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Displaying blog entries 31-40 of 45

10 Questions to Ask Your Condo Board

by Carol or Jim Chamberlain

Before you buy, contact the condo board with the following questions. In the process, you’ll learn how responsive—and organized—its members are.

1. What percentage of units is owner-occupied? What percentage is tenant-occupied? Generally, the higher the percentage of owner-occupied units, the more marketable the units will be at resale.

2. What covenants, bylaws, and restrictions govern the property? What grandfather clauses are in place? You may find, for instance, that those who buy a property after a certain date can’t rent out their units, but buyers who bought earlier can. Ask for a copy of the bylaws to determine if you can live within them. And have an attorney review property docs, including the master deed, for you.

3. How much does the association keep in reserve? How is that money being invested?

4. Are association assessments keeping pace with the annual rate of inflation? Smart boards raise assessments a certain percentage each year to build reserves to fund future repairs. To determine if the assessment is reasonable, compare the rate to others in the area.

5. What does and doesn’t the assessment cover—common area maintenance, recreational facilities, trash collection, snow removal?

6. What special assessments have been mandated in the past five years? How much was each owner responsible for? Some special assessments are unavoidable. But repeated, expensive assessments could be a red flag about the condition of the building or the board’s fiscal policy.

7. How much turnover occurs in the building?

8. Is the project in litigation? If the builders or homeowners are involved in a lawsuit, reserves can be depleted quickly.

9. Is the developer reputable? Find out what other projects the developer has built and visit one if you can. Ask residents about their perceptions. Request an engineer’s report for developments that have been reconverted from other uses to determine what shape the building is in. If the roof, windows, and bricks aren’t in good repair, they become your problem once you buy.

10. Are multiple associations involved in the property? In very large developments, umbrella associations, as well as the smaller association into which you’re buying, may require separate assessments.

8 Ways to Improve Your Credit

by Carol or Jim Chamberlain

 

Credit scores, along with your overall income and debt, are a big factor in determining if you’ll qualify for a loan and what loan terms you’ll be able to qualify for.

1. Check for and correct errors in your credit report. Mistakes happen, and you could be paying for someone else’s poor financial management.

2. Pay down credit card bills. If possible, pay off the entire balance every month. However, transferring credit card debt from one card to another could lower your score.

3. Don’t charge your credit cards to the maximum limit.

4. Wait 12 months after credit difficulties to apply for a mortgage. You’re penalized less for problems after a year.

5. Don’t purchase big-ticket items for your new home on credit cards until after the loan is approved. The amounts will add to your debt.

6. Don’t open new credit card accounts before applying for a mortgage. Having too much available credit can lower your score.

7. Shop for mortgage rates all at once. Too many credit applications can lower your score, but multiple inquiries from the same type of lender are counted as one inquiry if submitted over a short period of time.

8. Avoid finance companies. Even if you pay the loan on time, the interest is high and it will probably be considered a sign of poor credit management.

5 Things to Understand About Title Insurance

by Carol or Jim Chamberlain

1. It protects your ownership right to your home both from fraudulent claims against your ownership and from mistakes made in earlier sales, such as mistake in the spelling of a person’s name or an inaccurate description of the property.

2. It’s a one-time cost usually based on the price of the property.

3. It’s usually paid for by the sellers.

4. There are both lender title policies, which protect the lender, and owner title policies, which protect you. The lender will probably require a lender policy.

5. Discounts on premiums are sometimes available if the home has been bought within only a few years since not as much work is required to check the title. Ask the title company if this discount is available.

 

Tips for Finding the Perfect Neighborhood

by Carol or Jim Chamberlain

The neighborhood you choose can have a big impact on your lifestyle—safety, available amenities, and convenience all play their part.

1. Make a list of the activities—movies, health club, church—you engage in regularly and stores you visit frequently. See how far you would have to travel from each neighborhood you’re considering to engaging in your most common activities.

2. Check out the school district. The Department of Education in your town can probably provide information on test scores, class size, percentage of students who attend college, and special enrichment programs. If you have school-age children, also consider paying a visit to schools in the neighborhoods you’re considering. Even if you don’t have children, a house in a good school district will be easier to sell in the future.

3. Find out if the neighborhood is safe. Ask the police department for neighborhood crime statistics. Consider not only the number of crimes but also the type—burglaries, armed robberies—and the trend of increasing or decreasing crime. Also, is crime centered in only one part of the neighborhood, such as near a retail area?

4. Determine if the neighborhood is economically stable. Check with your local city economic development office to see if income and property values in the neighborhood are stable or rising. What is the percentage of homes to apartments? Apartments don’t necessarily diminish value, but they do mean a more transient population. Do you see vacant businesses or homes that have been for sale for months?

