★7 Tips to Help Get a Buyers Purchase Offer Accepted★

★7 Tips To Help Get Your Purchase Offer Accepted★
 
In today’s competitive market where multiple offers are the norm, it is very important that your offer stands out from the crowd so it is given every chance of getting accepted!

Here are 6 tips that you can use that will strengthen your offer and ensure your Purchase Offer stands out from the crowd:

1. Submit a Strong Cover Letter!
Submit a strong cover letter with the Offer explaining a quick synopsis of your situation and why you are the best candidate to purchase this home. It is also a good idea to include a personal letter also. If you can tug at the heart strings of the seller, then they may be more apt to choose your offer over others!

★It is also important to address upfront any red flags in your profile, so the seller is not put off by anything★

2. Make sure the pre-approval letter advises what type of financing you will be getting.

Provide a pre-approval letter that explains what type of financing you will be getting and how much of a down payment you are using. For example, if you're qualified for conventional financing and putting down 20%, make sure to write this into the pre-approval letter, as this will usually place ahead of a FHA buyer that has a 3.5% down payment or a VA purchase offer that has no down payment.

3. Provide a DU Underwriting approval with the offer.

Make sure your offer is accompanied by a DU automated underwriting approval. A DU (Desktop Underwriter) underwriting approval is when your loan application has been run through Fannie Mae’s, FHA’s or VA’s automated DU underwriting system and was issued with an underwriting approval.

A DU underwriting approval displays the most important information needed on your profile and will give the seller a good idea of the strength of your offer. For example, a DU approval will lists the credit scores, debt to income ratios, assets, down payment and the type of loan program you are approved for.

4. Provide proof of down payment funds.

Always provide proof of funds and where the down payment funds are coming from. Make sure to send over recent bank statements or statements from any account you are using for the down payment. Make sure there are enough funds in the statements you are providing to match the down payment listed on the offer.

Or if you're are going with FHA and are getting a gift from a family member, make sure there is a gift letter provided with the offer. Once again, make sure there is always enough funds to support the offer.

5. Make sure everything on your offer is current.

It is not uncommon these days for a buyer to be submitting offers for up to 3-4 months before they find a home, so sometimes many of the documentation in a buyers file is outdated, and copies of the pre-approval letter, the DU underwriting approval or proof of funds have a date that is a few months old.

Therefore make sure all the dates on your cover letter, approval letter, DU approval and all funds provided are current and within the last 30 days.

6. Don’t ask the seller for credits to cover closing costs.

A Purchase Offer asking for seller credits to pay for your closing costs will usually place behind a buyers offer that does NOT ask for any seller credits! Most people assume because they don't have funds for closing costs, they will just ask the seller to cover them. This does happen, but here is a better option.....
"To make your offer more competitive, you can pay ALL closing costs with a lender credit!"

How does this work? It’s easy, instead of taking let’s say a 3.25% 30 year fixed rate on a FHA loan, you can take a slightly higher rate of 3.5% instead, and with this higher rate there is now a lender credit of roughly 2.5% available that can be used to pay ALL your closing costs.
Not only is this a good negotiating tactic, but it will help you purchase a home if you don't have the funds to pay for your own closing costs! I present this option to all our buyers so they know this option is available to them!

7.  Faster closing to entice the seller to accept.

Being able to close a transaction fast is one way to entice the seller to accept your offer in this competitive market!
For example, if a seller is reviewing 3 offers, and there is a 17 day offer, a 30 day and 45 day offer, more than likely the seller will take the fastest closing. Therefore being able to close faster is a strategy that you can use to help get you into contract!

Rodeo's Affiliate, L.A. Mortgage can usually close a Conventional Purchase Transaction in 17 days (FHA and VA in 21 days)
They are an outstanding team set up and dedicated to closing transactions fast!

I hope you found these tips useful. I believe that full transparency upfront is the key to getting an offer accepted these days, because usually the “Path of Least Resistance” is what Sellers look for when reviewing offers! 

Have A Great Weekend Everyone!

Connect with me: https://www.facebook.com/StefenLibertiWestLARealtor

Never Take Counsel Of Your Fears...

~Never take counsel of your fears~
(Andrew Jackson)

So this week, I was talking to a young couple I know that was about to close on their first home. They were riding the wild roller coaster of current mortgage rate swings and were not happy about the process at all. Yet, when they spoke about finally living in a home that they own, their disposition changed dramatically.
A smile came across their faces as they talked about decorating the house and how much they will enjoy entertaining in the backyard. They talked about inviting friends over for dinner and their family over for the holidays. The more they talked, the more excited they became.

