the framing underneath. With the escalating cost of lumber, it would be a lot cheaper to replace the threshold now than to repair major water damage later.
Summer is an ideal time to take a serious look at your home in terms of getting it ready for the winter months. Track down leaks in windows, doors, roots, foundations, drainage systems, and basements. Have these and any related damage repaired.
Water is a homeowner’s biggest headache. Too much in the wrong place can lead to dry rot, fungus, and mold problems that can be very expensive to repair. Ideally, your home should be dry inside underneath the house during the rainy season.
Some homeowners can make repairs themselves. Others have little or no experience, and can’t even spot a problem when they see one. If you fall into the latter category, plan to hire a home inspector, contractor, or handyman to inspect your home annually for defects that need to be repaired. Many small repairs like installing weather-stripping, sealing French doors or windows, or caulking sinks and tubs can be done by a handyman.
Ask your inspector to prioritize the needed repair items. If you’re short of funds, at least take care of the most important items
Set a schedule for taking care of home maintenance items like having the furnace and fireplace checked, trimming trees and clearing drains.
~Realty Times
BUYER’S AGENT VS. SELLER’S AGENT August 6, 2008
Posted by Chris Zanger in Bay Area News, Campbell Real Estate, Economics, Housing, Inventory, Investments, Loans, Market, Real Estate, Real Estate Expert, Santa Clara County Real Estate, The Zanger Team, Uncategorized.add a comment
In the past, all real estate agents worked for the benefit of the Seller. This was called “subagency.” If you told your agent, “Let’s offer $650,000, but we’ll go $660,000,” that agent had a LEGAL duty to tell the Seller that you would go $660,000. Luckily, subagency was done away with in California quite a while ago.
There are now three basic types of agents-1. Buyer’s Agent. 2. Seller’s Agent. 3. Dual Agent. A Buyer’s Agent owes “a fiduciary duty of utmost care, integrity, honesty, and loyalty in dealings with the Buyer.” A Seller’s Agent owes this fiduciary duty to the Seller exclusively. A Dual Agent has a shared fiduciary duty to both the Buyer and the Seller.
Here is how this works in real life. You are out looking at open houses without an agent and see a home that you’d like to buy. You have a couple of options at this point. Let’s say that you already have a relationship with an agent. You would leave the open house, and then call your agent, who will help you write up an offer. In this case, your agent will represent you and try to get you the best deal, and the listing agent will represent the Seller and try to get them the best deal.
Now let’s say that you’ve just arrived in Silicon Valley that morning so you don’t have a relationship with an agent. The listing agent who is there seems friendly and trustworthy. You decide to write up an offer with the listing agent. In this case, the listing agent will be representing both you and the Seller as a Dual Agent.
As a third option, you don’t have an agent yet, but don’t feel comfortable using the Seller’s Agent. In this case you would leave the open house and do some quick research to find an agent to represent you, hopefully a referral from a friend.
In a future article I’ll discuss the pros and cons of using a Dual Agent versus having your own Buyer’s Agent.
~Realty Times
FOR FURTHER INFORMATION PLEASE CONTACT CHRIS ZANGER WITH THE ZANGER TEAM AT REFERRAL REALTY.
CALL [408] 914-5046, OR VISIT OUR WEBSITE AT WWW.THEZANGERTEAM.COM
Murphy’s Law for Sellers August 5, 2008
Posted by Chris Zanger in Bay Area News, Campbell Real Estate, Economics, Housing, Inventory, Investments, Loans, Market, Real Estate, Real Estate Expert, Sales Statistics, Santa Clara County Real Estate, The Zanger Team, Uncategorized.add a comment
Murphy’s Law states that anything that can go wrong will go wrong. Glitches in any real estate transaction are inevitable. If you are prepared, you won’t be so shocked when they do. Here are some suggestions that may help:
Your Home May Not Be Worth What You Think
The biggest shock most sellers face is what buyers think their home is worth. Sometimes sellers can be pleasantly surprised, but the reality is that markets change, and home values rise and fall.
The truth is that buyers will determine the worth of your home, in this market, at this particular time, and that has very little to do with what you need to get out of the home.
People Won’t Love Your Home Like You Do
You love your home and expect others to appreciate the same qualities in it that you do, but buyers have their own lifestyles, preferences, tastes and attitudes. The chances of finding a buyer who will want your home “as is” are slim to none.
Remember, your home is competing against other homes with updates and features your home may not offer. Your home has to withstand the glare of scrutiny, so you must make it as competitive as possible within your means. Put it in good repair, and make sure it is spotless and clutter-free.
Sooner Or Later You Will Lose Your Temper
Your relationship with your buyer will be one of love/hate. The buyer is an adversary because s/he wants to pay the least for your home, while you want to net the most possible.
