Friday, September 2, 2016

Why Is There So Much Paperwork to Sign to Get a Mortgage?

We are often asked why there is so much paperwork mandated by the bank for a mortgage loan application when buying a home today. It seems that the bank needs to know everything about us and requires three separate sources to validate each and every entry on the application form.
Many buyers are being told by friends and family that the process was a hundred times easier when they bought their home ten to twenty years ago.
There are two very good reasons that the loan process is much more onerous on today’s buyer than perhaps any time in history.

1. The government has set new guidelines that now demand that the bank prove beyond any doubt that you are indeed capable of affording the mortgage.

During the run-up in the housing market, many people ‘qualified’ for mortgages that they could never pay back. This led to millions of families losing their home. The government wants to make sure this can’t happen again.

2. The banks don’t want to be in the real estate business.

Over the last seven years, banks were forced to take on the responsibility of liquidating millions of foreclosures and also negotiating another million plus short sales. Just like the government, they don’t want more foreclosures. For that reason, they need to double (maybe even triple) check everything on the application.

However, there is some good news in the situation.

The housing crash that mandated that banks be extremely strict on paperwork requirements also allows you to get a mortgage interest rate as low as 3.43%, the latest reported rate from Freddie Mac.
The friends and family who bought homes ten or twenty years ago experienced a simpler mortgage application process but also paid a higher interest rate (the average 30 year fixed rate mortgage was 8.12% in the 1990’s and 6.29% in the 2000’s). If you went to the bank and offered to pay 7% instead of less than 4%, they would probably bend over backwards to make the process much easier.

Bottom Line

Instead of concentrating on the additional paperwork required, let’s be thankful that we are able to buy a home at historically low rates.

Thursday, September 1, 2016

Local Market Trends For Tracy and Mountain House

Market Stats For August

The following information is from the local MLS database, as of Sept. 1, 2016 and is compared to(August 1, 2016).   Prices are staying steady this month! The amount of listings are also about the same too. But demand is still strong and good homes get multiple offers especially homes priced under $400,000. We only have a 1 &1/2 months supply of inventory.  A healthy market has 6 months supply. Prices are increasing as a result of this but appraisals are not keeping up. Be very careful if you or your buyer removes their appraisal contingency.  Buyers are still eager to buy and they are watching the new listings as they hit the market. And with fewer choices buyers are competing to get their offers accepted.   Interest rates are staying down with 30 yr fixed at 4.35% and FHA/VA at 3.75%. 15 yr is 3.375. Still the lowest rates! New home construction projects are popping up more in the area and even though the prices are a little higher, there are still good deals out there in the new communities.  Don't forget...We can represent you with the new home builders too!  Don't go with out being represented!
   If you have been on the Fence about selling your home then NOW is  the time to sell. We need more listings! We only have a 1.5 month supply of homes to sell.  This is a serious SELLER'S MARKET.   If you are curious to see how much equity you have in your house, give us a call for a market analysis! 209-833-7777 e-mail is sales@tracyhomes.com. Or go to www.TracyHomeValue.com to get an automated market analysis. 
Tracy, CA
ACTIVE STATUS
Total # of residential properties for sale in the city of Tracy: 160 (163)
# of REO (foreclosures): 2 (1)
# of Short Sales: 5 (6)
Average # of days on market: 30 (26)
#New Construction:  7
The median price of all homes for sale in Tracy: $439,000 ($460,000)
PENDING STATUS
Number of properties currently under agreement: 157 (145)
# of REO: 1 (2)
# of Pending Short Lender Approval: 9 (10)
Median pending price: $434,950 ($425,000)

SOLD STATUS
Residential property sold over previous 30 days: 89 homes (92)
REO's sold in the last month: 1 (3)
Short sales sold in the last month: 3 (0)
Median sale price: $426,000 ($428,000)
Median # of days on the market:  13 (12)

 
Mountain House, CA

ACTIVE STATUS

Total # of residential properties for sale in the city of Mountain House: 56 (46)
# of REO (foreclosures): 0 (0)
# of Short Sales: 0 (0)
# of New Construction: 7 (5)
Average # of days on market: 23 (26)
The median price of all homes for sale in Mountain House: $589,886 ($590,452)

PENDING STATUS

Number of properties currently under agreement: 52 (58)
# of REO: 0 (1)
# of Pending Short Lender Approval: 0 (1)
# New Construction: 8
Median pending price: $551,057 ($547,944)

SOLD STATUS

Residential property sold over previous 30 days: 31 homes (31 homes)
REO's sold in the last month: 1 (1)
Short sales sold in the last month: 0 (0)
New Construction sold: 2
Median sale price: $520,000 ($520,000)
Median # of days on the Market: 24  (11)
*************************

