Real Estate Today

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CENTRAL

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Real EstateToday

A SUPPLEMENT OF LEE CENTRAL COAST NEWSPAPERS

NOVEMBER/DECEMBER 2016

Featured Stories: 5 reasons to get pre-approved when credit is bad . . . . . . . . . . . 2 Are you playing rate-lock roulette? . . . . . . . . . . . . . . . . . . . . . . . . 10 Smart ways to use a reverse mortgage . . . . . . . . . . . . . . . . . . . . . 4 Paying more than due helps mortgage approval . . . . . . . . . . . 11 How to view lender referrals from agents, builders . . . . . . . . . . 6 The art of your deal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 3 tips to win the race for a new home . . . . . . . . . . . . . . . . . . . . . . 8 6 smart ways to save for a starter home. . . . . . . . . . . . . . . . . . . . 13


5 Reasons to Get Pre-Approved When Credit Is Bad For those with credit issues, preapproval is more important than a prequalification Erik J. Martin

A2 | Friday, November 18, 2016 | Lee Central Coast Newspapers

CTW FEAT U RES‌

‌Dreaming of buying a home but have less-than-perfect credit? Scoring that house you’ve been eyeing could possibly be easier than you expect – even with a relatively low FICO score. All it takes it getting your financial house and paperwork in order, which includes getting preapproved for a mortgage loan. Consider that the average FICO score (which is the credit score most lenders scrutinize to evaluate your credit risk) for an approved mortgage dropped from 737 in July 2013 to 723 in April 2016, according to the latest data provided by Ellie Mae. In fact, in April a surprising 31 percent of home purchases and 56 percent of Federal Housing Administration (FHA) loans, respectively, had a FICO score between 600 and 699, per Ellie Mae. With many mortgage lenders typically preferring a FICO score of 720 and above, these latest numbers indicate that prospective borrowers with imperfect credit may have a better chance today of securing a mortgage loan than in recent years. Arizona State University real estate professor, Mark Stapp, says that as competition for business from borrowers has picked up, more lenders have looked for ways to secure increasing demand for mortgages. “There are many more non-bank lenders in the market today. Therefore, accepting lower scores is becoming more common,” Stapp says. Randi Krasnoff, senior mortgage consultant with The American Eagle Mortgage Co. in Atlanta, says most of the credit scores she sees nowadays from loan applicants are closer to 640. “The good news is that governmentbacked loans allow for less-than-perfect credit scores,” Krasnoff says. In fact, a credit score as low as 580 can qualify for the FHA’s 3.5 percent down payment loan, and the U.S. Department of Veterans Affairs’ (VA) no-down-payment loan, which provides up to 100 percent financing for qualified veterans, requires a minimum credit score of only 580. Meanwhile, Fannie Mae’s HomeReady 3 percent

down payment mortgage requires a minimum credit score of only 620, and Freddie Mac’s Home Possible Advantage loan offers 97-percent loan-to-value financing with only a minimum 660 credit score required. If you have a below-average credit score, however, it’s especially important to get preapproved, which is different than a prequalification. The latter is based upon a credit review plus verbal information provided from a potential borrower to a loan officer. The former is given when the borrower submits income and asset documents to the loan officer, which are analyzed carefully. “Prequalification is a conversation with a lender that doesn’t hold much weight when trying to make an offer on a home,” says Staci Titsworth, regional manager for PNC Mortgage in Pittsburgh. “Preapproval is a formal credit approval from an underwriter where the file has been supported by income, credit and asset documentation. Sellers and Realtors want to see that the customer has been preapproved before

taking a home off the market.” Here are five reasons why you should get preapproved if you have a belowaverage credit score: 1. You’ll have better peace of mind Preapproval put you on a fast track toward securing the mortgage loan you need. “Uncertainty is stressful, and preapproval helps resolve uncertainty,” Stapp says. 2. The seller will have better peace of mind Your lender can issue a preapproval letter that you can present to a seller to indicate that you are a worthy candidate to purchase a home. 3. You might get a leg up on the competition If you are bidding on a home against someone who hasn’t been preapproved, you could have an advantage. 4. You can make a more informed buying decision “Preapproval helps a buyer to budget and understand how much of their income will go to the house payment and other debt obligations,” Titsworth says. “This helps them in advance so

they don’t fall in love with a home they potentially cannot afford.” 5. You can correct deficiencies quicker “If you have blemishes on your credit, the preapproval process helps you identify and resolve them,” Stapp says. To improve your chances of getting preapproved and securing a mortgage, be prepared to go the extra mile. “You have to pay your bills on time, clean up any old delinquencies or erroneously reported credit information listed on your credit report, work to obtain new fresh credit and pay off your account balances every month. This is what shows a lender that you are creditworthy and can manage your debt properly,” says Ed Hoffman, president of Moreno Valley, California-based Wholesale Capital Corporation. “Also, you need to consult with a knowledgeable mortgage professional long before you plan on buying. This person can go over your existing credit with you and give insight as to how to improve your scores.” © CTW Features


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WOW!!! DON’T BLINK OR IT WILL BE GONE! GONE! GONE! Very nice 3 bedroom plus bonus room, 2 bath, living room has vaulted ceilings & fireplace, features include new kitchen cabinets, granite counters and stainless steel appliances; new interior & exterior paint & smooth textured walls; new roof & more! Wont Last! $349,000. Call Louie Real at 478-9328.

BEAUTIFULLY REMODELED IN ORCUTT! Super nice move in ready 3 bedroom, 2 bath, open & spacious features brand new gourmet kitchen with custom cabinets, center island, granite counters and top of the line stainless steal appliances, nice slate tile fireplace in living room, gorgeous wood laminate floors, new interior & exterior paint & so much more! Huge lot backs up to open space for added privacy! Near award winning Pine Grove Elementary & shopping. $374,900. Call Era Polly at 878-2490.

