Archive for January, 2008
5 Reasons to Get Preapproved for A Chico CA Real Estate Home Loan
January 23rd, 2008 Categories: Anatomy of a Chico CA Real Estate Transaction, Chico Buyers
A question that is commonly posed to me by Chico Buyers looking for a new home is, “Why do we need to be preapproved for a property?”
Looking for a little approval? by Mike Wiegert, Broker Chico Homes
Many buyers question this common practice and even resent that their Realtor would suggest the necessity of being preapproved. But in the real estate world there are significant reasons that a buyer would want to get preapproved. The bottom line is that even though many of us want to give the benefit of the doubt, people just don’t really trust other people that they don’t know. Having stated this basic premise, here are some important reasons to get preapproved for a mortgage before you make an offer on a home.
1. First and most important is that the preapproval process allows a buyer
to really know what price range he or she should be looking in or what
they realistically can afford. Who wants to make an offer on the home
of your dreams only to be turned down by a lender for reasons such as
insufficient income, poor credit or maybe an inadequate job history. I
promise, you’ll sleep much better if you know what you can afford and
that you can actually get a loan.
2. As a buyer you will be infinitely more comfortable to the Seller if
your offer is accompanied by a preapproval letter from a reputable or well
known lender. This is especially true if you are competing against other offers. If all offers are the same, I can guarantee that the offer that has a preapproval letter attached will be the winner. Also, if the home is offered as a foreclosure by a lender, that lender will probably not even consider your offer if it is not accompanied by a preapproval letter.
3. Preapproved buyers are able to close their escrow more quickly. I recently had a client call me two weeks before her home, which is in foreclosure, was due to go to sale. By the way, if you’re in foreclosure, don’t do this. Foreclosures don’t go away by themselves so call a trusted Realtor or attorney to weigh your options. Luckily, one of my agents had a preapproved buyer interested in purchasing a home in the price range and area of this home. Because of the preapproval, the buyer was able to close the escrow just two days prior to the foreclosure sale. So if you’re in a hurry to get in your new home or you have a Seller that needs to close quickly, being preapproved can really be an asset.
4. Besides minimizing the uneasiness of not knowing if you can qualify, you’ll know what loan programs suit your particular needs. There are literally hundreds of loan programs and a skillful loan agent or broker can really tailor a loan that not only gets you into a new home, but can solve many other financial problems as well.
5. Lastly, your lender will give you a written good faith estimate of closing costs and fees so that you will know exactly what you’re going to need to close your new home. With interest rates well into the fives, it’s not only a great time to buy, but a fantastic time to get yourself preapproved.
Need a recommendation for a reputable Chico lender? I would be happy to assist you!
More on prequalification:
What is the Difference between Prequalification and Preapproval?
Why Should I Get Preapproved for a Chico, CA Home?
Paperwork you need to get approved for a CA Mortgage
Your Chico CA Loan Application- It’s Not THAT Hard!
Lenders beware: How to lose a Chico, CA Realtor (and therefore buyer) in 3 days
| Discussion: 6 Comments »
Chico Real Estate: What happened to prices in 2007?
January 22nd, 2008 Categories: Chico CA Real Estate Market Stats, Chico CA Real Estate News
Chico CA Real Estate Prices History Comparison 2005-2007
Misery loves company, or so the saying goes. It’s the only explanation for the dismal outlook many folks have when discussing the Chico real estate market. While it’s true that prices have come down from the record highs of 2005 and 2006, it’s safe to say that we fared pretty well compared to many of our California neighbors. If Chico Realtors have said it once, we’ve said it a million times: REAL ESTATE IS LOCAL!
The chart below compares average asking prices and sold prices for single family, residential properties in the urban Chico area.
| Discussion: 2 Comments »
Chico Listings Sold Week Ending 1/19/2008
January 21st, 2008 Categories: Chico CA Real Estate Market Stats, Chico CA Real Estate News
Chico Residential Listings SOLD!
