George Langford's Blog

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2010-04-29T09:16:00.001-07:00

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Spring San Francisco Real Estate Report!

2010-04-07T17:10:00.000-07:00

Click on the link to read the Report!

http://www.inkswitch.com/viewItem.php?itemID=31396

Earthquake Preparedness Kit - Are you Ready?

2010-04-06T15:11:00.000-07:00

We have recently had Earthquakes in Southern California and Mexico. Although this activity is not out of the "Norm" it is always a reminder that we need to be prepared living here in San Francisco.

After a major disaster the usual services we take for granted, such as running water, refrigeration, and telephones, may be unavailable. Experts recommend that you should be prepared to be self-sufficient for at least three days. Store your household disaster kit in an easily accessible location. Put contents in a large, watertight container (e.g. a large plastic garbage can with a lid and wheels) that you can move easily.

Your basic emergency kit should include:

*Water – one gallon per person per day
*Food – ready to eat or requiring minimal water
*Manual can opener and other cooking supplies
*Plates, utensils and other feeding supplies
*First Aid kit & instructions
*A copy of important documents & phone numbers
*Warm clothes and rain gear for each family member.
*Heavy work gloves
*Unscented liquid household bleach and an eyedropper for water purification
*Personal hygiene items including toilet paper, feminine supplies, hand sanitizer and soap
*Plastic sheeting, duct tape and utility knife for covering broken windows
*Tools such as a crowbar, hammer & nails, staple gun, adjustable wrench and bungee cords.
*Blanket or sleeping bag
*Large heavy duty plastic bags and a plastic bucket for waste and sanitation
*Any special-needs items for children, seniors or people with disabilities. Don’t forget water and supplies for your pets.
*A component of your disaster kit is your Go-bag. Put the following items together in a backpack or another easy to carry container in case you must evacuate quickly.

Prepare one Go-bag for each family member and make sure each has an I.D. tag. You may not be at home when an emergency strikes so keep some additional supplies in your car and at work, considering what you would need for your immediate safety.

Flashlight
Radio – battery operated
Batteries
Whistle
Dust mask
Pocket knife
Emergency cash in small denominations and quarters for phone calls
Sturdy shoes, a change of clothes, and a warm hat
Local map
Some water and food
Permanent marker, paper and tape
Photos of family members and pets for re-identification purposes
List of emergency point-of -contact phone numbers
List of allergies to any drug (especially antibiotics) or food
Copy of health insurance and identification cards
Extra prescription eye glasses, hearing aid or other vital personal items
Prescription medications and first aid supplies
Toothbrush and toothpaste
Extra keys to your house and vehicle
Any special-needs items for children, seniors or people with disabilities. Don’t forget to make a Go-bag for your pets

District 5 - Noe Valley San Francisco

2010-04-05T16:23:00.000-07:00

Over the years, Noe Valley has become one of San Francisco's most coveted residential areas. Many of the Victorian and Edwardian homes in the area have been updated for modern living, and the area is very convenient for out-of-town and downtown commuters alike, with easy access to highways and the J-Church Muni Metro line.

Twin Peaks rises high above the valley, blocking much of the fog that lingers in the city's Western neighborhoods; frequent sunny days make this a wonderful home for those who love socializing with their neighbors.

24th Street is the heart of the neighborhood, and here you will find friendly faces popping in and out of boutiques, restaurants, charming cafes, salons and a bevy of long-standing small businesses. Throughout San Francisco, this area is known as a popular place for both new parents and dog lovers to congregate - watch out for strollers and dog leashes while window-shopping!

The inclusiveness of the neighborhood is bolstered by a number of community events, including a weekly farmers market and October's much looked-forward-to Harvest Festival. Of course, Noe Valley neighbors find reasons to gather every day -- whether at Douglass Park playground, the newly opened recreation center and dog run, or just out in front of one of the many coffee venues.

■Zip Code(s): 94114, 94131, 94110

For the First Time in a Year, Fewer Sellers Slash Asking Price

2010-03-19T11:22:00.000-07:00

For the first time in a year we are seeing fewer Sellers slash asking prices. In some markets the fewer slashed from home Sellers is resulting in bidding wars. Just under 20 percent of homes that went up for sale in March have been reduced once.

