Top Tips for Mortgage Borrowers in 2014

In the market for a mortgage? Take a look at these helpful mortgage tips for 2014, compiled by Bankrate, an online aggregator of financial rate information: 

1. Be Prepared to Document Your Finances
Mortgage regulations went into effect in January that put new pressure on lenders to verify that borrowers are able to repay their loans. Keep track of financial documents, including bank statements, tax returns, and investment accounts, and be ready to show them to a loan officer. 

2. Rates Are Rising, So Don’t Delay
Mortgage rates will almost certainly climb in 2014 as the Federal Reserve scales back the economic stimulus program that helped keep rates low in recent years. If you are planning to get a mortgage, don’t put it off much longer. 

3. Don’t Wait to Refinance, Either
Owners who are paying more than 5 percent interest on their home loans still have a chance to refinance at lower rates, but those rates won’t last forever (see above). Speak to a loan officer and take a look at the numbers to see if refinancing still makes sense. 

4. You Have Bargaining Power. Use It.
Lenders saw a big drop in refinancing activity in 2013 as interest rates started climbing higher, so they will be more aggressive in courting homebuyers in 2014. Buyers should take advantage of the bargaining power they gain with that increased competition. Shop around for the best deal. 

5. You Have New Rights, Too
New mortgage rules created by the Consumer Financial Protection Bureau go into effect in 2014, giving borrowers many new rights. Learn more about these rules, and if you have problems with your mortgage servicer or fall behind on payments, take advantage of your rights. 

6. Pay Attention to Your Credit Score
Good credit is an essential when applying for a home loan. Monitor your credit history and score until your loan closes. The best mortgage rates go to borrowers with credit scores of 720 or higher. Though you may still get a mortgage if your score is 680, lower numbers will result in higher rates or higher closing costs. 

7. Keep Your Spending Under Control
You are less likely to get a home loan if you won’t have much money left each month after paying the mortgage and other obligations such as credit cards and student loans. Try to keep your monthly debt obligations — including mortgage and property taxes — to less than 43 percent of your income. 

8. Which Mortgage Is Right for You?
A homeowner who expects to keep a house for seven to 10 years could get lower mortgage rates by choosing a seven- or 10-year ARM instead of a 30-year fixed-rate mortgage. If you are not sure how long you plan to own the property, a fixed-rate loan is probably the wisest option. 

9. Think Twice About an FHA Loan
First-time buyers frequently turn to FHA loans, in part because they allow for low down payments and have more lenient underwriting standards than conventional loans. But consider these points: Mortgage insurance premiums on FHA loans are expected to rise in 2014, and the borrower is now required to pay for mortgage insurance for the life of the loan. 

10. Buy Your Home When You’re Ready
Mortgage rates will almost certainly rise in 2014. If you are in the process of house hunting, try to move quickly, but remember that this is likely the largest financial decisions of your life. Take the mortgage and homebuying process at a pace you feel comfortable with. 

If you plan to buy a home in the Bay Area or the Tahoe/Truckee region, Pacific Union’s mortgage partner, Mortgage Services Professionals, can offer loan advice and consultation to help make your purchase a success. 

Saraya and Simon Motley
Pacific Union and Christie’s International Real Estate
Serving Alameda & Contra Costa Counties
510.459.4338510.459.4338/direct . 925.385.8503925.385.8503/direct
925.403.7802925.403.7802/eFax
saraya@eastbayhouse.com
www.eastbayhouse.com
CalBRE License #01265873

(Image: Flickr/401(K)2013)

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Bay Area Job Growth Keeps on Truckin’

Strong Bay Area job growth continued to fuel California employment gains in December, the latest state figures show. That’s a promising sign that 2014 will be another banner year for Bay Area residential real estate.

California’s unemployment rate dropped to 8.3 percent in the last month of 2013, down from 8.5 percent in November and 9.8 percent in December 2012, the state Employment Development Department said.

Palo Alto-based economist Stephen Levy credited the Bay Area’s sizzling job market with driving the state’s advances.

“The San Francisco peninsula job market remains on fire from San Francisco to San Jose,” Levy, of the Center for Continuing Study of the California Economy, said in a statement. “As a result the Bay Area accounted for 82 percent of the state’s December job gains.”

Marin County continued to boast the lowest jobless rate in California, with just 4.2 percent of its residents unemployed, the state reported. Meanwhile, San Mateo and San Francisco counties followed close behind with rates of 4.6 and 4.8 percent, respectively.

All nine Bay Area counties handily beat the overall California numbers. In Sonoma and Santa Clara counties, the December unemployment rate was 5.7 percent, followed by Napa County’s 5.9 percent, Alameda County’s 6.3 percent, Contra Costa’s 6.4 percent, and Solano’s 7.3 percent.

Nevada County, home to Pacific Union’s Truckee market, boasted an unemployment rate of 6.7 percent.

While tech-heavy urban counties continue to see the most pronounced employment growth, the recovery has begun to spread “to other areas of the state and to non-tech sectors including construction, tourism, and retail trade,” Levy said.

“Perhaps the largest ‘rising tide’ effect on all Californians is the increase in state and local revenues that is providing additional resources for education and other public services,” he added.

And the bustling job market is boosting demand for Bay Area homes for sale, as new workers move to the region and tech companies mature, creating more millionaires. Indeed, this year we expect the residential housing market in our regions to outpace their already-stellar 2013 performance.

