The Real Folsom Blog

Recent Folsom Home Sales Dec. 31

It's been a couple of weeks since I did an update on recent home sales in Folsom so I decided to wrap up the year with a look a recent Folsom sales, as recorded by our local multiple listing service. These properties were listed and sold by various multiple listing service brokers. If you don't see a sale you've been wondering about, drop me a line at annerhea@kw.com and I'll look it up for you.

• 1252 Albrighton Dr (2 bedrooms/2 baths, 1012 sq feet) sold for $315K at 100% of list price, $311 per sq foot.
• 812 Sibley St (3 bedrooms/2 baths, 1639 sq feet) sold for $325K at 90.28% of list price, $198 per sq foot.
• 1483 Lewis Way (4 bedrooms/2.5 baths, 1963 sq feet) sold for $350K at 88.61% of list price, $178 per sq foot.
• 2242 Zittle Dr (3 bedrooms/2 baths, 1344 sq feet) sold for $355K at 101.75% of list price, $264 per sq foot.
• 656 Hillswick Cir (3 bedrooms/2 baths, 1607 sq feet) sold for $366,650 at 100.45% of list price, $228 per sq foot.
• 104 Toney Ct (3 bedrooms/2 baths, 1968 sq feet) sold for $370K at 92.50% of list price, $188 per sq foot.
• 63 Sluice Way (4 bedrooms/2.5 baths, 1930 sq feet) sold for $374,990 at 95.91% of list price, $194 per sq foot.
• 107 Gilded Rock Cir (4 bedrooms/2.5 baths, 1938 sq feet) sold for $380K at 95.02% of list price, $196 per sq foot.
• 1551 Ballou Cir (3 bedrooms/2.5 baths, 1905 sq feet) sold for $385K at 91.23% of list price, $202 per sq foot.
• 860 Morningside Dr (4 bedrooms/3 baths, 2230 sq feet) sold for $420K at 97.70% of list price, $188 per sq foot.
• 1457 Haddington Dr (4 bedrooms/3 baths, 2756 sq feet) sold for $520K at 94.55% of list price, $189 per sq foot.
• 491 Marsh Hawk Dr (4 bedrooms/3 baths, 2782 sq feet) sold for $525K at 100% of list price, $189 per sq foot.
• 1584 Manasco Cir (4 bedrooms/3 baths, 2648 sq feet) sold for $553K at 93.74% of list price, $209 per sq foot.
• 320 Marsh Hawk Dr (5 bedrooms/5 baths, 4022 sq feet) sold for $790K at 98.75% of list price, $196 per sq foot.
• 125 Black Powder Cir (4 bedrooms/3.5 baths, 3967 sq feet) sold for $960K at 91.52% of list price, $242 per sq foot.
• 648 Westchester Dr (5 bedrooms/4 baths, 4300 sq feet) sold for $1,080,00 at 100.09% of list price, $251 per sq foot.
• 636 Glen Oak Ct (4 bedrooms/5 baths, 4998 sq feet) sold for $1,437,500 at 87.12% of list price, $288 per sq foot.

Well, that wraps up 2007. Have a great New Year's Eve!

How To Qualify for a Loan in Today's Market

With home prices dropping, now is proving a good time for real estate buyers to get back in the market. However, qualifying for a loan is not as easy as it once was. Today guest blogger Barbara Van Duyn of First Priority Financial offers some very useful information to help you navigate the new loan market successfully. If you have any questions you can reach her directly at Barbara@VanDuynGroup.com and tell her Anne sent you. 

If you’re confused about what’s happening in real estate financing you’re not alone. Those of us who do this for a living everyday are having trouble staying on top of the daily barrage of yet another loan program changing or disappearing all together. In spite of it all, there continues to be great opportunities to purchase real estate in this new market whether you’re a first-time homebuyer, a move-up buyer or an investor. Qualifying for a mortgage is based on a variety of factors that include your credit history, employment history, property value versus amount being financed, type of property you’re financing, whether you will occupy the property or if it’s for investment, and the list goes on. My goal today is to give you useful information to walk away with and offer suggestions to help you be successful as you embark on your journey to acquire a little or big piece of the American dream.   