San Francisco Market Update:

List Price to Sell Price is 98.15%

What does this mean for Buyers?

If you find a home that is priced right, in good condition and in a great location it will sell fast. The day of waiting for the Seller to drop the price is becoming less and less. There is less inventory on the market at the moment and more buyers taking advantage. In some cases here in San Francisco we are seeing multiple offers on properties.

What does this mean for Sellers?

Preparing you home is key in this market. Preparation can be painting, updating or staging to allow your home to be the "Gem" property in this market. Pricing correctly in the beginning is imparative. The market will determine the value of your home.

Find out if you can afford a Mortgage without the Mortgage!

2010-02-23T19:30:00.001-08:00

It's natural as a First Time Home Buyer to have the "Fear" of a mortgage. Paying rent all your life and never having such a large payment does sound intimidating at first. Well I have the solution to help ease that fear!!!

Solution:

Step #1: Go talk with a Bank or Mortgage Broker/Banker to see if you can qualify for a loan. This will allow you to know how much you can purchase and what the estimated monthly payment would be for your specific scenario.

Step #2) THE MOST IMPORTANT STEP OF ALL!
Take the difference between what you currently pay in Rent and what your propsed New Mortgage payment would be. Take the difference and put it into a Savings account for 3 months. This will allow you to see what it would be like to actually have a mortgage without the committment! See how life would be.... if it feels tight consider lowering your purchase price, if it's comfortable stay at the proposed payment, and if life still seems very good, explore the opportunity to increase your purchase price.

For Example:
If you pay $2,000 a month in rent and your payment would be $3,500 a month for a mortgage. Take $1,500 a month and place it into a savings account as if you were paying a mortgage. At the end if you decide to purchase a home you will have saved money for moving expenses or even New Furniture and you will already know what it is like to have a Mortgage!

Why let Fear control your decision? Try this out and take away the fear of a mortgage and the "un-known".

30 Days VS. 3 Plus Months - You be the Judge!

2010-02-18T16:08:00.000-08:00

The wire is down for First Time Home Buyers to cash in on the $8,000 tax credit. April 30th you must be in contract and close by June 30th. You still have the opportunity to take adavantage of the tax credit.

Buying a home that is being sold by a seller and not a bank may be your only option soon. "Regular" sales or a home that is being sold by a seller and not a bank will allow you to close an escrow around 30 days. Short Sales are taking so long that it might be 3 months before you hear back from the bank and at that time the answer could still be no. Taking that long for a response might put you out of game for the credit.

But I can get a better deal when I buy a short sale.... right?

Sellers are very aware of Today's market and understand that they are going against banks. Banks are very aware of the market as well and won't let a home go for any price either. Having your Realtor negotiate with a seller could be more beneficial. A lot of banks will not allow for the buyer to receive credits to help pay for closing costs. You have a better chance at trying to ask a seller to help pay some or even all closing costs. Buying a home from a Seller might actually be a better choice of the two. Are you willing to wait for the bank to respond over 3 months but have your interest rate increase? If this were to happen that Short Sale might actually cost you more in the long run. See examples below:

"Regular" Sale: Seller & Buyer
List Price: $500,000
Seller Pays 3% Closing Costs: $15,000
Buyer Pays: $475,000
Payment at 5.125 Interest with 20% Down: $1,708.00 (Estimate)

Short Sale: Bank & Buyer
List Price: $500,000
Bank does not allow credit for closing costs
Buyer Pays: $500,000
3 month Response time interest rates go to 5.25%
Payment at 5.25 Interest with 20% Down payment: $1,750.00 (Estimate)
Buyer out of pocket for closing costs $15,000

Is the short sale reall worth waiting for? You be the judge!

***Payments do not include HOA's or Property Tax. They are estimates and for example purposes only!

Beat the Clock - Credit Soon to Expire!

2010-02-12T14:32:00.000-08:00

First Time Home Buyers have a great opportunity to take advantage of the $8,000 Tax Credit. Unfortunately even this great opportunity does have an expiration date!

What makes a First Time Home Buyer?

As long as you have not owned property within the last 3 years you are considered a First Time Home Buyer. You must intent to live in the property and have it has your primary home. Can not be used for investment properties or second homes.

