The Home Buying Process!

This year we have a shortage of inventory if you are looking at properties under $500,000, and wow that's a lot of money to begin with!

However, there are homes and working with the right agent, you will be successful in finding the new home of your dreams.  As it shows below, it is the AGENT, who is always the most successful in helping you, and I am here, I can help too!

For any questions about the home buying process, please do not hesitate to contact me!

Jane Loveday
DRE # 01439083
Pacific Sothebys International Realty
619-519-1615 Cell
http://janeloveday.com
http://www.facebook.com/realestatesandiego
http://www.twitter.com/sdrealestate
http://www.linkedin.com/janeloveday

CALIFORNIA LOVE !!

As of last year the #1 state to move to out of California to was Texas, 2nd was Arizona then Washington!  However the majority staying in the same county in California was almost 50% of those moving ... where are you going to go, remember I am here, I can help no matter where you are moving to!!

Jane Loveday

DRE # 01439083

Pacific Sothebys International Realty

619-519-1615 Cell

http://janeloveday.com

http://www.facebook.com/realestatesandiego

http://www.twitter.com/sdrealestate

http://www.linkedin.com/in/janeloveday

Legal Mistakes Home Sellers Make

Jane Loveday
DRE # 01439083
Pacific Sothebys International Realty
619-519-1615 Cell
http://janeloveday.com
http://www.facebook.com/realestatesandiego
http://www.twitter.com/sdrealestate
http://www.linkedin.com/in/janeloveday

Homeownership - Are You Ready?

If you are thinking of jumping into homeownership, keep in mind these key points:

• Buyers are increasingly finding that the inventory of affordable, move-in-ready homes for-sale is low, making competition to buy higher than in years past.

• While short sales, foreclosed properties, or rent-to-own dwellings may take more time and involve more financial hoops, buyers should not rule out these properties completely.

• Although competition is high, bidding wars of years past where would-be buyers didn’t stand a chance unless they came in above the asking price from the start aren’t the case in most markets. However, buyers considering buying a foreclosure, should keep in mind that all-cash offers from property developers and other buyers are edging out bank-financed offers.

For any and all questions about the buying process, let me know, I am here, I can help!


Jane Loveday
Licence # 01439083
Pacific Sothebys International Realty
619-519-1615 Cell
http://janeloveday.com
http://www.facebook.com/realestatesandiego
http://www.twitter.com/sdrealestate
http://www.linkedin.com/in/janeloveday

IT'S A GOOD TIME TO BUY !!



We're all hearing the news about it's a good time to buy, for example:

If you are paying $2,000 a month in rent, over 30 years you will have paid your landlord $720,000.

With $1800 a month at today's interest rates, you can buy your own $400,000 home and own it in 30 years!

Here's a great chart showing how much prices have fallen along with the mortgage interest rates!  If you are thinking of making the move into homeownership, I am here, I can help!!

Jane Loveday
DRE # 01439083
Pacific Sothebys International Realty
619-519-1615 Cell
http://janeloveday.com
http://www.facebook.com/realestatesandiego
http://www.linkedin.com/in/janeloveday
http://www.twitter.com/sdrealestate

May 2012 National Housing Survey - your thoughts do count!

According to Fannie Mae’s May 2012 National Housing Survey: 

On average, Americans expect home prices to increase by 1.4 percent over the next 12 months, up 0.5 percentage points since March 2012 and the highest value yet recorded.

Thirty-four percent of respondents say that home prices will go up in the next 12 months, the highest level recorded since March 2011.

Forty-one percent of respondents expect home mortgage rates to go up in the next twelve months, a slight increase from last month.

The percentage of respondents who say it is a good time to buy increased by 1 percentage point to 72 percent, while the percentage of respondents who say it is a good time to sell remained at 15 percent.

On average, respondents expect home rental prices to increase by 4.1 percent over the next 12 months, a 0.5 percentage point increase versus last month and a return to the level seen in March.