1. All loans fall into two major categories: conventional or government (i.e., FHA or VA).
2. A conventional loan can be either conforming or non-conforming.
3. A conforming loan is one that meets Fannie Mae and Freddie Mac guidelines for maximum loan amount, borrower credit, and income requirements, down payment, and suitable properties. Fannie Mae and Freddie Mac have announced the 2008 conforming loan limit will be $417,000 (same as 2007). Anything else is considered non-conforming.
4. Loan amounts that exceed $417,000 are known as “jumbo” loans. In our current financial climate, investors who buy jumbo mortgages consider them riskier than conforming loans so they carry a higher interest rate.
5. The shift to fixed-rate mortgages (including interest only) from adjustable-rate mortgages continues to dominate new loan originations.   An example of this loan is a 30/10 IO. The interest rate is fixed for 30 years with the first 10 years interest only. Any unpaid principal will be re-amortized over the remaining 20 years of the note.
6. Fannie Mae and Freddie Mac still offer first-time homebuyer programs that require little down payment and allow the seller to contribute to the buyer’s closing costs and down payment within limits. Learn more by going to their Web sites.
7. Government-insured FHA loan limits vary by county and are currently $362,790 for a single-family home in Sacramento County.   

IMPORTANT LENDING UPDATE:  Fannie Mae and Freddie Mac announced in November they are implementing higher interest rates for mortgages that carry LTV’s (loan to value) in excess of 70 percent for borrowers whose FICO scores are below 679. Although these changes don’t take effect until March 1, 2008, for mortgages purchased by Fannie and Freddie, many lenders who sell their loans to Fannie and Freddie will implement the changes by year's end. These new guidelines are being referred to as “risk-based pricing adjustments.” Expect these new price adjustments to be passed on to you when applicable:
Qualifying FICO Score   Increase to Interest Rate

         Less than 620                         2.00%
            620 to 639                           1.75%
            640 to 659                           1.25%
            660 to 679                            .75%

When a lender runs your credit they obtain a report that includes FICO scores from the three major credit bureaus. A lender uses the middle FICO score for each borrower to qualify you for a loan. If your FICO scores are below 680 you should find a mortgage professional that will advise what changes you can make to your credit to increase your FICO score and save thousands of dollars in financing costs over the life of your next real estate loan. All the Best! Barbara

How To Buy the Right House for Your Family

When buying a home it's easy to get caught up in the features of a particular house and forget to take a step back to look at the bigger picture. After you have identified a home you like, you should always give serious consideration to the neighborhood the home located in. After all you'll live in more than your house, you'll live in that neighbhorhood with all its pros and cons. So it is important when you find a property you like to scout the neighborhood in person by driving through the entire area at different times of day and talking to the people who live there. Here are some factors you will want to consider as you evaluate the neighborhood:

• Look at access to major shopping, thoroughfares, and highways and look at the traffic patterns around the area.
• Listen for noise created by roads, public areas, schools, and commerce.
• Check with local police and fire departments to get more information about the area.
• Identify nearby parks, churches, recreation centers, shopping, schools, restaurants, etc.
• Find out if the neighborhood belongs to a homeowners association, and if it does what services (at what cost) are offered by the association.

Doing a check for these kinds of quality of life items before you make an offer on a house will help prevent any nasty surprises after you move into your "dream" home.

Looking Ahead to 2008, Part II

Last week before all the madness of the holidays, I went over some of the prep work that buyers can do now if they are thinking of buying a home in 2008. Part of that prep work includes knowing what to expect during the purchase process. Picking up where I left off... After you decide to make an offer, your agent will forward the offer to the seller's agent and the seller will either accept your offer as is, counter with their own offer, or reject your offer. If the seller counters, your agent will help you evaluate the seller's proposal and you either accept, counter, or just walk away. Once all parties agree to terms of purchase, the agents will open escrow with a title company, which serves as a neutral third party that ensures all the terms of the purchase contract are adhered to. As the buyer, you will at this point be focusing on any inspections you requested as part of the purchase contract and on securing your loan approval. The contract terms stipulate how much time you have to get the inspections done, review the reports, and get your funding. When that time is up you will be required to remove all contingencies to the sale. In other words, it will be full steam ahead on closing the deal, no backing out without potential penalties. While you are busy taking care of securing your loan and getting the inspections, the title company will be ordering a title report to ensure the seller has clear title to sell the house and it will arrange for title insurance to protect you and your lender from potential hidden title problems. Barring any problems with the loan, the inspections, or the title, you will be set to close escrow and take possession of your home. Tomorrow I'll look at what factors to consider when buying a home.