Tax Credit Timelime:
April 1st, 2010 - Must be in Contract on a home (In Escrow)
June 1st, 2010 - Must Close Escrow on your property

Please call George today for more information or to take advantage of Today's Buyer incentve Market!

First Time Home Buyers Have A Unique Advantage in Today's Mortgage Market

2010-02-09T10:17:00.000-08:00

Mortgage rates have fell for the third straight week. The credit markets are still tight but have loosened up significantly from 90 days ago.

Buyer Advantages in Today's Market:

#1) Low Interest Rates
#2) Opportunity to Negotiate with Sellers to pay for Closing Costs
#3) $8,000 Tax Credit available to First Time Home Buyers

What to Prepare for when applying for a loan;

#1) Provide Bank Statements
#2) W-2 Wage and Tax Statements
#3) Pay Stubs
#4) Provide Assets (ie: 401K, IRA's, Retirment Funds)
#5) Clean up Credit Score - The highe the credit score the better qualifying terms)

It’s critical that you have a down payment because lenders want to see that you have skin in the game. Mortgages insured by the Federal Housing Administration require a 3.5% down payment, which can come from a family member, employer or charitable organization as a gift. For a non-FHA-insured loan, lenders are requiring a larger down payment.

FHA Mortgage Changes - Effective April 5th, 2010

2010-01-22T13:37:00.000-08:00

New Year brings some minor changes to the FHA Program. FHA =(Federal Housing Administration).

What is FHA?

FHA loans have been helping people become homeowners since 1934.

How do they do it?

The Federal Housing Administration (FHA) – which is part of HUD – insures the loan, so your lender can offer you a better deal.

Low down payments
Low closing costs
Easy credit qualifying

CHANGES FOR 2010:

FHA Currently Collect a premium of 1.75%

Effective April 5th, 2010 FHA will now collect an upfront mortgage insurance premium of 2.25% for the following:

Purchase Money Mortgages and Full-Credit Qualifying Refinances = 2.25 percent
Streamline Refinances (all types) = 2.25 percent
HOPE for Homeowners (Delinquent Mortgagors) = 2.00 percent
Home Equity Conversion Mortgages = 2.00 percent

This might seem like a hit to the housing market. To buyers this will be a small increase in your monthly payment.

Is it too soon? You be the judge!

Please contact a HUD approved Lender for details!

CLICK HERE to Visit HUD's Website and Learn more!

Just Bought a Condo - Why do I need an HO-6 Policy?

2010-01-21T16:36:00.000-08:00

Scenario: You have just purchased a Condo and the lender wants you to purchase an HO-6 Policy as a condition of lending you money.

**Please Consult your Insurance Agent for specific coverage in your area. The following information is deemed liable but George Langford takes no legal responsibility**

What is an HO-6 Policy?

If you think insurance for your condominium is covered by your association fees, think again. Typically, your monthly condo fees are used to fund a building insurance policy. If your unit is robbed or damaged, your building insurance will not provide any coverage for your personal possessions, nor will it offer you any protection from personal liability. An HO-6 Policy covers the interior of your unit compared to the exterior of your unit that is typically covered in your monthly dues.

What does the HO-6 Policy Cover?

Under the general terms of HO-6 condominium owner coverage, your policy should cover your personal property from 16 perils:

Fire or lightning

Windstorm or hail

Explosion

Riot or civil commotion

Damage caused by aircraft

Damage caused by vehicles

Smoke

Vandalism or malicious mischief

Theft

Volcanic eruption

Falling objects

Weight of ice, snow, or sleet

Accidental discharge or overflow of water or steam from within a plumbing, heating, air conditioning, or automatic fire-protective sprinkler system, or from a household appliance.

Sudden and accidental tearing apart, cracking, burning, or bulging of a steam or hot water heating system, an air conditioning or automatic fire-protective system.

Freezing of a plumbing, heating, air conditioning or automatic, fire-protective sprinkler system, or of a household appliance.

Sudden and accidental damage from artificially generated electrical current (does not include loss to a tube, transistor or similar electronic component)

Why is the Bank requiring this Policy if the HOA (Home Owners Association) has an Insurance Policy in place already?

