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

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".

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

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.

Below Market Rate Housing in San Francisco (Lotttery)

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

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


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

Great News! $8,000 tax Credit Extended until April 2010

Today the Senate passed the extension on the $8,000 tax credit. The home buyer tax credit was due to expire in 28 days. The Senate has passed the extension until April 30th, 2010.

The $8,000 maximum first-timer credit will continue and will now be available to couples with income up to $225,000, a nearly $55,000 increase above the level in existing law.

What is new in the law?

$6,500 maxiumum credit would be available to move-up homeowners who have lived in their current residence for five of the prior eight years.

The tax credit has fired the housing market, driving existing home sales to the highest level in over two years. Sales jumped 9.4% according to the National Association of Realtors!

Bay Area's Hottest & Coldest Real Estate Markets!

Below is a list of the Bay Area's Hottest & Coldest Zip Code's. Hot Zip codes are determined by the ratio of Sale Price to Asking Price.

Emeryville is actually one of the Top 10 Zip Codes in the Nation as of Today!

Home Priced Right, Good Condition, Good Location = SOLD!!!

HOT BAY AREA ZIP CODES BELOW: These are the Bay Area ZIP codes where houses sold for the highest ratio to their asking price in the third quarter.


City ZIP Ratio (Sales Price to List Price)

Emeryville 94608 105.65%
San Jose 95122 105.22
Oakland 94606 105.06
Berkeley 94703 104.78
San Lorenzo 94580 104.45


COLD BAY AREA ZIP CODES BELOW: These are the Bay Area ZIP codes where houses sold for the lowest ratio to their asking price in the third quarter.

City ZIP Ratio
Rio Vista 94571 93.47%
Napa 94558 93.45
Alamo 94507 93.07
Half Moon Bay 94019 92.94
Los Gatos/
Monte Sereno 95030 92.26

Search for home in your area at www.GeorgeLangford.com

Paying off ALL debt can double your home buying power!

So people wonder from time to time how can we afford a home?

So you go to speak to a bank and they tell you that you only qualify for $300,000. So now what? What can that buy in San Francisco at that price?

Paying off ALL your debt can actually double your purchase price when qualifying from a Banks point of view. For Example: A combined gross household income of $13,000 a month with monthly debt of $662.00, and FICO scores of 750+ can only qualify for $300,000. If that household was to pay off all debt they would be able to purchase a home at least for $700,000. (This scenario is based off of Today's rates, qualification guidelines and for example purposes only.)

Why such little monthly debt can affect your qualifying?

Banks have a debt to income ratio that's tailored to specific programs and vary from each Financial institute and available loan programs. Debt to income ratios determines the borrowers liability to the bank. Such a small amount of debt could mean a minimal increase in your D.T.I. (Debt to Income Ratio) which could be the difference of approval or getting denied.

* The above scenario if based off of FHA Access program that only requires 1/2% down payment.

For a FREE consultation to see how you can pay off your debt and how you can afford to purchase more home for your money in San Francisco call me today!

See how a family with $123,000 of debt paid it off in 4.5 years!! CLICK HERE!

Credit Problems? You can still get a mortgage!

Worried that you can’t qualify for a home loan due to lack of credit?

Did you know that some lenders will approve your loan even if you have NO FICO SCORE?!

Yes NO FICO score. Work with your mortgage professional to gather documentation to submit “alternative credit” to the lender. This is done by simply getting letters from companies and/or individuals such as your auto insurance company, PG&E company, cell phone company, cable provider, or your landlord. Have them type a letter on a company letter head that simply states you have been a customer for at least a year, you are in good standing, you have paid “x” amount on-time for the past year (2 years is even better!) and their information for reference, Signed and dated. DONE! This will be submitted to the credit bureaus as alternative credit and added as a credit supplement. So if credit issues are stopping you from buying in this great real estate market…. Get off the fence and contact me today to guide you through the process of home ownership.

First Meeting with a Bank or Lender.

Buyers should always be prepared when meeting with a Lender or Bank to get pre-approved. Homes that are priced right and in great condition are starting to move quickly. Being prepared to write an offer at any time when looking for a home is a must. In order to get a pre-approval from a bank it's good to always have all your documentation ready for review. Not having the proper approval letter could cost you your dream home. So what do you bring to the appointment. Below I have examples of what a lender or bank might request to pre-aprove you. Keep in mind that every bank is different and that your Real Estate agent should call them prior to the meeting. A well prepared team is a successful one! Happy house hunting!

What to Bring to Your Loan Appointment:

* W2's and 1040 tax returns for the past two years

* Paycheck stubs covering one month

* Residence addresses – covering the past two years

* Names and addresses of each employer – covering the past two years

* Last two months’ statements for all assets (i.e. checking, savings, stocks, retirement accounts, etc.)

* Addresses of other real estate owned

* Payment for credit report and appraisal

* Photo ID

HARP -Home Affordability Refinance Program

I thought I would go over the HARP program since it came up today with a client. This program can be used by individuals that had a fixed term mortgage and now will become adjustable. Also if you have a hgher interest rate and would like to lower your payment. In order to use this program the original loan must have been sold to Freddie Mac or Fannie Mae. If sold to Freddie Mac the property must be used as a primary residence. If sold to Fannie Mae it can be Primary or Secondary home. Below are the guidelines for this program.

