Best Realty's Lake Oroville Real Estate Blog

For those of you that are Buyers who are banking on being eligible for the federal housing tax credits here is some information you may find helpful!!
The $8,000 tax credit is for first-time homebuyers only. For the tax credit program, the IRS defines a first-time homebuyer as someone who has not owned a principal residence in the last three years.  
This first-time home buyer tax credit is not a loan, it does not have to be re-paid.  This credit applies to homes priced below $800,000.  This tax credit applies sales that occur before April 30, 2010, however, if you have a binding purchase contract by April 30, 2010, and have a successful close of escrow BY June 30, 2010, you will still be eligible for the first-time home buyer credit.  The escrow must be recorded and closed by that date.  There are income limits on this tax credit, single tax payers cannot make over $125,000 and married couples cannot make over $225,000 in order to qualify for the full tax credit. Additionally, this tax credit is equal to 10% of the homes purchase price but no more than $8,000.
The $6,500. Move Up/Repeat Home Buyer Tax Credit is someone who has owned and lived in their previous home for five consecutive years out of the last eight years.  Again, this tax credit is not a loan anddoes not have to be re-paid.  This tax credit is equal to 10% of the homes purchase up to $6,500.  The tax credit applies only to homes $800,000 or less.  This tax credit also has the same time limit requirements as the first-time home buyers credit. You must have completed your escrow by April 30, 2010, or have a binding purchase contract and close escrow by June 30, 2010.  The income limits for the Move Up/Repeat Home Buyer Tax Credit is the same as the First-Time Home Buyers credit.
I know that we all hear different bits of information that their will be a flood of REO/Bank Owned properties coming on the market.  I have personally heard this many times for the past year, that it is coming. I haven’t seen it. I did see a bunch of REO/Bank Owned properties hit one specific area recently but that was about it.  The inventory of these types of properties seems to have dwindled recently.  While Buyers wait for this “flood” of REO/Bank Owned properties the interest rates could go up. I say “could” because you hear grumblings about it now and again. Additionally, with the new FHA regulations coming down the pike, it may not behoove a Buyer to wait for this potentially phantom flood of homes for the Buyer may face stiffer reguirements in obtaining a loan, pay a higher interest rate and could possibly miss the time limit for the tax credits.  My advice to Buyers, if you are on the fence, get off it and start looking.  Find a no-pressure Realtor who will show you everything that may suit your criteria, that way you will be familiar with what the prices are in the different locations..what is out there.  You will be much better prepared to make that big decision to purchase as you will be armed with knowledge.

A Good Faith Estimate is a lenders proposal as to what closing costs and loan fees will be associated with your home loan. Real Estate Settlement Procedures Act (RESPA)  now mandates home buyers receive a standard, three-page Good Faith Estimate within three days after they apply for a  loan.
The Good Faith Estimate form requires lenders to combine all of the bank’s fees into one “origination charge,” enabling consumers to compare one lender’s fees with another’s. These mortgage fees, also called settlement or closing costs, cover every expense associated with your home loan: inspections, title insurance, taxes and other charges.  An accurate Good Faith Estimate is essential for a prospective home buyer to make a informed decision about their exact settlement or closing costs.
Lenders also are prohibited from increasing the origination fee from the estimate. Some additional charges, including title services and recording charges, can increase by as much as a combined 10 percent. Estimates for other charges, such as homeowner’s insurance and other services provided by third parties selected by the borrower,may not be subject to such limits.
It is important to have your lender fully explain your Good Faith Estimate to you. All charges typically paid for by the buyer must be disclosed on the GFE regardless of  whether the charges will be paid for by the buyer, the seller or other party. Remember, dont be afraid to ASK QUESTIONS!
For example: Lets say the seller is paying the buyers closing costs of  5% on a purchase price of $250,000 that would be a credit to the buyer of $12,500. That is now going to be shown on the buyers GFE as a buyers cost. DONT PANIC! At closing the seller will still be giving the credit to the buyer but it must show as a cost for the buyer to give the buyer a true picture of what the costs for the loan are.