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EASY LIVING IN VILLAGE GREEN! Super spacious 2 bedroom plus loft, 2 bath, living room has fireplace, vaulted ceilings, two patios, new carpet, flooring in bathrooms & paint, tile floors in kitchen, 2 car detached garage. HOA includes swimming pool. Conveniently located close to shopping, restaurants & more! $215,000. Call Era Polly at 878-2490.

MOVE IN READY IN ORCUTT BLUFFS! Super nice 2 bedrooms, 2 baths, single story, 1 car garage, has new kitchen cabinets & counters, new top of the line appliances, new tile flooring & carpet, new LED lighting, refrigerator, washer & dryer included. HOA includes pool. $204,900. Call Louie Real at 478-9328.

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Lee Central Coast Newspapers |  Friday, November 18, 2016 | A3

From our homes to yours, Wishing you and those dear to you a happy and blessed Thanksgiving! May your heart be filled with gladness and your home be filled with joy!


Smart Ways to Use a Reverse Mortgage Reverse mortgages are inching back as a possible option for careful borrowers. by Erik J. Martin

A4 | Friday, November 18, 2016 | Lee Central Coast Newspapers

CONTENT THAT WORKS‌

‌Heading into your retirement years and looking to delay tapping into Social Security, increase monthly cash flow, and diversify your retirement funds with an extra source of money? You may want to move your real estate gearshift into reverse – a reverse mortgage, that is, which can be a financial salve to homeowners 62 and up who consider their options carefully. A reverse mortgage is a loan that provides homeowners an advance payment on their property’s equity and delays repayment until the homeowner moves, sells the home or dies. It fell out of favor following the housing boom, when a relatively high rate of borrowers defaulted after draining the equity in their homes. Since 2013, however, the government has enacted rules intended to protect borrowers and promote the federally insured Home Equity Conversion Mortgage (HECM) program as a financing option. Under the guidelines, borrowers in most cases may not withdraw more than 60 percent of available funds the first year, so they do not spend too much, too soon. The borrower’s income, expenses and credit history are analyzed to ensure he or she is a worthy candidate and is able and willing to pay property taxes and home insurance. Non-borrowing spouses younger than 62 may remain in the home after the death of the borrowing spouse. Financial advisors are more willing to consider reverse mortgages as a strategic tool for retirement income planning in certain circumstances. “They can be a saving grace for many retirees since the average American has about twice as much wealth in their

homes as in their other retirement savings,” says Jamie Hopkins, professor of retirement income at The American College of Financial Services, Bryn Mawr, Pennsylvania. Among the uses Hopkins points out: ‌Providing a steady stream of income after retirement and up to age 70, allowing Social Security payments to be deferred until they reach their maximum level ‌Providing diversification as a non-market-correlated asset that generates income when market investments decline ‌Improving retirement cash

flow by allowing a traditional mortgage to be paid off, curtailing a retiree’s monthly outflow of cash Here are three reverse-mortgage strategies that financial advisors may suggest:

1. Take a Lump Sun‌

Borrowing enough money to pay off the existing mortgage on a home is a common use of a reverse mortgage. “You can eliminate your monthly mortgage payments and have

additional cash flow,” says Joseph P. DeMarkey, strategic business development leader for Reverse Mortgage Funding, Bloomfield, New Jersey. For a homeowner who can handle the ongoing costs of a home and is likely to be able to live comfortably in the space as they age, this may be a reasonable option.

2. Open a Line of Credit‌

Using an HECM loan to open a line of credit to hold in reserve, in the event of future need, is another option.

Borrowers can choose when to withdraw funds to protect their savings and income during stock market fluctuations. For example, in a bear market, when a retirement investment portfolio is down, the homeowner may borrow from the line of credit as needed. There is no need to sell investments at low prices and diminish the retirement portfolio’s power to grow in the future. When investments rebound, stock proceeds can be used to pay off the line of credit, so the full amount is again available in the future. Any unused line of credit grows over time. “The line of credit cannot be reduced or frozen by the lender so long as the borrower meets the loan obligations, like keeping current with property taxes, insurance and maintenance,” DeMarkey says. Regardless of which option you select, always remember that a reverse mortgage comes with risks, including the fact that interest compounds on the debt. Remember, you are paying someone else to get access to your home equity. Closing fees and expenses vary depending on the type of reverse mortgage you choose. Shop for the best deal and pay attention to the total cost. Lock down your plan for paying property taxes and insurance premiums, which are required. If you default on these payments, the lender can foreclose on the reverse mortgage and you could be forced to move. As with any loan, a reverse mortgage eventually needs to be paid back. Normally, this is deferred until the death of the last remaining borrower. Any remaining equity in the home after a sale remains with the homeowner or estate. To learn more about reverse mortgages, search for and download the guide, “Considering a Reverse Mortgage?” from the Consumer Financial Protection Bureau, consumerfinance.gov. © Content That Works


PISMO BEACH

Cypress Ridge Golf Course Blacklake Golf Resort NIPOMO Monarch Dunes Golf Course

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W. Main St

SANTA MARIA

166

Main St

Broadway

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S. Blosser Rd

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Black Rd

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135

101

HWY

1

Rancho Maria Golf Course Map not to scale

ORCUTT TO SANTA BARBARA

Lee Central Coast Newspapers |  Friday, November 18, 2016 | A5

Oceano Dunes Recreation Area


How To View Lender Referrals From Agents, Builders by Marilyn Kennedy Melia Co n te nt Th at Work s‌

‌Input “mortgage” in a search engine and you’ll instantly be swamped with pop-up rate offers from online lenders. Those interest rates and attendant fees are important, of course, and will determine your housing cost in the months and years ahead. But first you actually have to find and purchase a home. Asking for recommendations about a mortgage lender locally, from your real estate agent or builder, will likely yield references to individuals with experience and responsiveness in making a purchase possible, says Ray Rodriguez, sales manager for TD Bank. The No. 1 reason builders recommend buyers a particular lender, the bank found in a survey: the lender is likely to provide quick response time to meet a buyer’s needs. Most builders (62 percent) said they recommend two to four trustworthy lenders to buyers;

1557 Canyon Creek Road, OrcuttBeautiful Orcutt home with a view 4 bedroom/ 3bath home with approx. 2,373 sq ft. Sunny and open floor plan, entertaining backyard with oversized pergola. Park with Play equipment and greenbelt. Close to hiking trails.$499,000. Call Sue to view 478-5728.

