24
India Post
April 1, 2016
www.indiapost.com
T
he things listed below are just some of the guidelines that you may want to consider. 1. Money Matters • The lender will base their assumptions on the amount you qualify for, not
• The best strategy is to actually calculate the taxes and other expenses rather than "ballparking". Avoid surprises. Your real estate agent will help you find the property that fits the price you are willing to pay. 2. Your Realtor® is there to help.
had closed • Alleged non-payments and inaccuracies Make sure you have time to prepare before a lender previews your credit history. Allow at least a week to close dormant or
Some of these documents include: • Income tax returns and W2's for the past 2 years • Pay stubs from employer • Bank statements for the last 2 years • An updated and accurate credit
Prepare a Checklist Before Deciding to Buy a Home RAJEEV AWASTY
on the amount you are comfortable spending. Don't wait for the lender to find out how much you can afford. Do your homework. Consider how much you are willing to spend. Remember, this is a lifestyle decision. Think about other expenses such as travel, education, and maintenance reserves. • When you are contemplating how much of a loan you can afford, make provisions for insurance, taxes, homeowner association dues and other unanticipated costs you may incur.
Ask about: • Types of mortgages • Risks and benefits of different types of financing • Types of homes and the best match for you • Location, features and price range • Tax issues and responsibilities of a homeowner Even if this is your first or second time buying a home, you still need to ask as many questions as you can. The options available to you when you first bought a home may not be the same this time. 3. Check your credit. Request a copy of your credit report as soon as possible and look out for: • Too many open credit cards accounts • Unclosed accounts you thought you
unwanted accounts and clear up discrepancies. According to the US Public Research Interest Group (PIRG), 79% of credit reports contain serious errors or mistakes. Make sure you are in the 21% that does not have the errors! 4. Gather and organize valuable documents. Accumulate all the necessary information you will need when you file your loan application. Ask your real estate agent or mortgage lender for a complete checklist so that you are fully prepared.
report 5. Get pre-approved, not pre-qualified! • Pre-approval gives you the security of shopping for a home that you can honestly afford. • Pre-approval tells the seller that you are serious, ready to buy, and solidly financed. • In a competitive bidding situation, pre-approval can be your advantage over other offers that are not preapproved. Cont’d on page 26
www.indiapost.com
India Post April 1, 2016
25
Buying Your First Home in The Silicon Valley
W
ith Bay area home inventories low and prices sky high, is this really a good time to buy? First time home buyers are inundated with question after question as they prepare for the American Dream of being a homeowner. This is truly an article about buying your first home in the Bay Area. Bay area has hardly any land left for housing development and in this supply limited and high demand environment, prices climb. Graph below shows the historic median prices of Bay area detached homes for various counties. (Raw data provided by California Association of Realtors 速 )
AMIT INAMDAR
Loan Amount $417,000
Minimum Required Downpayment 3%
$625,500
5%
Up to $1M or sometimes more
Lending criteria has been relaxed over the past few years, making it affordable to buy a home. Additionally, you're required to have an acceptable credit score and reserve funds to get these loans. Buyers can leverage their 401K, IRAs, and life insurance accounts for additional down payments. This is your money and you pay back any required interest payments to yourself. Many home buyers are taking advantage of these accounts and increasing their downpayment for a favorable mortgage interest rate. You get better interest rates when buying a home with a better credit score, and larger down payment. Additionally, affordability can be understood by looking at following chart. It shows that you can buy a high priced home with same affordable payments with lower interest rates. Loan Amount Interest Rate Monthly Payment $800,000 $500,000
Real Estate markets are either a seller's market or buyer's market. Both can be in equilibrium however, such instances are very short lived. When anything is for sale, we are conditioned to ask, how much is it? That is definitely a fair question. However, to make a decision to move forward or not, one should not stop after this question. I look at home buying decision as both an emotional as well as a financial decision. Many times, a dream home for a homebuyer may be beyond their means. Therefore, one needs to first know their ability to own a home as they start dreaming. Dream within the financial constraints and you will have an affordable, lovely, and enjoyable home for you and your family. Experience shows that home affordability is a function of both home prices as well as the mortgage interest rates. Affordability is more sensitive to the mortgage interest rates than the home prices. Buyers who know this are confidently making offers in this seller's market and seeing their home prices rise every month. This definitely scares the home buyers who are focused on the home prices rather than affordability. To understand this interaction and how it may benefit you, do visit my website, OwnSweetHome.Net, and watch the first time home buyer webinar. Graph below shows home affordability for fixed monthly payments at various interest rates. To understand affordability, a licensed mortgage loan
originator (NMLS), either with a bank or a brokerage, analyses your income, debts, assets and liabilities. A good loan consultant will always help you restructure your debt and finances to maximize your home loan qualification. There are loan programs available with as much as 3% down payment for home purchase. The following chart gives you an idea about your down payment and the maximum loan you may qualify for.