Forty-nine percent of respondents think that home rental prices will go up, consistent with last month’s value and remaining the highest number recorded to date.

At 32 percent, the percentage of respondents who would rent if they were going to move is unchanged, while 63 percent would buy.

If you are interested in more information about your local neighborhood and what it is doing, let me know!

Jane Loveday
DRE  # 01439083
Pacific Sothebys International Realty
619-519-1615 Cell
http://janeloveday.com
http://www.facebook.com/realestatesandiego
http://www.linkedin.com/in/janeloveday
http://www.twitter.com/sdrealestate

The Power of Professionalism!

Sometimes in Real Estate, we forget how much we impact the lives of our clients, helping them achieve the dream of owning their own home, or assisting in the sale of their home.  We sometimes forget our past clients, either reaching out to them or simply sending a happy birthday card...

Sometimes we don't even know who we impact until they reach out to us - this happened to me recently.  I received a phone call at 8:20 am one morning and was asked if I would help this person help her and her husband buy a new home.  Of course I said yes, took down all their details, then asked how she had found me.

Her response was that she had once worked for another Real Estate company and had remembered me respresenting buyers with listings this company had.  She remembered my professionalism and my courtesy and this was 4 YEARS ago!

We are now in escrow just 10 days after that phone call .. and the reason I share is that it reminds me always to treat others with respect, with courtesy, with professionalism and most of all as we would want to be treated ... payback can be very sweet!

If you would like help in any way, whether is just a question, or property information, always know I am here, I can help and I will with a smile on my face!






Jane Loveday
DRE # 01439083
Pacific Sothebys International Realty
619-519-1615 Cell
http://janeloveday.com
http://www.facebook.com/realestatesandiego
http://www.linkedin.com/in/janeloveday
http://www.twitter.com/sdrealestate

Above $1,000,000 or below $250,000 - Take your pick!!

As of April 2012, in San Diego, we are beginning to see a shortage of inventory - in other words less homes for sale than we did at this time last year.  In fact we have half as many properties on the market than in March of 2011.

Depending on the amount of money you want to spend, can afford to spend, qualify to spend, there is still a wide choice for potential buyers. 

Just for fun here is a breakdown of properties priced UNDER $250,000 ($200,000 for townhomes and condos) and properties priced OVER $1,000,000 throughout San Diego County ...

Detached Homes UNDER $250,000                             Townhomes/Condos UNDER $200,000

North County (Including La Jolla)    155     .............................       172

South Bay                                                  87     .............................       150      

Metro Areas (Including Downtown)   99     .............................       109

East County                                              94     ..............................        56

Detached Homes OVER $1,000,000                              Townhomes/Condos OVER $1,000,000  

North County (Including La Jolla)   1015    .............................       103 

South Bay                                                 118    .............................         51 (Includes Coronado)

Metro Areas (Including Downtown)  613    .............................         36

East County                                               29    .............................           0

There's a LOT available obviously priced between $250,000 and $1,000,000, and if you would like more information about your neighborhood, or where you would like to live, let me know, I am here, I can help!       



Jane Loveday
DRE # 01439083
Pacific Sothebys International Realty
619-519-1615 Cell
http://janeloveday.com
http://www.facebook.com/realestatesandiego
http://www.twitter.com/sdrealestate
http://www.linkedin.com/in/janeloveday

BUYER DO's and DONT's !

If you are thinking of buying a new home, be it your first or fifth, take a look through this list and understand what you should and should not do before applying for a loan AND during the escrow process once you have identified a new home!