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A6 | Friday, November 18, 2016 | Lee Central Coast Newspapers

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of real estate agents, too, says Rodriguez. “Borrowers have three days to review closing documents,” he says. “If you want to close within 30 days,

1424 Marsala Ave, Santa Maria4 bedroom/ 3 bath home. Upgraded with crown molding, plantation shutters throughout, additional patio area. Open floor plan, Kitchen opens to Family room, fireplace with gas logs. Formal dining, Indoor laundry room with cabinets and sink, Master bedroom with slider to back patio. Approx 2,354 sq ft. $419,000. Call Sue to view 478-5728.

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nearly one-third (30 percent) recommended only their primary loan officer. Responsiveness in a lender is an important quality in the eyes

everything has to line up right.” A lender’s strong local track record and a good reputation with other agents are important factors in winning an agent’s

trust, says Dave Edmondson, Century 21 Meridian Realty, Fayetteville, Georgia. Good real estate agents rely on loan officers who work professionally and meet deadlines, and they are generally happy to provide references to them. Federal RESPA laws prohibit agents from giving or accepting a fee or anything of value in exchange for referrals. Remember to leverage existing relationships. Ask for mortgage rates and offers from the bank or credit union you already use. Ask family and friends for references to loan officers or mortgage brokers they worked with and respected. It’s imperative to compare rates and terms from several lenders. Probe your agent about whether the firm will deliver what’s needed, which can include not just speed, but special loan programs for firsttime buyers and other situations. © Content That Works

Whether Buying or Selling ... Call Me I Am Here To Help.

1289 La Loma, Nipomo“Country Living at it’s Best” 4 bedroom/ 3 bath home with 3 car garage located on beautifully maintained 1 acre lot. Tile roof, sunny and open floor plan. Living room with wood floors, stone fireplace with raised hearth. Kitchen with oversized eating area and private patio off kitchen. $664,000. Call Sue to view 478-5728.

It Will Be The Best MOVE You’ll Ever Make

1701 S. Thornburg #53, Santa MariaAffordable living on the Central Coast 3 bedrooms/ 2 baths, Spacious living room, dining room with built-in hutch Cooks delight kitchen with pantry Pool, spa and clubhouse. La Maria Senior park $39,000. Call Sue to view 478-5728

Over 25 Years Experience

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Call Sue at (805) 478-5728 Sue Lixey, Realtor BRE# 01082974

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Beautifully maintained home w/ a corner location. Sunroom w/ skylights & numerous sliding glass doors add to this spacious 3BR home. Fireplace w/ gas insert & backyard w/ fruit trees & patio. Garage is attached w/ plenty of storage.

Circle L Ranch is a lovely 5 acre Ranchette nestled in the Santa Ynez Valley. Exquisite detailing in this 3,126 (approx.) square ft. home. Custom made doors & stone work thru out the house. Home had an extreme makeover in 2004. Water cascading pool & pizza oven. 6 stall barn w/ 4 turn outs, shed row barn, pastures for horses or grapes & arena.

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Panoramic views From this secluded 3 Northwest Lompoc home on corner lot. BR 2 BA hill top ranch. Located in the A large backyard for all those family Santa Rita Hills AVA, this 8.6 acre get-togethers. The garage door, ranch is plantable to premium grapes dual-paned windows, heating unit w/ & has been developed into a series of heat exchanger & new ducts, gas line irrigated terraces.Stone floor to to meter, hot water heater, & shower ceiling fireplace.Fruit tree orchard. door have all been replaced. Ceiling Greenhouse & 1 bedroom guest home. fans installed in 2011. Exterior painted in 2011. Interior just painted. FRANCINE SILVA 805.735.3481 JIM BOWEN 805.735.3481

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Great location for this 4 BR 3 BA Glen Ellen 2 story home on a corner lot! Beautifully decorated home w/ pride of ownership. Easy access to Central Avenue & direct drive to VAFB. Call your favorite real estate agent for your private viewing. FRANCINE SILVA

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Nearly new home in Cul-de-Sac location w/ open floor plan. 3 BR/2 BA, 1840 square ft. Features beautiful gourmet kitchen w/ granite counters & stainless steel appliances. Master BR has walk-in closet & separate door leading to rear yard & Master BA. Covered patio, fire pit, fruit trees. Artificial grass in front & rear yard.

BIG price reduction! Great home in Orcutt Village Hills! 3 BR 2 BA w/ 3 car garage! Nice, open floor plan, large back yard w/ BBQ & plenty of space for garden or other projects. Nice patio and covered area. Avocado & various fruit trees.

This charming little Orcutt home has had some upgrades w/in the last couple of years but also needs some TLC, so we are looking for a cash/conventional offer. Newer windows, carpet & laminate wood flooring thru out are some of the nicer features.

