Short article in Forbes by Marke Greene says it better than I can.  A must read if you are buying a home or considering a refinance.

Click HERE to read.

Worth the few minutes

OPT OUT HERE

 Yes there is promising news for California real estate in 2012. 

 Homes Sales – They are stabilizing overall and were up 4.2% in December in the state.  Of note is that 52% of S.CA home sales are “distressed” properties (1 in 3 foreclosures and 1 in 5 short sales). Good that they are selling because we will not be completely healthy until these homes are moved.  Investors (26% of the sales) are getting great deals as are first time homebuyers and second home buyers – but they have to move fast to get in escrow.  (Best time in long time to buy? – Read what the guy who called the crash says now HERE)

 Home Values – Worst is over in most areas and many realtors are seeing multiple offers, although in the lower price ranges.  With rates in the 4’s homes have not been this affordable for a very long time.  The median price for Los Angeles was $307,000 last month.

 With rents rising homes are becoming cheaper than renting.  For those, like me, who bought when prices were higher, see below (HARP 2.0)

 Getting a Mortgage – Can you afford the payments?  You can probably get a loan.  If you can’t you can’t.  In all cases there is lots of documentation, questions and getting the loan closed on time can be stressful (this is where I shine, folks).  Buying a median price home today, with 20% down would cost only about $1,500/month including property taxes and insurance.  Cheap.

 Underwater? – Washington is finally getting it.  Duh – allowing homeowners to refi today who have always paid their mortgages on time but can’t refi because they are underwater on the loan is smart.  More money in their pocket is more money into our economy.  Yesterday I read that the talk of “low doc” and even “stated income” may be used.  Well, careful boys, but if a guy is working and has been current why not make it easy and let the banks take less? 

 The program is called HARP 2.0 (coming in March, HARP 1.0 sucked).  There would be no minimum appraisal value.  However, only for loans owned by Fannie Mae or Freddie Mac done from 2006 to 2009.

 Commercial Property – David, why is this important?  Strength in office and industrial markets reflects growth prospects for employment.  For homes it is all about jobs. Commercial was in a free-fall in 2008 and 2009 but it has started recovering.  Especially strong jobs recovery is seen in San Diego and coastal areas of LA (Santa Monica particularly).  Latest news at www.CallCommercialCapital.com

 Most Frequent Question – Conforming loans, jumbo loans, Fannie, Freddie what’s the difference?

• Fannie and Freddie loans are up to $625,500 loan (FHA to $729,750) and the max loan amount varies by county. Down payments as low as 3% (3 ½% FHA and ZERO VA-GO VETS!)
• Jumbo loans – Over $625,500 and cannot be sold to Fannie or Freddie and no HARP.  Bit higher in rate ½% or so and require at least 20% down.

Remember, for a real estate or commercial loan question Ask David Garrett  310 456 1056

FREE CREDIT REPORT

First checking your credit history when you are making an offer to purchase a home is a risky mistake.  Errors on your report can knock off as much as 100 points on your “fico score” and greatly increase the rate at best or not get approved at worst.  Correcting those errors can take 30 days or longer and that “perfect” house you spent months finding might be gone. 

Some people learn of a drop in their score when the bank spikes their rate. Can they do that? Yes they can.

You can easily check your credit history 4 times a year for free.  There are three credit bureaus and each gives you a free look once a year, so rotate them every 4 months.  Spring is a good time to start. 

For the free reports go to www.AnnualCreditReport.com

Questions about your report?   Ask David Garrett

310 456-1056

AsDavidGarrett@gmail.com

Rose Geraniums are a wonderful variety.   The leaves have the most wonderful scent.  Roll them in your hands and you will enjoy the smell for sometime.  Not to mention, when blooming, the flowers are small and a pale pink.  Easy to propagate and establish many more.
There are probably many things you can bake with the leaves, but I have discovered one that is quite lovely.  A Victorian Rose Geranium Cake.  Very pretty for a child`s birthday.  Get the receipe HERE  

 I was disappointed with the cake recipe itself.  I think they could have made a mistake with the amount of butter.  I think one stick would have been sufficient.  It was too heavy.  However if you have a favorite cake recipe, I would try that.  Just infuse the leaves in the flour and let stand over night.

Otherwise give the original a try leaving out the one stick of butter.  Would make great cupcakes for a child`s birthday as well.
Rose Geraniums, or sometimes called Scented Geraniums can be found at most good nurseries.

Randi

First-time homeowners often ask me about the tax advantages of home ownership.  They can be significant and, as a rule-of-thumb, the income tax saving annually can equal  the property taxes for many. 

Eligible for deductions for federal income tax include mortgage interest (including some equity and other type “second” loans) and property taxes.  Capital gains on the sale of a primary residence also can be excluded from taxes (the first $250,000 for single taxpayers and $500,000 for married couples).  There are restrictions and limits on all these so always check with a tax professional.

Capital Hill is working on propsals that would put limits on these tax benefits for “high-income” individuals.  So, does that mean just “fat cats” will get trimmed?  That’s no guarantee.  The mortgage interest deductions costs the Treasury $99.8 billion this year and, therefore, is a juicy target.

However, no one anticipates that any of these benefits will be eliminated over even significantly cut within the next few years.

In July 2011 theFair Access to Credit Scores Act (FACS) goes into effect. Finally you will be able to get a copy of your credit score if your application was declined or adversely approved for ANYTHING! (Adversely means anything except the most favorable rate or deal)

This could be for a car, your insurance, department store or even if you are assessed a deposit for utilities! It will apply across the board for any adversely or declined credit.  This is a major win for consumers. You will now be able to get access to your information and hopefully more consumers will realize the COST of having “credit dings or inaccuracies”.

 This also puts the burden to supply the score NOT just on the credit bureaus, but on the utility company, auto dealer, insurance agency etc. The only people who won’t get to see their scores are the ones who get the best rates or deal that’s offered.

(thanks to Jim Hogle, USCCRA, for the heads up)