Nevada City Virtual Tour

Monday, December 20, 2010

You Gotta Have Patience When Looking for and Buying Rental Property

Do your homework and find a reputable agent or broker.
Taking the time to find a reputable real estate agent or broker before you begin searching for a rental property is crucial. The agent or broker that you ultimately choose to work with should know the neighborhood(s) where you are interested in buying, in addition to helping you choose properties that fit your needs.

Make sure your finances are organized.
Going through your finances and making sure everything is in order is a crucial part of the purchasing process that shouldn’t be overlooked. If there is any chance that you will be taking out a mortgage in order to finance your rental property, it is important to do your research early to make sure there are no discrepancies on your credit report. If you find that your credit report is inaccurate, report it immediately so you can get the problem resolved quickly.

Set a maximum amount you can afford to pay.
Before you even begin looking at properties, you should carefully examine your finances and your current situation to establish the maximum amount of money you can afford to spend. By not coming up with a number beforehand, it is easy to get carried away and spend more money than you should have.

Schedule a home inspection.
Before you buy a rental property, be sure to call in a professional home inspector who will come and evaluate the home. Home inspectors will be able to tell you if the home is safe to live in, and if there are any problems that need to be addressed. This is a great way to avoid expensive repairs down the road.

Take a close look at the neighborhood.
Once you have found the property that will best suit your needs, be sure to take the time and get to know the neighborhood. It is usually a good idea to visit the neighborhood during the day and at night so you can get an accurate feel for what the area is like.

Stay up-to-date.
If you are looking to purchase a rental property in an area in which you aren’t familiar, you should do your homework and get to know the local real estate market. The agent or broker you are working with will be able to provide you with current information about the area as well.

Ask around.
These days, people are turning any situation into a networking opportunity, so be sure to take advantage of those around you when looking for a rental property. It doesn’t hurt to ask friends, family, business owners and individuals who live in the area whether there is anything available or if they know of anyone who may be leaving the area at some point. Initiating this dialogue will keep you top of mind when something does come along.

Don’t settle.
Just like you wouldn’t settle if you were in the process of buying your primary residence, it is important to treat the rental property search the same way. It may take a while to find the perfect rental location, so be patient with the process.

Ask for comparables.
Your agent or broker can provide you with information regarding comparable properties in the area. It is important to take notice of the rental income, sales price, square footage and other relevant information to be sure you are getting a good deal.

"The Christmas Card," filmed in Nevada City

"The Christmas Card," filmed in Nevada City, tells the story of a soldier, Cody Cullen, with no family who, while serving in Afghanistan, receives an anonymous holiday card that touches him deeply. While on leave back home, he travels to Nevada City, California, the picturesque town from which the card was sent. Once there, Cody meets and falls in love with beautiful Faith Spelman, who sent the card, and quickly becomes a cherished member of the Spelman family. Yet romance for Cody and Faith seems out of the question, because she has a boyfriend and is about to become engaged.


Screenwriter Joany Kane had never even heard of Nevada City when she wrote the screenplay for "The Christmas Card." The story was originally set in a mill town in Vermont. Budget constraints led the production team to look for sites in California, and one of the producers, Lincoln Lageson, suggested Nevada City. He was familiar with the town because his parents grew up in Nevada City. Alice Evans (who portrayed Faith in the movie) talks about Nevada City:


"But there is one that looks even better; so perfectly preserved and warm and welcoming that you have to pinch yourself the first time you take that walk up the hill towards the church, just to make sure it's real.


Well, this town turned out not only to be the perfect town, but to have the perfect inhabitants, who were delighted not only to welcome "The Christmas Card" to their town, but also to loan out their diner (Nevada City Classic Cafe), hotel, church and of course their people, who served as the most brilliant supporting artists all through the film."


"It was a match made in heaven," Kane said. "The city really is a character in the movie."