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Lanes End 2 story, 3 BR 3 BA home is a sight to behold. Filtered views of the foothills can be seen from the front porch. Upgraded thru out. Upstairs, you will find a luxurious Master Suite, 2 additional bedrooms & a loft office space. PAMELA GRANT & JESSE CROWDER 805.735.3481

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Peaceful & quiet location on 1+ acre. Country feel yet close to town. Private, well maintained road. Master BA has been removed & ready for remodel. Newer roof. Older barn & aviary & lots of fruit trees. Horses allowed. Unique stone work. Flowerbeds waiting to be replanted & your own wishing well. SHEELAGH THOMAS

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Lee Central Coast Newspapers |  Friday, November 18, 2016 | A7

SOUTH COUNTY OFFICE


3 Tips to Win the Race for a New Home In a seller’s market, success in home buying favors the focused, prepared buyer. by Marilyn Kennedy Melia CO N TE NT T H AT WORK S‌

A8 | Friday, November 18, 2016 | Lee Central Coast Newspapers

‌This year home shopping may feel like hitting a hill at the end of a marathon with a pack of runners closing in on you from behind. Scraping together a down payment and winning mortgage approval are just the first steps in today’s more rigorous path to ownership. In March, there were one percent fewer homes on the market than in March 2015, yet sales are higher. “Inventory is moving more quickly,” says Jonathan Smoke, chief economist at realtor.com. A one percent decline in houses to choose from may not sound like much, but

there’s a larger percentage of higher-priced homes in the mix, so the shortage is more pronounced on the lower price end. Tight supply of entry-level housing is a lingering effect from the last housing downturn, says Daren Bloomquist of data firm RealtyTrac, Irvine, California. Many owners who otherwise would be selling and moving up are still struggling with big mortgages. “If a home in the $250,000 to $300,000 range goes on sale in the Dallas/Fort Worth market, we’ll see five to fifteen offers in a two- or three-day period,” says Jim Fite, broker and owner of Century 21 Judge Fite Co., Dallas. Not all areas of the country suffer shortages, but supply in many markets mirrors the Dallas/Fort Worth area. Obviously, though, with homes selling quickly, some buyers have found a way to beat the competition.

1. GET READY, GET SET‌

“Buyers and their agents must be as organized and committed as if they were planning the invasion of Normandy,” says John Pinto, Realty World-John V. Pinto & Associates, San Jose, California. Agents can set up messages to alert buyers the moment that properties meeting their criteria land on the MLS. Buyers ready to visit the property as soon as sellers allow a tour are able to submit a purchase contract that could be accepted before other contracts come in, Pinto says. Being first may not cinch the deal if better offers roll in quickly. “The greatest struggle for first-time homebuyers is outbidding investors who are paying a premium for real estate,” says Fite.

2. SHOW FINANCIAL STRENGTH‌ Price is key to a winning

Wishing you all the hope, Wonder, and Joy that the season can bring! From My Family to Yours,

happy thanksgiving - Jeannie bassett-lambert realtor bre#01360443 805-714-6444.

offer but it’s also important for a buyer to inspire confidence that he’s good for the offered price. Pre-approval, a written statement from a lender that states that the borrower qualifies for a certain loan amount under the lender’s guidelines, is often insufficient in a competitive market. A pre-approval letter is not an offer or a commitment to make a loan. Instead, buyers might consider going a step further and submitting all the paperwork required for an actual loan. “It’s called preunderwriting,” says Gibran Nicholas, chief executive officer of CMPS Institute, an Alpharetta, Georgia organization that certifies bankers and brokers. “You’ll always have some types of contingencies in a contract, like for the appraisal,” says Pinto. But backing the price offer with a robust lender’s review helps,

he agrees.

3. PREPARE TO UP YOUR GAME‌

In a seller’s market, the list price is often viewed just as a starting point, says Rob McGarty, Surefield, Seattle. In fact, many purchase contracts include an escalator clause that indicates that if a competing offer comes in, a buyer is prepared to beat that price up to a specified limit. Sometimes sellers will set a list price so high, however, that it stays on the market for a couple of weeks. That’s how Andres Ortiz bought his home in the competitive northern Seattle market. Having carefully studied prices for other homes in the location, Ortiz and his agent had confidence that the price they offered was right in line with the market. “The seller even agreed to make some small repairs,” says McGarty. © Content That Works

Jeannie Bassett-Lambert has been a licensed Realtor for the past 16 years. Jeannie started her career with Century 21. She was a multiple award winner during her time with Century 21. Jeannie joined Keller Williams Realty Coastal Valley in December 2014 to broaden her real estate opportunities. Prior to working for Century 21 Real Estate Jeannie worked in new home sales with Pro-Built Homes and Inland Pacific Builders in Santa Maria as a sales agent. Jeannie has been trained by some of the best professionals in the region. Jeannie works to please both her buyers and sellers in every transaction from the first initial contact all the way through past closing. Jeannie goes the extra mile in everything she does. Jeannie has worked through both up and down markets, Short Sales and Foreclosures. Jeannie focuses her work in the Santa Maria and Orcutt area working with buyers and sellers. Jeannie is a NATIVE of Santa Maria/Orcutt and knows the Central Coast area well. Jeannie is very devoted to her family, husband, 2 daughters and 4 grandchildren. You will sometimes find her with a grandchild in hand working alongside her. There are 5 words describing Jeannie and that is GENUINE, COMMITTED, PASSINATE, LOYAL AND FUN!!!

Jeannie Bassett-Lambert, Realtor BRE#01360443 (805) 714-6444 jeannieblambert@gmail.com


2540 Professional Parkway Santa Maria Cal BRE #01103054

3 Bed 3 Bath ­ Lompoc ­ $770,000 Luxurious 3,500 sqft home on quiet cul­de­sac in foothills. Master offers 2 walk­in closets, steam room, & soaker tub. Solar panels purchased w/ warranty. MLS#1070691 Les Grim

(805) 934­1000 N PE D IN G

2 Bed 2 Bath­ Cambria ­ $477,000

2 Bed 2 Bath ­ Santa Maria ­ $119,900 Well­designed floor plan w/ a screened in patio room. Master has walk­in closet, garden tub, and shower. Vaulted ceilings provide a feeling of spaciousness. MLS#1070519 Craig & Sue Noble

4 Bed 3 Bath ­ Santa Maria ­ $549,900

2 Bed 2 Bath ­ Grover Beach ­ $99,000

Very comfortable home located in a cul­de­sac. Freshly painted, new carpet & move­in ready. Near Patterson Rd. School, shopping, parks & NO HOA. MLS#1069077 Carol Siri

2 bedroom 1 3/4 bath mobile home with a 2 car carport. Very nice doublewide, large front porch, walk to the beach & shopping center. MLS#1072077 Eddie Robles