I asked them if many of their friends were also buying. I was shocked to find out that they weren’t. Why not? Their friends believed that home-ownership was financially unobtainable right now. Many wanted to own but didn’t think they could afford the monthly mortgage payment. They decided to rent instead.

I said that, with historically low interest rates and prices where they are today, owning a home might not be any more expensive than renting one. The couple agreed but said their friends were AFRAID; afraid they might not qualify for a loan, afraid to handle negotiations with a seller, afraid of the home buying process itself.

Wow! I've heard of many reasons, but afraid? People should not make any decision based on fear. I’m not saying that every young person should own a home. I am saying that anyone that is qualified and wants to buy should not be afraid of the process.

I realize the process may seem daunting but realize over 10,000 homes sell every day in this country. Sit down and discuss your goals with professionals from both the real estate and mortgage industries. Get the facts. Make an informed decision. Don’t let the fear of the unknown prevent you from living the life of your dreams.
If I can help alleviate any fears, please feel free to contact me. 
https://www.facebook.com/StefenLibertiWestLARealtor 

Ways to Prepare for a Home Appraisal.

Ways to Prepare for a Home Appraisal.
‪ #‎Realestate‬ ‪#‎Appraisal‬ ‪#‎Home‬ ‪#‎Sellers‬

The appraisal stage of a contract is one of the most anxious periods any home owner has to face. It determines the value of your house and the amount you would receive on selling it. Whether or not your home gets appraised to a decent price is a matter of great concern for owners. Experts suggest home owners take some necessary steps to secure good appraisals for their house.

1) MAKE YOUR HOME APPEAR PRESENTABLE.
Pay attention to every nook and corner of your home and find out what needs changes or repairs. Present your house in its best state before the appraiser arrives. Change the linen, put up clean and decent looking curtains, and get the walls and floors polished. See if there is any part of the house that needs to be repaired. Also keep your yard clean and green to make the right impression. Even the smallest negligence can cost you a great deal.

2) CLEAN AND DE-CLUTTER.
Clean homes always make a better impression on anyone so let your appraiser also be influenced by the cleanliness of your house. Remove any clutter that might have accumulated in the cupboards, closets, etc. Make your home look nice and tidy. A fresh smelling house is also a pleasure to be in, so try using some air fresheners before the appraiser arrives at your place. These tiny things may not be complete in themselves,but they can form a strong first impression on the appraiser’s mind which can in turn mold their judgment to a more positive one.

3) GIVE A LIST OF UPGRADES AND MAINTENANCE PERFORMED.
Keep the receipts or some other proofs of upgrades that you have had in the house in the recent past. Let the appraiser see that you pay due attention to the maintenance of your house. They are likely to make a more favorable decision if they sense this. If you have installed high quality equipment in your house, do let the appraiser know of that too.

4) BE HOSPITABLE WITH THE APPRAISER.
Welcome the appraisers nicely, treat them hospitably, and you’ll see the result of your good behavior in your appraisal document. If there are pets in the house, it is best to lock them up for the time being till the inspection is complete. Try to create as little disturbance for the professional as possible. Even children should be minded by someone for as long as the appraiser is in your house doing the inspection.

Selling your house is a major decision and involves many complications. The biggest one for most people is to get the right price for the property. However, you can avoid many of the hassles by following the above mentioned steps. These will only require a small investment of time and money from you, which will be more than compensated in the appraised price you would get as a result.

Hope this helps and as always...If I can be of assistance, I'm here if you need me. 
https://www.facebook.com/StefenLibertiWestLARealtor 

10 KEY QUESTIONS TO ASK REAL ESTATE AGENTS...

10 KEY QUESTIONS TO ASK REAL ESTATE AGENTS:

Selecting the best agent to list your home for sale and asking the right questions are key components to a successful sale for top dollar. By asking the right questions listed below you will maximize the probability of a successful sale.

1) HOW MUCH CAN YOU GET FOR MY ‪#HOME‬?
The best agents will prepare a written ‪#‎CMA‬ (Comparative Market Analysis) form to anticipate your question. If an agent doesn't leave their CMA with you to study, that agent doesn't trust you.

2) WHAT ARE THE NAMES, ADDRESSES, AND PHONE NUMBERS OF YOUR 5 MOST RECENT ‪#‎SELLERS‬:
The best agents will include this information in their Listing Presentation.Before signing a Listing with any agent, contact their recent #Sellers to ask, "Were you in any way unhappy with your agent and would you list your #home again with the same agent?
Listen to the answers closely, especially if the recent Seller hesitates or gives a vague answer.