10%
4% 8.5%
$3819.32 $3844.57
fears can be addressed very effectively. Also, one needs to understand that the mortgage payments also include payment towards the principal which is paid to yourself by which you increase your equity in the home. So with tax deductibility and paying principal payments to yourself, you may come out ahead instead of paying rent, even though cash flow may remain a concern for many. Just check with your tax advisor on how homeownership saves you money and helps you live a better lifestyle. Back in India, a home is owned over many generations. The home ownership in the United States is transitory. You may own multiple homes over your one lifetime, you may start slow with a starter home and later buy a bigger, better home as the family grows. However, you may downsize when kids go off to college and are independent. Knowing these factors, one should seriously think about buying a home today. Lenders are not going to give you loans that you cannot afford. Once you come over the hurdle of buying a home and decide to buy one, you are going see steep competition in the market place. In this supply limited market, many buyers are bidding for the fewer available homes. At this stage you are not really bidding on a home, rather you are bidding against the other buyers. Irrespective of availability of loans with lower down payment, your offer may not get accepted and you may lose to buyers with a higher down payment or an all cash buyer. However, there are strategies one should follow to make best of your specific situation. Once you are in contract to purchase a home, you will be faced with terminologies like real estate contingencies, real estate appraisals, inspections for property, roof, termite, escrow and title. Many times the words carry fear of uncertainty with them and one needs to be aware of the home buying process upfront rather than learning along the way. This is where education for buying a home in the Bay area
So buyers who bought homes at higher interest rates and low home prices have essentially the same mortgage payment as the buyers today who are buying at almost half the interest rates. So buyers who focus on affordability know that their payments have not changed and they are ready to bid confidently for homes. Remember, both the buyers above are definitely going to pay off their homes with affordable payments over a 30 year time frame. Now let's shift our focus Therefore, one needs to first know their ability to own a on the emotional factors inhome as they start dreaming. Dream within the financial volved in home buying. constraints and you will have an affordable, lovely, and They include type of home single family, a townhouse or enjoyable home for you and your family a condominium. Many may desire a single family home, however, others may prefer com- comes into play. The first time home buyer webinar on my munity living like a condo or a townhouse complex. Many of website I mentioned earlier is a great resource for everyone. the new home communities are building multistory Lenders when giving a loan, follow the rule of 222. Lendtownhomes and single family homes as the land in the Bay ers will look at two years of employment or self employment, Area has become scarce and expensive. two years of US residency and two years of credit history to Many of the families I have helped purchase a home are consider you for a home loan. Your Visa status may also focused on the quality of education for their kids. Buying a impact your ability to buy. Lenders typically require your home in a good public school area means getting a good work visa to be valid for at least 6 months by the time they education, for free, for your kids. Then comes the issue of fund the loan. whether to buy a home in the good elementary, middle and So as a first time home buyer, I would say first things first. high school areas. Get preapproved for a loan, then meet with a qualified real Typically, homeowners stay in their homes for 57 years. estate agent for discussing your needs and wants. Based Recently such periods have increased as many on your financial ability and home buying needs, the next homeowners were underwater with the recent housing cri- step is neighborhood selection. sis and we have seen many homeowners selling after 10 My advice to you is select your neighborhood first based years of home ownership. on your commute and family needs. It is very difficult to comRenting vs buying a home is another emotional factor pare homes in neighborhoods across the bay, e.g. Fremont vs that may matter to many to-be-home-buyers. Your own home in Cambrian. Stick to the neighborhood and put your best will allow you to express your personality by painting the foot forward for every offer you make. In this market I am not walls in your colors and decorating with your taste. This seeing many sellers entertaining any counter offers. may