6 things homebuyers should avoid doing once they are preapproved for a mortgage

From Share Source inman.com

Making other major purchases or applying for new credit can turn experience into big hassle

You have done the hard part in the homebuying process and chosen a lender and a real estate agent to work with. You have also gone out and found the home of your dreams! Best of all, your team has done a great job of negotiating the best deal for you.

Now, as a buyer, all you have to do is sit back and wait for your loan to close … right? Wrong!!

Do's and don'ts image via Shutterstock.

 

Getting a home loan these days is a very interactive process. I am always amazed by how many clients I work with who come to me unaware of all the pitfalls they face during the loan process. To help avoid any surprises while waiting for final approval, I provide my clients with a short list of “do’s and don’ts” to follow.
Let’s start with the “do’s” …

1. Do keep the process moving by responding to your loan officers’ requests for documentation as soon as possible.
2. Do make decisions as soon as is reasonably possible.
3. Do convey questions or concerns you have as they develop.
4. Do continue to make all of your rent or mortgage payments on time.
5. Do stay current on all other existing accounts.
6. Do continue to work your normal work schedule with no unplanned time off.
7. Do continue to use your credit as normal.
8. Do be prepared to explain any large deposits in your bank accounts.
9. Do enjoy purchasing your home but remain objective throughout the process to help make decisions that are best for you.

After you have been preapproved for your mortgage you will want to refrain from the following …

1. Do not make any major purchases (car, boat, jewelry, furniture, appliances, etc.).
2. Do not apply for any new credit (even if it says you are preapproved or “xxx days same as cash”).
3. Do not pay off charges or collections (unless directed by your loan officer to do so).
4. Do not make any changes to your credit profile.
5. Do not change bank accounts.
6. Do not make unusual deposits into your bank accounts or move money around from one account to another.

Follow these simple rules and you will help to make your loan closing as smooth and hassle-free as possible! Good luck!

About Roof

After 1980, almost all roofs are concrete tiles. Before that, asphalt
composite/shingle is the most common one. You don't always need to replace the whole
roof, many people start with replacing the Water proofing aka felt paper
that's underneath the tile or shingle. It takes about $8000 for felt,  and $
25,000 for both felt and roof top for a 2000 sqft house. Concrete usually
lasts 30-50ys, and composite 20-30ys depending on the quality of felt paper.
The thicker the better. Felt paper of 20lbs is the thinnest.

If your roof is shingle originally, when you replace it with concrete titles, the house top may not sustain the weight of concrete unless its structure is updated. Do not go with the light concrete that
cannot be walked on.

所以看房龄才决定要不要换。如果屋没漏但心已切，建议取中间值。Get 3 quotes before you select which company to go with, the pricing may vary 20%.

Q: 外国人投资的房产出租收入该如何报税？

A: 报1040NA - non resident alien. 第一年由于没有SSN或ITIN, 需要寄申请ITIN的W-7
连同护照原件（以前不用原件，是去年的新规定），和1040NA一起寄到指定的地址，
IRS process ITIN的申请后，才再来process 1040NA。护照在60天内会返还。

说是六周，但实际三周后ITIN就下来了。三周半后护照寄回。

房产权 for Couples: Joint Tenancy vs. Community Property with Right of Survivorship in CA (中文版)

在房产交易进入中后期，如果你是买方，在escrow company给你寄的escrow
documents中有一份是叫你specify怎样vest房产权。关于房产权的几种vesting
options, 我在我的博客http://jenniferzhengrealty.blogspot.com/2013/12/how-to-vest-property-title.html已经提及，这里重点讲一讲对于夫妻，Joint Tenancy和Community Property with Right of Survivorship在capital gain tax方面的区别。

Joint Tenancy, 全名叫Joint Tenancy with Right of Survivorship， 是最常见的夫
妻hold 房产权的方式。夫妻中有一方过世后，另一方自动receives title, 如果另一
方要卖房，不需要法庭的probate （Court probate是个费钱费时的process。 费用
typically是房子价值的5%， 时间上也得几个月。在房产市场上，时不时我会看到注明
需要probate的房子）, 所以就没有因probate产生的费用和时间上的拖延。过世一
方的，也就是一半的property basis调整到当前价值，但幸存一方仍然是旧的basis。
而Community Property with Right of Survivorship， 和Joint Tenancy一样，当夫
妻中有一方过世后， 同样不需要probate， 然而property的basis却整个重新调，在大
多数情况下能reduce capital gain tax（前提是房产升值了）

