My New Blog

Rates here in Vacaville, Fairfield, Dixon, Winters, Suisun City and Solano County overall are very good at the 5-5.5% range for a 30 year fixed rate loan.

Buyers are able to buy homes with only a 3.5% down payment.

Values are still depressed in our market. The overwhelming amount of homes for sale are REO (Foreclosures) or Short Sales.  There have been two moratoriums putting a temporary halt to foreclosures in California. The first moratorium was from the Federal level and the second moratorium was from the state level.  This "Hold" on foreclosures was meant to give home owners a chance to get back on their feet.  Hopefully it has done just that but it has also created an unwanted side effect. With no new homes for sale it has dried up our current market to where there are less than one month's worth of homes to buy. Normally with supply and demand, when supply is less than demand prices will go up, but this is not a normal market.  Currently there are multiple offers on every home for sale and prices are still very low. Most homes do, however; sell for more than the asking price.

The rumor is that there is a tsunami of foreclosures waiting to hit the market in Sept of this year. That would be a welcome relief as currently there are more people wanting to buy homes than there are homes to sell.  Letting the foreclosures hit the market will not only revive the market it will also allow our local economy to go through the process necessary to eventually return to a normal Real Estate market. 

Warren Buffett, the legendary investor said, "Be scared when others are greedy and be greedy when others are scared."  If you have the money, now could be the chance of a lifetime to get some prime California Real Estate for less than what it is intrinsically worth.  Plus investors can note that you can now purchase homes at prices where the mortgage payment is less than the rent you can receive.

If you have questions or comments you can email me at joerap@lendscape.com or visit me at www.Honestlender.com

May 31st 2009,

In the middle of this prolonged credit crisis and depressed Real Estate market lies an opportunity of a lifetime for First Time Home Buyers.

For the first time in many years, First Time Home Buyers are able to buy homes for less than their long term value and at interest rates that are among the lowest that most of us have ever seen in our lifetimes.

What is happening in our market is a simple case of economic 101 which explains supply and demand.  Currently due to foreclosures, there are more houses for sale on the market than there are buyers to buy them. Economic 101 says that when supply is greater than demand, prices have to fall. That is what is happening to us now. Eventually the prices will get low enough where many buyers will swoop in to compete to buy these houses. When that happens demand for the houses will be greater than the supply and that is what will make the prices go up.

The bottom line is that Real Estate, especially in California, is a wonderful long term investment.  Yes, there are times like now where homes are selling for less than they are worth but it is times like these that make the prospect of buying so enticing.

The great investor Warren Buffett is often quoted saying, "Be Fearful When Others Are Greedy, and Be Greedy When Others Are Fearful."  This saying also translate to buy low and sell high. The best time to buy something is when it is on sale. We'll Real Estate is one sale.

Long Term Value.   Let's say you bought house for $250,000 in today's market.  If you got just a 5% home appreciation rate for the next 30 years your home would be paid off and worth $1,080,486.  Yeah, you would be a millionaire.

3.5% Down Payment You can buy a house in this market with only 3.5% down payment.  So if you bought a $250,000 house, you could buy it for as little as $8,750 out of your pocket.

$8,000 Tax Credit  In 2009, the government is giving an $8,000 Tax Credit to First Time Home Buyer that purchase this year.   So if you subject the $8,000 the government is giving you to buy in 2009 the example above for $250,000 will only cost you a net $750 ($8,750 cash to close - $8,000 Tax Credit = $750). Learn more at www.HonestLender.com/FreeTaxCredit

Who Wants to Be A Millionaire? So if the above example were to come true you could become a millionaire in 30 years on only a $750 investment. That's a 27.43% annualized return on investment for 30 years. If you got those type of returns in the stock market over 30 years you would be consider a stock picking guru. With Real Estate you don't have to do anything other than buy a house.  The great thing is that today you can often buy for LESS than you are currently renting.

The next step to becoming a home owner is to get prequalifed by a local mortgage lender that you can trust.

Happy House Hunting

Joe Rapisarda Jr.

Loan Consultant

First Priority Financial

707-448-4221 Ext. 203

JoeRap@Lendscape.com

HonestLender.com

Hello everyone, I have just added a new photo section to my website. You can see them at www.HonestLender.com/Photos.  I will be adding photos that I collect over time to the website.  If you have photos that you would like to share feel free to send them to me and I will put them in a client photo section of the website. Also if you have any other ideas that you would like to see added to the website send me an email at joerap@lendscape.com 

Talk to you again soon,

Your Lender for Life!

Joe Rapisarda Jr.

 Hello Everyone!  I am happy to say I have finally upgraded my website.

This new website has many wonderful free features including:

• Free Home Value Search
• Free Credit Report
• Free Home Search
• Free Reports
• Free Quick Quick Loan Qualify
• Free Mortgage Calculations

This site is meant to be a one-stop shopping resource for you where you can do loan research, get prequalified, find a Realtor, search homes and so much more. Check it out at www.Honestlender.com and if you have any suggestion just go to the suggestion box on my website.

So take a look at my site when you get a chance and tell a friend.

-Joe Rapisarda Jr.