Danielle Lazier

Insider Tips for San Francisco First Time Buyers

Insider Secrets for San Francisco Bay Area First Time Buyers – A Must-Read for ALL Prospective Home Buyers

Trulia published a very helpful blog post about the process of buying your first home. I devote a lot of blog-time to first time home buyers in San Francisco because helping you is a particular passion of mine. My impression is that the more information and insight you get up-front, the more you understand what to expect and when, the more enjoyable and successful your home purchase will be.

Here are the highlights but please read the entire post on The Suprising Insider Secrets for the 5 Stages of Buying Your First Home.

The 5 Stages of Buying a Home per Trulia Advice that, of course, we agree with! (Note my personal emphasis in parenthesis. Kind of rhyme intended.)

Stage One: Deciding Whether It’s The Right Time to Buy.
Insider Secret: (Whether you are in Bernal Heights, Noe Valley, or Pacific Heights,) the market is the least important factor you should consider when deciding whether and when to buy a home.

Stage Two: Getting Pre-Approved (at the beginning of your house hunt).
Insider Secret: Working with a mortgage broker referred by your real estate broker or agent may save you money.

Stage Three: House Hunting
Insider Secret: “Distressed” doesn’t always equal “discounted” – in some cases, a “regular” sale can be a deeper deal. (And to this that the majority of so-called short sales will never close escrow. We work in the distressed home market & have negotiated plenty of short sales, foreclosures and bank-owned REO properties. We can spot the situations with the best and worst chance of working out for the buyer.)

Stage Four: Negotiations
Insider Secret: Your family and friends can cause you to lose your dream home.

Stage Five: Escrow, Inspections and Underwriting
Insider Secret: It’s critical that you attend your home inspections. (And have them! With very few exceptions, we recommend that a buyer have their own professional home inspection.)

More posts related to San Francisco first time home buyer tips & advice:

• 10 Things to Remember When Buying a Home
• The Process of Buying a Home in San Francisco, Specifically
• 2011 Home Buying Resolutions
• Loan Preapproval Process – What documentation is needed for a home loan application
• How Many Homes Should I See Before Making an Offer?
• Loan Preapproval Before Open Houses
• A Brief History of the 30 Year Fixed Rate Mortgage

Tags: 1st-time buyer, First Time Buyer, first-time home buying, trulia

Get in the zone – 2011 San Francisco real estate home buying resolutions

Unless you’re omniscient, the chances of you perfectly timing the market when you buy a home in San Francisco, are slim to none. But, if you try to be kind of, almost, or close-enough to perfect, you’ll be able to buy when it’s a smart time to buy real estate in San Francisco and sell when it’s a smart time to sell. It’s called buying in the zone.

Right now (and for the past couple of years), we’ve been in that strategic zone for buying a home in San Francisco, whether a condo in Noe Valley, a Soma loft or a Bernal Heights single family home. No matter if you’re a first time buyer or a homeowner looking to trade up into a bigger home in a new neighborhood, ideally, you want to buy when the market is down and/or interest rates for home loans are low. Well, guess what, folks? Both are true right now and it’s kind of unusual to have them together.

But back to home buying in the zone… this weekend Kathleen Pender’s Net Worth column in the Business section of the Chronicle offered 11 Tips on Saving, Spending for 2011. #2 is Don’t be Greedy and is directly about this point of trying to buy in the zone rather than trying to time the market perfectly.

“If you’re thinking about purchasing a home but you’re waiting for further reductions in price or interest rates you’re setting yourself up to miss a great opportunity. Don’t be greedy. If you find a home you like, that you can afford (and only you can make that determination – not the broker) and you can get 30-year, fixed-rate, fully amortized financing for anywhere near 5%, go for it. The market can move on a dime and those who wait will be left in the dust.” – Rick Harper

Is buying a home in San Francisco on your resolutions list for 2011? If so, there’s no time like the present to get pre-approved for financing and begin the house hunt. And, if it’s not on your list but you have good income, stable employment, and think you want to stick around San Francisco Bay Area for the next 5 +/- years, maybe it should be.