not be true for rental properties when it comes to exThey are selecting the highest and best offer. So you do pressing your personality. Rents are also very high, push- the same. This way there are no regrets as to you could have ing many to buy a home in this low inventory markets thereby done better. Make sure you do your due diligence in evaluincreasing housing demand.. ating and understanding all inspection reports, your ability The low inventory levels of homes for sale are a result of to bid and all seller disclosures. Experience shows that the many homeowners upgrading to bigger, better homes with- negotiations in real estate happen throughout the transacout selling their current house. With low interest rates, many tion provided you write your contract to accommodate them. have refinanced and lowered their mortgage payments and You are making one of the largest investments of your life are enjoying the benefits of high rental incomes across the and for you and your family. Bay area. I expect this trend to continue. Be wise, educate yourself and Own Sweet Home! Another emotional factor homeowners deal with are the Amit Inamdar, MBA (Own Sweet Home Realty, OwnSweetHome.Net) high payments towards mortgage, property taxes, home in- Real Estate and Mortgage Broker, Realtor 速, Loan Consultant, Radio Show Host Cal BRE #01355522, NMLS #236574. (http://ownsweethome.net/) surance and sometimes the HOA dues. With deductibility of Power hour with Amit Inamdar is weekly Radio Show that provides Credible home mortgage interest and property taxes, some of these Real Estate Advice to Bay Area listeners.
www.indiapost.com
India Post April 1, 2016
26
Condo or Single Family Home RAJEEV AWASTY
T
he kind of home you choose will highly depend on your finances and needs. Here are some of the major difference between a condo and single family home. Condo • Generally you are only responsible for maintaining what's inside the unit. • The Association may offer amenities such as a swimming pool, tennis court, clubhouse, and gym. • They are generally cheaper than buying a single family home. • Great for buyers who do not want to deal with a lot of home maintenance. Single Family Home • They are typically more expensive than condos. • You can make modifications a lot easier. Add a bedroom repaint the walls, change the floor, etc. • You don't have to worry about sharing
Why rent when you can buy? RAJEEV AWASTY
Y
ou probably are comfortable renting because you don't have to worry about maintenance, HOA fees and staying in one place for over a year. What you don't realize is that you are putting your money down the drain instead of investing it for you future. Buy vs. Rent comparison (source:www.ginniemae.gov) The chart below shows a cost comparison for a renter and a homeowner over a seven year period. The renter starts out paying $800 per month with annual increases of 5% The homeowner purchases a home for
$110,000 and pays a monthly mortgage of $1,000. After 6 years, the homeowner's payment is lower than the renter's monthly payment. With the tax savings of homeownership, the homeowner's payment is less than the rental payment after 3 years. The key is to know how much you can afford and invest in a home. Consult with your real estate agent for information.
• They are generally cheaper than buying a single family home. • Great for buyers who do not want to deal with a lot of home maintenance a common wall with your neighbors. • If a backyard is a "must have" for you, you get a larger one with a single family home. • You don't have to share common amenities with your neighbors, such as a gym or a swimming pool (if you have them). • You are responsible for your own home maintenance. All information in this report is deemed reliable, but not guaranteed. © 2015 PropertyMinder, Inc. (http://rajeevawasty.com/)
Prepare a Checklist Before Deciding to Buy a Home Cont’d from page 24
The renter starts out paying $800 per month with annual increases of 5%. The homeowner purchases a home for $110,000 and pays a monthly mortgage of $1,000. After 6 years, the homeowner's payment is lower than the renter's monthly payment All information in this report is deemed reliable, but not guaranteed. © 2015 PropertyMinder, Inc. (http://rajeevawasty.com/)
6. Avoid pre-mortgage pitfalls. Do not do anything that can negatively impact your ability to qualify for a mortgage loan. Until the time your loan closes, avoid: • Changing jobs • Switching banks • Moving your money around • Making major purchases
7. Build your "need to have" and "nice to have" list. Every buyer has his "perfect" home in mind, but let's face it; you are not going to get everything. It's good to have a list of two things. One side will have all the things that the home must definitely have, or what we call the decision-making factors, and the other side will have the bonuses. Your list may look similar to the one below.