HARP Guidelines:

*You may Finance up to 105% of property value
*Primary Residence min FICO score of 620
*Secondary Residence min FICO score of 680
*Can only finance rate & term (No Cash Out)
*Debt to Income Ratio can not exceed 45%
*No late mortgage payments in the last 12 months
*Must have owned the property for 3 months
*Current loan can not be Government. Example: FHA LOAN
*No adding/ deleting borrowers if loan is with Freddie Mac
*You CAN add borrowers if with Fannie Mae as long as the original borrowers remain on the loan.

For more information please feel free to contact me via email or phone.

GeorgeLangford@zephyrsf.com
C: 415.336.8191

Pending Homes Sales on a Record Roll!

Pending Home Sales on a Record Roll

Contract activity for pending home sales has risen for six straight months, a pattern not seen in the history of the index since it began in 2001, according to the National Association of Realtors®. The Pending Home Sales Index, a forward-looking indicator based on contracts signed in July, increased 3.2 percent to 97.6 from a reading of 94.6 in June, and is 12.0 percent higher than July 2008 when it was 87.1. The index is at the highest level since June 2007 when it was 100.7.
Lawrence Yun, NAR chief economist, said the housing market momentum has clearly turned for the better. “The recovery is broad-based across many parts of the country. Housing affordability has been at record highs this year with the added stimulus of a first-time buyer tax credit,” he said.


My Opinion: We have seen a rise in the number of multiple offers on properties here in the city. of course every market is different. Especially here in San Francisco. We have sub markets within the San Francisco market that are divded up my neighborhoods. But with rates at an all time low, tax credit of $8,000 available to first time home buyers and the times of processing and underwritting from banks are getting faster. Does this mean a recovery of the market? The only way to measure that will be time and facts or statistcs to be released. The ONLY way to know if the time is right for you if affordability. Everyone has a different situation. If you can afford the payments on a home than you should own one.

Any thoughts?

FREE Home Buying Seminar - October 24th, 2009

No loans for condos reported.....FALSE! Please read

Today on SFGate.com the following story was posted in regards to financing in the condo sector of the housing market. There are loans available for condos and with as little as 3.5% down payment. Below are a couple points I wanted to point out in regards to this article.

1) New construction is very different lending and that was a problem in Mr. Hong did not close until July. The unit was not finished at that time
2) The ratio of owners that actually live in the complex vs. renters has always been a determination when buying a condo and is nothing new. Even when times were going great we still had to watch that ratio in certain complex's.


San Francisco Specific: Always remember that in San Francisco we have condo and TIC (Tenancy in Common). Condos will have less of a downpayment than a TIC. TIC will require at least 20% down.

There ARE loans out there for all. If you have a specific circumstance please feel free to contact me at (415) 336-8191 or email at georgelangford@zephyrsf.com.

Condo buyers find it tough to get mortgages

Carolyn Said, Chronicle Staff Writer

Back in September, when Tae Hong signed a contract to buy a condominium in Oakland's new Pacific Cannery Lofts, he expected to move in quickly. With a 20 percent down payment, excellent credit and good employment as an...

Read Full Story

Read more: http://www.sfgate.com/cgi-bin/article/comments/view?f=/c/a/2009/08/04/BUCT190GMM.DTL#ixzz0NKEdyLI8

Buying can save you $241,359 over 30 years!

***The Following calculations are based off of paying $3,000 in rent per month. Purchasing a home for $500,000 with 3.5% down payment. Each individual calculations may be different. For a specific rent vs own scenario please contact me today! (415) 336.8191*** Rent vs. Buy Analysis		Rent	Buy
Rent and fees		$1,273,127
Mortgage payments			$854,500
Property insurance	+		$6,644
Property taxes	+		$365,414
Maintenance	+		$12,000
Opportunity cost (tied-up equity)	+		$1,583,431
Tax savings (interest/taxes)	-		$136,296
Appreciation	-		$1,660,971
Total cost	=	$1,273,127	$1,024,720
Present value at inflation		$760,973	$519,614
Difference			$241,359

