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Jumbo Loans provide options for Bay Area buyers as median home price hits $935,000

A new report shows that the median price for a single-family home in the Bay Area hit a record $935,000 this quarter.

According to CoreLogic, home sales are up 12 percent in the Bay Area and more homes were sold in the Bay Area in May 2018 than in any May since 2013. Experts suggest that the reason for this upward trend in sales is increasing inventory, which could suggest that the home shortage that has driven up prices may be abating.

Now may be the perfect time to get a great home in the Bay Area with a jumbo loan. A jumbo loan will cover anything that exceeds a county’s conforming loan limit, which varies from county to county. In most U.S. counties, the conforming loan limit is $417,000; a mortgage exceeding that limit is a jumbo loan. In some areas, like the San Francisco Bay Area, the conforming loan limit varies by county and can range from $453,100 to $679,500 due to being located in a high-cost area.

A jumbo loan will cover the full amount needed for the purchase or refinance of your home. Interest rates for a jumbo mortgage tend to be slightly higher than those for a conforming loan, depending on market conditions. These loans are available in both fixed- and adjustable-rate terms. Fixed options include 30, 20, and 15-year terms. Adjustable rate options include a fixed period of 5, 7, or 10 years that roll to annual adjustable.

One option for Bay Area buyers is to get a first and second mortgage with the second mortgage covering the loan balance that goes above the conforming limit. Essentially, splitting up the loan total between two mortgages creates a situation where you are coming [...]

Homes in the Bay Area are selling fast – get a leg up on the competition

Looking to buy a home in San Francisco? As you may have heard, it is not uncommon for San Francisco homes to go above asking price. What creates bidding wars is low inventory of available homes in the San Francisco market, which means buyers have fewer home options to choose from. San Francisco is 49 square miles of prime real estate and a prime location for many buyers.  A two-bedroom home in San Francisco recently sold for $1.53 million — 33 percent over asking — thanks to multiple offers. Not an uncommon occurrence.

Home buyers put a lot of effort into looking for a new home. There is a lot to consider. Home buyers will often spend hours exploring neighborhoods, wandering through open houses, imagining how they would remodel the space. When they find the home they want, it’s hard for them not to get their heart set on it. Having to go out all over again and go through the process of researching more neighborhoods, schools and more open houses can be tiresome and even frustrating, which is why so many are willing to enter bidding wars.

Guarantee Mortgage has an answer for that, our pre-approval program called Keys on Time! Bay Area home buyers are in a very competitive market if they’re looking to buy in San Francisco, or surrounding areas. Our Keys on Time program allows for potential buyers to get pre-approved and puts them at the front of the line for the home of their dreams. Keys on Time helps you stand out from other home buyers taking away the guess work for financing approval.

Sellers are always looking for the strongest offer. Besides pre-approvals, like our Keys on Time, there is one [...]