3 Bed 2 Bath ­ Solvang ­ $859,900

3 Bed 4 Bath ­ Santa Maria ­ $650,000

Pristine home located in one of Solvang's most desired neighborhoods. Large master suite w/ sitting area & soaking tub. Ceasarstone countertop kitchen. MLS#1067189 Jodi Williams

Two story home situated on cul­d­sac lot in Hancock Park. Ample space for entertaining & 2 private decks provide delightful views of the Coastal Foothills. MLS#1070846 Sue & Craig Noble

Call Us Today or go to www.cbpremieronline.com

Lee Central Coast Newspapers |  Friday, November 18, 2016 | A9

Gorgeous tri­level home in Cambria Pines Manor w/ lovely forest views! Large family room w/ balcony, spacious walk in closet. Close to beach & trails. MLS#1072385 George Murphy


Are You Playing Rate-Lock Roulette? Mortgage interest rates could go lower. Or not. Why waiting to see is a risky business by Erik J. Martin CO N T E N T T H AT WO R K S‌

‌Many folks pride themselves on perfect timing in business and personal matters. But waiting to see if mortgage interest rates decline before locking in a rate can be a dangerous game. Attempting to perfectly time a mortgage rate lock can lead to frustration and regret. Fixed rates on mortgage loans are tantalizingly close to historic lows: 30-year conventional rates have ranged from about 3.5 percent to 3.9 percent in the first half of 2016, not very far from the all-time low of 3.31 percent reached in 2012. Since early January, rates

have declined 30 basis points, to approximately 3.74 percent at the time of this writing. Could the rate dip lower in the coming weeks and months? Yes. It is equally possible rates will increase. Jobs reports, stock market trends, home sales, Federal Reserve policy decisions, gross domestic product, unforeseen foreign events and even the upcoming presidential election can all have an impact. “Interest rates remain near historical lows partly because the economy is not so strong and also because the Federal Reserve is still buying $25 billion or so worth of mortgagebacked securities every month, which can keep rates low,” says Casey Fleming, mortgage advisor in San Jose, California and self-published author of “The Loan Guide: How To Get the Best Possible Mortgage.” Rates follow fairly predictable patterns in response to

routine economic reports, Fleming points out. “However, unexpected news that drives the market, such as when Japan sold off billions in U. S. Treasury bonds in 1993, can throw a huge curveball at rates.” Most buyers wait until they have found a home to purchase, or have even signed a purchase agreement, before locking in a rate. The earliest a borrower can lock in a rate is just after the loan has been approved. Most lenders allow you to lock in a given interest rate for a protected period of 30 to 90 days. The longer the rate lock, the higher the interest rate, although the rate differential could be as small as one eighth of a percentage point. Note that if your rate lock is due to expire before you close and your lender refuses to extend the rate lock, you may be forced to pay the current market rate, which could be higher than what you locked in.

2260 Central Park Dr., Santa Maria

Located in Regency Estates Gated Community and surrounded by Parks and Walking Trails. This 2 bedroom 2 bath homes features laminate floors, new interior paint, finished garage and optional pool and clubhouse. Listed at $275,000

A10 | Friday, November 18, 2016 | Lee Central Coast Newspapers

1519 Canyon Dr, Santa Maria 3 bedroom 2 bath plus office space, built in 2005 with plenty of room for entertaining with the 1943 sq ft single level floor plan. Listed at $369,000

753 Rain Tree Dr, Orcutt New Homes, Located in Sunrise Hills, 6 newly constructed single level homes, wood floors, soft close cabinets, tankless water heater quartz counter tops and much more. Approximately 1950 sq ft. 4 bedroom, 2 bath. List Price $499,000

129 E Park Ave, Santa Maria Carriage District 4 bedroom 2 bath beauty with lots of charm! Listed at $ 375,000.

4615 Quarterhorse Trail - Orcutt

Beautiful Orcutt Estates Custom 4 Bedroom, 4 bath 4243 sq ft home on almost an acre. Open Kitchen and Family Room, large Office, 4 car garage, bonus room/craft room, custom BBQ Area and Outdoor Fireplace areas, Views and so much more! $1,175,000

Paul Rodriguez, Real Estate Consultant bre# 01416809

d: 805.310.5115 | c: 805.478.5504 paul@paulrodriguezhomes.com www.PaulRodriguezHomes.com

Contact Me to Start Using My Free Home Search App!

As a safeguard, you may be able to take advantage of a “float down” provision, offered by some lenders. This allows you to lock in at an even lower rate should rates go down during your lock period, or you may be offered the option to rewrite your rate lock to a lower rate for an additional fee. Trying to wait for the interest rate market to bottom out is a loser’s game that can cost borrowers dearly. “The market can get away from you, and you can regret not pulling the trigger,” says Robert Johnson, president/ CEO of The American College of Financial Services, Bryn Mawr, Pennsylvania. “Research shows that financial losses have twice the psychological impact on investors than financial gains, he says. “People who had the chance to take out a loan at a much lower interest rate view that as a loss and will continue to

beat themselves up about it,” Johnson says. Brian Koss, executive vice president of Mortgage Network in Danvers, Mass., says if you’ve done the math to see what you can afford and can calculate a comfortable monthly payment, you should lock in now. “Fortunes have been made and lost trying to figure out the direction of interest rates by people who’ve dedicated their lives to that pursuit. The average person should relieve themselves of any responsibility of knowing what rates will do,” says Koss. “If the rate and the terms of the loan make sense, lock them in.” For better peace of mind, Fleming recommends consulting with your lender. “Make sure your mortgage advisor not only gives advice on when to lock but also clearly explains why,” he says. © Content That Works

PAUL RODRIGUEZ TEAM We are Local Real Estate Consultants Assisting Buyer’s and Seller’s with all of their Real Estate Needs since 2004. We Specialize in Residential Real Estate and Investment Properties. We are connected to great Lending Companies, Title/ Escrow Companies and Servicing Companies that we Trust and Use Daily. Contact us if you have questions about Selling your Home, or if you are in the market to Buy a home. 805-478-5504 / 805-714-7820