3) HOW LONG HAVE YOU BEEN SELLING HOMES IN THIS AREA? ARE YOU A FULL-TIME ‪#‎AGENT‬? WHAT COURSES AND DESIGNATIONS HAVE YOU COMPLETED?
Just because an agent is a beginner, that's not necessarily bad. He or She will probably have more time to devote to ‪#‎selling‬ your #home than will an "old pro agent" who carries many listings.
However, be sure a new agent has adequate supervision from an experienced brokerage office manager.

4) WHAT IS YOUR MINIMUM LISTING TERM?
The correct answer is 90 days. Be wary if an agent insists on a six-month Listing, unless that Listing includes an unconditional cancellation clause after 90 days.

5) HOW MANY LISTINGS DO YOU HAVE KNOW? DO YOU HAVE AN OFFICE ASSISTANT? WHAT % OF YOUR LISTINGS SOLD IN THE LAST 12 MONTHS?
Watch out for a numbers agent! These are ‪#‎agents‬ who have dozens of Listings and one or two Office Assistants. They work on Percentages, knowing a certain percent of their Listings will sell, so they want as many Listings as possible. If you List your home for sale with a numbers agent, be sure it won't get neglected.

6) WHAT SALES COMMISSION RATE DO YOU CHARGE?
Most REALTORS® will tell you the "‪#‎standardcommission‬" is 6% (or 7%) but ‪#‎NAR‬ (The National Association of Realtors), in a recent study reports the average nationwide sales commission is 5.1%

7) WHAT IS YOUR ‪#‎MARKETINGPLAN‬ AND WHAT SERVICES DO YOU PROVIDE?
This question is closely related to the sales commission rate.The best "Full service" agents will prepare a written list of all their ‪#‎marketing‬ ‪#‎services‬.

8) OTHER THAN YOURSELF, WHO IS THE BEST REAL ESTATE AGENT IN THIS AREA?
The best agents will honestly answer you question.

9) IS MY HOME READY TO SELL OR DO YOU HAVE SUGGESTIONS TO BETTER PREPARE IT TO EARN TOP DOLLAR?
Some agents will want to avoid answering this key question until after you sign their Listing. But you need to know the answer before signing a Listing with an agent.

10) SHOULD MY HOME BE SOLD "AS-IS?"
Most states now require home Sellers to fill out a Disclosure statement listing any known residence defects that materially affect the ‪#‎marketvalue‬. This procedure avoids after-sale lawsuits if the ‪#‎Buyer‬ was informed of all defects.

These questions should serve as a guide to helping you choose the right Real estate agent. If I can be of assistance, please feel free to contact me at:
 https://www.facebook.com/StefenLibertiWestLARealtor

★EconomicUpdate for the week of July 5★

 

                                 https://www.facebook.com/StefenLibertiWestLARealtor

                                        ★Economic  Update for the week of July 5★

‎#Realestate ‎#Market ‎#Economy ‎#Mortgage ‎#Rates
 
This holiday week was a short one for many but it ended on a high note.
Mortgage rates stabilized Monday, Tuesday and Wednesday a bit after spikes over the last few weeks before rising sharply today after the jobs report was announced. Freddie Mac’s Weekly Primary Mortgage Survey found that the average for a 30-year-fixed conforming mortgage was 4.29% percent, down from last week’s average of 4.46%, The 15-year-fixed rate average 3.39% down modestly from last week’s 3.5%. Unfortunately, the FNMA 30-year-fixed rate hit 4.75% today, about a 3/8% rise from Wednesday, and 1/4% higher than last Friday. High balance conforming hit 5% and jumbo is around 5.25%. The 15 year rates also rose sharply.

I do think the rates will settle a little next week as this seems an extreme reaction given the unemployment rate didn't change. Overall, I would expect rates will continue to climb more gradually for some time until we get close to the 6% range.

Tuesday, CoreLogic released data showing that home prices rose 12.2% in May compared with the same month a year ago. This was the largest monthly increase since February 2006 and slightly below the predicted rise of 12.5% for May. The month-over-month rise was 2.6% including distressed home sales. Excluding distressed sales May prices rose 2.3% compared with April and were up 11.6% year over year. CoreLogic predicts June’s housing prices including sales of distressed properties will rise 13.2% year over year and 2.9% month over month. Excluding distressed sales, CoreLogic’s year-over-year increase for June is forecast at 12% and the month-over-month estimate is forecast to rise by 2%.

