Tag: real estate tips

Homeownership & Lifestyle, Real Estate

5 Steps to Prepare for Your Next Home Construction Project

Lupe Ruiz, REALTOR®/Broker

Adding a home office? Renovating your outdoor space? Adding an ADU? Upgrading technology? Whichever your next home construction may be, being prepared with these 5 steps will reduce some of the stress a renovation or remodel produces.

1. Plan the Project – Decide the scope of the project. What would you like to accomplish? How much money might it cost? How long might it take?

2. Secure Financing– Depending on the type of project, this could range from a personal loan to a renovation loan or a construction loan. There are also loans available for ADUs and room additions nowadays.

3. Budget for the Project – Now that you know what you would like to build, you can create a budget. This will help you stay on track with expenses and maximize your return on investment. There is always the risk of going over budget but without one at all, there is a greater risk you will run out of financial resources in the middle of the project.

4. Design the Project – You may start with a draft and then show the architect or designer your vision. They will then convert your vision into drawings taking into consideration budget, scope and expected outcomes.

5. Review Contractor Bids – Ultimately, select a contractor who is licensed and bonded, with a good reputation and known to deliver.

It will depend on the type of project if you will need to hire a general contractor, subcontractors, or a handyperson. This will, more likely, be determined in the planning stage. You will also need to be clear on the differences in their responsibilities and commitment. Ultimately, if you do not want to deal with the whole ordeal of a construction project, consider hiring a construction manager who may manage the project and represent your best interest.

————————-

Content photo: Silvia Brazzoduro – Unsplash.com

istockphoto.com

Featured photo: iStockphoto.com

Housing Trends and News, Real Estate

What If I Can’t Afford To Make My Mortgage Payment Anymore?

Lupe Ruiz, REALTOR®/Broker

According to a report from Attom, in the first quarter of 2022, the U.S. had 44.9% residential properties which were equity-rich, while only 3.2% were considered seriously underwater. (Attomdata.com). Despite higher interest rates, this would indicate the majority of the mortgaged homes have plenty of equity for the long run.

Nonetheless, a serious illness, a loss of a job, or a major life change can drastically affect a homeowner’s ability to continue making mortgage payments. Many times, it is a temporary season. However, there are those times when despite all the efforts, it is not possible to get back on track.

SEEK OPTIONS

My first recommendation is “don’t give up.” Some homeowners give up and choose to stop making payments. Unfortunately, they wait for the property to foreclose and not only is their morale down but their credit is also damaged.

Before giving up, contact your loan servicer (i.e. the bank where you make your monthly payments). Depending on your particular situation, there can be loss mitigation options such as a forbearance agreement, a payment plan, or a loan modification.

If you are still not able to make the payments, you can ask for Forbearance Assistance.

This pauses your payments temporarily until you are back on your feet. Your servicer will work with you on a repayment plan when you are ready to reinstate your payments.

If you are back on your feet and can continue making your payments, you can arrange a:

Payment Plan:

A repayment plan where you either add the back payments onto your monthly payments or to the backend of the loan.

Loan Modification:

Change the terms of your original loan in order to roll the back payments into the loan. Some of the terms which can be changed are the interest rate or the term of the loan.

CONSIDER SELLING

If you are still not able to make your payments, consider selling your house. If you have equity, it can be a standard sale. If you do not have equity, it can be a short sale. What is equity? Equity is the difference between the value of your home and how much you owe on the loan. In short, if you owe less than what the house is worth you have equity and vice versa.

If you have fallen behind in your mortgage payments and choose to sell your house, it is very important that you work with a real estate agent who is experienced in short sales and properties in default. You want your agent to know how to communicate with the loan servicer so your file does not fall through the cracks; and this requires experience.

In summary, if you are having challenges making your mortgage payment, seek assistance before giving up on making the payments. It might be tempting to remove the expense from your monthly list and not worry about it anymore; but instead of giving into temptation, seek help from professionals who can guide you through the process.

Content image 1 by: Procondo CA – Unsplash.com

Content image 2 by: Evelyn Paris – Unsplash.com

Featured image by: Towfigu Barbhuiya – Unsplash.com

Homeownership & Lifestyle, Real Estate

Are You Still Working From Home?

Lupe Ruiz, REALTOR®/Broker

Perhaps, when you thought it was temporary, you worked from your kitchen table or your living room couch. However, many employees will now be working from home in either a hybrid or a full time schedule. If you are one of these employees, you will need an area where you can have more privacy and comfort. Setting up an exclusive office area is important for a successful and productive work day.

Set up an ergonomic work area. Some employers are offering to reimburse for equipment and supplies. It is recommended that you, at least, have an ergonomic keyboard, chair, and desk. UCLA offers some great tips on how you can properly set your workstation.

