The Real Folsom Blog

It's Time To Name That Bridge

Come up with the winning entry to name our newest bridge and you will be invited to participate in the grand opening ceremonies in Spring 2009 AND you will be recognized in our Folsom City newsletter. If all this sounds too good to pass up, here's how you enter: Snail mail your entry to Name the Bridge Contest, City Hall, 50 Natoma St., Folsom, CA 95630, or e-mail it to: namethebridgecontest@folsom.ca.us. Entries must be received by 5 p.m. on Tuesday, April 22. Our venerable City Council will review the submissions and select the name during the May 13 Council meeting. Any questions, just call the city's Public Information Officer, Sue Ryan, at 351-3360.

Getting Your Pre-Approval Re-Approved

Guest blogger Barbara Van Duyn, a mortgage planning specialist with First Priority Financial, offers sound advice on how to deal with changes in lending guidelines so you can avoid nasty surprises down the road. If you have any mortgage questions, you can reach her directly at Barbara@VanDuynGroup.com. 

Since December 2007, mortgage lending guidelines have changed very quickly and often without notice.   Some of the more well known changes include:

* Broad restrictions on stated income loans
* Broad restrictions  and fewer lenders offering 100-percent financing
* Risked-based fees added for credit scores under 740

Some of the lesser known restrictions relate to property type and occupancy status as well as debt-to-income levels and mortgage payment histories. Because of the number of changes and their collective scope, homebuyers should be proactive and talk to their lender about getting re-approved for their home loan. The common procedure for obtaining a pre-approval for a buyer is to obtain a preliminary approval from Fannie Mae or Freddie Mac. These approvals are based on specific income, assets, credit, and other loan information submitted to these agencies for evaluation. When a preliminary approval is returned, it’s good for 120 days. The approval is based on your financial picture at a given point in time. Smart buyers get this type of approval prior to searching for a home. However, if your financial picture changes while searching for a home, your approval may no longer be valid. In addition, lenders may have changed their guidelines for a loan you thought you qualified for and now don’t or worse, is no longer available. 

The market really is that different. Talk to your loan professional about getting re-approved to eliminate surprises down the road. All the Best! Barbara

Recent Folsom Home Sales Mar 27 2008

Home sales in Folsom are continuing to gain steam. 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.

• 471 Parker Dr (2 bedrooms/2 baths, 1488 sq feet) sold for $299,000 at 88.78% of list price, $201 per sq foot.
• 319 Coventry Cir (4 bedrooms/2.5 baths, 1843 sq feet) sold for $310,000 at 88.60% of list price, $168 per sq foot.
• 110 Gilded Rock Cir (4 bedrooms/2.5 baths, 1938 sq feet) sold for $340,000 at 94.44% of list price, $175 per sq foot.
• 67 Sluice Way (3 bedrooms/2.5 baths, 1930 sq feet) sold for $383,990 at 98.71% of list price, $199 per sq foot.
• 7334 Pine Grove Way (4 bedrooms/2.5 baths, 2076 sq feet) sold for $385,000 at 96.49% of list price, $185 per sq foot.
• 2260 Gallup Dr (3 bedrooms/2 baths, 1344 sq feet) sold for $393,000 at 97.04% of list price, $292 per sq foot.
• 1752 Dunkeld Ln (3 bedrooms/2 baths, 1688 sq feet) sold for $395,000 at 99% of list price, $234 per sq foot.
• 114 Cool Spring Ct (3 bedrooms/3 baths, 2113 sq feet) sold for $400,000 at 95.58% of list price, $189 per sq foot.
• 1345 Copping Way (3 bedrooms/2 baths, 1876 sq feet) sold for $415,000 at 96.51% of list price, $221 per sq foot.
• 524 Wenham Way (4 bedrooms/3 baths, 2426 sq feet) sold for $415,000 at 103.78% of list price, $171 per sq foot.
• 112 Windstar Cir (3 bedrooms/2 baths, 1767 sq feet) sold for $415,777 at 100% of list price, $235 per sq foot.
• 1352 Freswick (4 bedrooms/2.5 baths, 2277 sq feet) sold for $430,000 at 93.50% of list price, $189 per sq foot.
• 227 Wellfleet Cir (4 bedrooms/2 baths, 1910 sq feet) sold for $445,000 at 93.88% of list price, $233 per sq foot.
• 117 Lakeside Way (3 bedrooms/3 baths, 2389 sq feet) sold for $450,000 at 90.18% of list price, $188 per sq foot.
• 9887 Valley Pines Dr (4 bedrooms/2 baths, 1848 sq feet) sold for $469,650 at 93.95% of list price, $254 per sq foot.
• 1121 Sandwick Way (3 bedrooms/3 baths, 3499 sq feet) sold for $535,000 at 97.45% of list price, $153 per sq foot.
• 763 Heritage Pl (6 bedrooms/3.5 baths, 4193 sq feet) sold for $875,000 at 100% of list price, $209 per sq foot.