Among the 100 largest U.S. cities, 97 showed a year-over-year increase in home prices. The largest gains (including distressed properties) came in the Los Angeles metro area which was up 19.8%. This is much different from the Data Quick and CAR which showed year over year price increases in the 30% range in Southern California. Those were for median price which means half sell for more half sell for less. This report is for an increase of individual homes which is not an exact formula as neither is probably right for every individual area. Either way they both show what we know, prices are rising sharply and steadily with no end in sight at the moment.

I hope you had a good 4th and I wish you a great Holiday weekend!

★ MARKETUPDATE ★ for the month ending June 30, 2013★

Realestate news for the month of June centered around higher interest rates after the Federal Reserve Chairman, Ben Bernanke, announced that the Fed would be slowing down the mortgage-and-bond buying purchases under the program known as QE3 by the end of the year. He further stated that the Fed planned to end all purchases as early as mid-2015. The reason for this announcement was because the Fed now felt that the economy was growing at a strong pace, unemployment levels have dropped and he expected them to continue to drop, so further stimulus would no longer be needed. This program helped bring rates to the lowest level seen in decades. After hitting this year’s low of 1.61% on May 1, the 10-year note spiked soaring to a 22-month peak of 2.667% Wednesday, its highest level since August 2011, before settling at 2.52% today.

★INTEREST RATES★
#Mortgage #interestrates were up sharply both for the week and month. A 30-year-fixed conforming mortgage is now at 4.38% up from 4.24% last week and climbing steadily from 3.75% a month ago. The rate was 3.57% on May 1, so rates are up almost a full percent in 60 days. A 15-year-fixed mortgage rate is now up to 3.46% up from 3.31% last week and up over half a point from 2.90% last month. Rates on high balance conforming $417,000 - $625,500 ( LA and Orange county and $598,000 for Ventura county) are about 1/8% higher than conforming and jumbo loans are about ½% higher.

This week Federal Reserve officials continued efforts to curb a rise in long-term interest rates, hoping to calm fears raised by comments made by Chairman Ben Bernanke that triggered turmoil in global financial markets. Officials say an increase in the Fed’s benchmark interest rate is still a way off and bond purchases could also be prolonged if the economic performance doesn’t measure up to forecasts.

So why did #rates rise? Is #Wallstreet fed up? Was the Federal Reserve testing the market’s tolerance with some well thought out comments? Will the Fed begin to unwind its efforts? Time will tell the answer to all of these questions. But I do assure you that the ride is not over. As we’ve seen in years past, there is always a secondary action to the immediate (usually over-reaction) reaction, but then again, most have been preaching for months, if not years, that rates can’t stay this low. Can they?

As a real estate professional, I don’t have all the answers when if comes to the future of interest rates. My guess....#Rates will likely dip again and level off in a somewhat upward trajectory. We have likely seen the record low rates come and go. This happens. It is the cycle. It is not doom and gloom. Rates are still low and people are still interested in buying houses. In fact, I typically see an uptick in home sales immediately after an interest rate rise as #Homebuyers fear further increases. For now, rates will be what they will be, and while they have an impact, they certainly are not the largest reason that someone should or should not buy a home.

★HOME PRICES★
Reports on #Home prices continue to beat expectations. The California Association of Realtors reported that the median housing price in #California increased 31.9% in May, the largest year-over-year increase in 33 years. Inventory levels remain low while the number of sales in May continue to rise.

In May, there was a 2.6 month supply listings at the current sales rate, down from 3.6 % a year ago. A six-to-seven-month inventory represents a balanced market. DataQuick reported that an estimated 42,293 new and resale houses and condos sold statewide last month. That was up 8.3 % from 39,051 in April, and up 1.2 % from 41,790 sales in May 2012. The sales count was the second highest May ever reported behind only May 2006, where 54,099 homes were sold.

As always, if you need a #REALTOR to help you #Buy,#Sell,#Lease or #Invest, I would love to be of service.

I hope you have a great weekend!

Thinking about buying a house with an FHA Mortgage?

Well, here's another reason to "Get off that fence", "Pull the trigger", "make the leap" and act RIGHT NOW. 


                                                                                    The Federal Housing Administration (FHA) has changed it’s policies regarding the insurance fund and are to take effect on June 3rd 2013.