It varies from lender to lender but most banks are now requiring an HO-6 Policy when purchasing a home, and they may require it even with a refinance. This is just an extra step banks are taking to ensure their assets (Properties) they lend on. Most policy run on average a couple hundred dollars a year. I would consult with your Mortgage Broker or Banker for more details.

When Buying a Home should you get a Home Inspection?

2010-01-20T16:14:00.000-08:00

YES!

What is a Home Inspection?

A Home inspection is a visual examination of the structure and systems of a building. If you are thinking of buying a single family home, condominium, or multi-unit building you should have it thoroughly inspected before the final purchase by an experienced and impartial professional inspector. A professional inspection is simply an examination into the current condition of your prospective real estate investment. It is not an appraisal or a Municipal Code inspection. An inspector, therefore, will not pass or fail a building, but will simply describe its condition and indicate which items will be in need of minor or major repairs or replacement. A complete inspection includes a visual examination of the building from top to bottom. The inspector evaluates and reports the condition of the structure, roof, foundation, drainage, plumbing, heating system, central air-conditioning system, visible insulation, walls, windows, and doors. Only those items that are visible and accessible by normal means are included in the report.

When Should I have an Inspection Done?

The best time to consult the inspector is right after you’ve made an offer on a property. The real estate contract allows for a grace period (Inspection Contingency) to inspect the building. Ask your professional agent to include this inspection clause in the contract, making your purchase obligation contingent upon the findings of a professional inspection.

What is my Duty as a Buyer?

You have an affirmative duty to exercise reasonable care to protect yourself, including discovery of the legal, practical and technical implications of disclosed facts, and the investigation and verification of information and facts that you know that are within your diligent attention and observation. This is the best way to protect yourself. It is extremely important for you to read all written reports provided by professionals and to discuss the results of the inspectionswith the professional who conducted the inspection. You have the right to ask the seller to make repairs, corrections or requests. After the inspoection if you feel you do not want to purchase the home based off of the findings you have the right to cancel the escrow.

San Francisco Real Estate Inspections
San Francisco Single Family Homes, Condos, Tenancy In Common, New Homes, Multi-Unit Buildings, Investment Properties.

George Langford - Zephyr Real Estate

New Year - New Bank Guidelines!

2010-01-06T13:16:00.000-08:00

Ringing in the New Year seems like just another day, but 2010 will bring some changes to the lending guidelines. Below are some significant change that would affect a buyer's approval or the type of property you may purchase.

Change #1: Conventiaonal Loan Debt to Income (DTI)
2009 - DTI was 55% for Conventional
2010 - DTI is NOW 45%

**FHA will still allow DTI to be 55%

Definition for DTI: The ratio of monthly debt payments to monthly gross income. Lenders use a housing DTI ratio (house payment divided by monthly income) and a total DTI ratio (total debt payments including the house payment, divided by monthly income) to determine whether a borrower's income qualifies him or her for a mortgage.

Change #2: FHA Approved Properties
In order for FHA (Federal Housing Administration) to lend money on a property it first must be "FHA Apporved". As of February 2010 all properties that are FHA must get approved again.

What does this mean for you the bueyer?

This Process could take over a month to obtain an approval. Expect Longer escrow times in 2010 due to this change.

*** I do know of a Lender/Bank that once they approve a few of these properties FHA will allow them to administrate the approval process without getting the FHA Approval. Please feel free to contact me with further information.

2009-2010 Real Estate - What we had what to expect!

2010-01-04T08:45:00.000-08:00

2010: The year of Growth

If 2009 was the year of economic recovery, 2010 will be the year of growth.

Existing-home sales in 2009 rose to an estimated 5 million units for the year, a 2 percent increase over the 4.9 million sales in 2008. For 2010, NAR *National Association of Realtors are forecasting sales of 5.7 million units, a 13.6 percent increase.

The key to recovery in 2009 was the lower end of existing-home market. Fueled by the huge number of distressed sales - which drove down prices and returned buyers to the market looking for bargains. Also helping were continuing low interest rates and the extension of the first time home buyer credit.

A look back at 2009 and a glance into the Future: (2009 Estimated & 2010 are projected numbers.)

