The Importance of Pre-Approval

Pre-Approval - What is it?

"Pre-approval" means you have met with a loan officer, your credit files have been reviewed and the loan officer believes you can readily qualify for a given loan amount with one or more specific mortgage programs. Based on this information, the lender will provide a pre approval letter, which shows your borrowing power. You can visit as many lenders as you like and get several pre-approvals, but keep in mind that each one carries with it a new credit check, which will show up on future credit reports.

Although not a final loan commitment, the pre approval letter can be shown to listing brokers when bidding on a home. It demonstrates your financial strength and shows that you have the ability to go through with a purchase. This information is important to owners since they do not want to accept an offer that is likely to fail because financing cannot be obtained.

How do you get pre-approval?

Real estate financing is available from numerous sources, including lenders in in the finance section of Realtor.com, mortgage companies that have worked with local REALTORS® and in some cases, individual REALTORS® themselves. Based on his or her experience, the REALTOR® may suggest one or more lenders with a history of offering competitive programs and delivering promised rates and terms.

The loan officer will carefully review your financial situation, including your credit report and other information. The lender will then suggest programs which most-closely meet your needs. For instance, a first-time buyer may qualify for state-backed mortgage programs with little money down and low interest rates, while a repeat purchaser (someone who has bought a home before) with more equity (money invested in the home) might want to get a 15-year loan and the lower overall interest costs it represents. Typically, first-time buyers opt for the traditional 30-year loan, with either a floating interest rate or a fixed rate of interest over the life of the loan.

Click Here for to contact Sander Harth for more information on Pre-Approvals.

Click Here to begin searching for homes. 

From: Realtor.com

Choosing the Right Real Estate Agent

Choosing a real estate agent is one of the most important decisions a home buyer or seller can make.  Before the home shopping season gets underway, here are some tips to help find an agent that’s right for you.

1. Research

Do some legwork. Literally. Take a walk or drive around your neighborhood and check out the for-sale signs.  Does one company dominate the area? Are there fliers or other marketing materials available? Most importantly, do SOLD signs go up after days, weeks, or not at all? 

Stop by open houses to view other homes on the market. This is a great way to see the agent in action, and meet them in a casual setting.  Are they friendly, informative and professional? How do they respond to other people coming to the open house?

2.  Check Out Ratings and Reviews

Online agent ratings and reviews are the next best thing to a personal referral.  Knowing the experience that lots of  other people had with a particular agent is valuable information to have.  Zillow allows you to search a specific area to find the agents with the highest ratings and best reviews. OR, after you’ve walked around your ‘hood and gotten a few business cards at open houses, you can search for agents by name and read their reviews.  Either way, online research should be a part of  the process.

3. Interview Multiple Agents

Buying or selling a home is one of the biggest financial events of your life so take the time to interview at least three agents before deciding whom to hire. You want to find someone who demonstrates knowledge of your area and expertise in the buying/selling process,  that is, familiarity with all the technicalities such as title, appraisals,  financing, negotiation, inspections, etc.  Above all else,  make sure you’ll feel comfortable having this person guide you through an overwhelming and stressful process.

4. Ask the Right Questions

There are hundreds of  things you can ask during the interview process.   Separate the good agents from the great ones by comparing the answers you get to these questions:

How many deals did you complete last year?

How many of those deals were in the area I am interested in?

How will you prioritize and strategize for my needs?

If you are a buyer,  find out how the agent will search for homes for you, how many homes you can expect to see before finding the right one, who will come up with pricing, and how multiple offers are handled.

If you are a seller, ask how the agent will market your home both on and off-line, how many photos are typically posted with a listing, what kind of photo equipment will be used (for high-quality photos), where your home will be advertised and how often? Finally, can this agent tell you what current buyers are looking for in a home these days? See other questions to ask a real estate agent.

5.  Set Communication Expectations

One of the most common complaints from buyers and sellers is about the agent’s lack of communication. Make sure you’re on the same page from the get-go.  Discuss how the agent will keep you informed and how often you expect to hear from them.  If you prefer email but the agent is most responsive to phone calls, you may not be a good fit for each other. Or, if you know you’re going to have lots of questions about the process and expect quick responses,  but the agent’s MO is bi-weekly updates,  you may want to find another agent.  It doesn’t matter how fantastic your agent is if your communication styles don’t mesh.

From Zillow.com

Five Predictions for the 2013 Real Estate Market

Happy 2013 Everybody!

Make sure to check back often for new blog posts throughout the year! And don't forget to "Like" my Facebook Business Page.

Five Real Estate Market Predictions for 2013

1. Rising home prices: The slow pace of new-home construction over the last few years is beginning to push prices up, a pattern that is expected to continue through 2013. The amount of new construction is not at the level necessary to keep up with housing demand, which is another reason for the low amount of housing inventory on the market. Top forecasters for The National Association of Realtors (NAR) project home prices to rise 5% this year.

2. Rising rents as more young professionals enter the market: Top analysts expect that there is a shadow demand in the rental market- meaning that the 3-5 million young people, mostly in their twenties and thirties, who have been living with their parents and waiting for the economy to improve - will begin looking for their own rental properties this year. As they begin to get jobs, they are going to be creating a more competitive demand for condos and single family rental homes. This means, for those looking to find new rentals this year, good luck! You better have all your finances and paperwork ready to go as to place yourself in a more competitive position when looking for rental properties. It should be noted that a recent Zillow analysis found that buying beats renting in 59% of markets after three years or less!