Another recommendation is that you have a work area separate from your living space. This will allow you to create healthy boundaries between work and personal life. If you are not able to convert a room into an office, you should consider a shed or a tiny house. These can be customized so they are as comfortable as your office work area.

Working from home has its advantages. However, there should be a balance between work and home as well as a set up that is mentally and physically healthy. If you will be working from home more permanently, consider making adjustments to your home office in order to fully enjoy your new working environment.

Content photo by: Danielle Rice – Unsplash.com

Featured photo by: Olena Sargienko – Unsplash.com

Real Estate, Tips & More

How to Save to Buy a House

Lupe Ruiz, REALTOR®/Broker

Depending on the type of loan you are applying for, you may need from 3% to 20% of the purchase price for a down payment. In addition to your down payment, you will also need around 2%-5% of the purchase price for closing costs. Once you know how much you can afford, you will be able to determine the amount you will need and how long it will take to achieve your goal. Here are some things you can do to achieve this goal:

1. Open a bank account that is specifically for saving money for your home purchase. This can be a savings or investment account. Set it so the transfer is done automatically every month and, no matter what, do not withdraw any money from that account.

2. You may also deposit any tax refund, extra money, or gifted money into the new account.

3. Reduce any current debt. Start by paying off any high-interest credit cards.

4. Do not get into any new debt whether it is a new credit card, a loan or a new car.

5. Cut down unnecessary expenses such as entertainment, eating out, and non-essentials.

In addition to this, you may also start a new side job and save this income. However, keep in mind it is recommended that before you start saving for your new home, you have an emergency fund already in place with at least three months of your monthly expenses. This will allow you to have a separate account in case of an emergency so you do not need to tap into your home purchase savings.

Featured image by Jeremy Bishop / Unsplash.com

Content image by Eskay Lim / Unsplash.com

Tips & More

Every Homeowner Should Know About These Four Forms

Lupe Ruiz, REALTOR®/Broker

As a homeowner, you should know about these four forms regarding protection of your primary residence and possible reduction of property taxes.

PROTECTION

1. Home Protection for Seniors, Severely Disabled, Families and Victim’s and of Wildfires or Natural Disasters Act – lf you are 55 or older, you have sold your primary residence, and are occupying your replacement primary residence, you may file form BOE-60-AH, Claim of Person(s) at Least 55 Years of Age for Transfer of Base Year Value to Replacement Dwelling, it gets filed with the County Clerk’s Recorder’s Office where the replacement property is located. More information may be found in the California State Board of Equalization information page.

2. Homestead Declaration – This form serves as a protection on your primary residence in the event certain creditors want to force a sale to satisfy a court judgment. There is a designated amount that protects the property equity. You should seek legal advice to ensure the form is completed properly. The notarized Declaration of Homestead form is filed with the County Clerk Recorder’s Office where the property is located.

PROPERTY TAXES

3. Property Tax Exemption – The State of California allows an exemption of up to $7,000 on the value to assess the tax of your primary residence. The claim form, BOE-266, Claim for Homeowners’ Property Tax Exemption can be provided by the County Assessor’s Office and you file it with the County Clerk Recorder’s Office where the property is located. More information may be found in the California State Board of Equalization Property Tax Exemption page

4. Notice of Supplemental Assessment – The County Assessor of the county where the property is located will assess the property value to determine the tax on the property value. You do not need to file anything for this but if you had new construction or if you just bought a property, you should expect this notice. Depending on whether the value went up or down, you will get a bill or a refund. More information may be found in the California State Board of Equalization Q&A page.

These forms are publicly available at your local County Assessor’s Office. They may be able to answer general questions but it is important that you seek legal advice if you have questions about how these forms may or may not benefit you.

Photos from Unsplash by:

Kostiantyn Li

Tingey Injury Law Firm

Samia Liamani

Marissa Grootes

Blake Wheeler

Real Estate

Six Tips To Keep Yourself Organized When You Tour Homes

Lupe Ruiz, REALTOR®/Broker

Home buying can be fun and exciting but it could also be overwhelming.  Keeping yourself organized can give you more clarity and reduce some of the stress. Here are six tips to keep yourself organized when you tour homes.

Before you start your home search:

  • Know how much you can afford as well as how much you are willing and able to invest.
  • Write down what you must have in a house. For instance the number of bedrooms, bathrooms, location or sq. ft., etc.
  • Write down what you would like but is not a deal breaker. I would list these in order of preference in case there are multiple homes you like with different features from your list.

Once you begin your home search:

  • Take your “must have” checklist with you.
  • Write notes on each house (after seeing several in one day, you can forget which one had what features).
  • At the end of the home tours, write down the pros and cons of each and determine which have the features you must have vs. what you would be okay not having.