Need to Have
Nice to Have
Size and space Number of bedrooms and bathrooms Fireplace Wooden floors School district
Pool Sun Deck Garden Short commute to work Vicinity to shopping outlets
All information in this report is deemed reliable, but not guaranteed. © 2015 PropertyMinder, Inc. (http://rajeevawasty.com/)
www.indiapost.com
India Post April 1, 2016
27
www.indiapost.com
India Post April 1, 2016
28
www.indiapost.com
India Post April 1, 2016
29
www.indiapost.com
India Post April 1, 2016
30
Information Center soon at Bayshores in Newark; Homebuyers urged to pre-qualify NEWARK, CA: The brand-new master-planned community of Bayshores by William Lyon Homes will open its Information Center soon, making now the ideal time to prequalify for exciting homeownership opportunities. Set in commuter-friendly Newark, adjacent to the Don Edwards San Francisco Bay National Wildlife Refuge, this idyllic community balances modern conveniences with natural
tranquility with five beautiful new-home neighborhoods surrounded by parks for picnicking, tranquil open spaces to enjoy the great outdoors and a host of premier recreational amenities. Homebuyers ready to come home to a true natural haven will want to register their interest at www.LyonBayshores.com and begin the pre-qualification process as soon as possible.
"Interest in the new master-planned community of Bayshores is already extraordinarily high, which is why we urge homebuyers to pre-qualify early so they're prepared when the Information Center opens," said Kathy Floyd, Director of Sales for William Lyon Homes. "Get a front-row seat to the good life and be a part of a community that changes everything." Bayshores' superbly crafted neighborhoods will offer an array of innovative home offerings to accommodate a diversity of lifestyles, including The Cove's condominium collection, The Strand's townhomes, and the exceptionally designed single-family detached homes at The Banks, The Tides and The Isles. Floorplans span from approximately 1,352 to 2,802 with two to five bedrooms, up to four and one-half baths and two-car garages. Prices are anticipated to start from the high $500,000s to the high $800,000s. Bayshores provides an unparalleled lifestyle experience with exclusive amenities that include a 2,300 square-foot clubhouse, a sprawling community park with a large outdoor dining area and a dog park. Just steps from home, residents will enjoy trails for walking or biking, and discover spectacular natural beauty that includes the 30,000acre Don Edwards San Francisco Bay National Wildlife Refuge.
Floorplans span from approximately 1,352 to 2,802 with two to five bedrooms, up to four and one-half baths and two-car garages. Prices are anticipated to start from the high $500,000s to the high $800,000s The community's commuter-friendly location puts the region's major employment and business destinations within convenient reach, including San Francisco, Fremont, Silicon Valley and Tri-Valley. The setting near the Dumbarton Bridge connects to Menlo Park, Palo Alto and the peninsula, while the nearby I-880 guides commuters to Oakland and San Jose. It matters who your builder is and William Lyon Homes is a company built upon a legacy of pride and integrity. A team of visionaries who are passionate about homebuilding and committed to providing a high quality homebuying and homeownership experience, William Lyon Homes has earned a solid track record for outstanding construction and customer service since 1956. The company continues to expand its well-respected brand beyond California, Arizona and Nevada and into other market areas across the Western region with the acquisition of Polygon Northwest Homes, its newest division in Washington and Oregon, and its Village Homes division in Colorado. William Lyon Homes' shares are publicly traded on NYSE under the symbol WLH. For updated information and to learn more, visit www.lyonhomes.com. For more information, visit www.LyonBayshores.com. Prices are effective as of the date of publication. Pricing is approximate and is subject to change without prior notice.
