The San Francisco Bay Area is undoubtedly one of the most desirable places to live in the United States consequently creating very expensive real estate. The area is pretty well landlocked thus providing the perfect environment for more demand than supply can meet. In recent years, the majority of first time buyers in California have been priced out of the housing market even with dual income and good jobs. The real estate market became red hot around the year 2000 and we watched in astonishment as prices doubled, tripled and in some cases quadrupled. Lenders were forced to come up with ridiculous measures in order to supply financing for an extremely over priced market with an overwhelming number of stated loans and 100 of the purchase price and set it aside. The minimum down payment allowed for an FHA loan is 3.5 to cover closing costs. Often times, employer 401K, 403B and IRA accounts can be used for first time buyers.

3. Get on the internet and look at neighborhoods that you like. Find out what property values are going for and figure out the approximate mortgage payment involved. You can do a rough estimate by this formula: every interest point and $100K financed = approximate mortgage and interest payment. I.E. $500,000 @ 5 of the purchase price.

4. Talk to a good loan officer with a direct lender. Some of the smaller banks, credit unions and portfolio lenders can be easier to work with. This is not always the case but good to shop around and see what's being offered. They can advise you about where you are and what needs to be done.

5. Find a reputable real estate professional to help facilitate your transaction. Make sure you choose someone with a good track record and reputation. Make a plan together and the wheels are turning in the right direction.

Becoming a homeowner is not as scary and intimidating as many would think provided the proper steps are taken along the way. There are many real estate and mortgage professionals out there who work very hard and are great at the business. Go ahead, Take a chance and get in the market while it is here.

Let me know how I can help.

Matthew Larsen

California Real Estate Broker

DRE# 1448393