As you view more homes, you will find that your criteria might change along the way. Keeping yourself organized and having a professional real estate agent who is in sync with your needs will make the process a lot easier. You will find it easier to decide on a house and be more comfortable with your offer.

Real Estate

5 Steps To Prepare For Your First Home

Lupe Ruiz, REALTOR®/Broker

You would like to buy your first home but don’t know where to start? Here are five things you can start working on:

  1. Establish good credit – You can open a credit card and use it for small purchases you can afford to pay off at the end of the cycle. Or, get a secured credit card at your bank. With this type of credit card, you deposit your own money and only charge up to that amount. You can also ask someone with good credit to add you as an authorized user on one of their credit cards— but, most importantly, pay on time and do not max your cards (tip: use no more than 30% of your credit limit).
  2. Prepare to afford a house – As a general rule, your total housing expenses should not be more than 28% of your gross monthly income; and ALL monthly debt (including housing expenses) should not exceed 36% of your gross monthly income. Housing expenses include, the monthly principal and interest, property tax, homeowner’s insurance, and homeowner’s association (if applicable).
  3. Save, save, save – Down payments can be as low as 3%. In addition, you will have closing costs of around 2-3%. For example, if the price is $500,000, your down payment could be as low as $15,000 and your closing costs between $10,000-$15,000. You could potentially need around $30,000. You can also receive gifts to help with these costs and, depending on your credit, you may qualify for other down payment assistance programs. However, keep in mind that the higher your down payment, the lower your monthly mortgage payment will be.
  4. Crate an emergency fund – Have a separate account with funds you will not use unless it’s for unplanned expenses or other major emergencies. Ideally, this would be three to six months your monthly expenses.
  5. Plan a budget – Budget when you are saving to buy your house and when you buy your house. A budget will help you track bills and pay on time. Also, keep in mind that when you own a house you also have additional utility and maintenance expenses.

Buying a home for the first time can be scary. You might not know where to start. This is why it is so important that you work with a real estate professional who will guide you through the process. When you are ready to buy, get in touch with a real estate agent. They will refer you to someone who can pre-approve your loan and will get you started on your home search.

COVID and Real Estate, Foreclosure Moratorium, Pandemic Response, Real Estate

THE END OF THE FORECLOSURE MORATORIUM IS NEAR

Lupe Ruiz, REALTOR®/Broker

Back in 2020, homeowners whose income was affected by the pandemic were given the opportunity to apply for a forbearance on their mortgage payments. According to a report from the Joint Center for Housing Studies of Harvard University, Black Knight reported that 14% of all mortgage holders filed for a forbearance during the pandemic. By March 2021, 68% of them had already exited the program either by resolving the delinquency or paying off their loans. Eight percent were still working some sort of loss mitigation agreement and 4% were still in delinquency in the first quarter of 2021. They also reported that about 22% of mortgage holders still in forbearance by the time the 18 months are up, have 10% or less equity and more likely will not have enough equity to sell with equity. (jchs.harvard.edu)

Recently, it was announced that the foreclosure moratorium would end July 2021. So, what if you are one of those mortgage holders who is in forbearance and at risk of foreclosure?  What is next?

The Consumer Financial Protection Bureau (CFBP) has implemented protections for you that will take effect on August 31, 2021.

  • Servicers will need to give you time to process your options and consider your situation. They must meet certain steps before they can initiate a foreclosure.
  • Servicers can offer streamlined loan modifications, which cannot increase your payment.
  • Servicers will be required to increase their outreach to borrowers before they can initiate foreclosure.

What are your options:

  • Resume regular mortgage payment. You can ask to defer your missed payments by moving them to the end of the mortgage.
  • Lower monthly mortgage payment. Ask to modify your loan. This can be changing the interest rate, principal balance or the term of the loan.
  • Sell your home. If you find yourself not being able to make your mortgage payments and have enough equity, you may be able to sell with some profit. If you find you do not have enough equity, you may apply for a short sale. Foreclosure should be the last thing to consider if you do not have enough equity.

A servicer can initiate foreclosure if you:

  • Abandon the property;
  • Were more than 120 days behind in your mortgage before March 1, 2020;
  • Are more than 120 days behind on your mortgage payment and have not responded to specific required outreach for more than 90 days; or
  • Have evaluated all options other than foreclosure and there is no other options available. (consumerfinance.gov)

Feel free to contact me if you are currently in forbearance and need guidance on exiting the program, or believe you will need to sell your home. I am here to help. I’ll be happy to guide you through the process.

