Sept. 19, 2019

The 3 Most Common Questions I Get About Financing



Buying a home naturally brings a lot of questions with it. I’m here today to answer three of the most common ones that I hear.

Selling a home? Click here to get a home value report.
Looking to buy a home? Click here to search all homes.

 

Today I’m going to answer the three most common questions I get about home financing:

1. Where are interest rates? Right now, they’re crazy low, near 4%. We’ve recently had some buyers lock in rates at 3.75% and 3.5%. Even if they jump up to 4.5%, that’s still a historic low.

2. How much money do I need to put down in order to buy a home? You might be surprised to know that you can buy a home with just 3% or 3.5% down. You can go up to as much as 20% or 25% if you have the cash to do so, as this will result in a lower mortgage interest rate.

3. Should I use a first-time homebuyer loan program? The answer really depends on your level of qualification .If you don’t have a perfect credit score right now or don’t quite have enough cash on hand for a down payment, this program could be beneficial to you. However, if you have some cash on hand and a higher credit score, a low down payment conventional home mortgage can be more beneficial to you. It all depends on your specific situation.

If you have any questions for me about these questions or anything else related to home financing, don’t hesitate to give me a call or send me an email. I look forward to hearing from you soon.

Posted in Buyer Tips
Sept. 4, 2019

The Truth Behind 3 Common Recession Myths

Here are three prominent recession myths and the truth behind them.

Selling a home? Click here to get a home value report.
Looking to buy a home? Click here to search all homes.

 

If you’re afraid that an impending recession will disrupt your real estate goals, here are a few recession myths you shouldn’t believe. 

Myth #1: A recession equals a housing crisis. 

The true definition of a recession is when GDP growth slows or shrinks over two consecutive quarters, and a GDP slowdown doesn’t necessarily have anything to do with the housing market or home prices. 

Myth #2: Any recession will resemble the 2008 recession. 

When it comes to the 2008 recession, real estate was its No. 1 trigger, and conditions were made worse by the toxic mortgage market that existed at the time. Recently though, top economists surveyed by The Wall Street Journal listed our trade war and stock market volatility as the top two triggers of any future recession. The housing market ranked as the ninth-highest trigger on that list. This shows you how much confidence economists and investors have in our market compared to 2008.

Myth #3: Home prices can’t appreciate during a recession.

As you can see at 2:01 in the video above, during three of the last five recessions, home prices did, in fact, appreciate. And during two of those recessions, the appreciation rate more than doubled the national average. 

So what does this mean for buyers and sellers? If you’re a buyer (or someone who currently rents), don’t let fear overcome you and make your decisions for you. Pay close attention to our low interest rates and the opportunities that exist in the more affordable markets. Make the necessary sacrifices to get into the market and let time do the heavy lifting for you. 


Make the necessary sacrifices to get into the market and let time do the heavy lifting for you.



If you’re a seller—especially one who’s looking to upsize or move to a better area—pay careful attention to interest rates and the inventory in your neighborhood and price range. Changes in any one of those factors will change the demand for your home. 

If you have any more questions about our market or you have any other real estate needs I can take care of, don’t hesitate to reach out to me. I’d love to help you. 

Posted in Pro Tips
Aug. 15, 2019

871 Prather Court - Sale Pending!

Posted in Listings
Aug. 7, 2019

5-Year Sacramento Market Trends

A lot has changed over the last five years in the Sacramento real estate market!

Take a look at the statistics below that show how price, inventory, and more have affected our local market.

For more detailed information on the current real estate market and trends, reach out to us today!

Posted in Market Update
Aug. 7, 2019

2209 Gerber Ave - Sale Pending with 7 OFFERS!

Posted in Listings
Aug. 5, 2019

Your 2019 Midyear Real Estate Market Report

 Here’s your 2019 midyear real estate market update. Learn the latest stats right here.

Selling a home? Click here to get a home value report.
Looking to buy a home? Click here to search all homes.

 

Late last year we saw some hiccups in the market and a bit of a slowdown, as evidenced by the increase in interest rates and shifts we saw as we moved into early 2019. We’d been waiting to see if the market would trend downward or upward as the year progressed; right now, it seems like we’re continuing at an upward pace in our market.

We’ve seen lower levels of inventory and between an average and above-average number of homes sold. Currently, we have about 1.5 months of inventory, and that seems to be the point of inflection year over year where we see competitive offers and faster-selling homes. That’s evidenced in the following stats:

  • The average days on market is 22 days; the median is 10 days.
  • 80% of all homes are selling within 30 days.
  • The average home price in Sacramento is $390,000; compared to the same period in 2018, this year’s market appreciated 4%.

Overall, I think this will be the same story we’ll see unfold moving forward, as long as rates remain low and people remain optimistic about housing and the general economy.


Right now, it seems like we’re continuing at an upward pace in our market.



For the homebuyers in my market area:
This is all really positive news. Sometimes the market can seem too aggressive or you might feel unqualified to compete, but I strongly advise you to sit down with a professional and figure out what you’d be able to afford. Not every home is being fought over, and there are certainly plenty of opportunities for homebuyers today.

For the sellers in my market area: Stay optimistic about being a homeowner and the fact that your property is appreciating in value, but also understand that buyers aren’t making bad decisions when it comes to real estate. They’re not overbuying, they’re rarely overpaying, and they’re very conscious of the debt-load they’re taking on. Take the time to figure out how to best position your home, because people won’t just buy it blindly. 