One in Three Buyers Puts Up No Money

Here is this week's entry from guest blogger Barbara Van Duyn of First Priority Financial. If you have any questions you can reach her directly at Barbara@VanDuynGroup.com and tell her Anne sent you.

The National Association of Realtors (NAR) recently announced that nearly one in three home buyers between June 2006 and June 2007 had no skin in their deals … meaning NO CASH DOWN. This new research represents further evidence of the poor quality of loans that helped fuel the rising tide of delinquencies and foreclosures. Though the study of nearly 10,000 transactions by the NAR did not note whether the loans were prime or sub-prime, it found that 29 percent of all buyers--and 45 percent of all first-timers--financed the entire purchase price. What was really surprising to me was learning that 18 percent of repeat buyers also put up none of their own money, considering that they usually have money from the sale of their previous residence to put into the transaction. In addition, the study found that more existing-home buyers than new-home buyer used 100 percent financing, 30 percent versus 25 percent. More than half--53 percent--of all buyers made down payments of 10 percent or less, and almost three out of four--72 percent--financed 80 percent or more of what they paid. As for the source of their down payments, 10 percent of all buyers used money from gifts, 8 percent sold stocks or bonds, 6 percent raided their retirement accounts, and 3 percent got a loan from a relative or a friend. The NAR study was released at the group's annual convention in Las Vegas. Real estate financing has changed dramatically since then and continues to evolve. Next week I’ll get you caught up on the latest round of changes involving credit scores, loan to value, and down payment requirements. Until then have a very Merry Christmas! Barbara

Looking Ahead to 2008 in Folsom

Even as I'm frantically working against the clock to get ready for the holidays, I find my mind occasionally wanders to 2008, as I think of what I want to accomplish next year. If one of your goals in 2008 is buying a new home, it's also not too early for you to do some prep work towards that goal. In the next few blog entries, I'll cover what you can do to start off your search on the right foot. The first step is making sure you understand the whole buying process. If you know what to expect, you'll feel more in control and more comfortable. Here's what you can expect:

• First find a Realtor you can trust and have a good rapport with.
• Take the time to analyze your family needs in a consultation with your Realtor.
• Next (very important step, especially these days), get financial pre-qualification and pre-approval. Lenders are seriously starting to tighten their lending requirements, which means it's getting harder to get a loan. Don't take for granted you can get the loan you want.
• Your Realtor will start the search and together you will select the properties to view, rate them, and make a decision.
• Next comes the offer.

Tomorrow, I'll continue with Part 2 of the home buying process. Enjoy sunny Folsom, finally!

In Folsom, Holiday Recycling Is Easy

I know, I know, we're still a week away from Christmas and here I am talking about holiday recycling. But you and I both know though that it'll be January 1 before we know, so here is some useful info on recycling those trees, wrapping paper and all those boxes those great gifts came in. As Folsom residents we have several options.

• The City's annual Christmas tree recycling drop-off takes place on Saturday, December 29; Sunday, December 30; and Saturday, January 5, at Rodeao Park in the lower parking lot at the end of Stafford Street. Members of the Folsom Teen Council and local Boy Scout troops will be on hand to help you unload tress between 8 a.m. and 4 p.m. on those days.
• Or, if your tree can be cut down to fit in your green waste cart, you can recycle it that way.
• Scout troops will also collect trees throughout the city as part of their annual fundraising activities (look for a flyer at your door in the next week).
• And all that wrapping paper, cardboard boxes, and packing material can be place in your blue recycling cart. If your cart overflows, you also have the option to take it to one of the neighborhood drop off locations listed on the city's web site at www.folsom.ca.us.

Now that you know where all the trash will go, enjoy the holidays ;)

          

And the Wild Ride Continues

Here is this week's entry from guest blogger Barbara Van Duyn of First Priority Financial. If you have any questions you can reach her directly at Barbara@VanDuynGroup.com and tell her Anne sent you. 

The stock market is acting like a teenager whose hormones are raging; up one moment and dropping like a rock the next. While the bond market continues to ride an up escalator giving us the best interest rates in a couple of years, the daily ride has been bumpy. As I was contemplating today’s topic, I came across the following commentary whose author is unknown. It was right on target and I couldn’t have expressed my sentiments any better.   