$450,000 1635 LAZY TRAIL DR 2330 sqft
$210,000 220 HENSHAW AVE 1110 sqft
$452,000 35 WESTGROVE CT 2307 sqft
$350,000 2657 LAKEWEST DR 2087 sqft
$340,000 7 REDEEMERS LOOP 1881 sqft
$332,000 429 CHESTNUT ROSE L 1705 sqft
$305,000 1812 HERON LN 1731 sqft
$413,000 925 DIAS DR 2240 sqft
| Discussion: 2 Comments »
Chico CA Real Estate Market Report for Week Ending 1/19/2008
January 20th, 2008 Categories: Chico CA Real Estate Market Stats, Chico CA Real Estate News
Chico real estate market data.
I’ve always found real estate market reports to be really dry reading… but many of you potential Chico buyers and sellers have been coming to my blog looking for this type of information, so here you go!
The following represents the market data for single family homes only. Chico areas covered are 1A to 1F, as provided by the Sierra North Valley MLS.
| Discussion: 3 Comments »
A Day in the Life of a Chico Realtor
January 17th, 2008 Categories: Just for Fun!, My Opinion on Things
“Chico CA Real Estate agent“…
There are days, like today, when I feel I have the greatest job in the whole wide world. Other days I seriously have to wonder, but today was a good day, so we’ll keep our focus there. I truly enjoy the work I do when I have the opportunity to connect with people and make a real difference.
| Discussion: 4 Comments »
Chico Unified School District: A Great Resource for Relocating Families
January 11th, 2008 Categories: Chico CA Real Estate News, Relocate to Chico
Are you considering relocating to Chico, California?
For most parents, a primary concern when considering moving is the school system. The links below can help you familiarize yourself with Chico’s many great schools.
How great is this? Pleasant Valley High School was honored on April 16, 2007 with the title “A California Distinguished School” by the State Superintendent of Public Instruction, Jack O’Connell.
Greater Chico area Elementary Schools K-6
Chapman
Citrus
Cohasset
Emma Wilson
Forest Ranch
John A McManus
Little Chico Creek
Marigold
Neal Dow
Parkview
Rosedale
Shasta
Sierra View
*** 6th Grade Alternative Programs ***
Chico Junior High Schools
*** Alternative Option- Hooker Oak Open Structure ***
Chico Senior High Schools
Special Services School
Alternative Education Schools
The Academy For Change (Community Day School)
Fair View High (Continuation School)
Oakdale (Independent Study)
Helpful resources:
Please feel free to contact me regarding any needs you may have as you relocate to Chico, California! I can assist you in your search for Chico property by sending you listings via email. Browse our neighborhoods, schools, parks and recreation- all with little hassle. Relocating families are some of my favorite clients! I enjoy helping to ease the stress of moving, by working hard to ensure that your real estate transaction is as smooth and easy as possible.
Subscribe to: Chico CA Real Estate Blog and MLS Listings Search!
Looking to buy or sell Chico CA Real Estate? Need a Top Producing Chico Realtor? Call Sandi Bauman 530-864-5407 or email sandibauman@sbcglobal.net. Specializing in REO, residential, relocation, investment & ag property.
| Discussion: 4 Comments »
How NOT to Pick a Real Estate Agent!
January 10th, 2008 Categories: Chico Buyers, Chico Sellers
Hiring the right real estate agent in Chico can mean the difference between a successful transaction and a potential financial and emotional disaster.
For most people, finding the right real estate agent is a difficult process. Successful Realtors and mortgage brokers alike witness the frustration and despair of buyers and sellers that are poorly represented. Honestly, it’s painful to watch. Save yourself the nightmare! Read on.
I ran across an article written by Rob K. Blake over at The Mortgage Insider Blog who sounded an awful lot like me! His article explained how NOT to hire a realtor, while mine specified how TO hire a Realtor!
