Post by Ken Grech a top Simi Valley real estate agent. Search Simi Valley real estate listings. While there is much talk of a paperless society, the reality is that you do have important papers--especially if they can't be found. So before the moment of need arises, now is the time to review what you've got and create a checklist of important papers for you and for family, friends and business associates.
Why should you gather such paperwork together? It will help you when it comes time to buy or sell property, figure taxes or create wills and estates. It will also allow others to follow your wishes and directives, make their lives far easier, solidify insurance claims, reduce estate taxes, help children better understand your health history--and theirs--and prevent the needless dissipation of assets that took decades to acquire.
Once these three basic matters are reviewed and resolved, the next step is to assemble paperwork in a way that will help others. A basic checklist looks like this:
People. Who are your executors, trustees and guardians? Does anyone have a durable power of attorney? A medical power of attorney? Etc.
Professionals. Who are your attorneys, tax professionals, real estate brokers, insurance brokers and stock brokers? List names, addresses, phone numbers, e-mail addresses and account numbers.
Real Estate. What do you own? What do you owe? Make a list of properties with a corresponding list of lenders and their account numbers and contact information. Also, for tax and estate purposes, gather closing papers from all property you have owned as well as bills and receipts for major repairs and improvements. Do you have deeds and notes? If yes, where are they kept? Such paperwork can greatly reduce estate taxes or at least simplify such filing requirements.
Finances. Where is your money? List banks, S&Ls, credit unions, stock accounts, mutual funds and other assets. Include contact information and account numbers.
Business Assets. Show company information, stock certificates, partnership agreements, options, trademarks, copyrights and patents.
Insurance. What policies do you have? List policies by company, account number, amounts, etc.
Computers. We live in the computer era and there is little to suggest things might change. So, how about a list of passwords, program titles and ownership records, e-mail addresses, online accounts, etc.?
Liabilities. To whom do you owe money? Think of auto loans, credit card debt, business loans, etc. Include contact information and account numbers.
Personal Papers. Where do you keep birth certificates, Social Security information, marriage certificate(s), divorce decree(s), adoption information, citizenship papers, religious records, retirement information, health records, drivers licenses, military service information, safety deposit box inventories, educational records, passports and family photos?
Personal Property. What do you want done with furniture, art, antiques, family items and the like?
Safety Deposit Box. If you have one, where is it and what is the number? Where is the key? Does anyone else have the key? Does anyone besides you have access?
Burial Information. Do you own a cemetery plot? Do you have a burial policy? Gather paperwork in one place. What are your preferences in terms of services and ceremonies?
Paperwork for Others. Do you have paperwork that is important to others--wills, passports, birth certificates, etc? Make a list and show who gets what.
Copies. Given that you have assembled all the paperwork above, where is it kept? Who has copies of your checklist? What is the date when your checklist was created?
Is building a survivor's checklist fun? Not hardly. But it's a responsible thing to do and one of life's necessities.
I certainly hope you enjoyed this information. Please feel free to forward it to anybody who might benefit from it.
Post by Ken Grech, a top Simi Valley real estate agent. Search Simi Valley real estate listings. With home energy costs skyrocketing, the phrase "little things mean a lot" couldn't be more timely! Fortunately, many energy tweaks don't require a handful of money or a great deal of time to perform.
Here are a few no cost/low cost energy savers--great steps to trim home-energy costs:
-Turn down the temperature on your water heater. If you've ever spent the night at a hotel where the hot water scalded you the second it poured from the tap, it signaled one way that the hotel was losing money. Similarly, keeping your water heater turned even a few degrees too high can cost you hundreds of dollars over time. You may find your water use dwindling, too, since less cold water is required to cool down the hot! While it may take a few adjustments to get everyone in the family pleased with the new hot water temperature, it's an improvement you can take to the bank.
-Check for air leaking around doors. Is there a swoosh of air seeping in, under and around the doorjamb? Start by re-hanging any poorly installed doors and applying inexpensive weather stripping. Over time, replace any doors that aren't insulated and replace broken or missing storm doors.
