Down Payment – 10 Things to Know Before Buying a Home

For many Americans, coming up with a down payment for their first home can be a major roadblock—and quite often the reason for renting, rather than owning a home.

A down payment is the difference between the home’s purchase price and its mortgage amount. This percentage of the sale price must be paid up-front and can vary by lender, location, and loan program. A higher down payment generally translates into lower loan interest rate requirements.

Typically, a down payment comes from personal cash savings, but it can also be a gift that is not to be repaid, or a borrowed amount secured by assets.

While conventional loan down payments may be close to 20% of the sale price, government loans typically have lower down payment requirements. This allows potential homebuyers who normally cannot meet down-payment requirements an opportunity to qualify for a mortgage. Keep in mind that down payments that are less than 20% of the sale price typically require mortgage insurance payments.

10 things to know before buying a home

• Before you start looking for a home, get pre-qualified for a loan. This will help you determine how much home you can afford and will give you an advantage over buyers who do not have their financing setup in advance.

 

• If you have marginal or bad credit, consult your lender. You may be able to qualify for a loan depending on how long ago and what reason(s) caused the bad credit.

 

• You will need a down payment. Down-payment requirements vary depending on the type of loan.

 

• You will need funds for closing costs. Closing costs are charges for services related to the closing of your real estate transaction. They include, but are not limited to: Escrow fees, title policy issuance fees, mortgage insurance fees, fire, flood, and homeowners insurance, county recorder fees, and loan origination fees. Consult your lender for an actual estimate of these costs.

 

• Some loans have “points” and some do not. A point is a loan origination fee equivalent to 1% of the loan amount. Together with the interest rate, they constitute the yield on your loan for the lender.

 

• Mortgage rates can be fixed or adjustable. Which one is right for you depends on whether mortgage rates are at a high or a low point when you purchase, and on how long you plan to live in the home.

 

• There are two main types of loan categories. Conventional mortgage loans are available with fixed or adjustable interest rates. Government loans include FHA fixed and adjustable rate mortgage loans, and VA fixed rate mortgage loans.

 

• If you are a low-to-moderate-income homebuyer, there are special programs designed to help you. These loans are available through private lenders, as well as local and state housing agencies.

 

• You may have to pay mortgage insurance. Mortgage insurance protects the lender from potential loss if you should default on your mortgage loan payment. Mortgage insurance is always required on FHA mortgage loans.

 

• Many organizations offer home loan counseling to prospective homebuyers. They will cover home selection, REALTOR^® services, lenders, loan programs, homeownership responsibilities, saving for a down-payment, and other important pieces of information.

Nicole Emanuel Real Estate

Coldwell Banker

(408) 410-2060

nicole.emanuel@cbnorcal.com

www.realestatebynicole.com

Pantone Has Chosen a Color of the Year…and You’re Going to Love It!

Drum roll please….and the pantone color of the year for 2018 is officially Ultra Violet! Looks like they have chosen a fun and funky color for your new home decor or fashion trends. When looking at staging homes for sale, a pop of color such a ultra violet in a pillow or a chair can make a home feel more modern and provide a bit of fun.

Here’s an excerpt from the Pantone website (www.pantone.com) on why they chose this color this year.

“Complex and contemplative, Ultra Violet suggests the mysteries of the cosmos, the intrigue of what lies ahead, and the discoveries beyond where we are now. The vast and limitless night sky is symbolic of what is possible and continues to inspire the desire to pursue a world beyond our own.

Enigmatic purples have also long been symbolic of counterculture, unconventionality, and artistic brilliance. Musical icons Prince, David Bowie, and Jimi Hendrix brought shades of Ultra Violet to the forefront of western pop culture as personal expressions of individuality. Nuanced and full of emotion, the depth of PANTONE 18-3838 Ultra Violet symbolizes experimentation and non-conformity, spurring individuals to imagine their unique mark on the world, and push boundaries through creative outlets.

Historically, there has been a mystical or spiritual quality attached to Ultra Violet. The color is often associated with mindfulness practices, which offer a higher ground to those seeking refuge from today’s over-stimulated world. The use of purple-toned lighting in meditation spaces and other gathering places energizes the communities that gather there and inspire connection.”

Will you be using ultra violet in your home decor this year?