Economic Indicators:
Inflation Rate 2009: -0.4% 2010: 1.6%
Unemployment rate 2009: 9.3% 2010: 9.8%

Housing:
Existing-Home Sales
Sales (in millions) 2009: 5.011 2010: 5.694
Prices: 2009: $172,600 2010: $178,800
Change (in price) 2009: -12.9% 2010: 3.6%

New Home Sales
Sales 2009: 397,000 2010: 549,000
Prices 2009: $211,100 2010: $219,900
Change (in price) 2009: -9.0% 2010: 4.2%

Affordability Index 2009: 166 2010: 147

Inventory:
Housing Starts 2009: 564,000 2010: 752,000
Month's supply 2009: 8.5 2010: 8.0

Please keep in mind that the San Francisco/ Bay Area is a different market. We have seen home prices rise in the past 6 months in the San Francisco Area. We are seeing multiple offers on properties well priced, good condition and great locations.

$50,000 to San Francisco Property Owners!

2009-12-23T08:37:00.001-08:00

Not in time for Christmas, but this is great new for San Francisco home owners. San Francisco property owners will be getting $150 million gift of green. Under "San Francisco Sustainable Financing Program", homeowners will have access to up to $50,000 apiece to install a variety of clean energy improvements. It's not free money, but the terms are agreeable: 20 years to pay, with bills attached to your property taxes.

And, no, this is not another unfunded mandate imposed on overburdened taxpayers. The $150 million will be privately funded, courtesy of an 18-month-old Oakland startup, Renewable Funding LLC, that specializes in such programs, utilizing a financial instrument it developed called Property Assessed Clean Energy (PACE) bonds.

5 Questions to ask before you purchase a home!

2009-12-16T10:09:00.000-08:00

The following 5 questions may help you decide if right now is the time to buy a home.

Questions & Answers:

#1) Why are rates so low?

Since early January, the Federal Reserve has been purchasing mortgage-backed securities guaranteed by Fannie Mae, Freddie Mac & Ginnie Mae in an effort to stabilize the housing market. The bank plans on purchasing $1.25 trillion of securities allowing rate to be more affordable to consumers.

#2) Are rates expected to stay this low?

It's hard to tell, but don't count on it because lending landscape is likely to change next year. The Fed said it would wind down the purchase program by March 30, 2010.

#3) Why do different mortgage surveys come up with different average interest rates?

It depends on which lenders are in their sample, when the survey was taken and whether the rates quoted are the posted rate, the application rate or the commitment rate. Some surveys take points paid by the buyer to the lender into consideration.

#4) What else does the consumer need to know?

The lowest rates are offered to the most credit-worthy customers who can make sizable down payments. The lowest down program is FHA with 3.5% still comparable to a 30 years fixed!

#5) So is now the best time to buy a home?

It all depends on personal situations. Home buyers certainly have a lot of factors working in their favor right now - low interest rates, plenty of marked-down homes for sale and an extended and expanded federal tax credit that will expire in spring.

THE REAL ANSWER! If you can afford the monthly payment and have the ability to put down at least 3.5%. NOW would be the time to buy. Are you willing to bet that even if home prices continue to fall that interest rates will continue to remain the same? *We have seen home prices rise in San Francisco and the Bay Area over the past 6 months. You be the judge!

If You Don't Buy a House Now, You Are Stupid OR Broke!

2009-12-11T14:46:00.000-08:00

Have you read this article yet?

It was featured in Business Week. My first thought, wow! what a blunt andbroke harsh statement! But the writer, Mark Roth, uses this headturning title to get your attention to make excellent points for those who are on the fence. Namely that interest rates are at an all time low, in fact, the lowest in 40 years. He noted that in the late 70s, rates hit a high of 18%! Can you even imagine buying a house at 18%? I personally can't fathom that possibility. In the 80s, when rates dropped from 12% to 9%, my parents practically danced their way to the 1st refinance of their home. Generation X'ers probably would never dream of purchasing a home above 7% given all we have ever known are super low rates hovering between 5-6%. Mr. Roth points out the history of previous interest rates as well as the impact of rates on one's purchasing power. I happen to agree with his prediction that as the economy becomes more stable, interest rates WILL rise to hedge inflation. My prediction has been that by this time next year, rates will have risen 1-2% at a minimum.

What is a Grant Deed? What is a Note?

