Sacramento / Placer County Real Estate Trends – March 2018

Its A Sellers Market!

Sacramento and Placer County Real Estate is Booming!

A quick review of Sacramento and Placer county real estate bears out what everyone already knows – March was a strong Sellers market. Courtesy of Metrolist (R) and Trend vision (R) , we have recapped not only Sacramento and Placer County Real Estate trends for March 2018 but key communities such as Roseville, Rocklin, Carmichael, Elk Grove, Arden Arcade, College Greens / Rosemont, the City of Sacramento and Natomas.

Click on the links below to find out what’s going on in your area. If you have questions about a specific area or home in particular, feel free to contact us anytime at 916-396-7487 and we’ll be glad to help

Sacramento County

City of Sacramento

Carmichael

Arden Arcade

Elk Grove

Natomas

College Greens / Rosemont

Placer County

Roseville

Rocklin

About the authors:
Mike and Jennifer Rigley are one of Sacramento’s top ranked Real Estate Teams and 5 Star Ranked Real Estate Professionals. Selling Real Estate Full time since 2004 with well over 1,500 successful closings Mike and Jennifer Rigley are here to help your dreams of Home ownership come true.

When You are Ready here are 3 ways we can help:

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College Greens – Rosemont Open House Schedule

Here is this week’s Open House schedule for the College Greens / Rosemont area courtesy of Mike and Jennifer Rigley of the Rigley Realty Group powered by exp Realty of California. This link is updated daily as new open house’s are listed. For a private showing contact Mike & Jennifer at 916-396-7487

Need help finding that perfect place to call home? Start Your Search Here

 

Looking for a College Greens – Rosemont Real Estate Specialist? Call the Rigley Realty Group  today at 916-396-7487today  or log on to www.RigleyRealtyGroup.com to start your on-line home search now. Call us today – you’ll be glad you did.

Home Mortgage Loan Basics for Buyers

Purchasing a home is one of the great achievements in adult life. It represents a major asset and a serious move toward establishing strong credit and a lifelong investment. However, there are several important factors involved in securing a home mortgage loan needed to purchase a home. With the proper information and knowledge acquisition, however, getting hold of a secure and advantageous mortgage loan can be relatively simple.

Types of Mortgages

The most common mortgages are first mortgages – either for refinance or for purchase. If you are buying a new home for the first time, you will need a purchase mortgage. However, if you are simply looking for a new mortgage on an existing property, you will likely need a refinance mortgage. First mortgages simply indicate the lien position of the secured loan on your property title. What this means is that when the house is sold, the lenders will be paid in the order on which they are listed on the property’s title. Usually, however, first mortgages are much larger than any second, third or another mortgage. Second and third mortgages are sometimes equity lines or equity loans, depending on the type of credit. Credit lines are often used for home refurbishment as they can be borrowed against, repaid, and borrowed against again. Closed-end second and third mortgages are not revolved and therefore cannot be borrowed against once the initial payout is made.

Variable, Fixed, Other Options

All mortgages have an interest rate attached so that the lender can earn profit on the credit extension. If you secure a mortgage with a fixed rate, that rate will never change – regardless of economic conditions or changes in the Federal Reserve rate – over the life of the loan. Some rates are variable. This means they are tied to a national- or global – interest rate, like the LIBOR (London Interbank Offered Rate). As this global or national rate increases or decreases, so will your mortgage interest rate. Some newer mortgages have optional plans, including teaser fixed rates. In this scenario, there is usually a period of time (often 2-5 years) during which your mortgage rate is fixed. After this period, the rate becomes variable against a global rate – like the Prime Rate or the LIBOR.

PreApproval

Gaining preapproval for a mortgage loan is an important step in acquiring a loan for a real estate. Often, if you are purchasing a new home, a real estate agent will require a preapproval from your bank before completing offer terms or moving forward in the escrow period. Preapproval is just that – an initial approval, pending a true underwriting evaluation. Generally, however, the most pertinent information is collected for preapproval. This includes paystubs, tax returns, bank statements, and debt statements. The lender will then calculate your debt-to-income ratio (DIR), which will show how much income you have versus how many obligations you have each month. A low DIR will suggest that you are a low risk to the lender, and thus a good candidate for a mortgage loan. Other forms of preapproval may include a rudimentary title search to determine the number of existing liens on the property, which could cause problems later in the loan process.

Credit, Debit, Income

Different lenders have different criteria for underwriting on a mortgage. Since the 2008 financial crisis, however, many lenders have more stringent criteria for lending to mortgage borrowers. Most applicants will likely need to show a strong credit score (usually a FICO of 680 or above is required for low interest rates), a strong down payment, if purchasing a home (20 percent of the purchase price is standard), and consistent, reliable, and strong income that can be verified at least two ways (paystubs and tax returns are standard). Lenders will also take a close look at your existing debts to see if your current obligations might get in the way of repaying a large debt like a mortgage loan.

