New Rule in Protecting Home Loans Effective July 30th

Example of Good Faith Estimate Disclosure Click Here

The Federal Reserve Board on Thursday approved final rules that revise the disclosure requirements for mortgage loans under Regulation Z (Truth in Lending). The revisions implement the Mortgage Disclosure Improvement Act (MDIA), which was enacted in July 2008 as an amendment to the Truth in Lending Act (TILA).

The MDIA seeks to ensure that consumers receive cost disclosures earlier in the mortgage process. In several respects, the MDIA is substantially similar to final rules issued by the Board in July 2008. However, the MDIA also broadens and adds to those regulatory requirements. The final rule largely follows a proposal issued by the Board in December 2008. Under the MDIA, creditors must comply with the new provisions on July 30, 2009. The Board's implementing regulations apply to dwelling-secured consumer loans for which a creditor receives an application on or after July 30, 2009.

The MDIA requires creditors to give good faith estimates of mortgage loan costs ("early disclosures") within three business days after receiving a consumer's application for a mortgage loan and before any fees are collected from the consumer, other than a reasonable fee for obtaining the consumer's credit history. These requirements are consistent with the Board's July 2008 final rule, which applied to loans secured by a consumer's principal dwelling. The MDIA broadens this requirement by also requiring early disclosures for loans secured by dwellings other than the consumer's principal dwelling, such as a second home.

In addition, the rules would implement the MDIA's requirements that:

• Creditors wait seven business days after they provide the early disclosures before closing the loan; and
• Creditors provide new disclosures with a revised annual percentage rate (APR), and wait an additional three business days before closing the loan, if a change occurs that makes the APR in the early disclosures inaccurate beyond a specified tolerance.

The rules would permit a consumer to expedite the closing to address a personal financial emergency, such as a foreclosure.

The notice that will be published in the Federal Register is attached. Publication is expected to occur soon.

Eureka Valley - Dolores Heights Single Family & Condos/ TIC/ Co-op Housing Report

Below please find the current housing numbers for Eureka Valley - Dolores Heights Area. Please note this information is pulled from the Multiple Listing Service. The validity of this information is based solely on the providers. Zephyr Real Estate , George Langford deem this information to be reliable but take no legal responsibility.

Eureka Valley - Dolores Heights
May 2009- July 2009


Single Family Homes

Active - 18
Pending - 2
Sold - 14
Avg Listing Price - $1,549,000
Avg Sq. Ft - 2,112
Avg Days on Market - 73
Avg. Sale Price - $1,469,643

Condo/Coop/TIC/Loft

Active - 26
Pending - 3
Sold - 15
Avg Listing Price - $824,114
Avg Sq. Ft - 1,356
Avg Days on Market - 72
Avg. Sale Price - $747,167

For information in an area other than the one stated above, contact me and I will provide a detailed Report for an area of your choice.

11% Increase for June Home Sales - GREAT NEWS!

Today the U.S. Department of Housing and Urban Development released a report for June Homes sales. newly constructed single-family homes spiked 11%. However sales are still 21% less than last year and prices are still continuing to drop.

What does this all mean?

This is a good indicator that the recession is bottoming out. We have to get all the inventory currently on the market into Buyers hands. Once we have done this, new construction will resume again which in turn will create more jobs and help to boost the economy into a more positive territory.

All this news is wonderful, although we have to continue to watch and see if this is caused by the tax credit. The tax credit at this time is set to go away in December.

Stated Income Available Now? Ture or False?

YES! It is true. Mortgage California has been certified as the ONLY Lender in Northern California to offer a true STATED INCOME loan product on "A Paper" financing.

Some of the product Highlights:

3/1 and 5/1 products available
Rate 7 Term Refinance
Purchase
No First time home buyers
Single Family residence only
No Secondary Financing
700 Minimum FICO
Owner Occupied
Primary Residence
70% LTV (Loan to Value) to $3,000,000 Loan Amount

Counties include: Contra Costa, Los Angeles, Marin, Napa, Orange, San Francisco, San Mateo, Santa Barabara, Sonoma and Ventura.

Looking for an open House this weekend?

Finally the weekend is here. For some it is time to relax, but for me in the business of Real Estate it's the time to work. The San Francisco Board of Realtors have created a wonderful website to search for open houses. No more driving around and wondering if the signs you see fits the home you need. Below you will find the link to the website were you can search for open homes in San Francisco. If you need information on a home that is on the MLS (which you can search at www.GeorgeLangford.com) but is not open please feeel free to contact me.

Enjoy and Happy House Hunting to all!

Cheers!
George

Consumer Knowledge Before Buying a home

I have come up with a few things that I think the Consumer should know before purchasing a home.

1) Remember to ALWAYS shop around for a mortgage. Make sure to go directly to the financial institute you bank with. They may be able to give you a good rate based off of the already established relationship you have with them. Another great source would be a Mortgage Broker. They have the ability to shop around to multiple banks at one time. This Saves you from filling out multiple applications and will also ensure that you have every possible scenario available to you. They can also help with Create financing (Lower FICO scores, lower down payments, self employed & etc.)