2009-12-08T09:21:00.001-08:00

When purchasing a home you will hear these two terms from your Real Estate Agent, Lender (Mortgage Broker) or the Escrow Officer at the Title Company. So what do they mean?

Grant Deed

The most commonly used property deed to transfer title in California is the grant deed, although it is not against the law to use other types of deeds. There are two guarantees contained in a grant deed:

* The grantor states that the property has not been sold to anybody else.
* The grantor states that the property is not burdened by any encumbrances apart from those the seller has already disclosed to the buyer.

Grant deeds do not need to be recorded to be valid, nor do they need to be notarized to be valid, but most sellers do ask a notary to witness the deed, acknowledging that the seller is the person who signed the deed. And most buyers want the protection of recordation, to give "constructive notice to the world" that the property has been sold.

Under California law, and your state laws may differ, to be valid, a grant deed needs to contain six essential elements. Those six items are defined as:

* A written document.
* A clause that transfers title, called a granting clause.
* The names of the Grantor and the Grantee.
* A description of the property being transferred.
* Execution, delivery and acceptance. It must be signed by a competent grantor, meaning minors and those declared incompetent cannot sign a deed; given to the buyer while the seller is still alive (not after death) and accepted by the buyer.
* Grantor's signature.

Promissory Note:

A written, signed, unconditional promise to pay a certain amount of money on demand at a specified time. A written promise to pay money that is often used as a means to borrow funds or take out a loan.

The individual who promises to pay is the maker, and the person to whom payment is promised is called the payee or holder. If signed by the maker, a promissory note is a negotiable instrument. It contains an unconditional promise to pay a certain sum to the order of a specifically named person or to bearer—that is, to any individual presenting the note. A promissory note can be either payable on demand or at a specific time.

In conclusion:

The deed is recorded when you purchase a home that shows the change in ownership from seller to buyer.

The Promissory Note is recorded as a payment or lien against the property to pay the bank (mortgage) on time for the disclosed amount and terms that have been negotiated.

Supplemental Tax Bill - You will get one when you Purchase a home!

2009-12-07T10:30:00.001-08:00

What is a supplemental tax bill?

As the name suggests, a supplemental tax bill is a property tax bill issued in addition to the annual regular secured property tax bill. The Assessor-Recorder’s office reappraises property whenever a change of ownership occurs or new construction is completed. The Assessor will send you a “Notice of Supplemental Assessment” to inform you of the new assessed value. Following this notification, the Office of the Treasurer & Tax Collector will send one or more supplemental tax bills to collect the difference between the taxes on the old and new values for each year. Whereas the deadlines for payment of regular property tax bills fall on the same dates each year (December 10 and April 10) the deadlines for payment of supplemental bills can vary based upon the issue date of the bill. Please note that the regular secured property tax bill reflects only the assessment amount of your property as of January 1, 2007. You will not be liable for any supplemental taxes until the date that a supplemental tax bill is issued.

This is very important to keep in mind when purchasing a home. The supplemental property tax bill will be mailed to you several months after your purchase. You may get one or two statements depending on the close of escrow date. They are triggered by the change of ownership and will apply whether or not you take a loan to purchase the property. However, a subsequent refinance of the property will not necessarily trigger a new supplemental tax bill. The completion of permitted improvements to a property may cause a supplemental tax bill to be generated, corresponding to an increase in assessed value commensurate with the cost of the improvements, but this can occur whether or not the property is refinanced when the work is completed.

For more information please visit San Francisco Treasurer & Tax Collector Website!

Enter to win a $20.00 Starbuck Card! Tomorrow 1-4PM!

2009-12-05T13:38:00.001-08:00

Enter to win a $20.00 Starbucks Card Tomorrow!

Open House from 1-4pm!

Lender On-Site to Answer Real Estate Questions!

LOCATION : 850 Corbett #1 San Francisco, CA

2 Levels
3 BD 3 BA
1 Master Suite
Ensuite Marble Bath
Large Private Slated Patio
Wood Floors and New Carpet throughout
Open Living Room Dining Room
Granite Gas Fireplace
Glass Atrium off Dining Room
Gourmet Kitchen, Stainless Steel Appliances
Large Family Den/Media Room
Independent Deeded Parking
Huge approx 2266 sq ft per tax records

Elegant 3 Bedroom/ 3 Bath, 2 level contemporary condo with a spacious floor plan Entry level: Open living area with wood floors, gas fireplace, large dining area all with ample natural light from atrium and large windows. 2BR/2BA. Gourmet kitchen: stainless steel appliances, travertine tiles, granite counters. Master Suite: marble finishes in BA, tranquil private slated patio. Lower level: media room and Bedroom/office and full BA. New carpet throughout.

