About San Leandro's Mulford Gardens

Sooner or later, we will have to make a decision about selling the family home. Our next to last real estate move.! How do we know when is the right time? Where do we go and for what reasons? How much would that cost? Would you have enough money to last you? Would the family take care of you? What if there is... nobody? If there was ever a step that needed very careful evaluation, this is it!

As a Professional Realtor, I have seen first hand the successful moves of those who plan everything carefully, check every item on the list twice, and then execute their plan to perfection. I have also witnessed the nightmare of those who waited too long, and then reluctant family members or close friends are asked to come and help. The emotional and physical tool it takes to make the last real estate move of your life, is far greater than you think.

The most typical choices available for seniors are: 1) Downsize and move to a smaller home in the same area. 2) Move in with relatives, in-laws, children, maybe friends. 3) Move into a retirement community with different degrees of medical care. Whichever way you choose to go, you must plan your move carefully. Here is what you need to know, to help you get to your new destination.

• Take your time. Start early enough so you can evaluate everything at your leisure. I would suggest at least a couple of years before the move. There is a lot of research to be done at this stage. You will also need time to get used to the idea, and to get ready emotionally.

• Ask for help. Get family members involved if appropriate. Check with your doctor, particularly if you are moving far from your area, whether, finances, friends and family support are very important considerations.

• Figure Out Your needs. If you are moving into a retirement home, find out what services are offered. Do you need care right now? are you expecting to require medical care in the future? Are those services being offered at that particular facility? Most Senior retirement communities offer a variety of levels of care, depending on each resident individual needs and desires.

• Visit the places you are interested in. Ask questions, and prepared them in advance, so you don't forget the important ones. Take notes of everything you see and hear. Pay particular attention to the cost of living there and any potential increases.

• Decide what to do with your personal possessions. Should you sell them? donate them? gift them to family members or outright sell them? What would you take with you? This process has a way of showing you what is important at this stage of your life.

Selling the family home for the last time, is always an emotional journey for which most people are not prepared. But with proper planning and good guidance you can make this important move easy, confident and produce a piece of mind that comes when all is settled and taken care of properly.

To help my senior clients here in California's Alameda county, in the city of San Leandro, where I live and work, I put together a team that is knowledgable, professional, and sensitive to the special needs of my senior clients. Before selling it, we dispose of the contents of the entire house.

I work with a Estate Auctioneer, a professional cleaning crew, a home inspection company, and a stagger, among others. Together we have done this process many times over the years. We know exactly what to do when the time comes. I also work with other Professional Realtors around the country, who specialize in dealing with Seniors the same way we do here. I can refer you to one of them at no cost to you.

Home buyers applying for a loan should be prepared to be screened, x-ray-ed, frisked, sworn, read their Miranda Rights and hooked to a lie detector before their loan is approved no matter how well qualified they think they are. A loan approval for a well qualified home buyer used to be almost like a formality but not anymore, due to the mortgage meltdown of the last few years, we have seen a dramatic change in the way home loans are underwritten.

Going from the infamous liars loans, I mean "Stated Income" to now "Full Documentation" for every single loan has had a tremendous impact on the real estate industry because it reduces the already small pool of potential home buyers. But, is there anything that the applicant for a home loan can do to smooth the process and to stand a fair chance of getting a loan approval?

Today's loan officers are playing detective and their job now includes fraud prevention. They have been extensively trained to read and analyze tax returns, bank statements, application forms, job evaluations and written explanations. If you are ready to open your soul, here are 7 steps to get you prepared for such an ordeal, and this is what you are going to look like after the process ---->

1. Declining Income - As companies, downsize and reduce their number of employees, and sometimes reduce the number of hours worked for those who stay, only the current lower income will be considered. This situation actually creates a Red Flag for the underwriter who would now question weather the company the applicant works for is going out of business, this investigation can delay the entire process.
   
2. Credit report - Well before home buyers apply for a loan they should be very careful as to how many inquires are made and for what reason, they should keep documentation to show the reason for the inquiry or if they had any dispute for items showing in their report. Minimum FICO scores are about620.
   
3. Continuous Job History - Buyers have to be ready to explain in writing every single gap in their employment in the last 2 years that is longer than 2 months, more than 2 months out of work and the loan is denied.
   
4. Bank Statements and Deposits - Any large deposit into the buyers account within the last few months will raise a red flag for the lenders, they will ask to see where it come from and why, they call this a "paper trail" so make sure you can explain it and prove it. Any notice of "insufficient funds" on a borrower's bank statements is bad, almost lethal to the loan being applied for.
   
5. Buyer's Tax Transcripts - Let's face it: nobody trusts anybody anymore! The lender will ask the IRS for a copy of your last 2+ years tax returns. The lender wants to see if you have had unreimbursed Business Expenses and/or Business Losses for example. The number of the form to remember here is: 4506T
6. Lower Debt to Income Ratios - Most loans are now analyzed via a Desktop Underwriter, a maximum approval ratio of 45% of income is the rule. The borrower however has to have extremely great compensating factors to even try for a higher approval ratio but it will never go above 50% anymore.
7. The Appraisal ... or Appraisals - On May of 2009 the appraisers come under a new government rule called HVCC. These rules have created more havoc for Realtors than any other factor. Low appraisals are now the norm and buyers sometimes have to pay for more than one appraisal if the first one come in low and the seller could or would not negotiate, moving onto another property means another appraisal without guarantees.

Even if you are not thinking about buying a house right now, start saving all your papers, clean your credit, and be careful who you co-sign with. Don't go asking for a credit report too many times, if there are issues on the report, make sure you document your dispute and keep a neat and clean file for future reference. If you are trying to get money for a down payment from friends or relatives, start early enough so as to show that those funds have been in your account for a while. Unfortunately, you must go through this process before you can enjoy the fun of looking for homes to buy.

And finaly, if during your first loan application meeting the loan officer begins with the following sentence: You have the right to remain renting, anything that you say or give to us could be used against your dream of owning a house, if you cannot afford this loan, nobody will ever loan you anything, etc. etc ... don't run! It is simply the new way of getting a new loan. You are considered guilty of not having enough money or income or credit until proven house-worthy.