The markets continue to play their favorite Led Zeppelin song--“Dazed and Confused”. Market mavens are calling for the Fed to resign. Confusion reigns supreme.

“Death by 1,000 Lashes”

If they try hard enough they can keep the housing market declining for years. A couple of weeks ago FNMA/FHLMC [Fannie Mae/Freddie Mac] announced their risk-based pricing additions for FICO score below 620. Throw on top of that the reduction in LTV [Loan to Value] for declining markets and the reduction in eligible homeowners continues to shrink. It’s not that the changes don’t make sense for the most part--it’s just that I for one am getting tired of being uncertain that the program quoted at application is the same program that will be available at funding.

“Back to Basics”

A return to basics and common sense underwriting would be good. It will stifle and possibly stagnate the market for a while but at least we would know what the rules of the game are and be able to plan accordingly. If risk-based analysis says that 95% is the max CLTV [combined loan to value] and 40% DTI’s [debt to income] are prudent to protect homeowners from getting over their head, and a 640 FICO score is the bottom tier for qualifying--I’m okay with that. Let’s rewrite the guidelines all at one time and be done with it. It will benefit everyone in the long run. Renters that want to be homeowners would have a benchmark to strive for, whether it was saving a few dollars or improving their payment history to increase their FICO score to the new minimum. Realtors wouldn’t write offers for buyers that don’t meet the guidelines--we can hope--and loan originators could help the buyers that don’t meet the guidelines create a plan to meet the guidelines.

That’s what I want for Christmas. 

All the Best! Barbara

Recent Home Sales Dec 13

Closed sales was a bit down from last week but still respectable. Here are the details of the sales, as recorded by our local multiple listing service, follow. These properties were listed and sold by various multiple listing service brokers. If you don't see a sale you've been wondering about, drop me a line at annerhea@kw.com and I'll look it up for you.

• 119 McKiernan Dr (3 bedrooms/2 baths, 1232 sq feet) sold for $290K at 96.67% of list price, $235 per sq foot.
• 279 Marsalla Dr (3 bedrooms/2 baths, 1130 sq feet) sold for $315K at 98.47% of list price, $279 per sq foot.
• 2228 Bruford Ct (3 bedrooms/2 baths, 1313 sq feet) sold for $352K at 97.80% of list price, $268 per sq foot.
• 1575 Ballou Cir (3 bedrooms/2.5 baths, 1963 sq feet) sold for $400K at 97.56% of list price, $204 per sq foot.
• 1258 Darling Way (4 bedrooms/3 baths, 2347 sq feet) sold for $409K at 89.91% of list price, $174 per sq foot.
• 709 King Way (4 bedrooms/3 baths, 2523 sq feet) sold for $490K at 96.46% of list price, $194 per sq foot.
• 122 Bayline Cir (4 bedrooms/3 baths, 2536 sq feet) sold for $525K at 97.40% of list price, $207 per sq foot.
• 696 Plum Creek Ct (4 bedrooms/3 baths, 2326 sq feet) sold for $555K at 100% of list price, $239 per sq foot.
• 1916 Fairgate Ct (4 bedrooms/3 baths, 2889 sq feet) sold for $623K at 95.99% of list price, $216 per sq foot.

As of this morning, there were 344 single family residences and halfplexes for sale in Folsom. Minimum price: $259,900; maximum price: $1,499,899; median price: $495K; and a median days on the market of 58.

Make it a great day!

How You Hold Title Is Important

Recently I sat down for a one to one talk with a local escrow officer. She brought up the topic of how couples hold title when they purchase real estate. It's worth giving this one some thought before making your decision as your choice can have serious legal consequences. It used to be, the escrow officer told me, that couples generally took title as joint tenants (the main choices being: tenancy in common, joint tenancy, community property, and community property with right of ownership). Since July 1, 2001, married couples also have had the choice of community property with right of ownership. I'm not going to tell you here which one is better, neither should the title officer be advising you. For this decision, because it involves legal matters, you will want to get advice from a an attorney, a certified tax consultant, or other qualified professional. Just know you will need to make a decision when you go in to close escrow on your property, so give it some though beforehand.