-Close the air vents in rooms not in use as well as the door to those rooms. Our grandparents used this trick, closing off rooms and even wings of the house they weren't currently using. For added efficiency, open the window coverings in these rooms in the winter to let in sunshine, and keep them closed in the summer to prevent cool air from seeping out.
-Move lights and other heat-producing elements away from your thermostat: You probably can't control where the thermostat is located in your house, but you can control what you locate around it. Even a pole lamp or television set within a few feet can cause additional to heat to kick on your air conditioner and drive up your bill.
-Clean/replace your furnace/air conditioning filter. For less than five dollars, a clean furnace or air conditioning filter is the best financial insurance you can buy. During heavy use periods, replacing the filter every thirty days is advised. Make sure you don't overlook an annual system check for your furnace. Additionally, make sure that shrubs, patio furniture, or other blockages aren't impeding the flow of air around your outside air conditioning unit or heat pump. These can cause the unit to overwork and potentially overheat.
-When possible, operate large, heat-emanating appliances early in the day. Another tip from Grandma, who knew exactly what she was doing by cooking early in the morning--even before the advent of skyrocketing utility costs. Today, using a microwave instead of an oven will save electricity and won't pour as much heat into the kitchen. If possible, turn off the drying cycle to your dishwasher and let the dishes air dry instead.
-Contact your local utility company to request an energy audit. As a community service, most utility companies will perform an energy audit on your home, typically free of charge. They'll check for proper insulation, cracks in the eaves and roof that may be leaking precious energy and even show you how replacing windows with newer, more energy-efficient windows can permanently lower your utility bill. In addition, some utility companies help you finance necessary improvements, charging only a nominal (if any) rate of interest.With this low cost/no cost seven-step home-energy checklist, you'll not only trim energy costs, but you'll keep on top of home repairs that could cost thousands of dollars over time.
I certainly hope you enjoyed this information. Please feel free to forward it to anybody who might benefit from it.
Post by Ken Grech, a top Simi Valley real estate agent. Search Simi Valley real estate listings. Given the massive layoffs and declining corporate profits, it's not unreasonable for would-be purchasers to ask if now is the time to buy real estate.
The answer is this: if you're looking for that first house or if you've thought of moving up, now is as good a time as any to get into the marketplace, and perhaps a better time than seen in recent years.
But how can this be? Let's look at several key issues.
Interest Rates are Down
If rates for 30-year fixed-rate mortgages are at 8 percent--about where they were a year ago according to HSH Associates, a leading financial publisher--your monthly payment for a principal and interest on a $200,000 mortgage would be $1,467.53. Add in, say, $350 for taxes and insurance and the total monthly payment comes to $1,817.53. If lenders allow 28 percent of your gross monthly income for these four baseline costs, you would need $6,492 monthly to qualify for the loan ($1817.53 = 28 percent of $6,491.17).
But suppose financing is available at today's rates, perhaps 6.85 percent. Now the monthly cost of principal and interest is $1,310.52. Add in $350 for taxes and insurance and the total monthly cost is $1,660.52. In this case, lenders would require a monthly income of $5,930 to qualify.
In other words, when compared with a year ago, you could get the same loan for $157 less per month and you could qualify with $6,744 less income per year. Lower rates mean more people can qualify for given levels of financing--and that more people can borrow additional dollars.
National Trends
Much is made of national trends and with good reason: national trends are easy to track, get lots of attention and provide useful benchmarks.
That said, national trends do not reflect a baseline reality: real estate is local. If the local population is growing, if the nearby job base is increasing, if nearby new home starts are not sufficient to meet demand and if mortgage rates are low, then you can logically expect local home values to rise over time. It's not a guarantee--there are no guarantees--but price increases in such situations are at least reasonable.
Perspective
We live in an era of measures, numbers and statistics. For instance, the September jobless rate, according to the Bureau of Labor Statistics, reached 4.5 percent, up from 3.9 percent a year earlier.
But did you also know that while 7 million people were unemployed, 135.2 million had jobs? Did you know that a 4 percent unemployment rate is considered "full employment" by many economists?
As a nation, we've been doing so well for so long that any blip on the economic radar tends to get noticed. That's fair and we should be concerned. At the same time, let's not ignore the whole picture. Most people are doing well--and will continue to do well.