Nicole Emanuel Real Estate

Coldwell Banker

(408) 410-2060

nicole.emanuel@cbnorcal.com

http://www.realestatebynicole.com

BRE 01899594

 

Home Inspections – Specialists You May Want to Check Out

While most folks settle for a home inspection, pest (termite) inspection and possibly a roof inspection, there are a myriad of specialists you can hire to investigate just about anything home-related when you are purchasing a home. The California Association of Realtors put together this short list of the most popular, but some common inspections we see  also include:

Pool & Spa – If the home has a pool and spa, its a must to get it inspected. This is often an overlooked item and failing pool pumps and heaters can be very expensive.

Arborist – Does the home have a huge tree in the front yard? Is one of the trees looking overgrown? Sometimes, it makes sense to call an arborist to make sure the trees on the property are healthy and not in danger of falling limbs or needing to be uprooted (all of which can be rather costly).

Contractors – Are you considering doing some renovating to a home after purchase? Its smart to have a contractor walk the home before you purchase to ensure you can do all the items you want. Sometimes structural modifications might not work or will be very expensive due to the placement of load-bearing walls and foundations so its something you might want to know up front if you are planning on adding on to a home or re-arranging.

Nicole Emanuel Real Estate

Coldwell Banker

(408) 410-2060

nicole.emanuel@cbnorcal.com

http://www.realestatebynicole.com

New tax Bill Proposes Elimination of Certain Tax Deductions for California Homeowners – How Will It Affect You?

Nicole Emanuel Real Estate – Coldwell Banker

(408) 410-2060

nicole.emanuel@cbnorcal.com

http://www.realestatebynicole.com

Burglary Prevention Tips

One of the crimes most frequently reported to the police during the holidays is residential burglary
It’s also the most preventable. It doesn’t take much or cost much to out-smart most burglars. They’re usually not professionals, but rather people taking advantage of an easy target. Burglars may do more than steal things. If they’re surprised by someone coming home or if they choose a home that’s occupied, someone may get hurt.

Tips on Safeguarding Your Home

• Make sure all exterior doors have good locks-at least dead-bolt locks with a 1″ throw.
• Always lock up when you go out, even if only for a few minutes.
• Secure sliding glass doors with bars or locks, or put a broom handle in the door track.
• Make sure your windows have good locks, especially those at ground level.
• Make sure all porches, entrances, and outside areas are well lit.
• Trim any bushes or trees that hide doors or windows.
• Maintain your yard and keep ladders and tools inside when you’re not using them.
• Don’t hide your keys under the doormat or in a flowerpot. That’s the first place burglars look! It’s much better to give an extra key to a trusted neighbor.
• Mark your valuable property like TVs, VCRs, computers, cameras and stereos with your driver’s license number.
• Keep a record of your property in a safe place.
• Install an alarm system for summoning emergency help.
• If you park your car outside, never leave a garage door opener in the car.
• Install a monitoring device such as a Ring Video Doorbell or Chime Doorbell. Easy to spot cameras are also a good choice.

When you go away

• Ask a neighbor to collect your mail and newspapers, and offer to return the favor.
• Put an automatic timer on at least two lights and a radio. Consider photoelectric sensors to turn outside lights on and off automatically.
• Tell a trusted neighbor when you’re leaving and when you’ll return. Include an itinerary and phone numbers where you can be reached in an emergency.

Does Moving Up Make Sense?

With prime home buying and selling season upon us, it’s a good time to ask yourself if a move up is right for you. Sometimes we talk with buyers that are considering a move but faced with the reality of a larger mortgage payment, find that its best for them to wait. Or some clients need to know what their home might sell for in order to decide if moving into a new home is right for them. There are many things to consider when deciding if selling your home and buying a new home is right for you. Whatever the case, we are here to help you decide whats best for you and your family.

Whether your family size is growing, you are running out of space or simply want to seize the opportunity to “move-up” to your next home, below are a few questions to consider as you weigh your options.

1. Have you built substantial equity in your current home? Home equity can be defined as the value of a home, minus the amount of outstanding debt. Although equity does not generally develop in the first few years of home ownership, five or more years of home payments may create significant unrealized gains.
2. Has your income or financial situation improved? Homeowners should consider their overall financial situation including current and future expenses in order to make an educated decision on price range for a new home. For example, an increase in salary may allow for an increased mortgage.
3. Has your lifestyle changed? Lifestyle changes are one of the most common reasons people choose to move. Starting or adding to a family may require an extra bedroom or additional square footage, as well as a desire to live closer to work or family may provide the impetus for a move to a larger home.
4. Is your current residence one that could potentially be rented out? For those homeowners who are ready to make a move but are concerned about purchasing a new home before the current property is sold, renting out the current residence may be a viable option. We also work with a variety of clients who decide they want to find a home to purchase before they sell their current home.
5. Are interest rates attractive? A low interest rate means lower mortgage payments on homes of the same price. I’d be happy to refer you to a mortgage advisor should you need to check on interest rates.

