The Real Folsom Blog

Planning for a Quick Close? Now May Not Be a Good Time

This week guest blogger Barbara Van Duyn of First Priority Financial explains why closings may take longer these days. If you have any mortgage questions, you can reach her directly at Barbara@VanDuynGroup.com.

With rising mortgage applications for purchase activity across the country and low interest rates, home loan applications have surged to near four-year highs. Borrowers with mortgage applications currently in process are finding that a good dose of patience is needed. In 2006 and 2007, mortgage volume slowed nationwide as tightening mortgage guidelines coupled with declining property values restricted the number of eligible borrowers able to refinance. In a push for profitability, lenders eliminated jobs because fewer applications meant fewer people were needed on staff. With interest rates near four-year lows and strong demand from home buyers returning to the market, mortgage lenders are finding themselves understaffed to handle the volume of applications coming in daily. 

As a comparison, in October of 2007 it took an average of 24 to 48 hours to review and approve a home loan. In February of 2008, loan review and approval is taking as long as 20 days. To be on the safe side, many mortgage professionals are moving from 30-day rate lock periods to 45 and even 60 depending on the transaction.  These longer rate lock periods typically result in an increase of .125% to the rate. A small price to pay for piece of mind and knowing that your qualifying interest rate is safe. Whether you’re a home buyer, home seller, or refinancing, it’s important to recognize that lenders may not have the capacity to move as quickly as you’d like.  Be aware that processing times vary by lender so ask your mortgage professional how your lender is doing. Make sure you understand when your interest rate was locked and for how long. To help those working on your behalf, be prepared and respond to their requests in a timely manner. All the Best! Barbara

Recent Folsom Home Sales Feb 28, 2008

Here are the weekly details of the recent Folsom home sales as recorded by MetroList, our local multiple listing service. The 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.

• 116 Brightstone Cir (3 bedrooms/2.5 baths, 1574 sq feet) sold for $290,000 at 98.34% of list price, $184 per sq foot.
• 103 Mountain Ct (4 bedrooms/3 baths, 2454 sq feet) sold for $399,000 at 95.02% of list price, $163 per sq foot.
• 219 Spencer St (3 bedrooms/2.5 baths, 1960 sq feet) sold for $410,000 at 96.93% of list price, $209 per sq foot.
• 136 Timson (4 bedrooms/3 baths, 2258 sq feet) sold for $429,900 at 100% of list price, $190 per sq foot.
• 144 Egloff Cir (5 bedrooms/3 baths, 2825 sq feet) sold for $580,000 at 94.46% of list price, $205 per sq foot.
• 320 Canyon Falls Dr (5 bedrooms/3.5 baths, 3321 sq feet) sold for $635,000 at 96.95% of list price, $191 per sq foot.
• 681 Westchester Dr (5 bedrooms/3.5 baths, 3985 sq feet) sold for $753,000 at 90.73% of list price, $189 per sq foot.

Buying: How High Tech Is the Home You Are Looking At?

There are a lot of things to look at and look for when you are out shopping for your next home. Is the roof sound? Do the appliances work? Are there cracks in the foundation? Are there drainage issues? It's a long checklist the careful buyer goes through in evaluating house. Now, you can add technology to that list. If the latest technology or entertainment options are important in your new home, you should add the following questions to your buyer’s checklist.

• Are there enough jacks in every room for cable TV and high-speed Internet hookups?
• Are there enough telephone extensions or jacks?
• Is the home prewired for a home theater or multi-room audio and video?
• Does the home have a local area network for linking computers?
• Does the home already have wiring for DSL or other high-speed Internet connection?
• Does the home have multizoning heating and cooling controls with programmable thermostats?
• Does the home have multi-room lighting controls, window-covering controls, or other home automation features?
• Is the home wired with multi-purpose in-wall wiring that allows for reconfigurations to update services as technology changes?

This quick checklist will help ensure you buy the right home for your family's tech needs.

