Five Great Things about Homeownership

If you've been on the fence about homeownership, now is the time to take a leap! Don't let the negative press deter you from one of life's greatest joys.

Take a look at five short and sweet reasons that homeownership is great!
1. Equity. When you pay rent, you never see that money again. It is lining the landlord's pocket. Yes, buying a home may come with some hefty initial costs (downpayment, closing costs, inspections), but you will make that money back over time in equity built in the home. Historically, homes appreciate by about 4 to 6 percent a year. Some areas are still experiencing normal appreciation rates. For the areas that have seen harder times since the recession, experts feel that the housing market will recover. Homeownership is about building long-term wealth. A home bought for $10,000 in 1960 is most likely worth 10 times that in today's market.
2. Relationships: Renters tend to see their neighbors come and go quickly. Some people sign year leases while others are in the community for much shorter terms. Apartment complexes also tend to have less common shared space for people to meet, greet, and socialize. Homeowners, however, have yards, walking trails, or community pools and clubhouses where they can get to know each other. Neighbors stay put much longer (at least three to five years if they hope to recoup their closing costs). This means more time to develop relationships. Research has shown that people with healthy relationships have more happiness and less stress.
3. Predictability: Well, as long as you have a fixed-rate term on your mortgage it's predictable. Most people buying homes today know that a fixed-rate is the way to go. This means your payment amount is fixed for the life of the term. If your mortgage payment is $500 today, then it will still be $500 a month in 10 years. This allows for people to budget and make solid financial plans. The sub-prime crisis meant many homeowners with adjustable rate mortgages saw their monthly payments rise and then rise some more. Homeownership, though, generally comes with a predictable table of expenditures. Even the big purchases are predictable. You know most roofs last just 15 years (or so). You know that each year you'll need to pay for the gutters to be cleaned, and so on.
4. Ownership: Okay, this is a given. Homeownership means you "own" your home. That comes with some incredible perks, though! You can renovate, update, paint, and decorate to your heart's desire. You can plant trees, install a pool, expand the patio, or do holiday decorating that would rival the Kranks (if the HOA allows!). The bottom line is this is your home and you can personalize it to your taste. Most renters are stuck with the same beige walls and beige carpet that has been standard apartment decor for 20 years. Now is your chance to let your home speak!
5. Great Deals: It's a great time to buy. Interest rates are at historic lows. We're talking 4.0 percent instead of 6.0 or higher. This means big savings for today's buyers. Home prices have also taken a dip since the recession, which means homes are more affordable than ever. If you have steady income and cash for a downpayment, then be sure to talk to your local real estate agent about what homes in your area could be a fit for you.
Homeownership can be a real joy. It's time to get off the fence and into a home that is right for you!
Published: November 2, 2011, by Carla Hill

Veteran's Day

Thank you to all of the men and women who have served in our Military. We salute you on Veteran's Day and want to thank you for your sacrifice to our country.

Don't forget to move your clocks back one hour tonight for Daylight Saving Time. Enjoy the extra hour of sleep!

Happy Halloween!!

We wish everyone a safe and spooktacular evening! Whether you are passing out candy or taking your little goblins and princesses trick-or-treating around the neighborhood, we hope you have a terrific evening!

Down the Drain: Garbage Disposal Dos & Don'ts

If your kitchen has a garbage disposal, you know how easy it makes mealtime clean up. But what you may not realize is that your disposal comes with some pretty important rules. Here are some of the most vital:
Do:

• Insert food slowly. Stuffing it all into your disposal at once can cause clogs and shorten the life of your system.
• Grind hard materials. Many people think food like chicken bones or small fruit pits are a no-no, but they can actually help clean the walls of the disposal.
• Use cold water for at least 20 seconds. This will solidify grease so that it can be ground up. Also, make sure that all food particles are washed completely down the drain.
• Keep it clean. One good way to eliminate drain smells is by grinding citrus fruit peels. You can also add a few drops of dish soap and let the disposal run for a few minutes.