The FHA recognizes most, if not everyone, doesn’t have 5, 10 or 20 percent to put down on a home. They say if a buyer meets their guidelines, they're willing to insure the loan. The buyer must pay a monthly mortgage insurance premium (MIP) until the loan reaches 78 percent of the original loan amount. That is until June 3rd.

Beginning June 3, borrowers who apply for FHA insured mortgages will pay for mortgage insurance for the life of their loans. FOR THE LIFE OF THE LOAN!!

Currently the rule says a borrower must pay the insurance for a minimum 5 years and until the loan reaches 78 percent of the original loan amount.

Typically once the 5 years, 78 percent is reached, the mortgage payment is lower and the cost of paying MIP is no longer part of the mortgage. At this point your monthly mortgage payment will be less. Everyone likes a lower payment, right?

Well, come June 3rd, MIP will no longer fall off after 5 years. It will be permanent for any FHA insured borrower who puts down less than or equal to 10%

If you’re on the fence about buying or in the process of choosing a home, I’d say get under contract before June 3rd. For loans with FHA case numbers assigned on or after June 3, 2013, FHA
will collect the annual MIP for the maximum duration permitted under statute. 12 U.S.C. § 1709(c)(2)(B).

For information regarding your financial outlook and what best works for you, I highly recommend, L.A. Mortgage Company.

https://www.facebook.com/StefenLibertiWestLARealtor 

Buying/ Selling/ Leasing/ Investing
Call me today if I can be of assistance.
★★★★★★★★★★★★★★★★★★★
I welcome your referrals. :)

Understanding the Offer Process

Understanding the Offer Process....

★ Drafting the Purchase Contract
★ Price bidding and best offers
★ Engaging in a bidding war

Once you’ve decided on the home you want to buy, your real estate agent (ME) or attorney will draft a purchase offer or contract in your name, which he or she submits to the seller’s agent or attorney.The seller can respond in one of three ways: accept the offer, counter it with a higher asking price or reject it.

"Below-price" bidding:

Bidding for a property below its asking price is almost par for the course during what’s called a “buyer’s market.” When there’s a glut of houses or condos on the market, for which there are not enough buyers, a prospective buyer can confidently try to skim 10 percent off the asking price off the property. But if you bid 20 percent below what a seller wants, you may be out of luck. Many experts advise against subtracting more than 10 percent from the owner’s asking price. However, you can sweeten a relatively low offer price by guaranteeing the seller a quick closing and a large earnest-money deposit. Or, if you accept the present state of the home without demanding free upgrades, you could sway the owner in your favor over other bidders.

Highest and best offer:

Sometimes sellers or their agents get restless during negotiations and ask you to quote them your highest and best offer for the home. Don’t go out on a limb if you are not 100 percent sure you want this particular property. You can always reconsider if you feel you made a mistake, after comparing other properties to the one that forced you to make a blind bet on its value.

Full price offers:

There’s no shame in agreeing to pay the seller’s full asking price without bartering. If the home you’re pining for is worth its price tag and you really want it, offer to pay the full asking price. Do you want to see your dream home slip through your hands because you want to pay $1,000 less for it? Another buyer may show up five minutes after you, eager to pay that difference.

Bidding Wars:

Engaging in a bidding war for a property with other interested buyers is not for the faint of heart. Be warned that you may end up paying too much for that dream home and regretting it. As one of an unknown number of rivals in a bidding war, you’re competing against each other blindfolded. Neither you nor your agent will know how many offers the seller has on the table, because real estate license laws allow listing agents to keep such information confidential in the seller’s interest.

You may end up having to cough up a lot of extra cash for the down payment, if you’re the winner with the highest bid. Instead, you could keep your cool and stay off the multiple offer- and counteroffer-carousel. Sometimes, all rivals for your dream home may throw in their towels and call the bidding war quits. Who knows, the seller may then come knocking at your (old) door to ask you to submit your purchasing offer. In that case, you’ll end up the real winner, possibly holding the power to barter with the seller for a lower purchase price.

At all stages of the buying process, keep a written record of negotiations between you and the seller, as well as changes to agreements made with any involved parties. In the heat of the home buying process, you may not remember that you wanted the seller to throw in his basement refrigerator, or check on the size and location of your high-rise condo’s storage unit. 

https://www.facebook.com/StefenLibertiWestLARealtor 

 Buying/ Selling/ Leasing/ Investing
Call me today if I can be of assistance.
★★★★★★★★★★★★★★★★★★★
I welcome your referrals. :)

5 Tips for first time Home buyers.

5 TIPS FOR 1ST TIME HOME-BUYERS...

Buying a first home can be a scary, confusing and stressful process. Many would-be buyers are understandably nervous at the prospect of making the largest purchase of their lives. Rather than diving in and hoping for the best, you should prepare carefully before you begin the house search.