5. See if you’ll make money. Ask a local REALTOR or call the local REALTOR association to get information about price appreciation trends in the neighborhood. Although past performance is no guarantee of future results, this information may give you a sense of how good an investment your home will be. A REALTOR or the  government planning agency also may be able to tell you about planned developments or other changes in the neighborhood—like a new school or highway—that might affect value.

6. See for yourself. Once you’ve narrowed your focus to two or three neighborhoods, go there, and walk around. Are homes tidy and well maintained? Are streets quiet? Pick a warm day if you can and chat with people working or playing outside. Are they friendly? Are their children to play with your family?

Buyers Budget Basics Work Sheet

by Carol or Jim Chamberlain
         
The first step in getting yourself in financial shape to buy a home is to know what you make and

what you spend now. List your income and expenses below.

 

Income
Take-Home Pay/All Family  
Members  
Child Support/Alimony  
Pension/Social Security  
Disability/Other Insurance  
Interest/Dividends  
Other  
Total Income  
Expenses  
Rent/Mortgage  
Life Insurance  
Health/Disability Insurance  
Vehicle Insurance  
Homeowners or Other Insurance  
Car Payments  
Other Loan Payments  
Savings/Pension Contribution  
Utilities  
Credit Card Payments  
Car Upkeep  
Clothing  
Personal Care Products  
Groceries  
Food Prepared Outside the Home  
Medical/Dental/Prescriptions  
Household Goods  
Recreation/Entertainment  
Child Care  
Education  
Charitable Donations  
Miscellaneous  
Total Expenses=  
Remaining Income After Expenses=  

 

 

 

 

       
               

Our perspective on the real estate headlines

by Carol or Jim Chamberlain
 Many people have asked us about the current real estate headlines and what they mean to buyers and sellers. Keep in mind that the media has been making dire predictions about real estate for decades:
 
To be newsworthy, a story must be immediate. That’s why the current real estate market is such a hot media topic and why the long view doesn’t get much ink or airtime. That’s too bad, because that’s where you’ll find the most compelling real estate story of all.
 
1969 “The goal of owning a home seems to be getting beyond the reach of more and more  Americans. The typical new house today costs about $28,000.”- Business Week
1977“The median price of a home today is approaching $50,000. Housing experts predict price rises in the future won’t be that great.”-National Business
 
1985 Median Home price $152,720 “The golden-age of risk free run-ups in home prices is gone.” -Money Magazine
 
1996 Median home price $194,382. Defense cuts have triggered steep home price declines. “A home is where the bad investment is.”-San Francisco Examiner
 In the three years following the last statement, California home prices rose 19.7% wiping out the losses of the early ‘90s. Ending the decade with a net gain of 9.35%.
The media continues to play up bad economic news, including real problems in the lending marketplace. The truth is, a home remains the most enduring investment most of us will ever make.
That’s because the return goes so very far beyond financial rewards. To own a home is to make a priceless investment to our lives—and a confident affirmation about our future.
After 37 years it should be obvious Orange County real estate always goes up. Go ahead wait if you want to believe all the doomsayers on the TV, newspapers, and magazines. If you smart you will look around and see how low home prices are today, excellent interest rates, and a selection homes we haven’t see in 12 years. Buy Now! Or you can wait like so many people did in the year 2000.
 
 Californina Existing
Single Family Home*
Annual Average Sales Price
1985 $119,860
1995 $178,600
2000 $241,350
2001 $252,350
2002 $391,600
2003 $316,130
2004 $371,520
2005 $450,990
2006 $556,640
 
We would like to here what your impressions are of the current market. jim@carolandjim.com

10 Things a Lender Needs From You

by Carol or Jim Chamberlain

 

2. Copies of one or more months of pay stubs from every person signing the loan.

3. Copies of two to four months of bank or credit union statements for both checking and savings accounts.

4. Copies of personal tax forms for the last two to three years.

5. Copies of brokerage account statements for two to four months, as well as a list of any other major assets of value, e.g., a boat, RV, or stocks or bonds not held in a brokerage account.

6. Copies of your most recent 401(k) or other retirement account statement.

7. Documentation to verify additional income, such as child support, pension, etc.

8. Account numbers of all your credit cards and the amounts of any outstanding balances.

9. Lender, loan number, and amount owed on other installment loans—student loans, car loans, etc.

10. Addresses where you lived for the last five to seven years, with names of landlords, if appropriate.

1. W-2 forms or business tax return forms if you’re self-employed for the last two or three years for every person signing the loan.