Conforming or Jumbo Loan? What is the difference?

2009-12-05T12:57:00.000-08:00

Conforming Loans:

Conventional loans may be conforming and non-conforming. Conforming loans have terms and conditions that follow the guidelines set forth by Fannie Mae and Freddie Mac. These two stockholder-owned corporations purchase mortgage loans complying with the guidelines from mortgage lending institutions, packages the mortgages into securities and sell the securities to investors. By doing so, Fannie Mae and Freddie Mac, like Ginnie Mae, provide a continuous flow of affordable funds for home financing that results in the availability of mortgage credit for Americans.

Fannie Mae and Freddie Mac guidelines establish the maximum loan amount, borrower credit and income requirements, down payment, and suitable properties. Fannie Mae and Freddie Mac announces new loan limits every year.

Loan Limits for Conforming Loans are $729,750

Jumbo Loan:

Jumbo Loans

Loans above the maximum loan amount established by Fannie Mae and Freddie Mac are known as 'jumbo' loans. Because jumbo loans are bought and sold on a much smaller scale, they often have a little higher interest rate than conforming, but the spread between the two varies with the economy.

For more information please Contact George Langford!

415.3363.8191

Housing Affordability - High Record for 3rd Straight Quarter!

2009-12-02T15:41:00.000-08:00

November 19, 2009 - Nationwide housing affordability, bolstered by affordable interest rates and low house prices, hovered for the third consecutive quarter near its highest level since the series was first compiled 18 years ago, according to the National Association of Home Builders/Wells Fargo Housing Opportunity Index (HOI) released today.

The HOI showed that 70.1 percent of all new and existing homes sold in the third quarter of 2009 were affordable to families earning the national median income of $64,000, down slightly from a near-record 72.3 percent during the previous quarter and up from 56.1 percent during the third quarter of 2008.

"At a time when housing is at its most affordable, we applaud the recent actions taken by Congress and President Obama to stimulate housing by extending the federal tax credit beyond its Nov. 30 deadline and expanding it to a wider group of eligible home buyers," said NAHB Chairman Joe Robson, a home builder from Tulsa, Okla. "With interest rates now lower than last quarter, the tax credit will encourage even more home buyers to enter the market and help stabilize housing and the economy by creating new jobs, stimulating home sales, reducing foreclosures, cutting excess inventories and stabilizing home prices."

Maintaing Your Wooden Deck!

2009-12-01T16:30:00.000-08:00

Maintaining Your Wooden Deck

A regular maintenance program can improve the appearance of your wood deck and significantly extend its life. The primary causes of wear are moisture and sunlight. Moisture can be trapped on the deck by leaves, debris, or items stored on the deck, such as planters. Debris tends to collect in the spaces between deck boards, trapping moisture, which causes decay in the deck framing. The shady underside of the deck is more likely to be damaged by decay. A putty knife, another narrow tool, or a hard spray of water from a garden hose can remove the debris from between the deck boards. If the deck boards are too close together, they can be widened to approximately 3/16 inch by using a circular saw.

To clean an older deck and improve its appearance, scrub it with a stiff brush and a solution of TSP (trisodium phosphate) in warm water; mix one cup TSP crystals into a gallon of water. Be sure to wear rubber gloves and, if you are scrubbing by hand, wear protective goggles. If you are going to be working on your hands and knees, rubber kneepads would be helpful. After scrubbing, hose off dirt and solution with water. If areas of the deck are discolored with mildew, apply a solution of one part water to three parts household bleach to the stained areas. Commercially prepared deck cleaners are also available. Some cleaners contain fungicides and mildewcides and others contain special bleaches to lighten the wood.

