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

South Bay Local Events for January

Do you have the holiday hangover blues? While we are sad the holidays are gone for the next 361 days we are excited to share a list of some great events going on around the South Bay in January. Lots of fun things to do including family friendly events, music, sporting events and theater. Hope you get out and enjoy some of these events this month!

January 3 – January 7
2018 Prudential US Figure Skating Championships
SAP Center, San Jose
http://www.sapcenter.com/events/detail/2018-prudential-us-figure-skating-championships

January 4 – 7
Silicon Valley International Auto Show
San Jose Convention Center
http://www.svautoshow.com

January 6
Sesame Street Live! Let’s Party!
City National Civic Center, San Jose
https://sanjosetheaters.org/event/sesame-street-live-san-jose-2018/

January 9, January 14, January 21
Harlem Globetrotters
SAP Center San Jose
https://www.ticketmaster.com/harlem-globetrotters-sap-center-at-san-jose-san-jose-ca/venueartist/229393/806223

January 13

San Jose Sharks v. Arizona Coyotes
SAP Center San Jose
https://www1.ticketmaster.com/san-jose-sharks-vs-arizona-coyotes-san-jose-california-01-13-2018/event/1C0052D6ABAF3079#efeat4212

January 13
Engelbert Humperdinck
San Jose Civic Auditorium
https://www.ticketmaster.com/engelbert-humperdinck-city-national-civic-san-jose-ca/venueartist/229461/742499

January 20Mountain Winery Annual Crab Feed
The Mountain Winery, Saratoga
http://www.mountainwinery.com/events/detail/crab-feed-4

January 20, January 21
Symphony Silicon Valley Schumann’s Cello Concert
San Jose Center for the Performing Arts
http://symphonysiliconvalley.org

January 20
San Jose Sharks vs. Pittsburgh Penguins
SAP Center
https://www.ticketmaster.com/San-Jose-Sharks-tickets/artist/806018

January 21
Bill Maher Live
Flint Center, Cupertino
https://www1.ticketmaster.com/bill-maher-cupertino-california-01-21-2018/event/1C00535ABAD486C7?artistid=821441&majorcatid=10002&minorcatid=51&tm_link=venue_msg-1_1C00535ABAD486C7#efeat4212

January 23 – January 27
RENT
San Jose Center for the Performing Arts
https://sanjosetheaters.org/event/rent-broadway-san-jose-2018/?instance_id=9323

January 23
San Jose Sharks vs. Winnipeg Jets
SAP Center
https://www.ticketmaster.com/San-Jose-Sharks-tickets/artist/806018

January 25
San Jose Sharks vs. New York Rangers
SAP Center
https://www.ticketmaster.com/San-Jose-Sharks-tickets/artist/806018

Nicole Emanuel Real Estate
Coldwell Banker
(408) 410-2060
www.realestatebynicole.com
nicole.emanuel@cbnorcal.com
BRE# 01899594

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

Local Christmas Tree Farms 2017

Our family has a wonderful tradition of heading out to a local Christmas tree farm with friends and family and cutting down our own tree. Although its left us rainy and muddy some years, we love the experience of it and it really puts us in the holiday mood! The photo above is of our favorite local spot in the Los Gatos mountains — Lone Star Tree Farm.

If you are and your family are looking to try something new this year, consider cutting down your own tree! We’ve compiled a list of local tree farms to make things easy (but maybe not less muddy!)

Crest Ranch Choose and Cut Trees 

12200 Empire Grade

Santa Cruz, CA 95060

 

Summit Christmas Tree Farm 

23868 Summit Road

Los Gatos, CA 95033

 

Patchen California Christmas Tree Farm

22217 Old Santa Cruz Highway

Los Gatos, CA 95033

 

Lone Star Tree Farm 

20514 Gist Road

Los Gatos, CA 95033

 

Black Road Christmas Tree Farm

20259 Black Road

Los Gatos, CA 95033

 

Four Winds Christmas Tree Farm 

19679 Skyline Blvd.

Los Gatos, CA 95033

 

Hester Creek Christmas Trees 

25507 San Jose-Sequel Road

Los Gatos, CA 95033

 

Peacock Tree Farm 

17950 Mountain Charlie Road

Los Gatos, CA 95033

 

Skyline Farms 

20514 Gist Road

Los Gatos 95033

Nicole Emanuel Real Estate

Coldwell Banker

(408) 410-2060

nicole.emanuel@cbnorcal.com

http://www.realestatebynicole.com

 

3 Rules to Remember When Shopping for a Mortgage

3 Rules to Remember When Shopping for a Mortgage

Since you’re in the market for a new home, you’re probably in the market for a new mortgage. Here are 3 critical shopping tips for anyone looking for a new loan.