Be, do, have.

Tags: Buyer's Market, first, First Time Buyer, zone

A Brief History of the 30 Year Fixed Rate Mortgage, or If You Need Yet Another Reason to Buy a Home in SF

As if you needed another reason to get off your tush and buy a home in San Francisco… here’s a brief history of the 30 year fixed rate mortgage or home loan.

Average and approximate interest rates on the 30-year fixed rate home loan*:

• 1981 = 18.45% (Holy crap.)

• 1991 = 9%

• 2001 = 7%

• October 2010 = 3.875% (with 1 point) or 4.25% without

• October 2011 = ?

Will interest rates be lower or higher next October? Check back next year and find out, but here’s a sure bet: interest rates are amazing NOW and prices are down for San Francisco real estate (a rarity). We’ve suffered through a deep, dark, and lingering recession. It’s time to make lemonade.

Who should make a move now? San Francisco first time buyers and so-called “move up” or “trade-up” buyers. Move-up buyers are folks who have grown out of (or just sick of) their starter home, loft, condo, or TIC. We won’t see prices like this again. (OK, the End of Days is hard to predict but I’m pretty certain.)

Now is the time to suck it up and sell your current home at the reduced market value and buy the home you really want at a serious discount. Looking back in 5 years, as you relax on your sunny deck in Noe Valley, in a home with enough room for you and your family, increasing your equity every year by paying 3.875% interest on a 30 year fixed rate fully amortized home loan, you’ll be VERY happy you took the leap of faith and sold your starter home.

(Even my own accountant is encouraging me to do this! )

Check out an example of why it makes sense to trade up in a down real estate market.

* Thanks again to the fabulously competent, professional and friendly Guarantee Mortgage Zephyr Real Estate team of San Francisco home loan consultants and in particular, Pete Elting for providing this valuable information for first time and move up home buyers in the San Francisco Bay Area!

Tags: 30 year fixed rate home loan, First Time Buyer, guarantee mortgage, interest rates, mortgage broker, mortgage rates, move up buyer

Want the lowest interest rate when buying your first home in San Francisco? Don’t do these things.

When it comes to buying a home, there is one word that becomes more important than almost all others: CREDIT.

Unless you just cashed out your Google stock (and we’re an early hire), you’ll probably need to get a home loan in order to buy your first home in San Francisco. As a San Francisco first time home buyer, in order to get a mortgage with the lowest interest rate and the best terms, you’ll need to have CREDIT, and good credit at that!

Let’s say you have good credit*. You’ve done the right things, some of which may seem illogical…

Side note: For example, did you know that in order to have good credit, you need to actually have some debt (and pay it regularly and on-time)? Over the years, I have helped more than a few clients who thought that by staying credit card and debt-free, buying what they need in cash or with their debit card, that they were doing the financially responsible thing…and that their reward would be the so-called good credit of the debt-free. Think again. If you don’t have an unsecured credit card, go get one. You don’t have to use it regularly and certainly, this is not an invitation to go crazy shopping at Barneys. Think always, “What would Suze Orman do?” But, go get a credit card, use it, and then pay it monthly and on-time.

Back to the topic at hand.

You have good credit.
You’re employment is relatively stable.
You saved a down payment.
You are ready to buy your starter home in Bernal Heights or your designer condo in Mission Dolores.
You got preapproved for a great home loan through a local, reputable mortgage broker or banker.
You’ve chosen your SF Realtor.You went house-hunting.You made an offer.You are now in escrow.
Think you’re sliding into home (pun intended), don’t you?