That's it for today. Make it a great day!

Today's Update of MLS System Means Better Info for Those Seeking Homes

It's a quiet big change that's occurring today in MetroList Prospector, our local multiple listing service. For nearly a year, MetroList staff have been working to improve the local MLS. Most of the changes will only impact Realtors directly but some of the changes will be visible to the public and mean better data for all of you looking for a home. And better data means better decision-making. One of the big changes to my mind is the "Days on the Market" data field. Now MetroList Prospector will only reset the cumulative days on the market after a completed sales transaction or when the property has been off the market for at least 30 days. Even a new listing agreement and/or change in brokerage will not reset the counter. So no more of those little games where agents would take a house on and off the market every few months to have it show up as a "new" listing. Now, when you look at the "days on the market" field you will know it's an accurate reflection of how long that home has been marketed. A welcome change indeed!

Green Financing Options Can Be Attractive Options

Have you heard of an Energy-Efficient Mortgage? Don't worry if you haven't. Many still don't know about this green financing option that you can apply for at the time you purchase a home. Here are the basics of how it works: Let's say you've fallen in love with a house you now want to purchase. You notice however that it's lacking in the energy-efficiency department. When you go to apply for your home loan at the time of purchase, you can roll the cost of needed energy improvements into the mortgage, amortizing the cost of improvements over the life of the mortgage, based on the expected savings. What makes this financing especially attractive is that it will not compromise the loan to value ratio for the borrower. EEMs are not for everyone, but they are certainly worth a look when you are faced with needed energy improvements.

What the Folsom Numbers Tell Us

Interesting article in the Bee on Sunday ("Repossessed homes are new gold rush," Business section). It offers some good solid tips on buying a bank-owned home, how it's different from a regular sale, and it talks about the next wave of bank repos expected to hit the market this summer. That said with all the focus on bank repos, you might forget there are actually plenty of other homes on sale right now--sales that may be much easier to close (especially in a buyers market). Just take a look at our own backyard of Folsom. Of the 329 homes currently on the market, just 21 are bank-owned listings and 33 are short sales (that's where the seller owes more to the bank than what they can get from the sale). The numbers sure put things in perspective. Just food (or in this case, numbers) for thought.

How Prepaid Items Can Make Your “Closing Costs” Look Inflated”

This week guest blogger Barbara Van Duyn, a mortgage planning specialist with First Priority Financial, takes the mystery out of closing costs. If you have any mortgage questions, you can reach her directly at Barbara@VanDuynGroup.com.

When buying a home, you pay for more than just the physical property at the closing table. You also pay a series of charges lumped under the heading of “closing costs.” Let’s take a closer look. Many charges on a HUD-1 Settlement Statement are “reserves” or monies “paid in advance.” These “prepaid items” include:

• Mortgage interest paid from the closing date to the end of the month.
• Real estate taxes paid into an escrow account.
• Homeowners insurance paid into an escrow account.

Prepaid items are payments related to the home itself and not costs charged by a third party for facilitating the transaction. The lender determines how many months of reserves they want to be paid in advance. Regardless of the amount, the benefit is to the borrower because prepaid items will be banked into an escrow account on behalf of the borrower to pay future charges.

Closing costs on the other hand are quite different as they are one-time costs associated with acquiring the loan. Closing costs can include lender fees, title fees, appraisal fees and government fees. Now when you look at closing costs or a settlement statement, you will understand the difference between the cost of obtaining a loan and paying in advance for items associated with maintaining your home. All the Best! Barbara

Recent Folsom Home Sales-March 20 2008

Once again, this week, sales of homes improved over last week in Folsom. 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.