Conclusion

Purchasing a home or refinancing a mortgage can be a big decision, particularly given the sometimes very high fees associated with this kind of transaction. However, with proper planning and close monitoring of your debts, your income, and your savings, you should be able to get preapproved and ultimately fully approved for many different types of mortgage loans. Be wary of very high fees from some lenders, however, particularly if an origination fee is charged – good lenders will charge for closing costs, and perhaps a small processing fee, but large origination fees often signal that you are doing business with a subprime lender.

Your real estate agent is the best source of information about the local community and real estate topics. Give the Rigley Realty Group a call today at 916-396-7487 / 916-397-4787 to learn more about local areas, discuss selling a house, or tour available homes for sale.

6 Steps to Buying a Home

Whether it’s your first time purchasing a home, or you’ve decided to sell your current property, it’s important to know as much as you can about the home buying process. While your real estate agent will provide you with the best advice, you can stay ahead of the game by understanding the basics with these six steps.

Know Your Credit Score

Your credit score is likely the single most important factor in the home buying process. This score will determine both the variety of homes available to you as well as, importantly, the interest rate you will secure on a home mortgage loan. There are a number of ways to monitor your credit score, but one of the best is to visit annualcreditreport.com. This site is a free way to monitor and access your credit score from all three of the major credit reporting agencies (Equifax, Experian, and TransUnion). You are entitled to one free credit report each year. You can also be preventative with you credit score. Pay all bills on time, keep low balances on revolving credit accounts (credit cards), and do not let any accounts fall into default or be charged off, as these will seriously reduce your score. A strong credit score is anywhere between 720 and 850.

The Importance of Saving Money

Most first purchase mortgage lenders will require some form of down payment on a new mortgage loan for a home. In addition, some cash will be needed once you purchase the home for improvements, unexpected maintenance, furniture, taxes, insurance, and closing costs. Therefore, having a small nest egg is crucial in the home buying process. Start early, and work out a saving plan with your current income so that each pay period you can add a bit more to the house fund.

Find The Right Real Estate Agent

One of the best ways to find a great real estate agent is through referrals. There are likely hundreds of agents and agencies in your larger metropolitan region, but sifting through all of these is time consuming and overwhelming. Instead, reach out to your network of homeowners and ask for referrals for agents. Make a short list of agents, and set up meetings so that you can assess each. It’s a good idea to have many questions prepared, as well as a list of priorities (house size, income, purchase price range, neighborhood, schools, etc.) with you when speaking with potential agents.

Get PreApproved For A Home Mortgage Loan

Getting preapproved for a mortgage is important before completing an offer on a potential home. Most real estate agencies will not proceed with an offer agreement before the preapproval is secured. This means meeting with potential lenders about mortgage loans. Remember that often a preapproval is not a guarantee for a mortgage, nor is it a binding agreement to work with a potential lender. However, the preapproval will require an investigation into your income, debts, tax returns, and bank statements. Most lenders will not give a preapproval without having first established that you are well-capable of repaying a large debt like a mortgage loan. You will need to complete the approval process once you choose the right lender for your loan.

Placing The Right Offer

Making the right offer on a potential home is more of an art than a science. While some believe that the strongest, highest offer will always win, this is not always the case. Build a rapport with your and the home’s real estate agent, as well as with any attorneys attached, so that your character, personality, priorities, and interests are also taken into account as well as your financial offer. It’s best not to low-ball enormously on an offer as this may risk offending the home sellers, however, you usually want to get into a negotiation that ultimately will leave you paying less than the asking price. Your real estate agent can be very helpful here, too, as they will likely be an expert in reading the needs of the home sellers and the other real estate agents involved.

What Happens After Offer Is Accepted

Once an offer is accepted, generally the home goes into what is called escrow. This means that the property is handled by a third party under the agreement to deliver the property professionally and timely upon completion of the necessary tasks. You will likely need to schedule an appraisal for the home value as well as an inspection for the building and its contents. It is important to get a licensed and reliable inspector, as you do not want to purchase a home only to find out later that there are problems with the foundation, the roof, or other critical components of the property. Once inspection, appraisal, and mortgage approval are finalized, it is up to you and the home sellers to decide on a closing date to transfer the deed.

Your real estate agent is the best source of information about the local community and real estate topics. Give the Rigley Realty Group a call today at 916-396-7487 / 916-397-4787 to learn more about local areas, discuss selling a house, or tour available homes for sale.