2) Run numbers! Sit down and look at your monthly budget. Make sure that you are not stretching yourself . When purchasing a home you will have your mortgage, property taxes and insurance. (If condo or TIC insurance is typically billed into the HOA monthly fee.) A smart number to remember is that your Mortgage (Mortgage, taxes, Insurance or HOA if applicable) should not exceed 35-40% of your net income. All always remember to have a reserve amount of money that if you are to loose your job you are ablt to maintain your payments. Typically in today's Economy 6-12 months of reserve (Total Monthly Bills) should be sufficent enough.

3) Ask Questions! Don't assume that your agent or Mortgage Broker is telling you everything. (Although they should be in my opinion!) Take responsibility in knowing exactly what you are getting into. If you are not sure how someone came up with an answer have them explain it to you. Agents do this on a regular basis and to them purchasing a home is nothing, but to a consumer who does this typically 1-2 times in their life, it's the complete unknown. The more knowledge you have the easier it becomes to place an offer on a home.

4) Get Pre-Approved not Pre-Qualified. Today the lending industry is changing every minute. What is the difference between the two?

The distinction between the two is that pre-qualifying determines how much a lender will lend you. It involves obtaining a letter from the loan officer who looks at your debt ratios, gross income, and work history to see if you're qualified to make the monthly payments. This usually can take weeks while you wait for a pre-qualifying letter.

Pre-approval, on the other hand, takes it a step further and usually involves non-refundable fees. This process takes into consideration your credit history report, income verification, confirmation of down payment, and ability to pay closing costs. Once approved, the pre-approval letter lets the real estate agent and seller know you're qualified to negotiate terms.

This is VERY Important!! Sometimes we think that we can afford that $500,000 home but in reality we can only afford the $300,000. Also remember that just because you are approved at $500,000 doesn't mean you have to spend that on a home. Do what is comfortable for your lifestyle.

More to come. I will be updating on a regular basis with Tips and also Real Estate Terms that will help Sellers and Buyers be more aware in Today's market.

10 Dos and Don'ts for Selling a Home

This market offers vast opportunities for home owners who have equity and are in need of a larger home to sell and make it a reality. Below is a list of Dos and Don'ts that can help you prepare your home for sale.

5 Dos

Consult a real estate agent (George Lanford) before prepping your home for the market. If you just start making changes, you may be focusing on things that are not as important as others. If you spend $1 you want to get that dollar back or maybe even more.

Make sure an agent (George) will have a strong online presence. The majority of house hunters begin their search on the Internet and then narrow down which ones to actually visit. 80% of home buyers start on the internet and making your home present on the internet is the key to creating exposure.... More Exposure = Greater Selling Price!! $$$$$$

Be certain your agent is knowledgeable about the area. He or she should have a good understanding of the local community, schools, recreation and politics to share with potential buyers.

Feature professional color photos of your home. This is as important for the Internet listing as it is for the printed brochures. The brochure should also include a detailed floor plan. Ask your agent to take local pictures of shops & Parks to highlight the area you live.

Have a clear understanding of the selling process. Familiarize yourself with the typical marketing time in your area, what to expect with a home inspection and any hot-button items that could be of concern. Also, be familiar with the contract process, attorney review, mortgage contingency, deposit escrows and closing time frames. In San Francisco or the Bay Area there are different City requirements that need to be completed when selling a home. For example: San Francisco is completely different than San Bruno or even Oakland.

5 Dont's

Don't just go with the agent who tells you your house is worth the most. Conduct some research to verify the pricing, and consider looking at the competition.

Don't just assume that the agent who sold you your house will be a good fit on the selling side. Interview more than one person to find out what each has to offer. There are agents that work directly with Buyers and directly with Sellers. Know what exact areas the agent you are using specializes in.

Don't ignore offers that don't meet your asking price. By not countering even low offers, you could easily discourage what may ultimately be a good offer.

Don't assume that your agent works full-time. Many do not, so be sure to ask.

Don't just accept everything your agent says. Get it in writing. Make sure he or she offers a written marketing plan with which you agree. Also, understand that once you sign, you are locked in to a legal contract for the term agreed upon.

** Most importantly don't be afraid to get creative. Your agent should not be doing the "norm" in this not so "normal" market. Contact me to hear about my selling techniques that are different for Today's market.***

Multiple Offers Up In June Vs May- 2009

Redfin announced today that 80% of offers this month so far have been made on properties with multiple offers. That is up from 69% last month. This was reported on the website SFGate.com.

This is a good indication as to the market, but we also have to realize that this is only what Refin is reporting. We have not had any agency like NAR (National Association of Realtors), or CAR (California Association of Realtors) report any stats like this at the moment.

Personal Note: I would agree that in the areas that they are reporting (East Bay & Central Valley) we have seen an up turn in the number of homes being sold. On the other hand though this is nothing like 2006-2007 when we were seeing multiple offers going 10-20% over the asking price.

San Francisco has seen an upward movement in the amount of properties that are currently being sold. We are even seeing on homes that are priced correctly and show in excellent condition are moving and even getting multiple offers.

Over all Market: Now is a wonderful time to buy. We have loan products out there and available to everyone. We are still able to finance 3.5% down payment, credit scores down to 580, closiong costs negotiated to be paid by seller and stated income for self employed is available. If you can afford to buy now and it makes sense financially.....Call me Today!

** Blog post to follow with more information on Self Employed Stated Loans now Available**


Article Referenced in above remarks: http://www.sfgate.com/cgi-bin/blogs/ontheblock/detail?entry_id=44120&tsp=1