• 212 Barnhill Dr (3 bedrooms/2.5 baths, 1296 sq feet) sold for $314,450 at 99.83% of list price, $243 per sq foot. 
• 100 Grantham Ct (3 bedrooms/2 baths, 1352 sq feet) sold for $323,000 at 93.62% of list price, $239 per sq foot.
• 132 Rockbolt Cir (3 bedrooms/2.5 baths, 1677 sq feet) sold for $372,000 at 96.62% of list price, $222 per sq foot. 
• 901 Halidon Way (4 bedrooms/2 baths, 1884 sq feet) sold for $380,000 at 97.69% of list price, $202 per sq foot. 
• 868 Densmore Way (3 bedrooms/2 baths, 1661 sq feet) sold for $410,000 at 98.80% of list price, $247 per sq foot. 
• 432 Amhurst Cir (3 bedrooms/2 baths, 1747 sq feet) sold for $415,000 at 100% of list price, $238 per sq foot. 
• 1104 Steen Ct (3 bedrooms/2 baths, 1884 sq feet) sold for $415,000 at 101.22% of list price, $220 per sq foot. 
• 101 Vista Oak Dr (3 bedrooms/2 baths, 2216 sq feet) sold for $420,000 at 93.54% of list price, $190 per sq foot. 
• 120 Chesterfield Way (4 bedrooms/3 baths, 2248 sq feet) sold for $423,500 at 102.82% of list price, $188 per sq foot. 
• 2199 Palomino Ct (3 bedrooms/2 baths, 2024 sq feet) sold for $480,000 at 96.97% of list price, $237.15 per sq foot. 
• 2112 Stockman (3 bedrooms/2 baths, 1919 sq feet) sold for $485,000 at 99% of list price, $253 per sq foot. 
• 142 Bayline Cir (4 bedrooms/3 baths, 2730 sq feet) sold for $490,000 at 98.20% of list price, $179 per sq foot. 
• 460 N. Lexington Dr (3 bedrooms/2.5 baths, 2435 sq feet) sold for $515,000 at 97.35% of list price, $211 per sq foot. 
• 1042 Smith Way (4 bedrooms/3 baths, 3098 sq feet) sold for $577,500 at 96.57% of list price, $186.41 per sq foot. 
• 405 Catterline Way (5 bedrooms/3 baths, 2980 sq feet) sold for $613,000 at 99.85% of list price, $206 per sq foot. 

That's it for today. Enjoy the first day of Spring!

Free Tree Program Is Worth A Look

If you haven't heard yet about SMUD's free tree program, consider this a heads up, and if you have, consider it a reminder of a great program that can help you make a positive impact on the environment while reducing your home's cooling costs. The basics: As a SMUD customer, your home may be eligible to receive up to 10 free shade trees. Just call SMUD's partner, the Sacramento Tree Foundation (916-924-8733), and make an appointment with one of their community forresters. The forrester will come out to your home and site your trees. About 10 days later, the trees are delivered to your home, with stakes and ties. All you have to do is plant the trees (I know, I know, easier said then done in Folsom--think crow bar to get those rocks out). SMUD estimates you could be saving up to 40 percent on your home's cooling costs once the trees mature and those trees help remove carbon dioxide from the air and produce oxygen in return. Sounds like a good deal all around to me!

Home's Price Is Only One Part of Mortgage Payment Puzzle

This week guest blogger Barbara Van Duyn, a mortgage planning specialist with First Priority Financial, talks about mortgage payments and where they fit in your overall short- and long-term financial goals. If you have any mortgage questions, you can reach her directly at Barbara@VanDuynGroup.com. 

One of the most popular questions that home buyers ask real estate and mortgage professionals is “How much home can I afford.” It’s a normal question to ask, but it’s not the most effective way to plan your finances. Banks will almost always approve you for a home loan in excess of your household budget. The more appropriate question is:  “How much do I want to spend on housing each month.” By focusing on a home’s payment instead of its price, home buyers take more control over their short and long-term financial goals. List price is only one piece of the monthly payment puzzle. The cost of owning a home month-after-month is the sum of multiple expenses:

1. The mortgage payment
2. The real estate taxes on the property
3. The cost of homeowner’s insurance
4. The cost of mortgage insurance (if applicable)
5. The cost of HOA dues (if applicable)   

Mortgage insurance and home owners association dues don’t apply to all properties so make sure you understand which costs are associated with the homes you are considering. It will make a big difference in your monthly housing cost. Allow enough cash flow in your budget, after housing costs, to comfortably cover your other monthly responsibilities and have room for life’s unexpected emergencies. All the Best! Barbara