This December "The Christmas Card," the Hallmark Channel's highest-rated original film of all time, will show four more times on the following dates (Pacific Time):


*** be sure to check your local cable guide for the exact times***


2011 Showtimes found so far:
December 8, 10:00 p.m.
December 9, 4:00 p.m.

Nevada City and Grass Valley rentals rental homes

Nevada City and Grass Valley rentals rental homes


http://www.nevadacountyrentals.postlets.com/

And this one too

http://www.nevadacountyrentals.com/listing.php

Friday, December 17, 2010

5 Things To Do Now To Get Ready to Sell In 2011

 


1.  Minimize your holiday spending and save your cash. Instead of using the holiday sales to acquire a new winter wardrobe of cashmere sweaters, hold the discretionary spending down so you can give yourself the gift of homeownership!  If you are serious about buying a home next year, don't run up additional credit card debt on gifts this year. Instead, make homemade cards or write holiday letters this year for everyone except the kiddos.  And even for the kids, consider scaling back on the stuff, spending more of your time with them than your money, and getting started now saving toward your home purchase. (I don't think too many folks would argue that a less materialistic holiday season would hurt anyone, at any age.) 

Kickstart your 2011 homebuying resolution by starting a "Home" savings account at an high-interest, online bank (the discipline-boosting goal is a bank that isn't super easy to transfer funds out of when you run low on cash), and set up an automatic deposit into it every payday. To get specific about your savings goal, if you're cash-flush, obviously a 20% down payment will get you top notch interest rates and provide you with the maximum ability to manage your monthly payments. If you're going to be more of a bootstrapping buyer, an FHA loan might be right up your alley - they offer a down payment of 3.5% of the purchase price. 

All buyers should plan to have at least 3 percent of the purchase price saved up for closing costs, even if you want the seller to chip in.  The lower-priced the home you want to buy, the more percentage points you should be willing to chip in for closing costs.  It's easy for closing costs on an $150,000 FHA loan to run as high as $4,000 or more, considering transfer taxes, inspections, appraisals and mortgage insurance fees. So, even the scrappiest buyer should have a savings target somewhere around 6.5% of their target home's price.  To buy a $200,000 home, for example, that would mean a savings target of $13,000.


2.  Research financing, areas homes, prices, agents and online. Smart homebuying takes a lot of research and knowledge-gathering.  Since most buyers find it much harder to qualify for a mortgage than it is to find a home you'd love to live in, start with studying up on home financing and what it will take for you to get a home loan (note: FHA loans are preferred by the average homebuyer on today's market who has less than a 10% down payment, so start your research there). 

If you're considering relocating next year, now's the time to start narrowing down states, cities and even neighborhoods that may or may not work for you. Take into account the job market, housing and other costs of living, and income and property tax rates, as well as the critical lifestyle inputs that vary from state-to-state, like weather and whether the place is a personality fit for you and the life you want to live, be it urban sophisticate or outdoors adventurer. 

Also, start to develop a feel for home prices in a what-you-get-for-your-money type way, and start narrowing down the home styles and even neighborhoods that might fit your aesthetic preferences and lifestyle.  If you're one of those rare buyers-to-be who is not already obsessively house hunting, hop on Trulia and start regularly checking out homes and neighborhoods, making sure to take advantage of the neighborhood ratings and reviews feature, which empowers you to surface what other folks think and say about an area. 

3.  Rehab your credit, if you need to.  Go to AnnualCreditReport.com and check out your credit reports - from all 3 bureaus - for free. (Note - these will not give you your credit score for free - that costs extra, but it will give you the actual detailed credit reports.)  Audit them for errors and do the work of disputing inaccuracies to have them corrected. Pay particular attention to: accounts that are not yours/you never opened, derogatory information that should have "aged off" your report by now (i.e., 7 years for late payments, 10 for bankruptcies) and balances or credit limits that are inaccurate (i.e., your credit card balance is listed at $2500, but you actually only owe $250.)  These are the errors most likely to foul up your financing, so follow the instructions each bureau provides to correct them, stat. While you're at it, don't close any accounts, even if you are able to pay some down or off .