We're Having a Recession
A recession is not a hideous event. It's a slow-down, not a depression. National economies move up and down, so recessions are normal--we had them in 1973, 1980, and 1991. But even with the current slow-down, we still have a $10 trillion economy.
Most people have jobs today and will have jobs tomorrow. Will there be tough times in certain industries? Absolutely. Will some communities be hurt? Yes. But you need to ask what a recession means to you. Have you lost your job? Is your job in jeopardy? Is your household income about to decline?
If no, then what about your housing needs? If you need to buy a first home, if you would like to move up, what objective barriers stand in your way?
It's true that some prospective buyers will delay purchases because of the current slow-down--and for some buyers, postponement makes sense. But the issue is not what other people are doing, it's the question of what's best for you given your particular circumstances.
At the very least, review your personal finances, check mortgage rates, take a look at your local marketplace and consider your needs. You may find that now is indeed a very good time to be a buyer.
I certainly hope you enjoyed this report. Please feel free to forward it to anybody who might benefit from the information.
Post by Ken Grech, a top Simi Valley real estate agent. Search Simi Valley real estate listings. It's a combination car, pick-up truck and SUV. You really want it. The features are great, the style is the latest and it's affordable--after the down payment, the cost is only $300 a month.
"Would you buy this car today if I can include the genuine wood grain, rubberized side moldings?" asks the salesman.
Before emitting a strong "yes," stop and consider what's about to happen. You will be increasing your debt load and monthly payments, things which make mortgage lenders edgy. If you want to buy a home in the coming months, you need to carefully consider your financial choices.
The issue here is not cars. If you need a car for safe travel, then safety comes first. But if you merely want a new car--or super-duper music system, an antique guitar, a trip abroad or anything else that increases your monthly costs and is not absolutely and unquestionably necessary--then you should think about mortgages, debt and ratios.
Lenders don't like risk. A lender's view of financial perfection means making loans to borrowers who always pay their mortgages. Alas, some people don't re-pay, so lenders need to limit their risk. They do this by checking the value of the house with an appraisal and by ensuring that borrowers are well-qualified.
The expression "well-qualified" as lenders use the term means something more than finding borrowers with good incomes. Yes, lenders want sufficient income for any level of borrowing, but they also want something more: a sense that borrowers are not burdened with too many bills. To lenders, this means limiting debt and monthly costs.
Lenders typically qualify borrowers on the basis of two measures: front ratios and back ratios. In general terms, these standards work like this:
The "front ratio" is the percent of your gross monthly income used for mortgage principal, mortgage interest, property taxes, and property insurance. Depending on the loan program, lenders might allow 28 to 41 percent of a borrower's income for "PITI."
The "back ratio" includes PITI plus car payments, student loan payments, credit card payments, auto loan payments, etc. Back ratios typically range from 36 to 41 percent, but can be greater.
Let's say you want to borrow $150,000 at 7 percent over 30 years. The monthly cost for principal and interest is $997.95. Let's also say that the monthly cost for taxes and insurance is $250. The total for PITI is $1,247.95. If a lender will only allow 28 percent of your income for PITI, it means you must earn at least $4,457 before taxes each month to qualify for the loan.
If the lender allows 36 percent of your income for the back ratio, then if you earn $4,457 month, as much as $1,605 is available for housing costs and other monthly debt. Since $1,247 is already committed to PITI, $358 remains for installment loans, credit card debt, and such. ($1,605 less $1,247 = $358).
You see the problem. That nice, shiny car will increase your monthly debt load to the point where you may not qualify for a $150,000 mortgage.
What to do?
- Defer major expenses until after you have closed on your home.
- Do not apply for a mortgage, obtain approval and then take on more credit or installment debt before closing. Lenders re-check credit reports just before settlement. If they see new and unacceptable levels of debt, the mortgage may be declined.
- Obtain a smaller mortgage by paying more cash up front.
- Pay down other consumer debt to reduce monthly payments.
- Consolidate bills to obtain lower monthly costs--but be wary of long-term expenses and transfer fees.
