Chic vs. Geek: What to avoid after you sign

So you’ve applied for a home mortgage loan. Want to know what to do – and what not to do – next? We’ve got a few tips to share.

CHIC (PEARL)

Consistency is the name of the game. Be sure to discuss any changes in income, assets, or credit with your lender so you don’t jeopardize your application. Don’t change your bank account, don’t apply for a new credit card or close any credit accounts, and definitely don’t co-sign any loans.

GEEK (KEVIN)

The banks are always watching because money never sleeps. So the best plan is full transparency. Avoid making any large purchases like a car or a major appliance. And if you receive a cash windfall, don’t deposit it into your bank account before contacting your bank or lender.

Geek's Number Talk: How many months do we have?

One of the key indicators of a supply shortage in any industry is the number of months it would take to exhaust current inventory. While housing inventory typically fluctuates with the seasons, it’s clear that we’re on a much longer downward trend during the COVID pandemic.

Chic vs. Geek: What causes low inventory?

This week, we explain the variety of factors at play in a hot and competitive housing market.

CHIC (PEARL)

Low Interest Rates

Low interest rates are great for homebuyers, but they also make it easier for homeowners to keep their current homes and buy another, rather than selling. Over the last decade, an estimated 7 million properties have been taken off the market by homeowners and businesses investing in rentals. This is evident in the success of rental companies like Airbnb and VRBO.

Aging in Place

More and more Baby Boomers who bought low decades ago are choosing to stay in their homes and “age in place” – especially in the uncertain age of COVID. With prices soaring across California and the nation, where would they move?

Coming of Age

Meanwhile, the largest generation in history, Millennials, is about to hit the median age of a first-time homebuyer. That means an even greater strain on an already limited inventory and a fiercely competitive market into the foreseeable future.

GEEK (KEVIN)

We’re Not Building Enough

Ever since the housing bubble burst 12 years ago, homebuilders have slowed their pace and become more risk averse. According to Census data, an average of 1.5 million homes have been built each year in America since 1959. However, over the past decade, the pace has slowed to just 900,000 homes a year. Limited production, coupled with enticingly low interest rates and a generation of first-time homebuyers all combine to exacerbate the crisis.

Housing Policy

The CARES Act foreclosure moratorium has kept financially distressed homeowners from selling, but foreclosures were already at record lows before the pandemic. In fact, according to a recent report from CoreLogic, U.S. homeowners have seen their equity increase by $1 trillion since the third quarter of 2019, an increase of 10.8% year over year. So, even with 2.5 million homeowners in the mortgage forbearance program, we shouldn’t expect a wave of foreclosures when the moratorium is lifted.

Boost your immunity with a cool winter treat!

We’ve all heard that COVID infection rates are surging, even with many of us getting booster shots. And there’s always the annual flu bug floating around. With that in mind, here’s a recipe for a cool and deliciously fruity treat to shield your body and nourish your soul!

Chic vs. Geek: Healthy Home, Healthy Living

You never know what’s lurking below the surface, especially when it comes to plumbing and sewer lines in an old home!

CHIC (PEARL)

A client who recently bought a single family home got a rude awakening when they found out the plumbing connecting their house to the sewer line had been impacted by tree roots and sprung a leak. The good news was they caught the leak before it spread into their home. We connected our client with a top-notch plumbing crew to clean up the mess, but it was still an unexpected cost, and the problem could just as easily have gone unnoticed until it was too late and our client was faced with a very stinky situation.

GEEK (KEVIN)

If you’re looking at a house that’s at least 50 years old, it likely has galvanized pipes that are in need of an upgrade. This is something that could easily evade an inspection, and if the plumbing hasn’t been used for a few months, there could be a backup brewing. In a competitive Bay Area market, it’s hard to expect a seller to invest in an expensive upgrade. That’s why it’s a good idea for a homebuyer to put some money aside in your budget to do the upgrade yourself after you acquire the property.