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Year	Rent & Fees	Mortgage Payment	Insurance, Taxes & Maintenance	Opportunity Cost	Tax Savings	Appreciation	Cost of Buying
1	$36600	$28483	$6000	$3038	$6502	$25000	$6020
2	36966	28483	6280	5122	6414	26250	7222
3	37336	28483	6574	7307	6323	27562	8480
4	37709	28483	6883	9598	6227	28941	9796
5	38086	28483	7207	12000	6128	30388	11174
6	38467	28483	7547	14517	6024	31907	12616
7	38852	28483	7905	17157	5916	33502	14126
8	39240	28483	8280	19925	5804	35178	15706
9	39633	28483	8674	22826	5687	36936	17360
10	40029	28483	9087	25868	5564	38783	19091
11	40429	28483	9522	29057	5437	40722	20903
12	40833	28483	9978	32401	5304	42758	22800
13	41242	28483	10457	35907	5165	44896	24785
14	41654	28483	10960	39583	5021	47141	26863
15	42071	28483	11488	43436	4870	49498	29039
16	42491	28483	12042	47477	4713	51973	31316
17	42916	28483	12624	51714	4550	54572	33699
18	43346	28483	13235	56156	4379	57300	36195
19	43779	28483	13877	60813	4201	60165	38807
20	44217	28483	14551	65696	4016	63174	41541
21	44659	28483	15258	70816	3823	66332	44403
22	45106	28483	16001	76185	3621	69649	47399
23	45557	28483	16781	81814	3411	73132	50536
24	46012	28483	17601	87716	3192	76788	53820
25	46472	28483	18461	93905	2964	80627	57257
26	46937	28483	19364	100394	2726	84659	60856
27	47406	28483	20312	107198	2478	88892	64624
28	47880	28483	21307	114333	2219	93336	68568
29	48359	28483	22353	121814	1949	98003	72697
30	48843	28483	23450	129658	1668	102903	77020

Top 7 Reasons why Buying is Better than Renting

1. Buying doesn’t always cost much more than renting. According to a recent study by the Associated Press, the gap between monthly mortgage payments on a median-priced home and the median rent has decreased from $777 to just $221 in the last three years.

2. Affordability is at an all-time high. In markets across the nation, including the inland areas of California, prices have declined by nearly 40%.

3. Buyers can take advantage of tax benefits of home ownership. Perhaps the biggest tax break is reflected in the house payment homeowners make each month. For most, the bulk of that payment goes towards interest. All interest is deductible, unless the amount is more than $1 million. Property taxes are also deductible.

4. Buyers can purchase homes with little or no down payment. Qualified first-time buyers may be eligible for loans insured by the Veterans Administration (VA), which does not require a down payment. Another loan product gaining popularity are those insured by the Federal Housing Administration (FHA), which require only a down payment of 3.5%.

5. The Tax Credit. First time homebuyers-defined as anyone who hasn’t owned a home in the last three years- are entitled to an $8,000 tax credit. (Ownership of a vacation property or a rental property doesn’t disqualify homebuyers from this program.) No repayment is required for homes sold after 36 months of occupancy and ownership.

6. Mortgage rates are at all-time lows. Take advantage of low 30 year fixed rates. We haven’t seen rates this low in the last 3 decades.

7. It’s yours. It feels good to own your own home. After all, you can paint it any color you want, make improvements, and plant a little garden.

Are you paying $3,000 or more in rent per month here in San Francisco?

Call me and find out why buying may be less expensive than renting, YES even in San Francisco and the greater Bay Area.

New Rule in Protecting Home Loans Effective July 30th

Example of Good Faith Estimate Disclosure Click Here

The Federal Reserve Board on Thursday approved final rules that revise the disclosure requirements for mortgage loans under Regulation Z (Truth in Lending). The revisions implement the Mortgage Disclosure Improvement Act (MDIA), which was enacted in July 2008 as an amendment to the Truth in Lending Act (TILA).

The MDIA seeks to ensure that consumers receive cost disclosures earlier in the mortgage process. In several respects, the MDIA is substantially similar to final rules issued by the Board in July 2008. However, the MDIA also broadens and adds to those regulatory requirements. The final rule largely follows a proposal issued by the Board in December 2008. Under the MDIA, creditors must comply with the new provisions on July 30, 2009. The Board's implementing regulations apply to dwelling-secured consumer loans for which a creditor receives an application on or after July 30, 2009.

The MDIA requires creditors to give good faith estimates of mortgage loan costs ("early disclosures") within three business days after receiving a consumer's application for a mortgage loan and before any fees are collected from the consumer, other than a reasonable fee for obtaining the consumer's credit history. These requirements are consistent with the Board's July 2008 final rule, which applied to loans secured by a consumer's principal dwelling. The MDIA broadens this requirement by also requiring early disclosures for loans secured by dwellings other than the consumer's principal dwelling, such as a second home.

In addition, the rules would implement the MDIA's requirements that:

• Creditors wait seven business days after they provide the early disclosures before closing the loan; and
• Creditors provide new disclosures with a revised annual percentage rate (APR), and wait an additional three business days before closing the loan, if a change occurs that makes the APR in the early disclosures inaccurate beyond a specified tolerance.

The rules would permit a consumer to expedite the closing to address a personal financial emergency, such as a foreclosure.

The notice that will be published in the Federal Register is attached. Publication is expected to occur soon.

Stated Income Available Now? Ture or False?

YES! It is true. Mortgage California has been certified as the ONLY Lender in Northern California to offer a true STATED INCOME loan product on "A Paper" financing.

Some of the product Highlights:

3/1 and 5/1 products available
Rate 7 Term Refinance
Purchase
No First time home buyers
Single Family residence only
No Secondary Financing
700 Minimum FICO
Owner Occupied
Primary Residence
70% LTV (Loan to Value) to $3,000,000 Loan Amount

Counties include: Contra Costa, Los Angeles, Marin, Napa, Orange, San Francisco, San Mateo, Santa Barabara, Sonoma and Ventura.