www.indiapost.com
India Post April 1, 2016
31
D. R. Horton offers built-for-better-living new homes
D
. R. Horton, America's Builder, is pleased to offer Built for Better Living速 homes at a long list of Bay Area communities in some of the most sought after locations, priced from the mid$500,000s to over $2.4 million. These include Vacaville, Oakland Hills, San Ramon, Fremont, Newark, Santa Clara, Sunnyvale, and Campbell. New communities are coming soon to Dublin, Pleasanton, Mountain View and Manteca. D. R. Horton's Built for Better Living速 brands present homeowners with designs that are constructed to provide energy-efficient, comfortable and durable homes. Additionally, the new homes at D. R. Horton communities reflect the experience garnered from over three decades of building quality homes for hundreds of thousands of homeowners. In fact, BUILDER Magazine has recognized D. R. Horton as America's
#1 Homebuilder by volume since 2002 -13 years in a row. D. R. Horton, and Emerald Homes and Express Homes, both D. R. Horton Companies, feature a wide array of home styles from single-family to multi-family in suburban and urban locations. Emerald Homes offers luxury buyers a personalized approach to the luxury homebuying process. The commitment to luxury and detail makes each home extraordinary - it's the Emerald Homes' difference. Express Homes is one of the nation's leading homebuilders of homes targeting first-time homebuyers. Express Homes is sure to have a home that suits your lifestyle and budget. For more information, visit www.DRHorton.com/BayArea, or see the advertisement in this supplement.D. R. Horton is an Equal Opportunity Homebuilder.
D. R. Horton, America's Builder, offers new homes in many of the most sought-after Bay Area locations, priced from the mid-$500,000s
Emerald Homes offers luxury buyers a personalized approach to the luxury homebuying process. The commitment to luxury and detail makes each home extraordinary - it's the Emerald Homes'
Presented by Emerald Homes, a D. R. Horton Company, Bellevue in the Oakland Hills offers luxury homes from the $2.1 million
difference
Great new homes in Fremont's famed Mission District
A
fter a successful first release, Darrow Farm begins the grand opening of phase two homes in Fremont's Mission San Jose District. Conveniently located for an easy commute to Silicon Valley and a short walk to nationally competitive and top-performing neighborhood schools, Darrow Farm is a private enclave of 24 handcrafted homes. This one of a kind neighborhood features thoughtfully-designed, highly functional floor plans, custom home amenities, and a unique streetscape with architectural details that define a superior home. Set on a private, single street cul-de-sac, these Bungalow and Arts & Crafts style homes are impressive from the inside and out. Visitors to Darrow Farm will notice the distinctive architecture, as the exterior details create a beautiful and nostalgic street scene. Darrow Farm offers five floor plans with up to four bedrooms and four and one half baths. The generous living spaces were built for versatility, and feature abundant high-quality standard amenities such as real Richard Marshall速 hardwood flooring, custom crafted cabinetry with built-in effi-
ciency, and energy-saving LED lighting throughout. Prices start from $1,600,000 and, given that phase one is nearly sold out, prospec-
tive homebuyers are encouraged to register with the Darrow Farm sales team online at DarrowFarm.com. The sales team can also be reached directly at 510-508-3247. Visit
us today to tour our newly opened model home located at 42425 Mission Boulevard, Fremont, CA 94539. Our Sales Office is open daily 10:00 AM to 5:00 PM.
www.indiapost.com
India Post April 1, 2016
32
Discover New Move-In Ready Homes from Brookfield Residential at Jordan Ranch! DUBLIN, CA: There's no better time to discover your ultimate address in Dublinand there's no better place to start than Jordan Ranch. At Capri and Trio, Brookfield Residential invites you to experience the sought-after Jordan Ranch lifestyle with stunning new single-family homes and townhomes designed for you. With breathtaking parks, great schools, a family-friendly atmosphere and incredible features, no matter what neighborhood you choose, you'll find the perfect place to call home. Move-in ready homes are now available, so visit Capri or Trio today to see why there's no place like Jordan Ranch in Dublin. Where life truly comes together, new homes at Capri evoke a sense of peaceful comfort. Three two-story spacious floor plans range in size from 1,984 to 2,174 square feet and offer up to five bedrooms and three baths, presenting distinctive style and beautiful craftsmanship. Designed with premium appointments, large front porches and two-car garages with alley access, these new residences embrace family living within an established, connected community. Pricing at Capri starts from the mid $900,000s. Surrounded by captivating green hillsides, Trio's striking new townhomes are destined to please. Three-level floor plans offer from 1,883 to 2,447 square feet with up to four bedrooms and four baths, featuring new farmhouse and rural contempo-
rary architectural styles. Designed with modern sensibilities in mind, premium appointments and two-car garages, these new residences also provide flexible use of space for family living. Pricing at Trio starts
addition, each home will include a luxurious master suite, gracious living areas and energy-efficient features, from a tankless water heater to a 14 SEER dual-zone air conditioning and forced-air heating unit.
