Issue #1
June 2017
R E A L
E S TAT E Y O U
Published by Berkshire Hathaway Homeservices Franciscan Properties
The 60/30/10 Color Rule.
Best Advice For First-Time Home Buyers.
Friendly Competition with Steve Spears
Four Ways to Build Home Equity
PAGE 2.
PAGES 3.
PAGE 5.
PAGE 7.
PAGE 8
REAL ESTATE & YOU
HOMEBUYING TIPS
THE THREE PERCENT MORTGAGE DOWN
&
Issue #1
June 2017
R E A L
E S TAT E Y O U
How much are you planning to put down on your first home? If you say 20 percent, you could be living in the past. Since Fannie Mae and Freddie Mac introduced 3% down mortgages nearly two years ago, the product has gained in popularity.
Published by Berkshire Hathaway Home Services Franciscan Properties
The 60/30/10 Color Rule.
Best Advice For First-time Home Buyers.
Friendly Competition With Steve Spears
Four Ways to Build Home Equity
PAGE 2.
PAGES 3.
PAGE 5.
PAGE 7.
The three-percent mortgage, also known as the Home Possible Advantage Program, allows first-timers and other qualified home buyers to get into a home much sooner, allowing homeowners to take their remaining down payment monies to use for other purposes – savings, furnishings, student loan payments, etc. Anytime the down payment is less than 20 percent, borrowers should realize that their monthly payments become more significant. You’re financing a larger amount, which raises your debt profile and your financial risk if you want to finance other things like vehicles or college.
PAGE 8
Fannie and Freddie require borrowers to purchase Private Mortgage
WANT MORE REAL ESTATE & YOU? Subscribe here:
issuu.com/realestateandyou
Insurance (PMI). While that raises the monthly payment, it makes low down payment loans attainable, allowing more people to enjoy homeownership. Along with mortgage interest, PMI payments are tax deductible for long-form filers. Last, PMI can be discontinued when the loan is either five years old, or if rising home prices have allowed the borrower’s equity position to reach 20 percent.
FOLLOW US ON: @ BHHSFranciscan @ BHHSFranciscan
How much are you planning to put down on your first home?
@ BHHSFranciscan ©2017 BHH Affiliates, LLC. An independently owned and operated franchisee of BHH Affiliates, LLC. Berkshire Hathaway HomeServices and the Berkshire Hathaway HomeServices symbol are registered service marks of HomeServices of America, Inc.® Equal Housing Opportunity.
01
Building equity, which is like a homeownership savings account, takes time. You can build equity by paying down your mortgage, by improving your home, and by allowing home appreciation to work in your favor. But you have to be invested to get this major benefit of home ownership.
THE THREE PERCENT MORTGAGE DOWN
HOMEBUYING TIPS
REAL ESTATE & YOU
THE 60/30/10 COLOR RULE To paint and decorate your home without worrying
wood trim, paint baseboards, crown moldings and door
whether you’re going overboard with color, try the classic
and window trims in a complementary hue like white or
interior design rule known as the 60/30/10 rule. It’s a
cream.
foolproof way to divide your color scheme into primary, secondary and accent colors by assigning them percentage
To test a paint chip
values.
for accuracy, hold it parallel to the
The primary color is the largest block of color and will
wall under natural
act as your neutral. You can use a true neutral like beige,
light. Buy sample
grey, or white, or try a soft tint of your favorite color.
jars and test the
The secondary color is the anchor and works well on
colors
upholstery and bedspreads. The accent color should have
poster boards you
the most color intensity and is used sparingly in pillows,
can tape to the
chair seats or oil paintings.
walls. Watch how
on
large
the colors change
Primary Color Secondary Color Accent Color
60% 10%
30%
If you choose a deep shade for walls, give the paint a
throughout
satin finish for sophistication. A dark color can easily look
day and evening
chalky. Accordingly, the opposite is true—a light color can
under artificial light. Remember, interior colors always
become blinding in a shiny finish. If you have lots of fine
tend to go darker, while exterior colors appear lighter.
06/17
THE 60/30/10 COLOR RULE
the
02
REAL ESTATE & YOU
HOMEBUYING TIPS
HOMEWARD BOUND BEST ADVICE FOR FIRST-TIME HOMEOWNERS
03
HOMEWARD BOUND
06/17
HOMEBUYING TIPS
REAL ESTATE & YOU
If you’re a first-time homebuyer, you’ll have a much easier time finding and financing your next home if you follow these tried and true tips. HIRE AN EXPERIENCED REAL ESTATE PROFESSIONAL: Buying a first home is a complex process. Your Berkshire Hathaway HomeServices professional will assist you through the hurdles of neighborhood searches, comparing homes, making an offer, inspections and appraisals, as well as help you identify the best values.
CHECK AND REPAIR YOUR CREDIT: Banks use your credit scores to make lending decisions, so make sure your credit is accurate and deficiency-free. Order your credit reports and scores by visiting http://www.annualcreditreport.com so you can make repairs, if needed.