Extra Credit: Paying More Than Due Helps Mortgage Approval Marilyn Kennedy Melia C O N T E N T T H AT WO R K S‌

‌Knocking off more credit card debt every month may now be a better deal for anyone looking to buy a home. Fannie Mae, the government-sponsored enterprise that buys mortgages and sets rules on how to assess the risk of loan applicants, is rolling out revised underwriting software that rewards those who make more than the minimum required payments over time. The use of what’s called “trended credit data,” now slated to go live this fall, is likely to help first-time

homebuyers and even those with no credit scores get a mortgage. “This change will help,” says Mindy Armstrong, product manager for Fannie Mae, and will not penalize mortgage applicants who only pay the minimum monthly amount on credit card debt. Until now, when evaluating a potential borrower’s standard credit report, the automated process took into account only how much you owe, who you owe it to and if you make payments on time. The revised software relies on trended credit data, pulling payment records from the last 24 months to determine

not only if you pay on time but how much you pay toward your credit card balances. The data helps determine what type of risk a borrower is likely to represent for a lender. The Fannie Mae program doesn’t prescribe a certain amount over the required minimum that must be paid or how long or consistently the bigger payments must be made. Rather, a snapshot of a mortgage applicant’s payment habits is what’s captured, explains Armstrong. Traditional factors, such as income, assets and credit score, remain key metrics in determining who gets a loan. © Content That Works

Business: (805) 934-2105

1152 Old Mill Lane - Here’s your opportunity to build that Dream Home that you’ve been thinking about for so long... approx. 10,000 sq.ft. lot, surrounded by newer homes and in an established neighborhood. You’ve probably been looking around and realize that there’s not a lot of buildable lots left so don’t hesitate to long or this one maybe gone also. Drive by today, then call your Realtor and get this started!

1811 S. Broadway, Santa Maria 110 S. Mary, Suite 6, Nipomo

www.C21Home.com Kalua Kuhnle, Manager-Nipomo Office Pamela Hogue, Manager-Santa Maria & Lompoc Office

805.406.4890 Lic #00611325

®

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LD SO

710 N School St, Santa Maria- 3 bedroom 2 bath Bungalow. This home is a corner lot location offering plenty of room to grow. Home has a newer fence, recently painted exterior, some updated plumbing, attached single car garage with custom made automatic door, updated windows and bonus room upstairs that can be turned into possible a walk in closet. Its own laundry room located just outside the kitchen area. This home shows clean and ready for someone with an imagination to make it their own!- $305,000

Yolanda Perez (805) 748-7514 BRE#01741813

Beautifully remodeled home, 1 bedroom, 1 bath, plus detached studio! Move in condition!! New kitchen, New carpet, New dual pane windows, New exterior stucco, New interior & exterior paint, 2 year roof certification, new washer & dryer, new refrigerator, & new landscaping! $239,000!

Trustworthy, Experienced, & Your Best Interest Is #1 Priority! Representing Buyers & Sellers Throughout The Central Coast 25 Years Of Dedicated Service!

Diane Adams 805.570.9099 BRE#01103806

JOE “Paul” Garcia 805•878•3862 Realtor. lic. #00886743

Jopaulcentury21@verizon.net

4310 Foxenwood CirCle - Foxenwood Garden Villas IV. The finest and best built luxury homes on the Central Coast. Don’t miss this one! Two bedrooms and very spacious den/study. Knotty Alder entry door with transom half-moon window above. Upon entry look out into the atrium through the vertical windows with Sold transom windows above.Vaulted ceilings, quality wood flooring in the dining room and living room, extensive 20 inch tile flooring in entry, kitchen, hallway, and laundry room. Viking kitchen appliances, upgraded Kraft Maid cabinetry with crown moldings, raised panel interior doors, Emtek door hardware, Award series dual pane vinyl windows with Low E glass, cultured stone fireplace, tubular skylights, Ipex overhead plumbing and so much more! And seller has added additional upgrades. Cozy sheltered patio, strikingly landscaped and looking out onto the expansive greenbelt. Beautiful club house with kitchen and fireplace. Pool, spa, covered patio and lots of area for socializing and nicely landscaped.- $520,000

Bette Naugle® Broker Associate

805.705.7497 lic #0427203

Lee Central Coast Newspapers |  Friday, November 18, 2016 | A11

BRE# 00874459

Sandi Frazier

681 Doverlee Dr., Orcutt - Beautiful rare Foxenwood home 4B/R 3B/A. This home has it all Wood Plank Floors, Saltillo tile flooring. Also custom cabinetry, professionally remodeled Master Bedroom as well Bathrooms. Appliances in home to stay for new buyer. The backyard has a beautiful parklike atmosphere for the evening barbeques and entertainment. This has got to be one of the friendliest blocks in Foxenwoods where everyone knows each other and is kid friendly. Foxenwoods also has a Clubhouse in which Seller is including membership with six months prepaid dues for new buyer. A must see for your fussiest buyer.


The Art of Your Deal by Erik J. Martin C O N T E N T T H AT WO R K S‌

A12 | Friday, November 18, 2016 | Lee Central Coast Newspapers

‌Imagine you’re a home seller waiting for the transaction to close and you get bad news: the buyer backed out because the expensive shed you built encroaches on your neighbor’s property. Or you’re a buyer forced to forfeit a fat deposit on a dream home after you were unable to secure financing by the deadline specified in the contract. Both situations could have been resolved earlier had you simply hired a property lawyer. Considering that the buying or selling a home is one of the most impactful and complicated of all financial deals, it’s amazing that many people choose to take their chances and not enlist legal assistance in a real estate transaction. Hiring a real estate attorney to head off problems before they happen is far wiser – and economical – than sending out an S.O.S. for