 

 

 

 

Reprinted from REALTOR

® Magazine Online by permission of the NATIONAL ASSOCIATION OF REALTORS®  Copyright 2005. All rights reserved. www.REALTOR.org/realtormag

10 Tips for First-Time Homebuyers

by Carol or Jim Chamberlain

1. Be picky, but don’t be unrealistic.  There is no perfect home.

2. Do your homework before you start looking.  Decide specifically what features you want in a home and which are most important to you.

3. Get your finances in order.  Review your credit report and be sure you have enough money to cover your downpayment and your closing costs.

4. Don’t wait to get a loanTalk to a lender and get prequalified for a mortgage before you start looking.

5. Don’t ask too many people for opinions.  It will drive you crazy. Select one or two people to turn to if you feel you need a second opinion.

6. Decide when you could move. When is your lease up? Are you allowed to sublet? How tight is the rental market in your area?

7. Think long-term.  Are you looking for a starter house with the idea of moving up in a few years or do you hope to stay in this home longer? This decision may dictate what type of home you’ll buy as well as the type of mortgage terms that suit you best.

8. Don’t let yourself be “house poor”.  If you max yourself out to buy the biggest home you can afford, you’ll have no money left for maintenance or decoration or to save money for other financial goals.

9. Don’t be naïve.  Insist on a home inspection and, if possible, get a warranty from the seller to cover defects within one year.

10. Get help. Consider hiring a REALTOR as a buyer’s representative.  Unlike a listing agent, whose first duty is to the seller, a buyer’s representative is working only for you.And often, buyer’s reps are paid out of the seller’s commission payment.

 

 

 

  ® Magazine Online by permission of the NATIONAL ASSOCIATION OF REALTORS®Copyright 2005. All rights reserved. www.REALTOR.org/realtormag

Reprinted from REALTOR

10 Things to Take the Trauma Out of Homebuying

by Carol or Jim Chamberlain

1. Find a real estate professional who’s simpatico. Homebuying is not only a big financial
commitment, but also an emotional one. It’s critical that the practitioner you choose is
both skilled and a good fit with your personality.

2. Remember, there’s no “right” time to buy, any more than there’s a right time to sell. If
you find a home now, don’t try to second-guess the interest rates or the housing market
by waiting. Changes don’t usually occur fast enough to make that much difference in
price, and a good home won’t stay on the market long.

3. Don’t ask for too many opinions. It’s natural to want reassurance for such a big decision,
but too many ideas will make it much harder to make a decision.

4. Accept that no house is ever perfect. Focus in on the things that are most important to you
and let the minor ones go.

5. Don’t try to be a killer negotiator. Negotiation is definitely a part of the real estate
process, but trying to “win” by getting an extra-low price may lose you the home you
love.

6. Remember your home doesn’t exist in a vacuum. Don’t get so caught up in the physical
aspects of the house itself—room size, kitchen—that you forget such issues as amenities,
noise level, etc., that have a big impact on what it’s like to live in your new home.

7. Don’t wait until you’ve found a home and made an offer to get approved for a mortgage,
investigate insurance availability, and consider a schedule for moving. Presenting an
offer contingent on a lot of unresolved issues will make your bid much less attractive to
sellers.

8. Factor in maintenance and repair costs in your post-homebuying budget. Even if you buy
a new home, there will be some costs. Don’t leave yourself short and let your home
deteriorate.

9. Accept that a little buyer’s remorse is inevitable and will probably pass. Buying a home,
especially for the first time, is a big commitment, but it also yields big benefits.

10. Choose a home first because you love it; then think about appreciation. While U.S.
homes have appreciated an average of 5.4 percent annually from 1998 to 2002, a home’s
most important role is as a comfortable, safe place to live.

 

 

Reprinted from REALTOR® Magazine Online by permission of the NATIONAL ASSOCIATION OF REALTORS® Copyright 2005. All rights reserved.

5 Common First-Time Homebuyer Mistakes

by Carol or Jim Chamberlain

1. They don’t ask enough questions of their lender and miss out on the best deal.

2. They don’t act quickly enough to make a decision and someone else buys the house.

3. They don’t find the right real estate professional who is willing to help you through the
homebuying process.

4. They don’t do enough to make their offer look good to a seller.

5. They don’t think about resale before they buy. The average first-time buyer only stays in
a home for four years.

 

 

 

Reprinted from REALTOR® Magazine Online by permission of the NATIONAL ASSOCIATION OF REALTORS® Copyright 2005. All rights reserved.

Displaying blog entries 31-40 of 45

Contact Information

Photo of Carol and Jim   Real Estate
Carol and Jim
Preferred Home Brokers
3230 E Imperial Hwy, Ste 125
Brea CA 92821
714-726-3144
714-726-3144

Carol & Jim Chamberlain 714-726-3166 or 714-726-3144                  "Yes, We Can Be In Two Places At Once!"                                              BRE Lic Numbers: 00912962, 01015143