The buyer, in order to improve bargaining leverage, may pick your home apart. Many of the buyer’s complaints and requests for repairs will be legitimate, some may not.
Stay focused on your goal to sell the home, and keep your cool. Let your agent tell their agent yes, or no. Your home can’t close until everyone is happy, so be flexible and willing to compromise.
Unexpected Showings.
Buyers aren’t going to operate on your schedule. They may want to see the home at any time of the day or evening. Your realtor will ask you to keep your home in show condition. Don’t worry that the bed wasn’t made. Trust that only serious buyers will be allowed to see your home.
Buyer Rudeness
Poor manners are rampant in our society. So why be surprised when buyers visit your home and leave their McDonald’s cup on your coffee table? Or leave the cabinets and closet doors open wherever they looked? Or miss their appointment, expecting you to reschedule at a moment’s notice?
Inspections
Inspections kill more deals than any other single factor besides overpricing. All older homes have some minor and some major problems, so address the problem before it becomes a problem. Get a seller’s inspection, and you’ll have advance knowledge of any problems that must be fixed. A buyer who sees a favorable inspection report as part of the home marketing materials is more likely to make a fair price offer.
Last Minute Problems That Delay Closing
Service providers, from lenders to inspectors to closing agents, may cause problems, sometimes without meaning to. In some areas, closings are happening at such a rate that all service providers associated with the real estate transaction are on overload. So schedule all steps in the transaction early. Track the transaction with your Realtor so you know which steps have been fulfilled properly. Have your Realtor nudge anyone along who is late with their piece.
~Realty Times
FOR FURTHER INFORMATION PLEASE CONTACT CHRIS ZANGER WITH THE ZANGER TEAM AT REFERRAL REALTY.
CALL [408] 914-5046, OR VISIT OUR WEBSITE AT WWW.THEZANGERTEAM.COM
Housing and Economic Recovery Act of 2008 August 4, 2008
Posted by Chris Zanger in Bay Area News, Campbell Real Estate, Economics, Foreclosure, Housing, Inventory, Investments, Loans, Market, Real Estate, Real Estate Expert, Sales Statistics, Santa Clara County Real Estate, The Zanger Team, Uncategorized.add a comment
H.R. 3221, the “Housing and Economic Recovery Act of 2008,” passed the House on July 23, 2008, by a vote of 272-152. On Saturday, July 26, 2008, the Senate passed the bill by a vote of 72-13. The President signed the bill on July 30, 2008. The bill includes the following provisions:
- GSE Reform – including a strong independent regulator, and permanent conforming loan limits up to the greater of $417,000 or 115% local area median home price, capped at $625,500. The effective date for reforms is immediate upon enactment, but the loan limits will not go into effect until the expiration of the Economic Stimulus limits (December 31, 2008).
- FHA Reform – including permanent FHA loan limits at the greater of $271,050 or 115% of local area median home price, capped at $625,500; streamlined processing for FHA condos; reforms to the HECM program, and reforms to the FHA manufactured housing program. The down-payment requirement on FHA loans will go up to 3.5% (from 3%). The effective date for reforms is immediate upon enactment, but the loan limits will not go into effect until the expiration of the Economic Stimulus limits (December 31, 2008).
- Homebuyer Tax Credit – a $7500 tax credit that would be would be available for any qualified purchase between April 9, 2008 and June 30, 2009. The credit is repayable over 15 years (making it, in effect, an interest free loan).
- FHA foreclosure rescue – development of a refinance program for homebuyers with problematic subprime loans. Lenders would write down qualified mortgages to 85% of the current appraised value and qualified borrowers would get a new FHA 30-year fixed mortgage at 90% of appraised value. Borrowers would have to share 50% of all future appreciation with FHA. The loan limit for this program is $550,440 nationwide. Program is effective on October 1, 2008.
- Seller-funded down-payment assistance programs – codifies existing FHA proposal to prohibit the use of down-payment assistance programs funded by those who have a financial interest in the sale; does not prohibit other assistance programs provided by nonprofits funded by other sources, churches, employers, or family members. This prohibition does not go into effect until October 1, 2008.
- VA loan limits – temporarily increases the VA home loan guarantee loan limits to the same level as the Economic Stimulus limits through December 31, 2008.
- Risk-based pricing – puts a moratorium on FHA using risk-based pricing for one year. This provision is effective from October 1, 2008 through September 30, 2009.
- GSE Stabilization – includes language proposed by the Treasury Department to authorize Treasury to make loans to and buy stock from the GSEs to make sure that Freddie Mac and Fannie Mae could not fail.