from the mid $700,000s. Residents of both communities enjoy gourmet kitchens boasting stainless steel BoschÂŽ appliances, elegant quartz countertops and convenient islands. In
Just walking distance to top-of-the-line Fallon Sports Park, Capri and Trio are conveniently situated within a family-friendly Dublin community close to 19 neighborhood parks, entertainment, area amenities
and grand open space. Plus, a location within the award-winning Dublin Unified School District provides ample educational opportunities for growing families. The sales office for Capri is located at 4293 Sunset View Drive, Dublin, California 94568, and the sales office for Trio is located at 4239 Sunset View Drive, Dublin, California 94568. Office hours are from 10:00 am to 6:00 pm. For more information, visit BrookfieldNorCal.com or call (925) 248-5094 for Capri and (925) 556-3137 for Trio. Brookfield Residential Northern California is a premier lifestyle provider comprised of a dedicated, knowledgeable team of professionals with the passion and experience to craft exceptional new homes, neighborhoods and communities. From the goals of first-time buyers to the prestige of luxury homes, we are proud to offer opportunities that embrace a diversity of aspirations. Respected as an awardwinning innovator, we are recognized for delivering consistent quality, design details and an outstanding customer experience. Please visit BrookfieldNorCal.com for more information.
Few Homes Remain at Viewpoint in Mountain View
D
ividend Homes is pleased to offer this beautiful collection of Spanishstyle townhomes in an unbeatable location, just 1.5 miles from Downtown Mountain View and Caltrain. This is your chance to act now to own a brand new home at an extraordinary value in the heart of Silicon Valley. These homes are in high demand and it's no surprise with such a unique combination of location, design and price that come together so beautifully. Viewpoint is comprised of 2 and 3 bedroom townhomes - all equipped with impressive modern interiors and the latest high-end features. Dividend Homes takes pride in offering upscale interior finishes as standard that are a step above the rest. The spacious floor plans come included with air conditioning, stainless steel refrigerator, washer and dryer, GE Monogram kitchen appliances, hardwood cabinetry, quartz countertops in the kitchens with a tile backsplash, marble in the master bath-
rooms, central vacuum system, and hardwood flooring throughout the entire second floor!
This tree-lined community is located close to everything: schools, shopping, dining, entertainment and more. Just blocks
This desirable new neighborhood provides Bay Area living with endless comfort and convenience.
from the Google campus and conveniently close to other major employers in the area. Commuters are granted easy access to high-
ways 101, 85, 237, and Central Expressway. Family and friends can enjoy each other's company inside as well as outside. Take in the fresh breeze from your patio or balcony, or go for a short stroll to Downtown Mountain View‌or stay in for dinner with family and friends in the comfort of your stunning gourmet kitchen. You gain much more than just a brand new house when you buy at Viewpoint, you gain a place you are proud to call home. The time for renting or settling for less is gone. Because these homes are in such a wonderful area of Mountain View, and have such a great style, they are in big demand but limited supply. Viewpoint offers buyers exquisitely designed homes built with exceptional quality craftsmanship priced from $1,090,000. Few homes available- hurry in to select the home that best fits your style and needs before it's too late! For more information about Viewpoint, please contact our Sales Manager, MJ Frankel, at (650) 625-8018 or by email at MJ@DividendHomes.com. Or visit the website at: www.ViewpointTownhomes.com. The Sales Office is located at 104 Evandale Avenue in Mountain View and is open Friday through Tuesday from 11:00am-5:00pm, except Monday which is 2:00pm-5:00pm. The sales office is closed on Wednesday and Thursday.
www.indiapost.com
India Post April 1, 2016
33