• Know the Terms
  All the terms of a loan matter. Unfortunately, shopping for a mortgage is not as simple as finding out how much a lender will let you borrow and at what interest rate. You’ll want to get a complete breakdown of what any offer your receive means to you on a monthly basis as well as how much money you’ll be spending over the life of the loan.
• Not all Mortgages are the same
  There are several mortgage types available to residential home buyers. Most people will shop for a traditional fixed rate mortgage, but other options are available including adjustable rate loans (ARMs), Federal Housing Administration loans (FHAs), and Veteran’s Administration loans. You’ll want to be sure to understand what kind of loan a lender is offering you.
• Fees, Fees, Fees
  Most loans have fees associated with them in additional to the principal amount bowered to buy the home. You can sometimes borrow the money need to cover these fees, but that will obviously increase the overall amount of debt you undertake. Some fees are paid up front, and others are not due until closing.

If you’d like to chat with personally about how to shop for a mortgage and what other questions you can ask lenders to find the best deal, give me a call at any time. I’m happy to get you started on the right path so we can start looking for your new home!

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.

Top 10 Websites for Home Buyers, Sellers & Owners

Want to search for your next home without ever getting out of your pajamas? There’s a site for that. How much will the mortgage and taxes cost you each month? There’s a site for that. Or do you want to know approximately what your home is worth today? Yes, there’s a site for that, too. And once you move into that new home, there’s a site to help you find local schools, restaurants, even your next dentist.

Okay, with apologies to the iPhone app commercials, I thought it might be helpful to list 10 of my favorite websites for people interested in buying or selling a home, remodeling their existing residence, or just looking for local information on their new neighborhood. There are countless websites, of course, and I don’t claim to have the ultimate list – just ones that have good value for homeowners and those looking to become owners.

Here are 10 of my favorites:
• CaliforniaMoves.com. Okay, I admit I’m biased. But Coldwell Banker’s consumer website offers a myriad of tools for home buyers and sellers, including advanced search engines, tips on
buying and selling, relocation information, and even community facts, figures and links. • Realtor.com. In that same vein, Realtor.com is also a good consumer website, especially for those thinking about relocating to other regions or want advice on buying or selling, as well as hiring an agent. There are articles on the market, consumer tips, and even suggestions on gardening and remodeling.
• CaliforniaHome.me. This new blog, powered by Coldwell Banker Residential Brokerage, is a non-stop feast of all things California. From luxury home features and design ideas, to California events and celebrations, the blog if filled with everything that makes the Golden State such an incredible place to live.
• Zillow.com. Who isn’t interested in what their home might be worth, or even better, their neighbors? This website offers property valuations. While I’m not convinced that their estimates are always on target, they do give homeowners some general idea of its value, as well as tax records and other useful info.
• Bankrate.com. Now that you’ve decided where you’re going to buy, this site will help you figure out how much you can afford. This is one of my favorite financial websites because it offers mortgage rate comparisons, links to lenders, and literally dozens of different types of calculators to figure it all out.
• Local.Yahoo.com. So you’re ready to move into your new home. Now what? Go to this site to find a plethora of useful links and information on everything from local restaurants and coffee shops to city offices and police departments to public utilities to get the water and gas turned on.
• Yelp.com. Another great site for newcomers to an area is Yelp, which features customer reviews and ratings on every imaginable local business. Sure there’s the usual restaurant ratings, but you’ll come here to find favorite dentists, veterinarians, gardeners and yes, even real estate agents.
• ServiceMagic.com. For those homeowners planning to remodel or just looking for a contractor to do some routine work, this website can be quite useful. Service Magic prescreens a wide variety of contractors and also incorporates customer ratings in order to provide a list of recommended businesses.
• HomeTips.com. Run by Don Vandervort, a host on HGTV and well-known author of do-it-yourself books, this site – as you might guess – specializes in articles on how to maintain and remodel your home. One of the favorite search engines helps the weekend warrior figure out how to do a wide variety of repairs and save money.
• SFGate.com, MercuryNews.com and SacBee.com. I’d be remiss if I didn’t include our local newspaper websites. Not only do they offer the latest news, sports and business, but also good restaurant and movie reviews, job search engines, and valuable community information and links for all homeowners.