Homebuyer Do’s and Don’ts:

Recommended DO’S:

Recommended DON’TS:

ü  DO continue to make payments on time for current mortgages, cars, credit cards, etc. ü  DO paper trail, document, and explain any large or unusual deposits or withdrawals into accounts (checking, savings, stock, etc.). ü  DO keep pay stubs, bank statements, tax forms, etc., in case the lender needs to update the documentation prior to closing. ü  DO ask questions if something is unclear about the loan program, fees, and/or loan conditions. ü  DO let the loan officer or mortgage broker know if anything changes.  For example; employment, income, assets, credit history, etc.  ü  DO document that the earnest money deposit has cleared your account — obtain a copy of the cancelled check and/or the statement that reflects the funds have cleared. ü  DO lock-in the interest rate, have homeowner’s insurance agent information available and provide updated documentation (pay stubs, bank statements, etc.) in a timely manner so as not to delay the closing.

ü  DO NOT increase credit card balances and/or loan balances. ü  DO NOT apply for additional or new credit or put balances on a paid credit card. ü  DO NOT ignore late payment and/or collection notices that are received during the mortgage process. ü  DO NOT purchase anything that is “same as cash” — it will show on the credit report as a new debt. ü  DO NOT buy furniture, cars, or appliances on credit until after closing.  ü  DO NOT lend money to family members, friends, etc. if it is needed for closing. ü  DO NOT store money at home, place it in a bank account so it can be documented as savings throughout the loan process and can qualify as assets on hand. ü  DO NOT have overdrafts on a checking account.  ü  DO NOT quit or change jobs during the loan process.

Jane Loveday
DRE # 01439083
Pacific Sothebys International Realty
619-519-1615 Cell
http://janeloveday.com
http://www.facebook.com/realestatesandiego
http://www.twitter.com/sdrealestate
http://www.linkedin.com/in/janeloveday

Figuring What You Can Afford

In addition to your monthly mortgage payments, there are many things to factor in when determining how much you can afford, or even if you can afford to buy a home at all. There is a down payment for the loan, closing costs, moving expenses, plus purchases and maintenance for the new home. Generally, your annual gross income multiplied by 2.5 will give you an approximate amount for the price of home you can afford. It could vary depending on how much you have as a down payment, your debts, financial situation, and credit history/rating. Your debts, including alimony and child support, should not be more than 30 to 40% of your gross income.

Monthly Mortgage Payment
Lenders want to make sure you have the ability to pay your loan. As a general rule of thumb, you can figure that your monthly mortgage payment should be equal to or less than 25% of your gross monthly income. This also will vary depending on circumstances.

Amount of Money Needed
You will need money for a down payment and closing costs, plus any move related expenses and maintenance or repair costs for your home.

» Down Payment – Your down payment is a percentage of the property value and is usually from 3 to 20%, or more if you want a lower loan amount. This can vary by the type of mortgage you obtain. Also, if your down payment is less than 20%, you may be required to pay mortgage insurance (PMI or MI).

» Closing Costs – these are settlement costs involved in purchasing your home. They range from 2 to 7% of the property value and include such things as points (a percentage paid for securing a particular interest rate), financing fees, taxes, title insurance, pre-paid and escrow items, and your down payment. You will receive an estimate of these costs prior to closing.

For more information visit me on Facebook or my website http://www.janeloveday.com

Jane Loveday
DRE # 01439083
Pacific Sothebys International Realty
619-519-1615 Cell
http://janeloveday.com
http://www.facebook.com/realestatesandiego
http://www.twitter.com/sdrealestate
http://www.linkedin.com/in/janeloveday

Did you buy a home last year? Here’s 9 Documents you WILL need when filing your Taxes this year!

1. Mortgage Interest Statement – IRS Form 1098

This allows you to deduct 100% of the mortgage interest you paid in a year – including prepaid interest or points you might have paid at close of escrow. You should have received in the mail a Form 1098 and if you itemize your taxes and claim a mortgage interest deduction, you must include this form with your taxes when you file.



2. Property Tax Statements

You are eligible to deduct the property taxes you pay to your local city, county and/or state. You can’t deduct such items as waste management or local assessments for street lighting, libraries etc., have your property tax statement at hand and make sure you’re only deducting what’s allowed.