legal help when a transaction goes awry. “It’s so important to enlist the aid of a skilled property attorney today because the real estate landscape has become more complicated due to new regulations,” says Neil B. Garfinkel, Abrams Garfinkel Margolis Bergson, New York City. “Additionally, purchasers and sellers are expected to act very quickly, which can lead to mistakes.” A property attorney acts as a safety net, reviewing purchase and sale agreements, closing documents and other dense paperwork for irregularities and red flags. “The more expensive the home, the more likely it is that complications will arise and the more important it is to have an attorney,” says Israel F. Piedra, an attorney at Nashua, N.H.-based Welts, White & Fontaine, PC. “They bring you peace of mind.” At very least, an attorney serves as a great form of insurance in a process that can

involve challenging deadlines. “They can get the problem corrected, terminate the contract or get the price adjusted to reflect the problem while you still have time before closing,” says Christy Belton, broker with Ranch Marketing Associates in Steamboat Springs, Colorado. A real estate lawyer is particularly valuable for vetting title and lien issues. “A buyer cannot assume he will obtain proper title from a title commitment issued by a title company,” says Blake D. Bringgold, an attorney with McIntyre Thanasides, Tampa, Florida. “Any title and lien issues identified in that title commitment must be resolved prior to closing.” His firm recently helped a client negotiate relocation of an easement on a vacant lot that the client had purchased for a construction project. Although the lot had been surveyed, the client did not have a lawyer review the transaction. “As a result, his

Buying or selling a home is a big lift. Here’s why it’s worth it to hire a real estate attorney construction was delayed, Bringgold says. “The buyer would have incurred less attorney fees if he had engaged us at the beginning.” Having an attorney in your corner is especially important in a for-sale-by-owner transaction. In a standard sale with real estate agents and a closing company, an attorney typically reviews contracts for completeness and accuracy. “In a FSBO transaction, the attorney often drafts all the paperwork and ensures that paperwork reflects the specific circumstances of the sale, which may include seller financing or other aspects,” says Rick Davis, an attorney at Rick Davis Legal, Leawood, Kansas. Real estate lawyers are required at closings in a number of states. Considering how important they are to protecting your legal interests before, during and after a home sale, hiring a property attorney from the start to guide you

through the process is a relatively affordable investment. Most charge by the hour, and the bill is usually a few hundred dollars compared to the 4 percent to 6 percent sales commission that a real estate agent may command. Real estate agents and friends and family members who have satisfactorily hired a property attorney can often provide referrals to good candidates. Look for an attorney experienced in handling real estate transactions on a regular basis and one who is familiar with and practices in your area. Good questions to ask: ‌How many residential property transactions do you handle monthly? ‌What specific processes and procedures do you use to represent buyers and sellers? ‌What will you do for me every step of the way? ‌How quickly can you turn my transaction around? © Content That Works


6 Smart Ways to Save for a Starter Home Money-saving strategies for first-time buyers by Erik J. Martin CO N T E NT T H AT WORK S‌

1. PUT SAVINGS ON AUTO-PILOT‌

Set up a weekly automatic withdrawal from your checking account into the highest-yield savings account you can find. “Set a goal and timeline to ensure that you’re investing the appropriate amount,” says Rodriguez.

2. TRIM LIVING EXPENSES‌

Learn to live on less while you save. “Put some things, like that grand vacation, on the back burner,” says Chantay Bridges, TruLine Realty, Beverly Hills. “Make and keep a budget.”

3. REDUCE HOUSING COSTS‌

Figure out a way to reduce your rental expense with some roommates. Or, consider moving back in with your parents, “saving hundreds or thousands a month that would otherwise go toward rent,” says Brian Koss, Mortgage Network, Danvers, Massachusetts.

4. GET THE LOWDOWN ON LOW DOWN PAYMENTS‌

Investigate low down payment programs, including: ‌Fannie Mae’s HomeReady mortgage ‌Freddie Mac’s Home Possible mortgage ‌FHA’s first-time buyer 3.5 percent down loan

‌No down payment loans from the Department of Veterans Affairs and from USDA ‌Down payment assistance programs offering by many cities, counties and states “People are often surprised that they may qualify for these programs,” says Green, who advises talking with a mortgage professional about these options.

5. PIGGYBACK DOWN PAYMENTS‌

Finance 90 percent of the purchase price and take out two mortgages, TD Bank’s Rodriquez suggests. “The first can be set for 80 percent of the home price. The second, in the form of a home equity line of credit, can be set for 10 percent. This way, you’re only required to put down 10 percent of the home price and you avoid having to pay for private mortgage insurance.”

6. CONSIDER BUY-TO-RENT‌

If you have the time, interest and discipline, you might consider purchasing a starter home and turning it into a leased property or vacation rental. This ambitious step should not be taken lightly – but it is one method to help save up for a bigger/ better home later. “It’s important to consider if you can handle being a landlord and the added responsibilities,” says Rodriguez. Finally, be aware that home ownership involves expenses beyond a down payment and monthly mortgage amount, including taxes, insurance, repair and furnishings. “Buyers really need to understand these costs before submitting an offer,” Green says. © Content That Works

Lee Central Coast Newspapers |  Friday, November 18, 2016 | A13

‌Many people dream of stepping up to home ownership. They’d love to purchase a starter house but worry about breaking the bank. It’s a valid concern, considering the cost of housing, the difficulty of salting away a down payment and then meeting a monthly mortgage. Adopting a few money-saving strategies and sticking with them over time can help turn the dream into a reality quicker. Almost one in five prospective buyers polled are actively looking to buy their first home, with 62 percent (67 percent among millennials) looking to purchase in the next two years, according to TD Bank’s First-Time Home Buyer Pulse survey published last July. Yet, 64 percent and 45 percent of respondents, respectively, listed “needing to save money for a down payment” and “needing to pay down debt” as major barriers. “A majority of firsttime buyers we see entering the market today are millennials, who are beginning to settle down, get married and start families,” says Ray Rodriguez, regional sales manager for TD Bank in New York and New Jersey. “They’re more motivated now because interest rates remain near historic lows and many lenders are offering home affordability and down payment assistance programs.” In addition, many markets offer an increased inventory of available homes, “so there’s a better selection from a buyer’s perspective,” says Marty Green, a real estate attorney with