Community Property with Right of Survivorship是个相对新的hold title的选择，
在加州是在2001年七月一日以后才有的。

在我接下来举例说明之前，先给个basis的定义。Basis = purchase price –
depreciation + improvements。

Bob和Mary 2001年在CV买了个房子，价格$500,000. 三年以后，他们搬了，把原来的那
个房子作为出租房。十年以后，房子depreciated down to a basis of $400,000. Bob
在2014年初去世后，Mary立刻把房子卖了，$800,000(除去所有卖房费用后）. 基于
title vest的情况，有以下几种可能。

1) 如果title hold as Joint Tenancy. Bob’s 的那一半 basis is adjusted to the
date of death value：half of $800,000 = $400,000。 Mary的那一半仍然是之前的
value 不做调整：half of $400,000 = $200,000。So the new basis is $400,000+$
200,000, 那么她得付 $800,000 - $600，000 = $200,000的capital gain tax.

2) 如果title hold as Community Property with Right of Survivorship, property
得到100% basis adjustment, no tax no fee.


当然，这里举的是投资房的例子，如果是自助房，那么在加州，couple有$500,000、
single有$250,000的capital gain的减免。

所以对于夫妻，Community Property with Right of Survivorship既避免了probate,
又double "stepped-up" on basis。
（2016年三月九日注：关于以上讲述的Joint Tenancy和Community Property之间在一方过世后tax base的区别， 目前已经被 Revenue Ruling 87-98 消除， Revenue Ruling 87-98 allows both joint tenancy and community property to acquire a new cost basis upon the death of a spouse if the property was acknowledged as community property before the death of the spouse)

另外，两者还有以下区别：

1. Joint Tenancy任何两个或多个人都可以hold， Community Property或Community Property with Right of Survivorship只有夫妻或者registered domestic partners可以hold。

2. In Joint tenancy, 你可以在生前convey your part of the interest on the property without 配偶的许可, 一旦convey, title 就不是Joint tenancy 了，新人和原来一方就变成了 Tenancy in Common; Community Property或Community Property with Right of Survivorship 房地产的 transfer, as well as leases for more than one year, 都必需要双方签字, neither spouse can make a gift of community property to a third person without the other spouse's permission.

3. A judgement against one joint tenant does not serve the joint tenancy, but levying execution against the property and having a sale does end the joint tenancy. If the joint tenant dies prior to the execution of the judgement against the property, the property will pass free and clear of the debt to the surviving joint tenant(s). While community property is liable for the debts of the either spouse after marriage. The earnings of a spouse are not liable for the debts of the other spouse incurred prior to marriage.

Joint Tenancy 和Community Property with Right of Survivorship的共同点：

都不能立遗嘱把其中一方的interest转给其他人，包括子女。如果想转给子女，就把产权登记成Community Property或 Tenancy in Common.



至于怎样transfer title in and out of living trust, 以及各种title 在marital
dissolution 发生时受到的影响，会复杂些，请咨询律师和会计师了。

这些仅是我的知识 to my best knowledge up to the date of this blog. Rules and tax code often change over time, please consult an attorney and a certified accountant for confirmation.

Home-buying Competition Picks Up in January -- From California Association of Realtors

Home-buying Competition Picks Up in January, Still a Far Cry From Last Year’s Frenzy

by Rachel Musiker | February 20, 2014    

58.1% of Redfin Offers Faced Competition in January, Down From 70.4% Last Year

Bidding wars across Redfin’s 22 markets increased in January for the first time since the peak of the 2013 home-buying frenzy in March 2013. Redfin agents faced competition in 58.1 percent of offers they wrote in January, up from 52.8 percent in December but a far cry from the 70.4 percent recorded last year. January often brings a resurgence of bidding wars, after the holiday lull and as new homebuyers enter the market in the new year.