3. Fewer foreclosure bargains: The chance to grab bargain foreclosure properties may be fading this year. Sales of foreclosed homes dropped to 11% of all sales in June of 2012, down from about 28% in March of 2011. This drop is in part because the Federal House Financing Agency (FHFA), the FDIC, and banks have been selling off distressed home loans in bulk to purchasers who agree to work out new terms with borrowers rather than foreclosing on them. Another reason foreclosures have dropped is because the equity position of thousands of borrowers has improved thanks to the rise in home prices this past year, righting many upside-down loans. 

4. More short sales: A short sale is a deal in which a lender allows for a home to sell for less than the borrower owes them on the mortgage. This is preferable for the lender because they don't have to go through the expensive and time-consuming foreclosure process, although they may lose some money on the loan. On Nov. 1, the FHFA issued new rules on short sales for Fannie Mae and Freddie Mac. Among other measures, these new rules reduce the documentation that borrowers have to show to prove they have faced financial hardship, and borrowers now aren't necessarily required to pay the difference between what they owe on the mortgage and the final sales price of their house. 

5. More first-time home buyers: Consulting firm Deloitte & Touche predicts that growth in the 2013 real estate market will come from the demand in single family homes, likely driven by first-time home buyers. A NAR survey of buyers and sellers from 2011 to 2012 also showed an increase in first time home buyers, and the trend is expected to 
continue.  

November Real Estate Market Profile

As a Realtor I am often times asked how our local market is performing. Well, here is the November Market Update that I have prepared so you can get the scoop on whats going on in the 92024 zip code.
(Note, based on single family homes, not including condominiums, townhomes, or manufactured homes.)

Property Sales

November Property sales were 43, up 72.0% from 25 in November of 2011 and 2.4% higher than the 42 sales last month. November 2012 sales were at their highest level compared to November of 2011 and 2010. November YTD sales of 429 are running 30.0% ahead of last year's year-to-date sales of 330.

Prices

The Median Sales Price in November was $715,000, up 10.0% from $650,000 in November of 2011 and down -23.5% from $935,000 last month. The Average Sales Price in November was $858,961, up 9.4% from $784,820 in November 2011 and down -24.3% from $1,135,218 last month. November 2012 ASP was at a mid range compared to November of 2011 and 2012.

Inventory & MSI

The Total Inventory of Properties available for sale as of November was 101, down -16.5% from 121 last month and down -44.8% from 183 in November of last year. November 2012 Inventory was at the lowest level compared to November 2011 and 2010. 

A comparatively lower MSI is more beneficial for sellers while a higher MSI is better for buyers. The November 2012 MSI of 2.3 months was at its lowest level compared with November 2011 and 2010. 

Market Time

The average Days On Market(DOM) shows how many days the average Property is on the Market before it sells. An upward trend in DOM tends to indicate a move towards more of a Buyers market, a downward trend a move towards more of a Seller's market. The DOM for November was 67, down -8.2% from 73 days last month and down -17.3% from 81 days in November of last year. The November 2012 DOM was at its lowest level compared with November of 2011 and 2010. 

San Diego Holiday Events - 2012

Well everyone, the holiday season has arrived, and there is no shortage of great things to do in our fine city. See below for a list of some great events that are going on around San Diego this month and don't forget to like my Facebook page if you haven't already :)

Happy Holidays!

Balboa Park December Nights, one of the nation's premier holiday festivals, take place for the 35th consecutive year this weekend on December 7-8. The event brings families and friends together to spread some holiday joy and take in the various holiday traditions/cultures from different countries all over the world. 

Visitors can enjoy delicious and diverse food choices, spend some time in the beer/wine garden that includes unique beverages from across the globe, and watch the top-notch musical and dance performances that will be taking place throughout the night. 

Admission is FREE! Visit Balboa Park's website to learn more information about this wonderful event.

The San Diego Bay Parade of Lights is held every year on two consecutive Sundays in December. This year the parade will be held on Sunday, December 9 and the following Sunday, December 16. The event starts with a firework show that begins at 5:30pm and then the parade will start from Shelter Island immediately following the fireworks. 

The parade proceeds from Shelter Island and passes Harbor Island, the Embarcadero, Seaport Village, and Ferry Landing in Coronado. 

For mor information on the San Diego Bay Parade of Lights click here. 

The Hotel Del in Coronado is open for it's Skating by the Sea event. This annual treat is open from now until January 5th from 2pm-5pm and 6pm-9pm daily. There are also weekend and holiday matinee times from 11-1. 

Visit the impressive Hotel Del and witness how they have transformed their Windsor Lawn into an oceanfront outdoor ice-skating rink that overlooks the Pacific Ocean. Grab a hot chocolate and head on over to skate on the beach during sunset... how cool is that?!

Visit the Hotel Del's website for more information. 

The San Diego Botanic Garden, located right here in Encinitas off of Quail Gardens Rd. will be hosting a Garden of Lights from December 8-23 & 26-30 from 5-9pm. 

The botanical garden has been transformed into a bright and cheery winter wonderland displaying over 100,000 shining lights that illuminate the garden for a magical holiday experience. There is live music nightly, from 6-8pm, and weather permitting, they will be bringing in their snow to play and sled in from Dec. 8-13 and 26-30!

For more info, click here. 

Realtor Introduction Video

Check out my video highlighting some of the most fantastic parts of North County. I had a blast shooting this short clip, there will definitely be more to come in the near future. 

$1,000 Cash Giveaway!

My Coldwell Banker office in Encinitas is giving away a $1,000 cash prize this holiday season, and I would love to help put you in the drawing to be the winner! Imagine what an extra $1,000 would do for you this winter, whether you need some extra dough for buying presents or want to take a quick getaway trip during the holidays, this is your chance to fund it! 

Simply download the flyer below and then print it, fill it out, and then send it back to me via email, fax, or snail mail and I will enter you in the contest. It shouldn't take more than 5 minutes of your time...

GOOD LUCK! 

Print me out and send me in!