A Silver Lining to a Black Cloud

As we continue to weather a tough real estate market (at least from a seller's perspective), it is good to see at least some good news come out of this housing maelstrom. The California Association of Realtors has just announced that the percentage of households that can afford an entry-level home in California stood at 33 percent in the fourth quarter of 2007, up from 25 percent for the same period a year ago. Assuming a 10 percent downpayment and an adjustable interest rate of 6.21 percent, the minimum household income needed to purchase an entry-level home at $411,170 in California in the fourth quarter of 2007 was $82,200. According to CAR, first-time buyers typically purchase a home equal to 85 percent of the prevailing median price. Those numbers still leave a lot of people out of the running but at least the possibility of owning a home is within reach for more people than a year ago.

Folsom's "QL" Gets Better and Better

There's no doubt about it, Folsom's quality of life is getting better and better. Proof of that is in the upcoming "State of the Arts" reception and program that the city will be hosting at its newest addition to the arts scene--the Arts Center@48 Natoma. The March 12th event, which will be open to the public will look at the impact of creative arts on Folsom's economy and quality of life. And what would such an event be without local luminaries like our own mayor, Eric King, Assemblyman Roger Niello, and co-chair of Raley's board of directors, Joyce Raley Teel. The event starts at 4:30 p.m. on Wednesday, March 12 at the Arts Center. And for fans of Norman Rockwell, you can check out the ongoing exhibition of his work "Tom Sawyer and Huckleberry Finn." If you'd like to attend, call the Parks and Recreation Department at 355-7285 to make a reservation as seating is limited.

Six Things To Avoid While Waiting for a Mortgage Approval

So you've put an offer in on a house, it's been accepted and you start doing your inspections and work on getting that loan approved. Everything seems to be going on schedule. Just beware though, it's easier than you might think to have derailed a perfectly good loan application. This week guest blogger Barbara Van Duyn of First Priority Financial offers sound advice on what not to do when you have a loan application in the works. If you have any mortgage questions, you can reach her directly at Barbara@VanDuynGroup.com. 

Stage 1 starts when a homebuyer submits a mortgage application to his or her mortgage professional for a pre-approval. A pre-approval is a “walk through” mortgage approval that says—at a given purchase price and down payment amount – the home loan application will very likely be approved. Stage 1 ends when a buyer signs a purchase contract on a home. At this point, the “walk through” approval is useless because the buyer now needs a real home loan approval from an underwriter. The next step: Stage 2.  During the second phase of the approval process, the lender’s underwriter is reviewing income, assets, credit, job history and other items, to make sure the buyer meets the lender’s criteria for a loan. If the mortgage professinal did their job in Stage 1, Stage 2 is just a formality. And in most cases, all goes according to plan. Occasionally though, a homeowner sabotages his or her own mortgage approval by inadvertently changing their “risk profile.” It doesn’t happen on purpose of course… it just happens. 

So consider this a quick list of what NOT to do while you are in Stage 1 of the process. Following these pointers will help keep the risk profile consistent. 

1. Don’t buy a new car or take on a new lease agreement
2. Don’t quit your job or change industries
3. Don’t transfer large sums of money into or out of your bank accounts (large is relative).
4. Don’t miss a payment to a creditor
5. Don’t apply for any new credit accounts
6. Don’t accept a cash gift without talking to your mortgage professional first because there’s rules on how to accept them

There are other items too but this is a good start.  If you’re not sure if something you’re about to do may jeopardize your loan approval, check with your mortgage professional first. Good luck. All the Best! Barbara

Free Electronic E-Waste Recycling in Folsom this Saturday

Who can beat this Folsom combo: recycle your electronic e-waste this Saturday and you'll be helping support the Folsom High Competition Cheer Squad and be earth friendly. And even better the recycling event is free.

When: Saturday, Feb. 23, 2008

Where: Folsom Middle School, front parking lot, 500 Blue Ravine Road

Time: 10-4 p.m.

The following items will be accepted: televisions, monitors, computers, computer components, fax machines, printers, copiers, toner cartridges, wire, video game consoles, laptops, cameras, camcorders, internet devices, keyboards, mice (the computer type), MP3 players, VCRs and DVDs, cell phones, and telephone equipment.

This looks like a win-win offer to me. For more information call Lisa Gerber at 275-6548.