Following some useful tips will help you turn an overwhelming and intimidating experience into an exciting search that yields the right home!

1.) Establishing a Realistic Price Range:
A common mistake among first-time home buyers is purchasing more house than they can afford. You should not rely on banks to determine what you can comfortably spend on a new home. Banks are adept at determining the amount of monthly debt in the form of mortgage, insurance, credit card, student loan and auto loan payments. They have no way of knowing, however, what you spend each month on groceries, entertainment and utilities.
You should make a list of all monthly expenses, excluding rent or your current mortgage payment. Whatever is left after monthly expenses is the amount available for a mortgage payment and housing expenses such as taxes, insurance and home maintenance. Carefully consideration of your budget saves time by weeding out homes that you cannot afford and guards against overspending.

2.) Seeking Pre-approval:
Getting pre-approved for a mortgage prevents a deal on a dream home from falling apart due to failure to obtain financing. You should compare loans from several lenders to see which one best suits your needs. A pre-approval letter will give you some power to negotiate on a home’s price because the seller will view a pre-approved offer more favorably than an offer that comes without lender pre-approval.
Keep in mind that pre-approval is different from pre-qualification. During pre-qualification, the lender estimates what you can afford. Preapproval is a more involved process in which the lender looks at your credit report and performs an extensive financial background check. At this point, you will get a good idea of the mortgage interest rate as well.

3.) Setting Priorities:
You should compile a list of what you need and want in a house. Needs might include the number of bedrooms, square footage, high-quality schools and commute time. These needs are aspects of the house that either cannot be changed or cannot be changed without substantial cost to you.
Wants, on the other hand, are something you would like and that can be changed. Wants may include a pool or hot tub, landscaping, finished basement or hardwood floors. Making a list of wants and needs helps you focus on what is really important in a house, narrowing the list of prospective homes. Ideally, the new house will include all of the needs and a few wants.

4.) Choosing the Right Neighborhood:
Crime statistics, insurance rates, property taxes and school quality are important considerations for you. Because the neighborhood makes up a large part of a home’s value, take your time to find exactly what suits your needs. You should also consider job commute, traffic during rush hour and proximity to amenities such as shopping, churches and libraries.
Driving through the neighborhood at various times during the day and night will provide a more complete picture of the location. Don’t forget to talk to potential neighbors, who can be a good source of information regarding the neighborhood and residents in the community. Take note that bad neighbors can bring down the value of a house.

5.) Finding the Right Home Inspector:
You will also need a professional home inspection. Even new houses may present costly problems evident only to a home inspector. You should talk to several inspectors before hiring one. You should ask about the inspector’s qualifications, scope of the inspection, how long it will take and the nature of the report you will receive at the end of the process. Main areas covered by the inspection should include quality of construction, integrity of the foundation and condition of plumbing, electrical, heating and cooling systems. If the inspection uncovers serious issues, such as cracks in the foundation, you may decide to back out of the contract or ask the seller to repair the problem. 

https://www.facebook.com/StefenLibertiWestLARealtor 

Buying/ Selling/ Leasing/ Investing
Call me today if I can be of assistance.
★★★★★★★★★★★★★★★★★★
I welcome your referrals. :)

★LENDER CHECKLIST★: What You Need for a Mortgage.

★W-2 forms — or business tax return forms if you're self-employed — for the last two or three years for every person signing the loan.

★Copies of at least one pay stub for each person signing the loan.

★Account numbers of all your credit cards and the amounts for any outstanding balances.

★Copies of two to four months of bank or credit union statements for both checking and savings accounts.

★Lender, loan number, and amount owed on other installment loans, such as student loans and car loans.

★Addresses where you’ve lived for the last five to seven years, with names of landlords if appropriate.

★Copies of brokerage account statements for two to four months, as well as a list of any other major assets of value, such as a boat, RV, or stocks or bonds not held in a brokerage account.

★Copies of your most recent 401(k) or other retirement account statement.

★Documentation to verify additional income, such as child support or a pension.

★Copies of personal tax forms for the last two to three years.

Before meeting with a Lender, be sure to have most, if not all of these items in a safe neat folder. This will greatly expedite the process. :)

https://www.facebook.com/StefenLibertiWestLARealtor
Buying/ Selling/ Leasing/ Investing
Call me today if I can be of assistance.