Don't:

• Use hot water. This will make grease liquefy and build up, which can clog the drain.
• Grind fibrous or expandable foods. The former, like celery stalks and onionskins, can tangle up the disposal. The latter, like pasta and rice, can clog it.
• Turn off the motor too quickly. You'll want to make sure all food particles are completely ground. Once done, continue to run the water for at least 15 seconds to flush out particles.
• Wash coffee grounds down the drain. While they won't harm the disposal itself, they can clog pipes and drains.
• Forget to use it. Lack of use can cause rusting and corrosion, which can lead to premature system replacement.

Rent Or Buy: 10 Key Questions

Even with the benefits of homeownership, not everyone can or should own a home. These 10 questions can help you sort out whether owning a home makes sense for your personal situation.
1. Do you want to own a home?
2. Can you find a home to buy that you like?
3. Can you find a home to buy that's located where you want to live?
4. Can you find a home that you can afford to buy- and own?
5. Can you qualify for a mortgage or pay cash to purchase a home?
6. Does the cost of owning a home compared with renting make sense for you?
7. Is your job or other source of income secure?
8. Do you have a financial cushion in case you suffer a serious or prolonged loss of income?
9. Do you expect to remain in the same community for at least several years?
10. Do you expect to live in the same home for at least several years?

If you answered YES to these questions, you are a good candidate to own your own home!

FHA buyers- turn that ugly fixer into a fabulous oasis!

Home improvement made easier with FHA 203(k) loans.

Interested in purchasing a fixer upper but scared about not having enough funds to do the remodeling? Qualified FHA buyers can take advantage of a fixer-upper home and make repairs with an FHA 203(k) rehabilitation mortgage from Bank of America.

With one loan that combines the cost of buying the home with the cost of making repairs, the 203(k) could be ideal for qualified buyers interested in purchasing a home that needs repairs or updating. The 203(k) advantages include1:

• Qualify with as little as 3.5% down
• Cash needed for repairs is built into the loan amount
• Loan amount is based on the as-improved value

For homes needing limited repairs, qualified buyers may opt to use the FHA Streamline 203(k), featuring all of the advantages of the 203(k), except:

• Qualify with as little as 3% down
• $35,000 of loan proceeds can be applied toward
   repair or rehabilitation
• No minimum loan amount

Contact Natasha Titova with Bank of America for more details
Office: 949.456.8178
Mobile: 949.690.7888
Fax: 866.517.0825

Who Pays What Escrow Fee and Title Fee?

In California Who Pays What is determined by local custom. Traditionally Northern California pays fees one way while Southern California has a somewhat different fee traditon. Of course, all the fees are negotiable and can be changed by the purchase contract. Below is a list of who pays which fees in Soputhern California.

The SELLER can generally be expected to pay for:

• Real estate commission
• Owners title insurance policy
• 1/2 of the sub-escrow fee
• 1/2 of escrow fee
• Document preparation fee for deed
• Documentary transfer tax
• Transfer or conveyance tax
• Loan fees required by buyer's lender (FHA/VA)
• Payoff all loans against property
• Seller's lender being paid off
  • Interest accrued
  • Statement fees
  • Reconveyance fees
  • Prepayment penalties
• Termite inspection (according to contract)
• Termite work (according to contract usually section 1)
• Home warranty (according to contract)
• Any judgements, tax liens, etc., against the seller
• Tax proration (for any taxes unpaid at the closing)
• Any unpaid homeowner's dues
• Recording charges to clear all documents of record against seller
• Any bonds or assessments (according to contract)
• Any and all delinquent taxes
• Notary fees

The BUYER can generally be expected to pay for:

• Lenders title insurance policy
• 1/2 of the sub-escrow fee
• 1/2 of escrow fee
• Document preparation (if applicable)
• Notary fees
• Recording charges for all documents in buyer's name
• Tax proration (for any taxes unpaid at the closing)
• Homeowner's transfer fee
• All new loan charges (except FHA/VA loans)
• Interest on new loan from date of funding to 30 days prior to first payment date Assumption or change of records fee on existing loan
• Assumption of existing loan
• Inspection fees (roofing, property, geological, etc.)
• Termite work (according to contract usually section 2 )
• Home warranty (according to contract)
• Fire insurance premium for first year