For large, heavily soiled decks, a power washer is ideal to clear off surface grayness and save a lot of scrubbing and effort. A power washer with a 2,000-pound per square inch pressure pump rents for about $25 per hour or $75 per day. These sprayers are very powerful and special care should be made to avoid damaging the wood. Be sure to wear safety goggles. After the deck is clean and dry, examine the surface carefully for loose boards, nails, and other damage. Use a nail set to punch nails below the deck surface.

Oxalic acid can make your just-cleaned deck look almost new. Oxalic acid is sold at paint or hardware stores and it lightens and brightens the wood as you apply it. It is also useful for removing stains. Oxalic acid causes skin irritation so wear rubber gloves and protective goggles when handling it. Avoid contact with nearby plants. Mix four ounces of crystals to one gallon of warm water. Apply liberally with a sponge, mop, or garden sprayer, but do not use metal buckets, wire brushes, or steel wool. The more time it takes to dry the better it works, so try to work in the early morning or on an overcast day, rather than in the full sun. Let the solution act on the deck; then thoroughly hose off the surface. The deck may look quite new when finished, but do not expect this to last. The deck will slowly gray with time and sun exposure.

There are stains that can restore the original color and keep it looking new. Water repellents or wood preservatives can help maintain deck appearance. Read the manufacturers' recommendations on these products for coverage and application methods. These products should be applied with a brush to allow for adequate penetration of the material into the wood. Do not apply these materials in direct hot sunlight, as you want it to soak into the wood instead of evaporating. Reapplication of these materials may be necessary every three to four years, depending on the amount of sun exposure and climate in your area.

The framing beneath the deck should be examined periodically for signs of decay. This is usually indicated by a white or brown growth on the surface of the wood, followed by softness and deterioration. Minor decay can be treated by wire brushing the surface and applying a fungicide such as copper napthenate (Copper Green) to the area. Probe the wood with a screwdriver to determine if it has weakened.

Any wood that is seriously weakened by decay should be replaced. If it looks like there are areas of significant damage it is probably best to hire a deck specialty contractor to make repairs, especially if the deck is high off the ground.

Mortgage Impound Accounts - What are they?

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Mortgage Impound Account Payments

The purpose of a mortgage impound account is to have you pay the lender each month:

-your regular loan payment

-income taxes

-hazard insurance

The first charge is a lender charge. The other two charges are third party charges that you must pay periodically or annually. Instead of waiting around to pay these amounts, the lender collects this from you monthly.

Mortgage Impound Account Purpose

The lenders collects this money and pays it on your behalf, in theory. In practice sometimes they are late with this, so you need to keep on top of this.

Lenders often give a borrower a discount on their interest rate if they agree to pay their additional expenses such as taxes and insurance on a monthly basis.

The purpose of this is to make sure you don't get behind on paying these other charges.

Some lenders can require that you do this every month. This is usually if the size of your loan is over 90% of the value of your property. This can vary from lender to lender and state to state.

When comparing offers from lenders you can check to see if the rate reflects these impound accounts and the discount that goes with it.

It is also important to know what your total monthly payment will be after you get your new mortgage loan. If it includes impounds this can end up being several hundred dollars more per month extra.

Below Market Rate Housing in San Francisco (Lotttery)

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The San Francisco Below Market Rate ("BMR") Inclusionary Housing Program requires developers to sell 15% of units in new, private developments at a "below-market-rate" price that is affordable to low to moderate income households. The program is administered by the Mayor’s Office of Housing (known as "MOH") and currently includes over 750 ownership units. At least 100 new units to become available each year.

To get into a BMR an applicant is placed into a lottery and there are no guarantee!

Program Highlights:

How the BMR Units are Priced?

Most BMR units are priced to be affordable to median income households spending no more than 33% of their income on housing expenses. We price the units to include condominium association fees, property taxes, the current interest rate, and we assume a 10% down payment from the buyer.

Maximum Income

The majority of projects will be available to households with a combined income of no more than 100% of median income, although some will be available to households whose income is at 80% or 120% of median income. The amounts are adjusted on an annual basis. Our office will update these income maximums between March and May of each year.

100% of Median Income for the City and County of San Francisco 2008

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A one person household can make no more than $58,050
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A two person household can make no more than $66,300
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A three person household can make no more than $74,600
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A four person household can make no more than $82,900
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A five person household can make no more than $89,550

For more information please visit the following website: San Francisco BMR