No matter what you decide, you need an expert team to help you balance a concurrent purchase and sale transaction seamlessly. Nearly two-thirds of our client base is either moving up or downsizing and we have successfully assisted them with both sides of the transaction. If you want to discuss any of the questions above or have more to ask, don’t hesitate to give us a call or email! Nicole.emanuel@cbnorcal.com, (408) 410-2060.

Boosting Your Home’s Curb Appeal

What would buyers see if they drove up to your home? Go ahead, take a look. Stand outside your home and try to look at it through a buyer’s eyes. First impressions are lasting impressions. If buyers see paint peeling, a crack in a window or an unkempt yard, they are apt to speculate that there are other, more substantial things wrong with the home.

That first impression, or curb appeal, can make the difference in the amount of money a buyers is willing to offer on a home listed for sale.

Here are some suggestions to enhance the curb appeal of your home to get ready for sale or even just to spruce things up a bit this summer: 

• Mow the lawn, clean up and yard and prune shrubs and trees 
• Scrub or paint the front porch and door. Sometimes an interesting pop of color on the door can really modernize the look of an older home
• Check the porch or deck and hand railings to ensure they are secure 
• Wash the windows, make them sparkle!! 
• If you have time time and money, paint the exterior of the home. Try to stick to more neutral palates as some bright colors can be an immediate turn off for some buyers. Add color by painting the door a different color, instead. 
• Pick up and put away toys and bikes, outdoor bins are also great for storing these items 
• Check that the lawn furniture is in good shape or, if not, store it away 
• Add charm to the front and backyard by adding flower pots and planting fresh plants 

• Repair and paint the fence, if needed 
• Repair the roof, gutters, and downspouts if needed 

These improvements are essential before a home sale and could mean an increase in sales price.  Feel free to call or email and let me know if I can answer any questions for you or make suggestions on how to improve your homes curb appeal!

 

Advantages to Home Ownership

If you’re thinking about buying a new home there are many things to consider, including the tax benefits of owning a home. 

Sure, filing taxes may become a little more complicated, but you may be able to deduct home-related expenses and the savings on can add up to thousands or even tens of thousands of dollars. Because the tax rules for homeowners can be tricky, I recommend you consult with a tax professional before deciding what you can and cannot deduct. But in general, you can figure on a number of significant tax breaks associated with homeownership, including:

Mortgage interest. The biggest tax break is reflected in the house payment you make each month since, for most homeowners, the bulk of that check goes toward interest. In most cases, the interest homeowners pay is deductible. This may mean a reduced tax bill overall and a bigger refund.

Property taxes. As a homeowner, you are entitled to deduct payments of real estate tax on your property if you claimed itemized deductions on your tax return. The IRS allows you to deduct real estate taxes on your primary residence and any other homes you own. There are no limits on the dollar amount of real estate taxes you can deduct.

Loan deductions. When homeowners borrow against the equity of their home to finance other investments, the interest they pay on the new loan is also tax deductible, within IRS guidelines. Generally, equity debts of $100,000 or less are fully deductible.

Improvements on your residence: While you generally cannot deduct improvements to your home on your taxes, such items can lower your tax bite down the road. Improvements such as a family room addition, a kitchen makeover, or a pool increase the “basis” of your home – i.e., the purchase price plus improvements. When you go to sell, the higher your basis is, the less you will have to pay in capital gains taxes if you pay at all.

Tax-free profits. The government allows homeowners to keep tax-free profits from the sale of a home that has been their primary residence for at least two years. Single taxpayers don’t owe taxes on the first $250,000 of profit from the sale of a principal residence, while married homeowners get $500,000 when filing jointly.

These tax savings can add up quickly. On a $500,000, 30-year mortgage loan at five percent, for example, a homeowner would end up paying nearly $25,000 in the first year in interest alone. At a 33 percent federal and state income tax rate, the mortgage interest deduction alone would save more than $8,200 in that tax year! But again, tax laws are complicated and everyone’s tax situation is different. Consult your tax professional to see how the rules apply to your situation. In the meantime, if you have any questions about purchasing a home and how much you can afford, feel free to give me a call! 