3. Uniform Settlement Statement – HUD-1

Right after closing you should have received a form called the HUD-1 Settlement Statement, this form documents a number of items which may help you at tax time including again the prepaid interest, prorated property taxes and closing costs like origination fees and discount points.

If you can’t find a copy contact your escrow company for one.



4. Moving Expense Receipts

These are tax deductible IF you moved at least 50 miles away from your full time workplace, check with your tax preparer for full details.



5. Cancellation of Debt Statement – IRS Form 1099

If you lost a home to foreclosure or short sale you may receive some version of this form from your lender showing income in the amount of the mortgage debt that has been cancelled. This is classified as income and is taxable.



6. Utility Statements for your Home Office

If there is a part of your home you use exclusively and regularly used for business you may be able to deduct some of your home utilities and or repairs, again check with your tax preparer to determine which are legitimate or not.



7. Income and Expense Statements from Rental Properties

If you own rental property your tax situation is a little more complicated, you’ll need to have complete income and expense statements and once again your tax preparer can advise you on correctly ascertaining the depreciation of the property you can claim.



8. Contractor Receipts from Energy Efficient Home Improvements

If you installed any energy efficient improvements – new insulation, dual paned windows and furnaces for example, you may be eligible for a tax credit of 10% of the cost of the upgrades, up to $500 ($200 for the windows).



9. Mortgage Credit Certificate (MCC)

If you bought using a Mortgage Credit Certificate issued by a local housing authority it can apply as long as you live in the home and have a mortgage on it, but they only help defray taxes you actually owe, no good for an actual refund. The deduction is based on a percentage of the mortgage interest you paid, on top of your mortgage interest deduction.



You should always consult a professional tax preparer when you own your home or income property or if you have lost a home due to foreclosure or short sale.

Jane Loveday
DRE # 01439083
Pacific Sothebys International Realty
619-519-1615 Cell
http://janeloveday.com/
http://www.facebook.com/realestatesandiego
http://www.linkedin.com/in/janeloveday
http://www.twitter.com/sdrealestate

5 First-Time Homebuyer Mistakes!

When thinking of purchasing your first home, the primary place to start is contacting a lender to determine how much you can afford. The lender will run your credit report and go through your monthly bills, this is very, very important as most first-time homebuyers are often afraid to get the prequalification, you fear the lender may tell you that you don’t qualify for a mortgage as high as you may want. However this way you’ll make a financial decision rather than an emotional one.



Here are the 4 other things to consider before you start shopping for your mortgage:



If you are thinking of changing your job in a year or two, or may have to move for your job, think twice, ideally picture yourself living in your new home for at least 5 – 7 years.



Make sure you have enough cash/savings to cover closing costs associated with obtaining a new home, including property insurance, taxes, homeowners association dues, any maintenance required immediately, and your new electric and water bills (all usually higher if you are currently renting).



Chose a reliable and reputable Realtor, if you are referred from a friend or family member, ask the agent for references from previous buyers, the same goes for loan officers or mortgage brokers. Often dealing with the actual listing agent, and not your own agent, can pose difficulties as the agents obligations to you may be affected by his/her obligations to the seller also.



Once you have obtained your pre-approval, and taken into account the above, please don’t go our and charge your credit card with major purchases, computers, cars, etc., as your credit score WILL BE RUN AGAIN prior to your loan funding and you definitely don’t want that score to drop even one point.



GOOD LUCK, this IS the time to buy, with interest rates at or BELOW 4%, mortgages are more affordable than ever, and if you are renting, stop paying your Landords’ mortgage and start paying your own!


Jane Loveday
DRE Licence # 01439083
Pacific Sothebys International Realty
619-519-1615 Cell
http://janeloveday.com/
http://www.facebook.com/realestatesandiego
http://www.linkedin.com/janeloveday
http://www.twitter.com/sdrealestate