- When possible, switch from high-cost credit cards to lower-cost cards with smaller monthly costs. Be wary of higher future rates and transfer costs.
- Look for mortgage programs with more liberal qualification standards. If you have a strong credit history, such financing should be readily available.
- Ask if lenders can consider "compensating factors" which may allow you to borrow more.If you need more information, please feel free to call with questions regarding mortgage options and qualification standards or visit my website: www.simiishome.comI certainly hope you enjoyed this information. Please feel free to forward it to anybody who might benefit from it.
For homeowners who thought the federal tax refund checks were a nice surprise, you may be a candidate to save a lot more than a few hundred dollars. Interest rates have dropped to levels not seen in quite a while, so it may pay to pull out your mortgage note and do a bit of comparing.
But before you jump on the refinance bandwagon, here are a few "dos" and "don'ts" that should help in your search for the best refinance option.
- Refresh yourself with the exact terms of your current mortgage. Know your rate, mortgage balance, monthly principal and interest payment, possible pre-payment penalty and the remaining term. A loan officer will have trouble giving you the best advice if he or she doesn't know your current situation.
- When you get a new mortgage, each monthly payment is divided between interest costs and principal reductions. At first, most of the payment goes to interest, but over time, more and more of the loan is devoted to principal. Refinancing starts the process from scratch, which again means most of the monthly payment goes toward interest. This is not necessarily a bad thing if refinancing means lower monthly payments. Additionally, mortgage interest is usually deductible.
- Don't get sucked into a "low" rate with high fees. Avoid paying points. One point is equal to 1 percent of the loan amount in cash. If you borrow $200,000, then one point equals $2,000. Generally, if you pay points up front you can get a lower rate--but you have to look at the cost of a point versus the monthly savings from a lower rate. It is rarely advised to pay points to "buy down" the interest rate because of the time it takes to recoup the points. But all situations are different, so a good broker or loan officer will be able to run the numbers and calculate a payback period.
- Consider a "zero closing cost" option if available in your area. Such loans, of course, have costs--they're just not paid at closing. Instead, you'll likely pay a somewhat higher rate. Lenders around the country offer refinance rates with no points or closing costs. This will enable you to refinance your home without any out-of-pocket expenses or loss of home equity.
- Think about your objectives before shopping around for a mortgage. Do you want lower monthly payments? A larger loan to take equity out of your house? A shorter-term loan, such as a 15- or 20-year mortgage? If you plan to sell within a few years, what adjustable rate programs are available? Different loans will work best in different situations.
- Don't take a loan with a pre-payment penalty. These programs can hurt if you pay off the mortgage completely or pay down a large part of the loan early. It's best to have the freedom to pay off the loan whenever you want.
These are just a few things to think about. With any luck, today's low interest rates will put some extra money into the pockets of millions of Americans and help our economy move ahead.
Post by Ken Grech, a top Simi Valley real estate agent. Search Simi Valley real estate listings. There was a great article about refinancing in the USA Today Money Section dated July 2, 2009. The article stated that the government will allow more distressed borrowers who owe more (up to 25% more) than their homes are worth to be eligible for refinancing assistance under an Obama administration housing rescue program.
Currently homeowners who owe 5% more than their homes are worth can refinance mortgages through Fannie Mae and Freddie mac, part of a two-pronged approach to reduce the rapid-fire pace of foreclosures. On Wednesday, Housing Secretary Shaun Donovan said the program will be expanded, allowing homeowners who owe 25% more than their homes are worth on the market to get refinancing, help through the federal agencies. Owing more on a home than it's worth is referred to as being "underwater."
"It's great. It's good news," says Lawrence Yun, chief economist with the National Association of Realtors. "Many homes are way deeper underwater. This means more people can tap into those lower rates. It will enlarge the number of people who can get help." But other economists questioned how much of a boost it will give toward staving off foreclosures, which have risen about 18% from May 2008, according to a report last month by ReatlyTrac.
Even if more homeowners are eligible for refinancing under the Obama plan, rising interest rates on fixed-rate mortgages are expected to dampen refinancing activity. For many owners, it no longer makes financial sense to refinance. About 15 million homeowners in the USA currently owe more than their homes are worth on the market. In other housing news, NAR reported that an index measuring pending home sales rose 6% compared with May 2008 - the first time the index has risen four month in a row since October 2004 and a sign of some possible stabilization in the housing market.