Saraya and Simon Motley
Pacific Union and Christie’s International Real Estate
Serving Alameda & Contra Costa Counties
510.459.4338/direct . 925.385.8503/direct
925.403.7802/eFax
saraya@eastbayhouse.com
www.eastbayhouse.com
CalBRE License #01265873   

(Image: Flickr/Metropolitan Library and Archive)

Grand Lake Farmers Market – Opening Day

Splashpad Park, Oakland, California

Now that Christmas is behind us and we have indulged in our holiday meals, it is time to think about healthier eating for the new year.  The Grand Lake Farmers Market – Opening Day could not be arriving with better timing.  This Saturday, Splashpad Park in Oakland will once again be transformed into a Market featuring organically-grown foods, specialty food providers, and even local artisans.

The Grand Lake Farmers Market has been voted the “Best Farmers Market” in the East Bay, year after year.  It provides a great selection of organic produce, a wide variety of specialty foods and delicacies, and artisans that come from many surrounding counties.  Shoppers can browse fruits, vegetables, meats, baked goods, flowers, and much more.  And the artisans will be offering their handmade, hand-crafted, and one-of-a-kind items for sale.  You can expect to find everything from jewelry, to fine art, to wearable items.

With over 3,000 attendees expected, this will be the Market’s largest Opening Day ever.  If you have made it your New Year’s resolution to eat better, please join me this Saturday for the Grand Lake Farmers Market – Opening Day.  The Market is sure to be serving up the best of the best, in food and art assortments.  See you there!

Saturday January 4th
9:00AM-2:00PM

For more information regarding the Grand Lake Farmers Market – Opening Day, please click here.

Saraya and Simon Motley
Pacific Union and Christie’s International Real Estate
Serving Alameda & Contra Costa Counties
510.459.4338/direct . 925.385.8503/direct
925.403.7802/eFax
saraya@eastbayhouse.com
www.eastbayhouse.com
CalBRE License #01265873  

Photo courtesy of NatalieMaynor/Flickr.com

The Bay Area’s 10 Fastest-Moving Real Estate Markets

Tight inventory has remained an issue for Bay Area homebuyers throughout 2013, but shoppers in some Bay Area cities have been grappling with the other side of that coin: the extreme speed with which properties leave the market.

Across Pacific Union’s eight Bay Area regions, single-family homes stayed on the market for an average of 48.5 days in November. And while buyers in some cities and towns can afford to bide their time searching for the perfect property and price tag, those in some of our region’s most in-demand pockets will need to act fast to land a home.

To determine which of our Bay Area markets are zipping along at the quickest pace, we turned to the MLS. As of Dec. 11, here’s the lowdown on days on market (DOM) in November across our regions:

1. Sausalito – 12 Days – The Marin County city of Sausalito tops our list, with an average DOM of 12 in November. Sausalito is the only Marin city where houses stayed on the market less than a month, and homes in the city flew off the shelves 79 percent faster than in the county as a whole.

2. Palo Alto – 16 Days – Buyers in Palo Alto snapped up homes in an average of 16 days, more than twice as fast as in our Silicon Valley region overall. Homes in Palo Alto haven’t sat on the market for more than 20 days since January, and at their September lows were gone in an average of 10 days.

3. Moraga – 20 Days – After an October lull, when Moraga homes stuck around for more than a month, the average DOM was down to 20 in November. Moraga was a popular choice for Contra Costa County buyers in the spring and summer, when the DOM ranged from 16 to 19.

4. San Francisco District 1 – 20 Days – San Francisco is one of our fastest-moving markets overall, with the DOM averaging 33 in November. In District 1, which includes the Richmond and Sea Cliff neighborhoods, houses were gone in an average of 20 days, the fastest in two years.

5. Los Altos – 22 Days – With an average DOM of 22, Los Altos is tied for the second-speediest market in our Silicon Valley region. And while serious buyers in the city shouldn’t delay, they have about a week longer than in October, when homes disappeared in an average of 14 days.

6. Menlo Park – 22 Days – As in Los Altos, Menlo Park homes for sale were gone in a little more than three weeks. In the third quarter, homes were on the market for between 24 and 45 days, but in October, that number dropped substantially to 17.

7. Piedmont - 22 Days – Homes in Pacific Union’s East Bay region have been hot commodities all year, and Piedmont ZIP codes remain among the most desirable. Piedmont homes for sale left the market in 22 days in November and have never lasted longer than a month so far this year.

8. San Francisco District 6 – 22 Days – The DOM number in San Francisco’s District 6, which includes Lower Pacific Heights and Hayes Valley, has varied widely throughout 2013, ranging from 81 in June to 10 in September. November’s 22 days is the fourth-fastest time frame during which homes in the district sold this year.

9. San Ramon – 23 Days – Buyers haven’t been hesitating to make a move in San Ramon for most of 2013 – homes have never lasted here for more than an average of four weeks. At 23 days, homes in the city sold on an average of 34 percent faster in November than in Contra Costa County overall.

10. American Canyon – 25 Days – Buyers in our Napa County region, where homes stayed on the market for an average of 78 days last month, could afford to take more time deciding than anywhere else in Pacific Union’s Bay Area region. In what could be just an anomaly or the start of a trend, American Canyon homes, which previously had a 2013 DOM low of 40, left the market in just 25 days.

Saraya and Simon Motley
Pacific Union and Christie’s International Real Estate
Serving Alameda & Contra Costa Counties
510.459.4338/direct . 925.385.8503/direct
925.403.7802/eFax
saraya@eastbayhouse.com
www.eastbayhouse.com
CalBRE License #01265873 
 
(Image: Flickr/Barry 13092)