Rob: Real Estate Help – How NOT to Pick a Real Estate Agent
Sandi: How to Hire a Chico, CA Realtor and Make More Money!
Rob says “Don’t be lazy. Do your own research. A significant chunk of finding good real estate help is getting educated yourself.”
Rob and I agree that your family, friends, and neighbors may not be your best choices when hiring a Realtor. Don’t feel obligated to entrust the largest investment of your life to Aunt Ethel, Cousin Clyde or neighbor Nate, just because you “know” a Realtor.
Rob made a very astute observation when interpreting information from the Bureau of Labor Statistics.
If the average Chico real estate agent earns about $35,000 per year, they are only completing about 5 transactions!
Ouch!
Rob says, “Five closed deals per year hardly makes one a “pro.” In my mind, it makes them a rookie and at that pace, they’d stay a rookie for over 20 years. Hire the most experienced professional you can lay your hands on! The best way to determine experience is by the number of transactions an agent is handling monthly or yearly. The agent’s production is going to give you the best indication of how committed they are and how much real estate help they’ll provide.
I fully agree that experience and competence are highly critical attributes to consider when searching for a Realtor. However, I would also urge you to consider that not ALL top producers will be a good fit for each consumer. Some are ethical, nice people… some are not.
Depending on what you’re looking for in a Realtor, it’s important that you also connect with your real estate agent of choice on a personal level.
Shake their hand, look them in the eye, listen to them talk, and READ their blog! You can gain a lot of perspective about how your Realtor will work to protect YOU by investing just a few valuable minutes getting to know them.
Like what you’re reading?
Subscribe to: Chico CA Real Estate Blog and MLS Listings Search!
Looking to buy or sell Chico CA Real Estate? Need a Top Producing Chico Realtor? Call Sandi Bauman 530-864-5407 or email sandibauman@sbcglobal.net. Specializing in REO, residential, relocation, investment & ag property.
| Discussion: 9 Comments »
Buying vs. Renting: Be Your Own Landlord
January 8th, 2008 Categories: Chico Buyers
by guest writer Mike Wiegert
In times of very low interest rates and a significant dip in the market, purchasing a primary residence in Chico might be the opportune thing to do.
The Government National Mortgage Association’s (Ginnie Mae) website has a very interesting calculator that can show a buyer the benefits of buying vs. renting over a ten year period. Ten years might seem like a long time but just as your grandfather’s Chico Realtor said to him, real estate is a long term investment.
The website uses the example of someone buying a home for $150,000 vs. renting a home for $750.00 per month. Ginnie Mae’s calculator makes a general comparison between a given home price and it’s relative monthly rental value. The example factors in a modest two percent annual appreciation and normal expenses for taxes, insurance, cost of selling, income tax savings, rental increases and mortgage insurance.
The end result: a buyer will save over $34,000 in the ten year period!
Chico real estate for sale rarely comes priced at $150,000, so I adjusted the calculator to a modest $250,000 price and put in a current interest rate of 6.3 percent. I also factored in $1,100.00 per month rent. The 10 year savings was $56,525. That kind of savings really makes you want to think about the value of the freedom of renting in Chico, doesn’t it?
Subscribe to: Chico CA Real Estate Blog and MLS Listings Search!
Looking to buy or sell Chico CA Real Estate? Need a Top Producing Chico Realtor? Call Sandi Bauman 530-864-5407 or email sandibauman@sbcglobal.net. Specializing in REO, residential, relocation, investment & ag property.
| Discussion: 4 Comments »
Paperwork you need to get approved for a Chico CA Mortgage
January 7th, 2008 Categories: Chico Buyers, Chico Financing
Here is an easy list of paperwork you will need to provide your lender in order to get approved for a loan on a Chico residential property. It’s really not that bad- I promise!
If you are an employee, make copies of:
- · Pay stubs for the last 30 days
- W-2s for the past two years
- · Bank statements for the past two months (all pages!)