Post by Ken Grech, a top Simi Valley real estate agent. Search Simi Valley real estate listings. There seems to be a lot of confusion regarding the long awaited California State 90-Day foreclosure moratorium. This moratorium takes effect on June 15, 2009. This doesn't mean foreclosures will stop. Supporters of this moratorium acknowledge the state is likely to see thousands more foreclosures before the the crisis subsides. But the California Foreclosure Prevention Act, passed by lawmakers in February and signed by Governor Schwartzenegger, raises a new hurdle in the foreclosure process. Backers say it will make lenders try harder to keep borrowers in homes. Starting Monday, loan servicers must prove to the state they have comprehensive loan modification programs in place or be denied rights to foreclose on their schedules. Basically, the law will largely press lenders to follow the Obama administration's Making Home Affordable Program that began in March. That encourages lenders to cut interest rates or re-write loans to 40-year terms to get payments below 38 percent of a borrower's monthly income. Other options include reducing principal and tacking missed payments to the back of the loan. Under the law, California officials also can encourage short sales or deeds in lieu option in which banks accept less than owed for borrowers who wan to leave or don't qualify for modifications. This article is very informative. For more detailed information, please go onto www.venturacountystar.com and under the State section, look for this great article written by Jim Wasserman.
If you, friends or family are in a situation where it seems as though foreclosure is eminent, please contact me directly, I can help. I have vast knowledge on how to handle a short sale. I can be reached at www.simiishome.com or phone or text me on my contact number from my website.
1. Not knowing how much house you can afford. Many new home buyers spend a lot of time researching home, comparing kitchen layouts and backyard square footage, but very little time researching their financing options. One of the first things buyers should do is talk to a qualified lender and get preapproved for a mortgage. Without first figuring out how much you can afford, you risk falling in love with one you can't afford.
2. Assuming Foreclosures are Great Deals. Just because the previous owner owned $450,000 on a house before the Bank took it over doesn't mean it's worth that much now. Values have slipped significantly, so you may not be getting the bargain you think with a foreclosure. Also, most homes owned by lenders or banks have been sitting vacant for months and may have been vandalized. That could require extensive renovation or repair. Weigh the costs of fixing up the property against the saving you'll likely reap by buying a lower priced foreclosed home.
3. Letting your true feelings show. No matter how much you've fallen in love with a house, don't let the seller's agent in on it. Otherwise, he will gain the upper hand in negotiations.
4. Failing to find a good buyer's agent. Landing a mortgage is tough these days. So buyers should rely heavily on knowledgeable agents to help them get their finances in order. After all, buyer's agents have a fiduciary responsibility to the buyer exclusively and should be looking out for his best interests.
5. Underestimating the costs of owning a home. Whether it's a rusty pipe or a leaky roof, things go wrong and need to be fixed. Many home buyers don't anticipate the additional costs for repair and maintenance, or for an increase in utility costs. Be prepared to set aside a small percentage (1% at most) of the home's purchase price annually for repairs and upkeep.
6. Failing to budget for property taxes. Property taxes, and the likelihood that they'll climb over the course of your time in the house, should be factored into any home buying budget. To get an idea of how much you'll be paying, call the local assessor's office or talk to people in the neighborhood.
7. Assuming your first offer will get accepted. As home prices get even more affordable, competition is bound to heat up. You can't assume you'll walk in there, make the offer and get it. Try not to get discouraged, if you lose out on the first, second or third offer on a home you make an offer on.
8. Skipping the inspection. Before signing anything, hire a professional inspector. The seller isn't likely to tell you there's mold in the basement or the walls are poorly insulated.
9. Doing too much too fast. Some buyers want to make the house their own right away. They overextend themselves on credit to do so, and assume that the improvement will pay for itself by increasing the home's value. But that's not always the case, especially in today's market. Instead, buyers need to exhibit patience and make the changes over time.