- Mortgage Revenue Bond Authority – authorizes $10 billion in mortgage revenue bonds for refinancing subprime mortgages.
- National Affordable Housing Trust Fund – Develops a Trust Fund funded by a percentage of profits from the GSEs. In its first years, the Trust Fund would cover costs of any defaulted loans in FHA foreclosure program. In out years, the Trust Fund would be used for the development of affordable housing.
- CDBG Funding – Provides $4 billion in neighborhood revitalization funds for communities to purchase foreclosed homes.
- LIHTC – Modernizes the Low Income Housing Tax Credit program to make it more efficient.
- Loan Originator Requirements – Strengthens the existing state-run nationwide mortgage originator licensing and registration system (and requires a parallel HUD system for states that fail to participate). Federal bank regulators will establish a parallel registration system for FDIC-insured banks. The purpose is to prevent fraud and require minimum licensing and education requirements. The bill exempts those who only perform real estate brokerage activities and are licensed or registered by a state, unless they are compensated by a lender, mortgage broker, or other loan originator.
~The National Association of Realtors
FOR FURTHER INFORMATION PLEASE CONTACT CHRIS ZANGER WITH THE ZANGER TEAM AT REFERRAL REALTY.
CALL [408] 914-5046, OR VISIT OUR WEBSITE AT WWW.THEZANGERTEAM.COM
Ten Tips for First-Time Buyers August 4, 2008
Posted by Chris Zanger in Bay Area News, Campbell Real Estate, Economics, Housing, Inventory, Investments, Loans, Market, Real Estate, Real Estate Expert, Sales Statistics, Santa Clara County Real Estate, The Zanger Team, Uncategorized.add a comment
Each year more than 40 percent of all homes are purchased by first-time buyers according to the National Association of Realtors, a percentage which should offer some comfort if you’re about to buy a first home. Others have done it, others are doing it, and you can too.But like most things, there are ways to make the process easier. Here in capsule form, are 10 baseline strategies to make that first purchase a good experience.
Think credit. Poor credit will make you a bigger risk in lender eyes – and more risk means higher rates and steeper monthly mortgage costs. Make a point of paying credit card bills, auto loans, rent, and other payments on time, all the time, and in full.
Consider taxes. When you buy a home mortgage interest and property taxes are generally deductible from income taxes. This means while monthly housing costs may be larger when you own than when you rent, what you save in taxes can make up some or all of the difference.
Know the broker’s role. Real estate brokers are at the center of most property transactions. It’s important for you to know what a broker does, who is represented, and how the brokerage system works.
Consider what location will work best for you. Look at your needs, the needs of household members, and your preferences in terms of commuting, shopping, recreation, and other factors that are important to you.
Plan on getting a home inspection as part of any offer you make. A professional inspection can help you understand the condition of the property and the repair bills you are likely to face in the next few years.
Look into the financing process as soon as possible. Get pre-approved so that you generally know how much you can borrow so owners will see you as a serious buyer.
Save. You’ll need money for a down payment, closing costs, moving, and other expenses. Put off trips and luxuries until after you’re in your new home.
Examine the different financial options which are open to you – consider loan programs which require little down and have liberal qualification standards.
Look for gifts and grants. According to the National Association of Realtors, 22 percent of all first time buyers receive gifts from relatives and friends. Some companies offer grants and other incentives to employees who are buying a first home.
Start now, take your time, and ask as many questions as you like. Being a first-time home buyer is challenging, but millions of people do it each year – and you can too.
~Realty Times
FOR FURTHER INFORMATION PLEASE CONTACT CHRIS ZANGER WITH THE ZANGER TEAM AT REFERRAL REALTY.
CALL [408] 914-5046, OR VISIT OUR WEBSITE AT WWW.THEZANGERTEAM.COM
Fix Your Credit Score, Quickly! August 4, 2008
Posted by Chris Zanger in Bay Area News, Campbell Real Estate, Economics, Housing, Inventory, Investments, Loans, Market, Real Estate, Real Estate Expert, Sales Statistics, Santa Clara County Real Estate, The Zanger Team, Uncategorized.add a comment
When buying real estate, good credit is crucial.
The first, and most important, item to check is your FICO score. Any mistakes and incorrect entries will need to be fixed and it takes time to do that–time you may not have when you are applying for a loan and your contingency period is running out.
Most lenders have carved-in-stone rules about handing out the best terms, and those rules almost always place a major emphasis on your credit score. If their best rates are offered to borrowers with a score of 700 or higher and yours is a 698, those two points could cost you thousands of dollars.
If you have a low FICO score, there are ways to increase it. Again, they take time and it is never too early to start.
Pay your bills on time. Delinquent payments and collections have a major negative impact on your score.