4.  Run your numbers. In the past, some overextended homeowners complained that they felt pushed into a mortgage they couldn't afford. Pundits blamed that on the real estate and mortgage industry, but I have witnessed firsthand many a homebuyer push themselves or their spouses into buying too expensive of a home. Eliminate this issue entirely by doing this - run your own numbers, before you ever even talk to a salesperson or start looking at homes beyond your means. (I assure you, once you see the million dollar home you think you can afford, the $250,000 home you can actually afford will be underwhelming.)

Get your monthly finances in order, and get a clear read on how much your monthly bills are - outside of housing. Decide how much you can afford to spend every month for housing, when you buy your home.  Get clear on exactly how much cash you plan to have at hand to put into your transaction up front.  When, in the next step, you begin working with a mortgage broker, you'll want to share these numbers with them, early on in your conversation, to empower them to tell you what home price you can afford - not based on their rubrics, but based on what you say you want to spend every month and what you want to put down.

5.  Talk to a real estate and mortgage broker (1 of each).
 
Drop one (or a few) an email, letting them know you'd like to work on putting an action plan together for buying a home next year, and would like to talk with them about what action steps need to go on the list. Ask them to brief you on the timeline of a transaction in your local market, and to point out for you things like when along the process you'll need to bring money in, when you'll need to miss work and come into their office or the closing office, whether they offer conveniences like digital document signing, and generally the local standard practices about which buyers you'll need to know.  Depending on your target home purchase timeline, they might even want you to take a spin with them and look at a few properties to reality-check your expectations or narrow down a broad wish list. 

In addition to chatting with them about timing your purchase vis-à-vis your other life events and plans for the year, make sure to ask for referrals to a local, trustworthy mortgage broker or two - preferably one that has worked with them and closed a number of transactions with their clients.  (In fact, many busy real estate pros will want you to talk with their trusty mortgage partner before they get too involved in your planning process.  You may think you only need a month to get ready to buy, but once the mortgage folks weigh in, it might turn out that you actually need a few.)  When you do get in touch with the mortgage maven, if you're serious about buying, you will want them to actually pull your credit report, check the actual FICO scores that come up on their system and give you their professional recommendations for what final tweaks you can do to your debts to get your credit score where it needs to be.
 
 

Tuesday, December 7, 2010

Interest Rates Rise

Velocity of Money and how it affects you

If you’ve been watching the economic news, you’ve probably noticed that market experts and traders have been keeping a close eye on the Commerce Department’s Personal Spending and Personal Income reports. Obviously, those reports provide insight into the health of our economy, but did you know they also influence home loan rates? That’s right, personal spending can actually influence the interest rates that are available when you purchase or refinance a home.

Here's why. It has to do with something called the velocity of money. Even though the government keeps pumping money into the system, nothing happens until that money is spent or lent – and passes from one hand to another or one business to another. The speed at which this money passes between parties is called the velocity of money.

With the job market still very sluggish, consumers aren't spending much money these days, and businesses are still reluctant to spend money to make investments in their business. With the present velocity at low levels, inflation remains subdued and that's good for home loan rates. That's because rates are tied to Mortgage Bonds and inflation is the archenemy of Bonds, so low inflation is good for Bonds and rates. However, once velocity increases, the excess money in the system will cause inflation – which is bad for rates, since even the slightest scent of inflation can cause home loan rates to worsen.

While we certainly want to see better economic recovery news in the near future, we have to remember that there's an inverse relationship between good economic news and Bonds and home loan rates. Weak economic news normally causes money to flow out of Stocks and into Bonds, which helps Bonds and home loan rates improve. Strong economic news, on the other hand, normally has the opposite result.

Currently, home loan rates are at a historically low level, but that situation won’t last forever. That means now is an ideal time to purchase a home or refinance before the velocity of money – and rates – change. If you or anyone you know would like to learn more about the current economic situation and how to take advantage of historically low home loan rates, then please contact me.

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