Campbell & West San Jose Real Estate, brought to you by the Zanger Team at Referral Realty

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

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

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

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

Many homebuyers frequently wonder, “If I am shopping for a home loan will my credit be affected each time a credit report inquiry is made?”

It’s a logical and intelligent question to ask; the answer is: not significantly, if the credit checks are done in a short period of time.

When a credit check is made by a potential lender it is called a hard inquiry. When a hard inquiry occurs it does not have an impact on your credit score. However, when you’re shopping for a mortgage or a car loan, credit bureaus typically cluster the hard inquiries together because the credit reporting bureaus understand that the consumer is shopping for the best loan.

“So for example, if you’re shopping for a new mortgage and three potential lenders pull your credit score within three weeks, that is looked at as one inquiry for that purpose,” says Steven Katz a spokesperson for TransUnion’s TrueCredit.com.

Keeping your credit clean is critical. Katz offers the following advice to help ensure healthy credit.

One card you should not carry: Leave your Social Security card at home.

Most people have their Social Security card number memorized. Your Social Security card number contains personal information that if it gets into the wrong hands, can cause major credit dilemmas.

Lock it up: Apartment complexes and condominiums typically have locking mailboxes, but these types of secure mailboxes aren’t as common in residential, single-family neighborhoods.

Katz says mailboxes with locking devices are becoming more popular at hardware stores because identity theft is spreading.

Shred your documents: Katz says if you don’t shred your personal documents and criminals access the information, the result can be devastating to your credit. Criminals will often attempt to open new accounts using your name and information.

“So, you’ll never even know that the account was established. They’ll be receiving the bills and then just throwing them out. It’s ruining your credit,” explains Katz.

Keep an eye on your credit card: Katz says while it is difficult, people should not let their credit card out of their sight or else they run the risk of becoming a victim of skimming.

Skimming has become prevalent at some restaurants and gas stations where a clerk might have a small device that scans the consumer’s credit card.

“It’s a very small scanner that captures all the information that is on the magnetic strip, and then the card’s information can be cloned,” explains Katz.

Of course, keeping your credit card visible at all times is nearly impossible. Katz says, “If you’re going to go to a restaurant in an area that you’re a little uncertain of  -  that’s in a fringe area or you’re in a foreign country and you’re not too certain about where you’re dining  -  attempt to use cash.”

Also, when using credit cards be sure that the receipt you leave with the merchant does not have your credit card number exposed. Most merchants have credit card systems that only print out the last four digits of a consumer’s credit card; however, some still show the entire account number on the print out. If your full credit card account number appears on the receipt, scratch it out with a pen.

Consumers can check their credit history for free once a year at annualcreditreport.com. Katz says that the free reports will not contain an actual credit score, but you can get the scores for a fee.

Another good credit-checking resource is found at truecredit.com.

~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