★★★★★★★★★★★★★★★★★★★
I welcome your referrals. 

"Bird Streets" Doheny Estates West Hollywood, Ca 90069

Many who work in the entertainment industry of L.A. want to be close to the studios, offices and creative buzz of Sunset Boulevard, but still crave privacy and quiet at the end of the day when they return home – hence the popularity of the Hollywood Hills, with its views and elegant estate homes. Maybe the most elegant of all are the homes are those of the Doheny Estates.  That's Me------>

Located on what are known as the “Bird Streets”, the exclusive Doheny Estates are at the west end of the Hollywood Hills, bordering Trousdale Estates and Beverly Hills. You get here by following the winding streets that crawl past gorgeous residences along the hillside. Once you have reached the Doheny Estates, you’ll find that you have the sparkling lights of Hollywood displayed before you and on a clear day you can see all the way to the Pacific Ocean.

The Hollywood Hills - The neighborhood north of West Hollywood - has a spectacular variety of homes with the best views available in all of Los Angeles. This residential area above the Sunset Strip is home to the highest concentration of celebrities in Los Angeles.

Homes in this neighborhood with a unique "90069" West Hollywood zip code (while actually being located within the city of Los Angeles), are the most expensive cost-per-square-foot average in all Los Angeles, exceeding Beverly Hills and Bel Air.

Whether you are looking to buy or sell a Doheny Estates home, you need the guidance of an experienced realtor who knows the area well. Having lived in the "Birds" has afforded me an intimate knowledge of this neighborhood, it's current market trends, and I look forward to sharing this knowledge with you. :)

*ECONOMIC WEEKLY UPDATE 5/3/13*

This week marked more good economic news! Real Estate related news began Tuesday when NAR reported March resale number of homes under contract Rose 7% from March 2012.

Stocks soared today after a much stronger than expected jobs report. The economy added 165,000 nonfarm payroll jobs. The unemployment rate fell to 7.5%, a 4 year low. The DOW and S&P are on track to end the week up almost 2% and the NASDEQ up 3.3%. Finally, this is starting to shape up as what a recovery looks like! Stocks also were up with the S&P500 ending the month of April at a record high. The major markets finished April with the DOW up 13.3, NASDEQ up 10.2% and S&P up 12% for the year. This run up has been a result of higher than expected earnings, dropping unemployment, robust home sales, rising home prices, dramatically fewer foreclosures, and rising consumer confidence.

As the economy improves, demand for loans increases, and interest rates rise. Rising rates, in turn, drive down the price of bonds. The yield hit 1.75% today as investors jumped into stocks and out of bonds. Minutes from the Federal Reserve meeting last month indicated that policymakers seemed headed to winding down their bond purchasing before a weak March jobs report took them by surprise. They will continue purchases of Treasury’s and agency mortgage backed securities until the outlook for the labor market has improved. If the outlook for labor market conditions improve as anticipated, the Fed will then decrease purchases of massive bond buying in the year and stop them by year-end. If the Fed does in fact try to pull-out and exit the $85 billion bond buying program because the program has either been deemed a success or has become ineffective, it is possible the Fed will face many unintended consequences.

The latest GDP report confirmed that the Housing Sector has become an important contributor to the economic recovery.
Residential fixed investment added to overall economic growth over the past eight consecutive quarters and contributed more than 0.3 percentage points in growth over the first three months of this year. Moreover, near record low mortgage rates should further drive the housing market recovery over the near term.

So where are we now with rates??

This week rates are falling for all types of mortgages, and the average 15-year fixed loan has hit an all-time low of 2.56%, for a second straight week, dropping from 2.61%, both better than the previous low mark of 2.63% set in November. A year ago the 15-year rate stood at 3.07%. The 30-year fixed has now dropped for a fifth straight week to 3.35%, from 3.40% a week ago. After rising as high as 3.63% in March, the rate is again honing in on the 3.31% all-time low seen last November. A year ago the same rate averaged 3.84%.

The five-year ARM sank to 2.56% with an average 0.5 point.
It was down from 2.58% a week ago. The one-year ARM dropped to 2.56% with an average 0.3 point. It was down from 2.62% a week ago.
This week marked the *FIRST TIME* in history the 15-year fixed, five-year ARM and one-year ARM all averaged the same percentage. This week mortgage applications showed a slight uptick and the refinance share of mortgage activity remained unchanged, accounting for 75% of total applications.

What do I have to do to buy a house??