10. Failing to include a contingency clause in the contract. A mortgage contingency clause protects you if, say, you lose your job and the loan falls through or the appraisal prices come in over the purchase price. Should one of these events occur, the buyer gets back the money he used to secure the property (aka: good faith or earnest money deposit). Without the clause, the buyer can lose that money and still be obligated to buy the house.
For more detailed information, please contact me or go onto my website: www.simiishome.com
Posted by Ken Grech, a top Simi Valley real estate agent. Search Simi Valley real estate listings. In the Los Angeles Times dated May 3, 2009 in the Business Section, there is an article written by Chip Jacobs ( to read more of this informative article please go to (www.latimes/business.com ) Our market has changed so much within recent months and we as Realtors need to educate our buyers with submitting offers on low priced homes. Yes, some homes are priced low, however, we need to inform our Buyers, that due to the fantastic pricing you more than likely will not be able to purchase that home for the listed price. You will more than likely be in multiple offers. Long gone (especially here in Simi Valley) are the days of being able to offer below list price on a low priced home. I have been working with my clients and informing them of the bidding-wars/multiple offers, if they like the home, or have been on the fence and not quite sure whether or not to submit an offer, now is definitely a great time to buy. Due to historically low interest rates, incredible federal and state tax credits (where applicable) there is no reason not to buy. Currently (here in Simi Valley) , low inventory for single family residences under $350,000, we must submit our clients best offer (which is typically at their maximum amount or even above their maximum approved amount depending if the buyer is able to do so), but I must and do prepare my clients that they will be up against other buyers who are investors with cash, or other buyers who are offering more of a down payment with better credit, and not to be a wet blanket, but there is a chance that they may lose out on the home that they are bidding on. This is reality of the market that we are in now (in Ventura County). Our inventory when it hits the market is really turning over very quickly. It's imperative to keep communications open with our Buyers and to be sure that they understand the reality of the situation. Prices have come down, but not as much as you think and you will definitely need to put your best foot forward if you want to purchase home that is priced low. To find out more about our local current market conditions, please feel free to contact me or go to my website: www.simiishome.com
1. Move- By simply rearranging some furniture you can really renergize a room. Add and remove furniture, lamps, rugs, and accessories from other parts of the house to create a whole new look. Mirrors are really useful when it comes to updating a room, and they're fairly inexpensive. Try one out in different rooms to see where it fits best. Even by moving a mirror to a different wall can create a more welcoming feel.
2. Plant- Houseplants are a generally undervalued design component that can add texture, warmth, and color to any room. Right now, there are some incredible sales for plants and containers. Never underestimate the warmth of plants in and around a home.
3. Paint- Paint is one of the easiest and most cost-effective ways to make a substantial change. Neutral colors are always best to use in living spaces (not everyone will love red-barn red) When showing, you want your home to appeal to the masses.
4. Organize- Clutter just happens, but when your home is listed, it's ALWAYS best to keep neat and tidy. Organizers and shelving systems are very inexpensive, there are also canvas and rattan boxes or bins that can store any items neatly. Also, shelves can help display any collectibles.
5. Hide-Do you have a wall that's a little banged up? It may easy to camouflage. You can use printable wallpaper which will smooth out an uneven wall or hide mirror dents and dings.
6. Replace-Cabinet handles, switch plates and other small pieces of housing hardward can update a home for just a few dollars a piece. Inexpensive quick-connect faucets can make upgrading the look of your bathroom a snap! Even a toilet seat makes a difference, and of course fresh new towels will complete the whole look.
7. Light-Lighting can have a major impact on a home's look and feel. By adding in a "layered" look and using dimmers you create a whole warm feel in any room.
8. CLEAN- Turn a critical eye to your flooring, walls, tile grout, shower tile, etc. Vinyl flooring is a little harder to spruce up, but ususally can be replaced easily and inexpensively. By using a little elbow grease, you will reap in with results.
Disclaimer: ActiveRain Corp. does not necessarily endorse the real estate agents, loan officers and brokers listed on this site. These real estate profiles, blogs and blog entries are provided here as a courtesy to our visitors to help them make an informed decision when buying or selling a house. ActiveRain Corp. takes no responsibility for the content in these profiles, that are written by the members of this community.
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