- Current statements for any other assets such as a 401K or mutual fund.
If you own a business, bring:
- Income tax returns for the past two years
- A current balance sheet for your business
- A year-to-date profit and loss statement
If you receive additional income (child support, disability, income property, etc.) bring:
- Income tax returns for the past two years
- Copy of current lease(s) for rental property
- Any other evidence that proves you are receiving income from other sources
Miscellaneous items to bring:
- A phone number for your employer, so that employment can be verified
- A copy of the purchase agreement signed by all parties (your Realtor can help here)
- A copy of your driver’s license
I realize that the thought of compiling this set of documents can seen overwhelming. After all, there are hours to be worked, school to be attended, children to feed, laundry to do, and bills to pay. I know the argument all too well! However, if you dream of purchasing Chico CA Real Estate and becoming a homeowner, it is time well spent!
Also read:
Your Chico CA Loan Application- It’s Not THAT Hard!
What is the Difference between Prequalification and Preapproval?
Why Should I Get Preapproved for a Chico, CA Home?
Like what you’re reading?
Subscribe to: Chico CA Real Estate Blog and MLS Listings Search!
Looking to buy or sell Chico CA Real Estate? Need a Top Producing Chico Realtor? Call Sandi Bauman 530-864-5407 or email sandibauman@sbcglobal.net. Specializing in REO, residential, relocation, investment & ag property.
| Discussion: 5 Comments »
Your Chico CA Loan Application- It’s Not THAT Hard!
January 5th, 2008 Categories: Busy Girls Guide, Chico Buyers, Chico Financing
I haven’t quite figured out the rationale, but the prospect of getting prequalified or preapproved is often an intimidating process for a Chico Buyer.
For some reason, folks will often avoid it as long as possible, and build it up in their minds to be some horrible, awful procedure. I find myself listening to every imaginable excuse, and smiling, because I know that a mountain is being made of a molehill. It’s kind of like trying to convince your kids that if they would just put the broccoli in their mouth, they will get it over with, and can then move on to the ice cream!
- First off, a buyer does not have to go to the hassle of making an appointment. No need to get dressed, leave the house, and make your way to a stuffy, intimidating office with some guy in a 3 piece suit! In this age of convenience, many lenders will accommodate your request for prequalification by phone, fax or email. In the span of a short phone call, the lender can get the basic information he needs from you to start the process.
- Second, just because you talk to a lender to get prequalified, it doesn’t mean you’re married for life! You may decide, after your initial phone call, that you don’t like the way the lender chews gum in your ear. You might also decide, after talking to your best friend, that the lender isn’t very reputable. Fine. NEXT!
- Third, finding a great Lender shouldn’t be difficult. It should be fairly easy considering you have an excellent resource for a referral in your Chico Realtor. Consider, for a moment, that you’ve already done the work to find a top producing, highly recommended, ethical Realtor that you can actually talk to. Doesn’t it stand to reason, that the Realtor, given the choice, will choose to recommend another professional that will the get the job done efficiently and effectively, thereby ensuring a happy buyer? (In case you’re wondering, there is no $ passed between the lender and the Realtor. The payoff to a referral, is a job well done for the client).
Need a recommendation for a good Chico Lender? Call me.
Related articles:
What is the Difference between Prequalification and Preapproval?
Why Should I Get Preapproved for a Chico, CA Home?
Lenders beware: How to lose a Chico, CA Realtor (and therefore buyer) in 3 days.
Like what you’re reading?
Subscribe to: Chico CA Real Estate Blog and MLS Listings Search!
Looking to buy or sell Chico CA Real Estate? Need a Top Producing Chico CA Realtor? Call Sandi Bauman 530-864-5407 or email sandibauman@sbcglobal.net. Specializing in REO, residential, relocation, investment & ag property.
| Discussion: 9 Comments »