Recent Folsom Home Sales Feb 21 2008

Another week of better news as far as recorded sales during the past week. Here are the details of the Folsom home sales as recorded by MetroList, our local multiple listing service. The 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.

• 115 McKiernan (3 bedrooms/2 baths, 1327 sq feet) sold for $280,000 at 96.59% of list price, $211 per sq foot.
• 117 John Henry Cir (4 bedrooms/3 baths, 1754 sq feet) sold for $345,000 at 96.10% of list price, $197 per sq foot.
• 1303 Hartley Way (3 bedrooms/2 baths, 1327 sq feet) sold for $353,000 at 97.51% of list price, $266 per sq foot.
• 2033 Larkhall Cir (4 bedrooms/3.5 baths, 2447 sq feet) sold for $365,000 at 140.44% of list price, $149 per sq foot.
• 2246 Zittle Dr (4 bedrooms/3 baths, 1851 sq feet) sold for $385,000 at 98.72% of list price, $208 per sq foot.
• 103 Maderos (4 bedrooms/2 baths, 1787 sq feet) sold for $438,900 at 100% of list price, $246 per sq foot.
• 824 Morningside Dr (3 bedrooms/2 baths, 2090 sq feet) sold for $450,000 at 95.95% of list price, $215 per sq foot.
• 104 Biscayne Way (3 bedrooms/3 baths, 1953 sq feet) sold for $455,000 at 101.11% of list price, $233 per sq foot.
• 1533 Hammond Ct (3 bedrooms/2.5 baths, 2420 sq feet) sold for $464,000 at 100% of list price, $192 per sq foot.
• 728 King Way (4 bedrooms/3 baths, 2523 sq feet) sold for $465,000 at 97.08% of list price, $184 per sq foot.
• 778 Halidon Way (4 bedrooms/2 baths, 2090 sq feet) sold for $480,000 at 96.19% of list price, $230 per sq foot.
• 620 Plum Creek Ct (3 bedrooms/2 baths, 2001 sq feet) sold for $484,000 at 98.80% of list price, $242 per sq foot.
• 1993 Larkhall Cir (4 bedrooms/2.5 baths, 2459 sq feet) sold for $500,000 at 97.09% of list price, $203 per sq foot.
• 105 Twin Buttes Dr (4 bedrooms/2.5 baths, 3319 sq feet) sold for $625,000 at 93.16% of list price, $188 per sq foot.

Help for Mortgage Woes in Sacramento Area

Another depressing story in today's SacBee about scam artists preying on homeowners struggling to keep up with their mortgage payments. I hate to read these stories but on the other hand it helps get the word out so other homeowners aren't victimized by these sleazeballs. At the end of the article, "Home scam suspected," there is some information about some legitimate groups that may be able to help you in the greater Sacramento area if you are having trouble with your mortgage. Here are the groups:

• NeighborWorks Homeownership Center, (916) 452-5356, www.nwsac.org
• Home Loan Counseling Center of Sacramento, (916) 646-2005, www.hlcc.net
• NeighborWorks America and Home Ownership Preservation Foundation national hotline, (888) 995-4673.
• ByDesign Financial Solutions, Sacramento, (800) 750-2227, www.bydesignsolutions.org.
• Sacramento Mutual Housing Association, (916) 453-8400, ext. 43. They can accommodate Russian, Hmong, Vietnamese, and Mien speakers.

Some Thoughts on Buying a Bank-Owned Home

Even though Folsom has not been hit as hard as some of its neighboring communities when it comes to foreclosed properties, foreclosures are a reality here to. To some buyers seeing a "bank owned" sign in front of a house for sale means it's a good deal.  The truth is it may be or it may not be. You need to do your homework before putting an offer on a bank-owned property. Here are a few thoughts on that. Your first step should be to check to see what comparable area properties have recently sold for. This will be your best gauge of value. Also, we're starting to see multiple offers going in on well-priced REOs (bank-owned houses). It's easy to get caught up in a multiple offer situation and wind up offering more than you had planned. Also, it's important to keep in mind that bank-owned properties are generally offered "as is". So look at the property with a critical and objective eye, estimate what needed repairs might cost, and factor those costs into your offer. Bank-owned houses can be a bargain, just remember to do your homework before making that offer.