Just Listed! Best Value in Cambrian at $625k. Open this weekend!

Best Value in Cambrian! 1695 Hillsdale Avenue, San Jose, CA 95124 Nicole Emanuel (Culbertson) Direct: (408) 355-1512 Mobile: (408) 410-2060 CA BRE# 01899594 Nicole.Emanuel@cbnorcal.com 1695 Hillsdale Avenue, San Jose, CA 95124 3 bedroom, 1 bath 1,288 square feet $625,000 Look no further….you’ve found the best value in Cambrian! Wonderfully updated house with award winning schools! This beautiful home features remodeled kitchen, updated bath, crown moulding throughout, double-pane windows, tile floors, office area with possible addition for bathroom or bedroom and a 600-square foot garage. Relaxing backyard with newer fence and pergola. OPEN HOUSE Saturday, March 21 (1 pm – 4 pm) Sunday, March 22 (1 pm – 4 pm)

View My Website  |  CaliforniaMoves.com ©2015 Coldwell Banker Real Estate LLC. All Rights Reserved. Coldwell Banker® is a registered trademark licensed to Coldwell Banker Real Estate LLC. An Equal Opportunity Company. Equal Housing Opportunity. Each Coldwell Banker Residential Brokerage Office is Owned by a Subsidiary of NRT LLC. All rights reserved. This information was supplied by Seller and/or other sources. Broker believes this information to be correct but has not verified this information and assumes no legal responsibility for its accuracy. Buyers should investigate these issues to their own satisfaction. If your property is currently listed for sale, this is not intended as a solicitation. If your property is listed with a real estate broker, please disregard. It is not our intention to solicit the offerings of other real estate brokers. We are happy to work with them and cooperate fully. Real estate agents affiliated with Coldwell Banker Residential Brokerage are independent contractor sales associates and are not employees of Coldwell Banker Real Estate LLC, Coldwell Banker Residential Brokerage or NRT LLC. CalBRE License #01908304.

How to Know if a Neighborhood is Right for You

Before you buy a home and make what’s likely to be one of the biggest investments of your life, you owe it to yourself to receive quality information on your new neighborhood. Getting a deal on your dream home can quickly turn sour if the neighborhood doesn’t meet your expectations. Here’s how to research a neighborhood before you buy a home.

LOOK INTO THE CRIME RATES

In addition to the U.S. Census Bureau’s city profiles that list crime statistics, you can try sites like CrimeReports. com, which offers local maps where you can access crime data in near-real time (the site has partnerships with more than 1,000 law enforcement agencies). You might also visit the local police department to ask about crime statistics and what neighborhood watches or alerts are in operation.

CHECK SCHOOL REPORT CARDS

Even if you don’t have children, you should spend some time investigating the area schools (school districts are typically the largest beneficiaries of your property taxes). The reason for this is simple: good schools tend to attract a higher demand for homes, which can affect the value of surrounding properties. One way to research schools in your new neighborhood is to visit the GreatSchools website, a non-profit national organization, where you can find valuable information from local preschools to colleges.

REVIEW MUNICIPALITY AND PUBLIC SERVICES

It can be easy to focus on the condition of your prospective home, but you should also consider the general condition of the streets, sidewalks and parks in your new neighborhood. Take some time to research your new municipality (start with the official website) and the services offered. Don’t be afraid to call your local clerk’s office and ask questions if you can’t find answers on the website. Things like trash collection, street cleaning and general public maintenance can affect your property’s value over time, especially if these services suffer a sharp decline due to budget cuts.

WALK THE NEIGHBORHOOD

Visit the neighborhood at various times of day and on different days. The nature of a neighborhood changes from day to night and from weekday to weekend. Make sure the activity and noise levels are to your liking. If you see residents out doing yard work or walking their dog, ask how they like the neighborhood and tell them you’re considering buying in the area. Sometimes “insider” feedback can give you the real sense of a neighborhood.

When you’re in the market for a new home, it can be easy to get distracted by what lies within the walls. By following these home buying tips, you’ll be much better prepared to make an informed decision about your new neighborhood. That way, a sweet deal is less likely to turn sour. Please call me if you’d like help in further exploring a new neighborhood.