As the spring home-buying season begins, a real estate maelstrom of market forces is making this spring one of the toughest times in memory to purchase a home.

Most agents agree, it's the ultimate sellers' market -- very few sellers and hordes of buyers.
The saying "Cash is King" appears to be the new normal. Many homes that would be purchased in a normal market by average buyers are ending up in the hands of cash-paying investors domestically and from abroad.

In a normal market, increasing demand and rising prices would encourage more sellers to put their homes on the market. But that has been slow to occur because home prices fell so low in the crash that many homeowners can still only sell their homes at a loss or for not much gain. Simply put, nobody wants to sell at the bottom. Prices bottomed only a year ago, and that means we're still too close to the bottom to see a lot of homeowners putting their houses on the market. And there's a very long way to go to where inventory is back up to normal levels.

Buying/ Selling/ Leasing/ Investing
Call me today if I can be of assistance.
★★★★★★★★★★★★★★★★★★★
 I welcome your referrals. :)

TIPS FOR BUYERS

 

Many know that a mortgage is a great way to buy a house. But, quite often, many don't realize just how much a mortgage can drastically run up the cost of owning that home.

If I told you that I would sell you a $200,000 house for $364,813.42 you would never do it, but a 30 year mortgage can run the purchase price of a house up $164,813.42 in interest at 4.5% over a 30 year mortgage.

Just know, their are ways to reduce that number that are simple and within reach. If you're shopping for a mortgage, make sure you have the option of "PRE-PAYING PRINCIPAL" without penalties. Let me show you how this works.

Let's start with a $200,000 mortgage with the first payment beginning JANUARY 1st. Interest is loaded on the front of your mortgage, so your early payments are predominately interest.

EXAMPLE:
Payment one is $1013.37. Of that, only $263.37 is paid on the principal. The remaining $750.00 is interest. On month 2, your second payment is $1013.37 of which $264.36 is principal and $749.01 is interest.
So, in two months, you have paid $527.73 in principal and $1499.01 in interest. NOW, if you add the principal of the second month with your first payment you can skip the interest on payment two. So, on JANUARY 1ST you would pay $1277.73. That eliminates $749.01 in interest from your loan.

Now, in February, you would make payment 3. Payment 2 has been paid with the January payment - minus the interest which you won't ever pay. In February, if you paid the principal of month 4, $266.34, you can skip the interest of $747.03.
In two payments, you have reduced your overall mortgage costs by $1496.04 in interest. If you repeat that every month throughout your mortgage, you can radically reduce the overall interest costs of your mortgage. :)

Dream it - Buy it -Live it 

Major Economic News.

February 2, 2013

Major economic news this week:

Today the global stock market climbed to the highest in two years, aided by an increase in manufacturing and new employment data which indicates the global economic recovery is on track. This week Dow rose above 14,000 for the first time since October 2007. Employment data was released today and showed what was expected-- steady but slow growth for January with 157,000 added jobs, 196,000 in December and 247,000 in November. Job creation is steady and strong enough to bring the unemployment rate down over time — just not very quickly. The January unemployment report was, more than anything, affirmation of that fact.

While the unemployment rate rose 0.1 percentage point to 7.9%, there are still solid gains in construction and retail employment. The construction industry added 28,000 jobs, following a 30,000 gain in December, which is suggesting that more homes are being built and employers are increasing their construction crews. The retail sector added 33,000 jobs and actually did pull back on hiring in anticipation of the increase in the payroll tax.

The steady growth in jobs figures explain a lot. They explain why consumer spending and retail sales held up quite well during 2012, in spite of the seemingly weak jobs numbers. They help explain why consumers in general did a far better job keeping up with financial obligations—from mortgages to credit cards. They help explain why more people were willing to take a plunge on purchasing a home or buying a new car. Buyers are starting to feel more confident, home values continue to steadily rise and there is more optimism about the economic recovery. In end, the financial situation of 2013 is rather bright especially in consideration of the fiscal cliff deal. But the new tax increases for 2013 that was worked into the fiscal cliff deal could still affect retail sales and other measures of economic performance in coming months.

What does this mean to us? Very low inventory. Prices rising quickly and multiple offers. This was a very unusual real estate recession. Caused by a sudden crisis in liquidity in which financing dried up overnight in late 2007. Now that financing is back in the market we are seeing the market correct. It won't be long before we reach the highs of 2006! Who would have thought prices would recover so quickly? And interest rates are steadily rising!

Have a great weekend!
https://www.facebook.com/StefenLibertiWestLARealtor