If you have missed payments, get current and stay current. The longer you pay your bills on time, the better your score. But also be aware even if you pay off a collection account, it will stay on your report for seven years. Keep your balances low on credit cards and other “revolving credit.” High outstanding debt can affect a score.
Pay off debt rather than moving it around. The most effective way to improve your score is by paying down your revolving credit.
The fastest route to a better score is paying down balances on credit cards, says Watts and David Herpers, chief marketing officer for Atlanta-based Amerisave Mortgage Corp.
“There’s really no silver bullet, but I would think that over 60 days, it’s possible to increase your score 20 points by paying down your credit lines,” Herpers says.
Don’t close unused credit cards as a short-term strategy to raise your score. Closing unused accounts without paying down your debt changes your utilization ratio, which is the amount of your total debt divided by your total available credit.
If you do close credit card accounts, though, leave the oldest one open. The length of your credit history is another factor in your score. If you close the account of the credit card you got when you were a freshman in college and leave open the ones you just got within the last couple years, it makes you look like a much newer borrower.
~Realty Times
FOR FURTHER INFORMATION PLEASE CONTACT CHRIS ZANGER WITH THE ZANGER TEAM AT REFERRAL REALTY.
CALL [408] 914-5046, OR VISIT OUR WEBSITE AT WWW.THEZANGERTEAM.COM
Six Signs That You’re Ready to Buy August 4, 2008
Posted by Chris Zanger in Bay Area News, Campbell Real Estate, Economics, Housing, Inventory, Investments, Loans, Market, Real Estate, Real Estate Expert, Sales Statistics, Santa Clara County Real Estate, The Zanger Team, Uncategorized.1 comment so far
Figuring out whether you’re ready to buy a house — whether you’re a renter or are aiming to move up or size down — can be a daunting task. But there are signs that will indicate whether you’re ready to take the buying plunge.
If you are thinking about buying, you’re not alone.
David Lereah, NAR’s chief economist, said the housing market has reached a new plateau. “Over the last few years, it’s become apparent that the level of home sales will generally remain at higher levels than what was common in the mid-1990s,” he said. “The fundamental change is a growing population with a rising number of households entering the age in which people typically buy their first home. In short, we have the need, desire and ability for people to buy homes.”
So are you ready to make the move? You might be if you:
- Are familiar with the market. If you’ve been paying attention to how much houses are listed for in the neighborhoods you’re eyeing and have a realistic view of how much a house will cost you, you’re in good shape. But if you’re dreaming about that big corner house with no clue about its asking price, you may want to spend some more time becoming familiar with the market and how much houses are going for.
- Have the money for a down payment and closing costs. The down payment is a percentage of the value of the property. Freddie Mac says the percentage will be determined by the type of mortgage you select. Down payments usually range from 3 to 20 percent of the property value. Also, you may be required to have Private Mortgage Insurance (PMI or MI) if your down payment is less than 20 percent. Closing costs include points, taxes, title insurance, financing costs and items that must be prepaid or escrowed and other settlement costs. Generally, buyers will receive an estimate of these costs from your lender after you apply for a mortgage.
- Know how much you can afford. Freddie Mac says that as a general guide, your monthly mortgage payment should be less than or equal to a percentage of your income, usually about a quarter of your gross monthly income. Also, your income, debt and credit history go into determining how much you can borrow. As a general rule, your debt– credit card bills, car loans, housing expenses, alimony and child support– should not be more than about 30 to 40 percent of your gross income.
- Know what additional expenses will come with owning a home. This includes homeowners insurance, utility bills, maintenance costs — roofing, plumbing, heating and cooling.
- Have your credit in good shape and make sure your credit report is accurate. Potential lenders will view your credit history — how much debt you’ve accrued, how many accounts you have open, whether your payments are made on time, etc. — to determine whether they’ll give you a loan. You should get a report from each of the three credit reporting companies: Equifax, Experian, and Trans Union.
- You haven’t made any recent major purchases, particularly a vehicle. If you do, you may have a harder time getting a loan — or it could potentially lower the amount you’ll be approved for.
Once you decide you’re ready, you’ll need to be prepared to move quickly if you’re aiming to buy in a sellers’ market.
The next steps involve hiring a real estate professional and getting preapproved for a mortgage loan. This way you’ll know if you can get approved and how much you can spend on a house. It also puts you in a stronger position when you ultimately make an offer on a house.
~Realty Times
FOR FURTHER INFORMATION PLEASE CONTACT CHRIS ZANGER WITH THE ZANGER TEAM AT REFERRAL REALTY.
CALL [408] 914-5046, OR VISIT OUR WEBSITE AT WWW.THEZANGERTEAM.COM