 

This lower level of competition is just another sign that limited supply and higher prices are hindering demand. Just after the number of homes for sale hit a four-year low in January, we reported a soft start to 2014 in terms of yearly growth in Redfin clients making offers. With home prices now 30.9 percent higher than they were two years ago, the allure of “getting a deal” has faded. And for those who are simply frustrated with a lack of inventory, patience may be a virtue. Redfin listing consultations and requests for real estate photography services indicate that things may begin to pick up. “In January, we saw a significant year-over-year decline in home photography and videography appointments,” said Matt Murphy, president of Boston Virtual Imaging, LLC. “But we’ve already had a distinct uptick in appointment requests for the second half of February, leading me to believe that sellers are just waiting a little longer this year to put their homes on the market.”

Redfin analysts expect competition to remain a prominent fixture in the early 2014 market, especially for well-priced homes in popular neighborhoods. In the coming months, softer demand and loosening inventory will likely prevent bidding wars from becoming as common or as fierce as they were last year.

 

Other findings include:

Multiple Offers

• Month over month, competition increased across all markets covered in this report.
• Chicago was the only market to see a year-over-year increase in competition, with 42.6% of offers facing bidding wars, up from 41% in January 2013.

Price Escalations

• Across 22 markets, 22% of homes sold for more than the seller’s asking price, but the average home still sold for 0.9% below the list price.
• San Jose and San Francisco were the only markets included in the report where the average home sold for more than its asking price. In San Jose, 53.3% of homes sold for higher than list price last month, with the average seller enjoying a premium of 2.9%. Meanwhile, 50% of San Francisco homes sold for more than their asking price, with the average purchase price being 2.1% above asking.

Competitive Strategies

• Despite increased prevalence of bidding wars, all of the measured bidding war strategies were used less frequently in January than in December, except for all-cash offers. In January, 8.8% of successful Redfin offers were all cash, compared to 7.8% in December.

Table 1: Competitiveness by Market

Market	Current Month	Prior Month	Prior Year	Sold Over Asking	Sale-to-List Difference
San Jose	90.0%	85.3%	97.9%	53.3%	2.9%
San Francisco	85.7%	78.7%	94.1%	50.0%	2.1%
Los Angeles	76.0%	73.6%	85.2%	22.2%	-1.7%
Orange County	72.0%	57.4%	88.0%	10.5%	-1.8%
San Diego	67.5%	56.0%	79.8%	25.9%	-0.5%
Boston	53.9%	31.1%	62.3%	7.7%	-4.0%
Washington, D.C.	51.6%	51.3%	55.6%	20.0%	-1.4%
Seattle	50.0%	40.3%	67.4%	20.3%	-0.5%
Chicago	42.6%	40.4%	41.0%	20.0%	-2.5%
Baltimore	28.6%	23.8%	36.7%	14.3%	-0.7%
22 Markets	58.1%	52.8%	70.4%	22.0%	-0.9%

Table 2: Features of Redfin’s Winning Offers – What Percent of Winning Offers…

Market	All Cash	Waived Financing	Waived Inspection	Cover Letter
San Jose	6.7%	40.0%	40.0%	40.0%
San Francisco	10.0%	20.0%	13.3%	53.3%
Los Angeles	16.7%	5.6%	0.0%	44.4%
Orange County	15.8%	0.0%	0.0%	73.7%
San Diego	0.0%	0.0%	0.0%	51.9%
Boston	0.0%	7.7%	0.0%	38.5%
Washington, D.C.	0.0%	5.5%	9.1%	34.5%
Seattle	11.9%	5.1%	15.3%	13.6%
Chicago	10.0%	10.0%	0.0%	10.0%
Baltimore	0.0%	0.0%	0.0%	35.7%
22 Markets	8.8%	7.8%	8.1%	35.9%

* Competition data is preliminary and subject to change.

从11月份起至今SD销售强劲

要出去了，匆匆一码 -

从去年11月至今，房地产销售强劲，而上市房屋数量依然有限。从我关注的好多地方来看，房子状况还可以标价还合理的，大约有20%是高于要价销售的，其余的则均在要价附近1-2周之内被要走。我每天收到的redfin通知里，大都是pending和sold的notification. 难道我原本对于今年大约5%的上升估计保守了？ 一季度将公布的数据will tell me more。