Polunsky Beitel Green, Dallas. “Also, rents have increased in some parts of the country so that it now costs more to rent than to buy in many markets.” But while would-be buyers may be more motivated, the problem remains: how can they best save for and own a starter home faster? Here are 6 smart moves:


A14 | Friday, November 18, 2016 | Lee Central Coast Newspapers


Lee Central Coast Newspapers |  Friday, November 18, 2016 | A15


“The Top Independent Brokerage on the Central Coast”

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Gorgeous 4000+ sq.ft. home with lots of light, elegantly appointed living room with hard wood floors. Home features plantation shutters, crown molding, dual pane windows and recessed lighting throughout. Updated gourmet style kitchen, family room and wet bar allow for large gatherings. Beautiful backyard oasis including recently refurbish pool and spa. Lake Marie at is finest. $1,059,000

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Hancock Park-three master suites and office located on a cul de sac!This great home has the owner’s suite complete with lots of storage and a fireplace downstairs as well as a secondary suite along with nicely sized office, wet bar, formal living and family rooms, too. One more bedroom and bath are located upstairs for additional privacy-great for long time guests. The backyard $599,900 features drought tolerant turf for the putting green.

T lovely, privately gated home sits perched on the top of a knoll and offers amazing This views of the valley. Four bedrooms and 3 baths downstairs and the living space upstairs, you’ll enjoy the open feel. Recently remodeled kitchen complete with stainless steel double oven and appliances, beautiful granite and travertine as well as a huge pantry, this kitchen is ready for cooking! Newly painted decks surround the home and offer additional entertaining space. This one acre fenced and gated property also features a circle drive, two storage sheds, a dog run, fruit trees and it’s all landscaped. $809,000

ing! RV Park / w s e t ld Esta Deerfie A16 | Friday, November 18, 2016 | Lee Central Coast Newspapers

e Hom

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Exceptional 5,000 square foot Colonial home in the distinctive gated community of Oakhill Estates. Home features 5 bedrooms, 6 baths, and a 3 car garage all on a little over one acre of beautifully manicured grounds! $1,250,000

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This two story home features 4 bedrooms and the master er suite and guest bedroom/bath are downstairs! Enjoy the in ground ound pool, two stall barn and tack room along with an additional large shop/barn with an additional two car garage area and fenced pastures for horses. $775,000

Step back in time in the Historic Carriage District in this amazingly maintained home built in 1929. Over 4,000 sq ft of original features, arched niches, hand forged wrought iron and hand painted tiles. One bedroom and bath are situated downstairs off the oversized living room with Douglas fir beams and railings.The formal dining room has arched glass doors, original hard wood flooring and original light fixtures. Enjoy two entertaining areas - one downstairs and another upstairs complete with wet bar, dining area, fireplace and family room with a sweeping staircase entry. Upstairs you’ll find two master suites, one with its own balcony and mezzanine overlooking the family room. $759,000

www.534pOppy.cOm

Cute, cottage style home on Poppy Lane complete with white picket et fence and window shutters! This neighborhood is popular for or its school district and proximity to stores and shopping. This three bedroom, two bath home offers adorable upgrades. The roomy kitchen is open to the family room - complete with brick fireplace - and french doors lead out to the backyard from the dining area. The two car garage was nicely converted to a family/bonus room with indoor laundry. $374,900

! ential t o P t n opme Devel

Sold

! ward A t i r ric Me Histo

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! isting New L

This 3400+ sq ft., 4 bedroom home offers spacious living on a one acre lot!The oversized front living room radiates natural sunlight, the kitchen features a large island, two ovens, an eat in area and is opentoboththeformaldiningroomandthehugecoveredporch.Upstairsofferstwolargebedrooms and another full bath as well as the master suite. Sit next to the cozy fireplace or enjoy the view on the covered porch in the master suite, complete with soaking tub, large shower, dual sinks and walk in closet. Outside you’ll only hear the birds singing while enjoying the quiet. RV space, two sheds and lots of opportunities! Price is $949,000.

ing Pend

www.4701appalOOsatrail.cOm ThisWestrails home features 4 spacious BRs, 3 BAs, a guest quarters area with separate (downstairs) entrance. There is a large family room, game room, formal dining room, and the gourmet kitchen is complete with island and granite counters… and that’s just downstairs! Upstairs the master suite offers a dumb-waiter, cedar-lined closets, fireplace, remodeled bath & enclosed sun room. All this and so much more on the one acre lot, a 3-car garage, a garden area, horse corral and tack room. $855,999

ing Pend

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This type of property is rare! The one story, four bedroom home features an updated kitchen, great family room and nicely sized bedrooms all on 1.25 acres. The attached granny unit has one bedroom, a kitchenette and a huge walk in closet. $620,000

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Tuckedawayin Tepusquetyou’llfindamovein ready4bedroom,41/2homesituatedonover7oakdottedacreswithstunning hillsideviewsfromalmosteverywindow.Thekitchenoffersgorgeousgranite,incrediblestorageandagenerousworkingisland opentothefamilyroom,diningroomandspaciousdeck.Withabeautifulcathedralceilingin thefrontlivingroomandlibrary, you’llfeelasthoughyou’reatamountain get-a-way.Onebedroomandfullbathis locateddownstairsandadditionalbedrooms arelocatedupstairs--includingtwomastersuites.Enjoysunnydaysfloatingin thein groundpoolorunderthestarsin thehot tub.Withanattachedtwocargarageanddetachedshop,youcanbringyourhobbieswithyou. $749,900

Beautiful vacant lot ready for a new home.

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This 9+ acre parcel has possibilities and is currently residentially 6 vacant lots available on Sunrise and Bradley Road. All lots must zoned! Other possible conditional uses include churches,, be purchased together. Call Wendy for additional information. schools, retirement centers.... Check with the county for possible uses! Located at the west side of the bottom of the Bradley Dip. Price is $1,000,000

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