GET PRE-APPROVED: To get pre-approval, you have to apply for a loan and share your income, work history, debts and other information. Your lender will confirm your down payment source, interest rate, type of loan and loan term. Only then will you know exactly how much home you can buy.
CHECK OUT FEDERAL, STATE AND LOCAL GOVERNMENT INCENTIVES: To learn about first-time home buyer programs, see: www.grants.gov or www.hud.gov. Click on Housing Authorities to find out what’s being offered in your community.
Banks use your credit scores to make lending decisions, so make sure your credit is accurate and deficiency-free. PREPARE TO COMPROMISE: There’s no perfect home, so you’ll have to prioritize your wish list. Older homes often need cosmetic work so expect to pay more for a home in pristine move-in condition.
MAKE A LONG-TERM INVESTMENT: Equity is built over time, so plan to occupy your home for several years or more. Your home is also an investment in happiness and that can be the best deal you ever make.
06/17
BEST ADVICE FOR FIRST-TIME HOMEOWNERS
04
REAL ESTATE & YOU
HOMEBUYING TIPS
HOW DO BUYERS COMPETE IN TODAY’S MARKET?
The San Francisco Bay Area real estate market is extremely
with income verification and any additional data in order to
heated with multiple offers on newly listed homes and
obtain a letter of preapproval. A simple “pre-qualification”
selling prices going higher and higher. It’s not unusual for
letter from a loan broker will not suffice.
a small two-bedroom fixer to fetch over $1,000,000 in
Determine the maximum you are willing to spend and
San Francisco!
So, if you
stick to it. Don’t let the “heat of the moment” push you
are in the market to buy a
beyond your breaking point when dealing with a multiple
home, how do you compete
offer situation. You must be willing to walk away if the
with other buyers?
competition is too much.
Your
first
your lender.
By Steve Spears President/ CEO BHHS Franciscan Properties
05
stop
is
with
Be prepared to make a decision quickly. When a great buy
You must be
comes on the market be ready to write an offer the same
preapproved for your loan
day.
Remember there are more buyers than available
before you find your next
inventory, so homes sell very fast in today’s market.
home. That means you will
Price is upper most in the seller’s mind, but also important
need to supply your lender
are any contingencies you may want included in your offer.
FRIENDLY COMPETITION
06/17
HOMEBUYING TIPS
REAL ESTATE & YOU
SteveSpearsSpeaks.Wordpress.Com Don’t let the “heat of the moment” push you beyond your breaking point when dealing with a multiple offer situation. Limit contingencies or eliminate them when appropriate.
Work with a local Realtor who knows the neighborhoods.
Have your agent find out what is important to the sellers,
Local Realtors are your best source for trusted information
such as the length of escrow, and include that in your offer.
and guidance through your home buying experience.
06/17
HOW DO BUYERS COMPETE IN TODAY”S MARKET?
06
FINANCIAL TIPS
FOUR WAYS TO BUILD HOME EQUITY Equity is the percentage amount of your home that you actually own. You have three ways to build your ownership stake: through the purchase, through the reducing principal and through the passage of time.
DOWN PAYMENT
PURCHASE PRICE
PAYING DOWN ON PRINCIPAL
TIME
You gain instant equity
You can also gain instant
As you pay your mortgage,
Historically, home values
when you put down a down
equity
your
little goes toward reducing
tend to beat inflation by
payment. If you put 20
home below the market.
the principal while a lot
one
percent down, your equity
That’s
do
goes to paying interest.
points, which means you
ownership is 20 percent.
because
don’t
The longer the term of
can estimate a rise in your
typically sell below market
your loan, the less quickly
home’s value to average
unless there is some sort
you’ll build equity. Work
about three to five percent
of problem, such as poor
with your lender to choose
annually
condition, lack of updates
an adjustable rate or fixed
market.
or foreclosure. To build
rate for the length of time
equity, invest in updates
you think you’ll be in your
and repairs to bring your
home.
by
buying
difficult homes
to
or
two
in
percentage
a
normal
home up to neighborhood standards.
NOTE: 07
It takes time to build equity this way, but when you combine principal reduction with buying wisely and caring for your home so that it retains its desirability, you’ll find that you build equity quickly and steadily. FOUR WAYS TO BUILD HOME EQUITY
06/17
1355 HOLLOWAY AVENUE, SAN FRANCISCO, CA 3 BEDS
4 BATHS
3,138 SQFT
Flooded with sunlight and tree views, this detached home boasts rare and delightful amenities including a roof deck, wine room, steam shower, multiple open lounge areas, serene grassy backyard, classic cobblestone patio, and parking for 4 cars. The flowing, open floor plan is perfect for entertaining. The remainder of the upper level offers three bedrooms, each with uniquely designed full bath. The large and
PLAN YOUR HOUSEWARMING PARTY
private master suite features ensuite marble bath, including clawfoot soaking tub and steam shower, leads into a beautiful private resort-liked oasis garden. A spacious family room with wet bar and media room, along with a wine cellar room and a private office, completes the expansive downstairs level.
FOR MORE LISTINGS: www.BHHSFransciscan.com 06/17
ON THE MARKET
08