Think again and do not, we repeat, do not do the following things when you are purchasing a home.**

1. Avoid moving you money around from one account to another.  If you need to move money, establish a complete paper trail of the money leaving one account and entering another.
2. Any deposits of large money (including gift money from relatives) into any account need to be sourced by making a copy of the check and deposit receipt, or the wire transfer order.
3. Avoid making a large purchase on credit or allowing your credit to be run, i.e. by a car dealership. Just wait to buy that Mini until AFTER the close of escrow.
4. Do not close any credit card accounts or credit lines – call your mortgage broker before doing anything regarding your credit.
5. Avoid changing jobs – especially if you are in escrow.
6. Avoid extensive travel during your escrow period. (Although, in our experience, when you are buying or selling a home, especially in a jet-setter locale like San Francisco, one of the main characters (buyer or seller) will go out of town. Don’t fret. We can coordinate home purchases or sales from anywhere in the world. It’s real estate 3.0, yo.)

Of course, life goes on even when you are in escrow to purchase your first pad (Noe Valley condo, Soma loft, Bernal Heights house, Mission Dolores duplex, etc) so just keep your team (Realtor and Mortgage Broker) informed and don’t make any major financial decisions without letting us know.

* Don’t have good credit…yet. Here are some tips on how to build good credit so you can qualify for the best home loan rates and terms when you decide to buy a home in SF.

** At Zephyr Real Estate, we’re blessed to have the ongoing help of some of the most experienced, knowledgeable, and competent mortgage brokers in San Francisco. Our Guarantee Mortgage team of home loan specialists rock and you’ll be well-served to work with any of them. They help us stay informed and provided us with this list of what NOT to do when buying your first home in San Francisco.

Tags: credit, First Time Buyer, Home Buying Tips, mortgage broker

This time, YOU are telling ME that it’s the right time to buy a home in San Francisco! The fun starts now.

Hmmm, maybe it really is the right time to be a first time buyer and buy a home in San Francisco, whether that’s a starter condo in the Mission or 3 bedroom view condo in Pacific Heights. At least that’s what I’ve been hearing straight from the horse’s mouth, i.e. my first time home buyers in SF.

Yeah, yeah, I know that I’ve been writing this for a while now. Point 1: Crazy low interest rates on safe mortgages like the 30 year fixed rate home loan. Point 2: Reduced home prices even in the choicest of San Francisco neighborhoods like Noe Valley, Pacific Heights, Mission Dolores and our own little Bernal Heights.

But this past week, it was you, the folks considering buying their first home in San Francisco, who were leading the cheer. And I heard you, loud and clear.

In the past week, not one, not two, but three clients of mine arose from the house hunting abyss to tell me that now has become the right time to buy and that they had found the home of their dreams. Mind you, each of these groups had been looking for at least 1 year, most were closer to 2+years! When it comes to buying a home, it is all about timing and I don’t mean timing the market. I mean “personal timing”.

When it is the right time for you, in your own life, to become a homeowner, it will happen. When it’s not the right time (maybe because of your personal situation, your job stability, your family, your geographic plans etc), you can look and look but nothing will feel right.

(Side note: I like to tell my clients, whether they are home buyers or sellers, that it is not my job to tell them what their goal is or should be. You must determine whether it’s the right thing for you to buy or sell real estate in San Francisco. You must have your own goal. I can help you fine tune it, for sure, but I’m not here to tell you what to do. I am here to listen to your goal & what’s most important to you, help you contextualize it in today’s San Francisco housing market and then help you make it happen. And yes, I’m pretty darn good at “making it happen.” Make sense?)

Yes, 3 clients calling me to make offers on the right home for them (and getting them into contract) makes for a good week. Of course. But does it also signify something bigger? Once the public realizes that the current home buying conditions may be the best they’re going to be, it means that the market is turning around.

Real estate in San Francisco is not for the squeamish. It’s expensive and highly competitive.  But, it does make one heck of an investment. And you get to have 50 degree days in July and 80 degrees in October! On that note, I’m off to enjoy more of the sun.

Tags: First Time Buyer, home buying

Powerful Home Buying Strategies: Don’t Be Pushed Into Any House. OR How Many Homes Should I See Before Making an Offer?

Powerful Home Buying Strategies: Don’t Be Pushed Into Any House. OR How Many Homes Should I See Before Making an Offer?

