Christi Nelson's Lake Oroville Real Estate Blog

Did you know the  City of Oroville currently offers a program to assist senior and disabled homeowners who don’t have financial resources to complete minor and emergency property repairs?

 This is really great for those that just that really need that  repair but have been putting it off due to financial reasons!

Basic Eligibility Requirements

• Applicant must own and occupy their home or mobile home
• Applicant must be a senior citizen, 65+ years of age or physically disabled
• Applicant must live within the Oroville City limits

Eligible Repairs

The program was designed to help senior and disabled persons obtain assistance with small but important health and safety repairs. Eligible repairs include, but are not limited to such jobs as:

• Plumbing: Leaking, broken, non-operating sinks, toilets, faucets, garbage disposals and water heaters.
• Small Electrical Hazards: Lights, outlets, and switches.
• Weatherization: Weather stripping, caulking around doors and windows.
• Maintenance Repairs: Evaporative coolers, furnaces, roofing, gutters, steps, railings and hazardous trees.
• Correcting Trip Hazards.
• Installation of Grab bars
• Smoke Detector Repair or Replacement.
• Health and Safety Hazards.

If you are in need of a program like this contact the City of Oroville

Phone: 530.538.2495
Fax: 530.538.2539
Email: housing@cityoforoville.org

Interest rates are low and prices have come down. Some buyers have decided that it is a good time to buy, even if it is a little while before the Oroville Real Estate Market fully stabilizes.

Buyers who have a house to sell face a more complicated situation than they did when they bought their first home. They may not be able to afford to buy a new house before selling the old one. And, it may be more difficult to find a home to buy because many sellers are not selling now due to current market conditions.

Despite complications, homeowners who want to trade up in a down market can benefit financially. They may sell their current home for less than it might have sold for a few years ago, but they also could pay a lot to less for the replacement home.

Let’s say your current home that was worth $300,000 two years ago is now worth $200,000, or 20 percent less. Even though you would sell for $100,000 less today, if you buy a $1 million house that two years ago was worth $1.25 million, or 20 percent more, you come out $150,000 ahead.

Interest rates are still at an all time low! Even edging up this week, they are 4.81 on a 30-year fixed. On a $200,000 mortgage the principle and interest payment at todays average rate would be about $1049, compared to $1,199 a year ago. A savings of $150.00 per month.

Combine those two major factors and add the $8000 tax credit to first time buyer and the $6500 credit to move up buyers and you have a win win situatuion!

Dont become the bait in this market!

Any property description using “REO”, “Foreclosure”, “Bank Owned”  etc., is drawing a crowd of buyers, especially first time buyers trying to take advantage of the current tax credit due to expire Nov 30^th.  If the property is in decent condition, there will be offers and multiple offers, at that. 

I have had some observations about the  Oroville Real Estate foreclosure market. A number of lenders have hit on a marketing strategy to create a buying frenzy which guarantees an almost instant sale. The properties are marketed well below market value, usually in the price range of the first time buyers and they will not accept any offers before one week on the market. 

A number of buyers may honestly believe that they can make a lower or even close to asking price offer. The result is buyers being disappointed and upset that their offer wasn’t accepted. A number of them believe their offer has a chance of being accepted. In reality, they not only have zero chance of getting their offer accepted, but in the majority of cases, they will not even get a counter-offer. 

Bargains are available and buyers can find themselves to be one of the lucky ones by selecting an experienced agent familiar with the areas in which they  A good agent will be able to advise you on writing a strong offer and which properties are worth the work and which ones to stay away from. Follow that advice! Oroville Home sales

Is there a difference between a Mortgage Pre-Qualification letter and a Mortgage Pre-Approval letter?  The answer is YES!

These terms appear to be similar, but are different.

Speaking as a REALTOR®, the difference is in documentation and verification. In other words, is the buyer providing copies of income pay stubs and bank account statements to the Lender or is the Lender simply relying on verbal information provided by the buyer?

 Mortgage Pre-Qualification is generally a process where a buyer contacts a Mortgage Lender/Mortgage Representative, often on the telephone, who then asks the buyer to provide some information. The information requested involves a current address and how long living there, a social security number and permission to order a credit report, annual income and hopefully the amount of down payment.

 After the credit check is ordered and received by the Mortgage Lender, the Mortgage Rep then estimates the amount of mortgage the buyer can afford and sends (via fax or email) a letter to the buyer with the title Congratulations, You Are Pre-Qualified, for a mortgage loan in the amount of $__ or Congratulations, You Are Pre-Qualified, for a mortgage loan in the amount of $__ and a purchase price of $__. This is usually done within a half hour or so of the initial phone call, and at best can be described as an estimate of potential mortgage ability and not Mortgage Pre-Approval.

Mortgage Pre-Approval,  in addition to obtaining a credit report, many Lenders require the buyer to provide proof of two years of work history, pay-stubs or income tax forms, copies of bank statements for source of funds verification and copies of charge card statements.

When the documentation is provided, it is then submitted to the Mortgage Underwriter for review and approval. The Mortgage Pre-Approval letter is worded something like this: Congratulations, You Are Pre-Approved for a mortgage loan in the amount of $__ and a purchase price of $__ subject to a Contract of Sale and a satisfactory Bank Appraisal on the home being purchased. While more time consuming than the previous pre-qualification practice discussed above, it is more thorough and more reliable, shortens the formal mortgage application and approval process and provides the ability for a fast closing if one is desired.

Mortgage Pre-Approval will give the buyer confidence in a price range and confidence in obtaining mortgage approval. In submitting offers, sellers will know they have a serious buyer who has taken the time to arrange for mortgage financing first.

 While chatting with other parents at a baseball game, we began to discuss the market and if it was the right time to buy. As we discussed how property values have dropped and interest rates were still at an all time low. I said “Yes, now is absolutely the time to buy!” One of the parents made a statement that was amazing to me. He said “sure that’s what all Realtors would say” Of course that’s what we would say! That is what our profession is all about. Educating the public as to what the market is doing and what they should do if thinking about buying real estate.

Consumers, who are hesitant about purchasing a home today because they fear price depreciation, need to understand that real estate is cyclical and that prices will increase again. Home buyers should view a house as a long-term investment and not be fixated on short-term prices. Consumers should purchase a house if they plan to live in or hold the property for at least several years. This will allow the market to stabilize and homeowners to possibly profit from their investment, if they decide to sell. 

Interest rates are still at a fantastic low, especially if you compare it to the market of the 80’s where they could be up to 18%. That’s like charging the purchase of a home on a credit card!

So as buyers have been sitting on the fence waiting for the bottom and low interest rates, the rates are starting to creep up. 

Here is an example of the difference in a mortgage payment with a small change in interest rate:

Weekly national mortgage survey

So the answer is Yes, now is the time to buy.

Happy Househunting!