So your agent has shown you a bunch of  houses and you might be getting a little frustrated if you havent found the right one.  Be patient! Sometimes it takes a few showings to really fine tune what it is that you REALLY want. 
 Then, you finally find it! Let the flood of emotions and questions begin!
In my opinion, it is good idea to educate the buyer as to what the process is and what decisions we will have to be made when finally making the offer.  However there are still little things that will need to be addressed and especially if there are going to be multiple offers on the property.  Thats where you will need to really listen to what your Realtor advises you to do. They have the experience and negotiating skills that will put your offer in its strongest possible position.
Although there are many part to the purchase contract here are a couple examples of things to think about:
The  purchase price. What is the amount you really want to offer? This will usually be a number you come up with according to the sold comps your agent has provided to you. Keep in mind this is probably the toughest part. There are a couple of factors to consider when finalizing the price. Is the seller being asked to give a credit for your closing costs? Are you asking for the seller to pay for all the inspections? How long is your escrow period?  These are things that need to be considered and your agent  will help you fine tune the numbers to make it attractive to the seller.
Escrow Period- How long of an Escrow do you need? Generally the normal time period is 30-45 days. Its a good idea to check with your lender regarding the time period they may need to complete the loan process.
Inspections- What type of inspections do you want to do? What is customary? What do you want the seller to pay for and which ones will you as the buyer pay for?  Your agent will be able to advise you on what the different types of inspections you can do and the importance of them. Your lender may also require certain inspections depending on the type of loan you have.
Here is an example of what a Califonia Purchase contract will look like.

Did you know the  City of Oroville currently offers a program to assist senior and disabled homeowners who don’t have financial resources to complete minor and emergency property repairs?
 This is really great for those that just that really need that  repair but have been putting it off due to financial reasons!
Basic Eligibility Requirements

Applicant must own and occupy their home or mobile home
Applicant must be a senior citizen, 65+ years of age or physically disabled
Applicant must live within the Oroville City limits

Eligible Repairs
The program was designed to help senior and disabled persons obtain assistance with small but important health and safety repairs. Eligible repairs include, but are not limited to such jobs as:

Plumbing: Leaking, broken, non-operating sinks, toilets, faucets, garbage disposals and water heaters.
Small Electrical Hazards: Lights, outlets, and switches.
Weatherization: Weather stripping, caulking around doors and windows.
Maintenance Repairs: Evaporative coolers, furnaces, roofing, gutters, steps, railings and hazardous trees.
Correcting Trip Hazards.
Installation of Grab bars
Smoke Detector Repair or Replacement.
Health and Safety Hazards.

If you are in need of a program like this contact the City of Oroville
Phone: 530.538.2495
Fax: 530.538.2539
Email: housing@cityoforoville.org

Let the Home Search Begin!
When buying a home, it’s important to think carefully about what it is your looking for in a home. You have heard it before, location location location!  Most people have an idea of the location or area they prefer, whether it is for a certain school district, close to work or to be near family. This would be in my opinion, the first priority of buyers. Then the search begins to find a home with the features you want in that neighborhood. Here is a sample of the Realty World Home Buyer System that seems useful to our buyers.
Where do you search?
Typically when you get together with your real estate agent, they will make a list of your criteria. That can become a search in the MLS system that can be emailed to you daily. There are also many websites available to search on such as Realtor.com and Trulia.com, Trulia gives a lot of  good information such as maps,schools,recent solds,etc…  The listings you are interested in can be emailed to your agent. The agent can then get more information and make an appointment for you to view the home. Some agents have websites that have a customizable search for buyers. The real estate agent and the buyer receive an email when a property that matches the buyers search comes up.
Keep in mind once you have hired an agent work with you, they are spending alot of their time looking for a property and setting up showings for you. If you see a property in the paper or while out driving around, call your agent about it. They will usually have the property info available to them and can give you the information that your looking for.
Happy House Hunting!