A common question from home buyers is, “How many listings should I see before making an offer?” Read the rest of this entry »

Tags: FAQ, First Time Buyer, Frequently Asked Questions, home buying

ABC, it’s as easy as 123. Why you really need to get off your iPad and buy a home in San Francisco – now.

Yes, I am a Realtor so I am biased. Duh. But, honestly, folks. If you have stable employment and some savings (minimal needed for a FHA home purchase), and you’ve been considering the idea of buying your own home in San Francisco or San Mateo County, now really is the time.

Here’s why.

1. Last night during an initial consultation with intelligent, thoughtful first time buyers, I was told, “Listen, Danielle. This is the best time I’ve seen for a buyer in the San Francisco market in a REALLY long time, as in since the 1990s.” Amen, brother.
2. The CA Home Buyer Tax Credit for up to $10,000 signed into law today. Last year, the CA tax credit disappeared months before it was set to expire because of overwhelming home buyer demand.
3. The Federal Home Buyer Tax Credit of up to $8000. Gotta be in escrow by end of April and close escrow by end of June 2010. That’s plenty of time if you’re serious and get started right away.
4. Historically low mortgage interest rates.
5. FHA low down payment financing easier and more available than ever. We’re working with many FHA home buyers and have figured out the kinks…mostly.
6. The San Francisco real estate market appears to have stabilized. I’m not saying prices are headed up anytime soon but most people think we’re pretty much at the bottom of the market. BTW, down turns in the SF housing market seem to occur about every 10-15 YEARS or more. Wanna wait that long for the next one?

Tags: fha, First Time Buyer, home buyer tax credit

5 Things San Francisco Home Buyers Should Know

Real estate is complex but it’s not rocket science. There are tried and true tips to the home buying and selling process. There are things that all San Francisco home buyers should know.

When you work with an agent, she or he should be educating you on these issues from the beginning. For example, I sit down with potential clients for an initial consultation. It’s a no-pressure meet & greet where we talk about the market, the buyer’s plans, answer preliminary questions and see if we’re a good fit.

But, the learning does not stop there. Each step of the way is the opportunity to ask questions and get clear, consistent answers about your options. If your agent is not answering your questions or is telling you what to do (rather than giving you choices to make), get a new one!

I read a lot of real estate articles online and off. Recently, I was introduced to U.S. News & World Report Online Real Estate section and the writer, Luke Mullins. He’s great! He provides clear tips on the process of buying or selling real estate whether a Mission Dolores condo or a Bernal Heights single family home. The info is relevant to today’s market as well.

For example, 5 Things Every Home Buyer Should Know includes the following:

Read the rest of this entry »

Tags: First Time Buyer, home buyer facts, home buying

It’s your moment, first time home buyers. CARPE DIEM.

I’ve said it before and I’ll say it again, “Get off your tushies and buy a home.” RIGHT NOW is THE time for both first time home buyers and move-up buyers. Seize the day. Cheap money and cheaper homes will NOT last forever.

Using FHA home loans, you can get purchase money up to $729,250 with LOW DOWN PAYMENT (3.5% down plus/minus) and even spotty credit. Yes, you have to document your income. These are SAFE government backed loans.

Recently, my clients, a young engaged “techie” couple, purchased a San Francisco single family home for just over $600,000. They got a 30 year fixed interest rate loan of 5%. Are you kidding, me? This is insanely fabulous.

Plus, more and more condo buildings are being approved for FHA financing.

The Chronicle reported today on what those of us in the real estate trenches already know… It’s a great time for first time buyers. The homes that are selling are at the lower end of the market. Buyers are taking advantage of the chance to get super cheap financing on homes that have decreased in value 10-20% (in SF; more outside of the City).

Check out the article and let’s talk.

Tags: fha, First Time Buyer, San Francisco Real Estate

Want my $.05? Danielle’s advice to San Francisco home buyers and sellers.

Tags: Danielle's advice to home buyers and sellers, First Time Buyer, home buying, Home Selling, San Francisco Real Estate, trade-up