Real Estate

WHAT FIRST-TIME BUYERS SHOULD KNOW

Lupe Ruiz, REALTOR®/Broker

During this video, I give you an overall view of some things you need to know to be ready to purchase your first home. I would also like to add that in addition to the down payment mentioned, I would also like to mention that buyer closing costs could be up to 2-2.5%. This might seem like a lot at a glance but there are options available for you. Ask me what are your options.

Also, there are some banks who will still lend under a 640 FICO score and might still have down payment assistance programs right now, but with changes in the industry due to the current pandemic, most banks got stricter on their requirements. However, don’t get discouraged by this. An experienced Realtor in partnership with a good lender can help you through the process.

Remember you can always contact me with questions on purchasing your first home.

Real Estate

Selling Your Home in This Digital Age

Lupe Ruiz, REALTOR®/Broker

 

How many times a day would you say you go to your phone to either search something online or check your social media?  According to a study by Asurion, Americans check their phone 80 times a day about every 12 minutes, on average (NYPOST.COM, Americans Check Their Phones 80 Times a Day: Study. 11/08/17). Yikes!  I was surprised too, but honestly, I am guilty of this as well.  It almost seems like having information at our fingertips is a necessity nowadays.  And, as the years go by, I believe we will rely more and more in technology.

Technology changes so many things, including how fast and for how much you sell your home!  Have you wondered why some homes that compare to each other in features and price will sell in different time frames and even prices? According to the National Association of Realtors’ Real Estate in a Digital Age 2017 Report, in 1981, 22% of home buyers would look at newspapers to search for homes.  By 2016, 44% were looking for homes online as their first step in purchasing a home.

So, why wouldn’t the way your home is marketed change too?  The first impression a home buyer will get of your home will be online –more likely, on their phone … so, would it be fair to say professional or high quality photography, drone and video of your home will make a difference in how soon you sell your home?

In this digital age of social media and internet blogs and vlogs it is key to have the right real estate agent doing all this work for you.  Oh! And, it’s not just about posting your home online, it’s about strategically posting your home online.  So, next time you interview a real estate agent about listing your home for sale, ask about his or her strategic marketing plan.

As always, contact me if you or anyone you know is looking to sell or buy.

909-346-3610

LupeRuizRealty@yahoo.com

http://www.luperuizrealtor.com

CABRE#01513573

Real Estate

10 Tips for First-Time Homebuyers

Lupe Ruiz, REALTOR®/Broker

Congratulations, you have gone to your local bank and were pre-approved for a $350,000 home loan! You already know the location and the features you want in your new home, but now what? Where do you start? Do you go calling every listing agent in town? Or, do you just go on-line and see what is on the market? Here are some tips that may be able to help you during your home search.

1. Work with an experienced Realtor who can guide and advise you during the process. It is important you have your own Realtor representing you as the buyer in the transaction. A selling agent, will help you search homes, show them to you, and negotiate the deal for you.

2. Trust your Realtor. Your Realtor is the expert in the industry and can tell you whether or not you should offer asking price; or what terms should or should not be included in the Purchase Agreement.

3. When it comes to viewing homes; take all decision-makers with you (including those who are not buying but have influence in your decision-making). Many times, new homebuyers see a home they love, submit and get an offer accepted, but then get cold feet when their relatives or friends “warn” them about everything they should’ve considered before submitting an offer. Hence, causing the buyer to cancel.

4. Have an open mind. You might not be able find the perfect, dream home so you may need to purchase one that needs some tender loving care. Or, if you do find the home of your dreams; keep in mind it is also someone else’s dream home; so take your Realtors’ advise on the best offer you should submit.

5. Purchase a Home Warranty. A home warranty may save you a lot of money if a large item such as a water heater, air conditioning, plumbing, appliances, etc breaks down.

6. Do not purchase any large items on credit. This may interfere with your loan approval and may prevent you from moving forward with the transaction. This is relevant at all stages of the home search and, even more so, during the escrow process.

7. Communicate and cooperate with your Realtor and loan representative. It is imperative that you maintain constant communication with them as they are working hard to get you qualified and into your new home as soon as possible.

8. Don’t view too many properties. More than three trips and viewing too many properties may create the mentality that the more you see, the better deal you will find. However, instead, this will cause confusion and second thoughts; hence, prolonging the home search and possibly walking away from a good opportunity.

9. Obtain a home inspection. Even if the home appears to be in perfect condition, it is always recommended that a trained professional inspect the property. If the inspection reveals serious defects that the seller did not disclose you are generally able to rescind your offer and get your deposit back.

10. Avoid buyer’s remorse. It is not uncommon that somewhere during escrow, homebuyers may question if they made the right decision. You may avoid this by doing your homework beforehand and matching your expectations and price range. If you’ve done this, your stress level may be reduced and buyer’s remorse may have been avoided.