Steve & Scarlett Justice's Blog

Want to buy a home but worried about your job?  Well there is a possible solution.

CAR Housing Affordability Fund Mortgage Protection

What is it?

The Mortgage Protection Program offered by the California Association of Realtors provides a combination of involuntary unemployment, accidental disability and accidental death insurance protection for qualified first time home buyers.

What are the benefits?

Through the program, first time home buyers who lose their jobs or become accidentally disabled may be eligible to receive up to $1,500 a month for up to 6 months to help make their mortgage payments. A qualified co-buyer can also participate in this program for a reduced monthly benefit of up to $750 a month for up to 6 months. In addition, the program offers a one time $10,000 accidental death benefit.

How much does it cost?

It cost the home buyer absolutely nothing!

Who qualifies for the program?

First time home buyers who haven’t owned a home in the past three years, they open and close escrow between 4/2/09 and 12/31/09, purchase a primary residence, are represented by a California Realtor and must be a W-2 employee not self employed.

The current market offers a variety of low-priced, move in ready homes as well as properties that are in need of significant repairs. One thing they have in common is the people they attract: Investors. As home prices dropped over the last year, Sacramento has seen a steady rise in the percentage of cash sales. Statistics retrieved from the Metro List MLS data base show that 25.1% of sales in May 2009-467 units-were purchased with cash. Compared with last month, where April had 503 cash sales (accounting for nearly 28% of all sales) there is a 7.2% decrease. May’s cash only sales, however show a 158% increase from the 181 cash only sales (10.2%) of May 2008.

May’s statistics continue a trend; however, that has showed little movement in three months. Sales records for the last three months have shown 1,725 sales in March, 1,707 sales in April and 1,733 sales in May. From April to May, there was a 1.5% increase in sales. The 1,733 single family home sales this month is a 4.8% increase from the 1,654 sales of May 2008.

The median sales price made an unexpected move, increasing 7.7% from $167,000 in April to $180,000 this month. This increase marks the largest month to month median sales price increase recorded by the Association. Compared year over year, the $180,000 median sales price is 21.8% below the the $230,250 median price of may 2009. The total listing inventory also dropped year to year from 7,902 listings, a 35.9% decrease. This lowered inventory figure also drops the Housing Market Supply figure from 6.5% to 3.9 months in April to 2.9 months in May. Compared with last year, this figure is a 39.6% decrease from the 4.8 months recorded May 2008. This represents the amount of time-in months-it would take to deplete the total listing inventory given the current rate of sales. According to MLS data, the average home spent 55 days on the market before selling and measured just over 1,699 square feet.

All in all, it is a very active market right now with multiple offers on properties and a lot of the buyers have cash!

Have you ever wondered what a Realtor does when you are buying a home besides open the door so you can see the property? Well, here is a list, and by all means it is not a complete list, but it will give you a good idea of what goes on behind the scenes.

1. Set up a search on MLS for you according to your needs and price criteria.

2. Review the MLS daily to see if any new listings come up and email them to you to see if you would be interested in seeing any of the properties.

3. Recommend a lender to you if you do not already have one so you can get get pre-approved and know exactly what your monthly payment will be and what down payment is required for you to purchase a home.

4. Show you properties according to your specifications. Also point out any defects in the property or bring to your attention any issues in the neighborhood.  Many times all a property needs is carpet and paint, you can fix that, but your sure can’t fix a neighborhood.

5. When you see a property you like in a neighborhood your like, write up the offer and submit the offer to the listing agent along with your preapproval letter and a copy of your earnest money deposit check.

6. Follow up with the listing agent via email and phone to obtain the status of your offer.

7. Once your offer is accepted, then deposit your earnest money deposit check with the title company.

8. Provide the title company, your lender and the appraiser copies of the Offer.

9. Set up the home inspection, termite inspection and any other inspection you may request and be at these inspections. Obtain the disclosure reports from the listing agent, review them with you and bring any items to your attention that may be important.

10. Review all of the home inspection, termite inspection and any other inspection reports. Draft a Repair Request Addendum for the Seller to fix any major items that may be important to you or assist you in obtaining estimates from different vendors to see what the costs are for you to fix these items if the Seller is unwilling to fix any items.

11. Work with the lender and title company and follow up weekly to see if any items or documents are outstanding and check the status of the loan.

12. Once the loan is approved and loan documents are sent to title, review the loan documents and the estimated closing statement from the title company for accuracy and advise you of place and time of signing and the amount of money to bring in.

13. Meet with you at the title company when you are signing the loan documents to answer any questions you may have and once again to check for accuracy.

14. Do the final walk through of the propety to confirm the requested repairs have been completed and to see that the property is in the same condition as when you purchased it.

15. Follow up with the title company to have your loan funded and recorded!

16 Once the loan is recorded (aka close of escrow) then meet with you at the property to give you the keys to your new home! 

Best of luck in your new home!