If you have any questions about buying, selling, or about the market in general, don’t hesitate to reach out to me. I’d love to help you however I can.

Posted in Market Update
July 23, 2019

7505 Verdugo Way - PENDING WITH 18 OFFERS!

Posted in Listings
July 19, 2019

3 Tips That Will Help You Get the Most Out of Your Mortgage

Getting the most out of your home mortgage financing means following three key tips.

Selling a home? Click here to get a home value report.
Looking to buy a home? Click here to search all homes.

If you want to get the most out of your home mortgage financing, here are the three tips you need to follow:

 

1. Choose local. This way, your local lender and their team can use local resources and work with professionals who are familiar with the nearby neighborhoods and property types. This will give you a great network of resources to combat all the little challenges that may pop up. 

 

2. Get a referral. This referral can come from a friend or a powerful agent. It’s always a good idea to work with someone who has impressed someone you trust. I recommend working with someone who only works in mortgage financing. Even if they’re an independent contractor, they’ll be motivated to give you good advice, meet deadlines, and deliver the service you need to have the most successful purchase possible. 

 


I recommend working with someone who only works in mortgage financing.


 

3. Understand the underlying benefits of your mortgage and how it relates to your purchase. Rates and fees are very important to buyers in competitive marketplaces and price ranges, but there are other factors to consider, as well. Being fully underwritten and having more favorable terms in your contract, for instance, are also important variables. The relationship your lender has to the local real estate market counts for a lot, too. You want them to be able to pick up the phone, call the right person, and sing your praises as a buyer. 

 

Another subtle factor is your bank’s alignment with and relationship to the marketplace. If your bank has a negative reputation within the real estate industry, many listing agents may prefer not to work with them. 

 

If you have any other questions about the home mortgage process or what steps you need to take to purchase a home in 2019, don’t hesitate to reach out to me. I’d love to help you.

Posted in Buyer Tips
July 8, 2019

Don’t Fall for These Home Buying Myths

If you’re thinking of buying a home, steer clear of faulty real estate advice.

Selling a home? Click here to get a home value report.
Looking to buy a home? Click here to search all homes.


If you’re planning on buying a home in the near future, you’ve probably already heard about the many supposed “rules” homebuyers are supposed to follow during the process. However, not all of these home buying rules are grounded in fact. Some are pure fiction. 

 

There are two main home buying myths that tend to hold buyers back from making a move: 

 
• Myth No. 1: You need a large down payment to buy a home. Recent studies have shown that more than half of buyers falsely believe that you need a down payment of 20% or more to buy a home. This simply isn’t the case. There are many financing options that allow buyers to put 3% or 5% down. Some loan programs even allow you to buy without any money down at all.

• Myth No. 2: You need a credit score of at least 780 to buy a home. Of all the approved home loans in today’s market, over half of the buyers behind those loans have a score of 750 or lower. As this point illustrates, it’s very common to secure a loan with a credit score below 780. Many lenders will even approve buyers with a credit score of 620, with some accepting lower scores than that. 


Not all home buying “rules” are grounded in fact.



The bottom line is this:
If you’re thinking of buying, please reach out to us so that we can help you not only buy a home, but also understand the difference between helpful home buying advice and real estate myths like the ones we’ve listed today. 

 

If you have any other questions or would like more information, feel free to give us a call or send us an email. We look forward to hearing from you soon.

 

 

Posted in Buyer Tips
May 29, 2019

Aim a Little Higher With These 5 Life Hacks

Today’s message is specifically for people looking to improve their position in life. Keep reading to find out what I mean.

Selling a home? Click here to get a home value report.
Looking to buy a home? Click here to search all homes.

 

If improving your position in life sits atop your “to-do” list, stick around for today’s message because I have five hacks for higher achievement.

 

1. Wake up early. Believe it or not, research indicates that by the time the average person wakes up for the day, the most successful and productive among us have already accomplished more than the average person will all day.

 

2. Spend time in gratitude. The path to realizing success is never easy, but it’s aided along by taking time to recognize what we’re grateful for. For some, it might be doing something as simple as sitting in silent reflection. Personally, I like to journal and jot down a list of things or people that I’m most grateful for. That way, I stay devoted to my goals and remind myself of all the positives.

"The path to realizing success is never easy, but it’s aided along by taking time to recognize what we’re grateful for.

 

3. Exercise more. This isn't to say you need to take up marathon training or even join a gym. Whatever form of fitness you choose, it's important to get out and break a sweat. Design a workout regimen with weekly and monthly goals in mind and always be working toward those goals.

 

4. Drink less alcohol and more water. Cutting down on the amount of toxins we put into our body will work wonders— your mood, cognitive function, and sleep patterns are just a few of the things that are sure to improve.

 

5. Read more. As they say, "Readers are leaders." Some titles I've read recently include "Think and Grow Rich" by Napoleon Hill, "You Are a Badass" by Jen Sincero, and "The Power of Now" by Eckhart Tolle. It's only been in the last couple of years that I've read as much as I do now, and it's opened my eyes to new ideas, broadened my horizons, and facilitated more productive conversations with my peers, friends, and family.

 

I hope you found value in today’s list. If you have any questions about your personal, professional, and/or real estate goals, please feel free to reach out to me. If you know someone who might find this information valuable, share it with them as well. I hope to hear from you soon!

Posted in Pro Tips