HOMES SOLD IN TRACY IN AUGUST
Take a look at this chart to see the SOLDS in Tracy for August.  Call us for a free Market Analysis on your home!  209-833-7777.
  Address  BedsBaths   Sq Ft    List     Sell  DOM 
6086WLinneRd43 (3 0)2790895000850000106 
100 Cedar MountainDr4 (5)3 (3 0)2373430000428000112 
1700 WhirlawayLn65 (5 0)361053500053500016 
1088 SausalitoWay33 (2 1)316868995069000034 
979 Cherry BlossomLn43 (2 1)203244500045000035 
1633 Union Lane 43 (3 0)2067465990443000132 
1621W12thSt42 (2 0)152736000035500070 
27056 MaurlandLn43 (2 1)224551900049000051 
27055SLeewardWay56 (5 1)74591588000150000055 
1978 PonderosaLn43 (3 0)323557990057990026 
2121 IroulaWay53 (3 0)244046000046000053 
1136 Saint ClairPl42 (2 0)214546500046500096 
1245 AudreyDr42 (2 0)14583290003400003 
1451 MCDERMOTT DR 43 (2 1)15673299503500005 
582 General Lane 65 (4 1)409863500062500028 
450 BoleynCt4 (5)3 (2 1)156734995034950035 
4885 DandelionLoop43 (2 1)238144900045500056 
621 Ben IngramCt54 (4 0)302349900049900054 
1483 WhittinghamDr32 (2 0)155442500040000042 
2121 IberisCt43 (3 0)237643900043000072 
2805 Atlanta 32 (2 0)14083500003530009 
1724 WoodlandLn53 (3 0)315949400048500044 
705 BogettiLn32 (2 0)112238900037300043 
1300 BaronsCt33 (2 1)170937000038500023 
909 RooseveltAve21 (1 0)81927900027900028 
2060 TammiCt43 (2 1)242845000045200039 
1360 ClaremontDr43 (2 1)183142500042000044 
1671 BaigorrySt4 (5)4 (3 1)376762000061700045 
1921 DeborahSt31 (1 0)95629900030500011 
671 ScarlettPl43 (2 1)159841000039000013 
5801 Durham FerryRd32 (2 0)20678650008700002 
1022 WestburyCt23 (2 1)127129870028400016 
1725 GloriaCir43 (3 0)244343500043000031 
770SCentre CourtDr32 (2 0)171142500042500015 
27214 LillegardCt4 (5)3 (2 1)30268399998399997 
489 Terra NovaCt43 (2 1)243246590046500026 
227 James W SmithDr3 (4)3 (2 1)196943500044000023 
573 GlenbriarCir4 (5)3 (3 0)281754500053500019 
365 GlenbrookDr42 (2 0)24535200005250006 
1660 Jasmine 4 (8)3 (3 0)212142500041000030 
2131 Bridle CreekCir3 (4)3 (2 1)15653950004045005 
369 BurlingtonDr43 (3 0)22984300004400006 
585 PachecoDr3 (4)3 (2 1)203641500041500017 
921NHickoryAve32 (2 0)132535995035500025 
1599 Cherry BlossomLn54 (3 1)291046995046500025 
2373 FortunaLn53 (3 0)256344900046000010 
1940 HARVEST LANDINGCt33 (2 1)19024139504260007 
2363 Gretchen ElizabethCt43 (3 0)235052900049000035 
800 PetrigSt43 (3 0)258247500047500014 
1966 ClearbrookCt43 (3 0)207739500040200013 
419 BurlingtonDr33 (2 1)17713790003930003 
897NHickoryAve32 (1 1)104031500032500014 
4261 Glenhaven 43 (3 0)24474899004930008 
565 Cape Breton 43 (2 1)22414550004550009 
540 AllishaLn32 (2 0)117232995033000012 
4593 Morning Brook Ln. 43 (2 1)253039995041500012 
2940 ComptonPl43 (3 0)252747500047500012 
8358 RinauroCt54 (3 1)48171040000100853442 
155E12thSt21 (1 0)9762800002910005 
1050 WinterCt33 (2 1)16303890003970007 
1471 ClaremontDr3 (4)2 (2 0)203444000044000015 
1393 ChaplinCt4 (5)3 (3 0)26515249505250005 
1651 HurleyCt32 (1 1)108733250033112512 
1845 FoxwoodDr32 (2 0)144137600038300027 
660 SaffronDr43 (2 1)22854699004699006 
1940 FoxwoodCt32 (2 0)16284250004140004 
2859 HawkinsLn32 (2 0)148336900038500013 
2775 AtlantaDr32 (2 0)15583800003800005 
28361SDepot MasterDr43 (2 1)307657995059100012 
1354 Ray HarveyDr43 (2 1)16073950004025001 
222WHighlandAve32 (2 0)139535800035700011 
1990 VillageDr32 (2 0)15773700003877776 
513 VenetoCt32 (2 0)151338990041000012 
512 Quail RunCir43 (3 0)294449500050000093 
1042 DarbyDr43 (3 0)22394200004360008 
1147 RosetteLn33 (2 1)207037500038500010 
3321 StrawberryPl33 (2 1)16993999004000005 
2772 RemingtonWay43 (3 0)248254990054000015 
1313 Ray HarveyDr33 (2 1)14413990004120008 
1443 LocustDr32 (2 0)11203399503400002 
1914 RavenCt4 (5)3 (3 0)291747500049700010 
338W21stSt31 (1 0)108424700024700037 
429 ToniLn32 (2 0)13372550002550009 
830 WinnipegCt33 (2 1)17354000004200004 
925WEatonAve31 (1 0)10473050003200004 
2115 OlympicAve4 (5)3 (3 0)23974590004600002 
1735 ParksideDr53 (3 0)23604599504500001 
437 GlenbriarCir32 (2 0)14214141264150006 
402WEmersonAve21 (1 0)12142290002150001