This document provides information about buying a home on the San Francisco Peninsula, including details about financing options, home buying tax benefits, and the current real estate market. It discusses: - Federal stimulus programs that provide tax credits for first-time homebuyers and current homeowners making purchases through 2010. - Historically low mortgage rates and the benefits of owning versus renting, such as building equity over time. - An overview of the process for purchasing a home, from getting pre-approved to closing. - Factors that make the San Francisco Peninsula housing market desirable such as location, schools, and weather.

1. Buy A HOME ON THE SAN FRANCISCO PENINSULA 2010 Aimee Snodgrass Klarich Realtor ® Alain Pinel Realtors Burlingame, Ca Business 650-483-3795 aklarich@apr.com www.AimeeKlarich.com Eileen Horan Mortgage Broker Mortgage California San Mateo, Ca Business 650-645-1775 eileenhoran@mortgagecalifornia.com

3. Tax Credits available for home ownership

4. Why buy a home in 2010?

5. Steps for a successful home or condo purchase

6. Differences between owning a condo vs a single family home in San Mateo County

7. How to finance your home purchase?

8. State of the San Mateo County real estate marketAimee Klarich Realtor ® http://www.AimeeKlarich.com Eileen Horan Mortgage Broker Mortgage California

10. $8000 First Time Home Buyer tax credit on purchases through 6/30/10 for qualified buyers.

11. $6500 Tax Credit for current qualified homeowners

12. Mortgage rates remain historically low but are projected to increase.Aimee Snodgrass Klarich Realtor ® http://www.AimeeKlarich.com Eileen Horan Mortgage Broker Mortgage California

14. It can be a tax write-off

15. House expenses usually increase slower than renting

16. You have much more flexibility in how you use, decorate and make physical changes to your home

17. Pride of homeownershipAimee Snodgrass Klarich Realtor ® http://www.AimeeKlarich.com Eileen Horan Mortgage Broker Mortgage California

18. STIMULUS PLAN The "American Recovery and Reinvestment Act of 2009," was signed by President Obama on February 17th, 2009. On the housing front, the good news is that the legislation resets the conforming loan limit cap at $729,750, up from $625,500. This means lower interest rates for those getting a loan between the $729,750 and $625,500 in San Mateo and San Francisco Counties. On Nov 13th, 2009, congress extended this thru Dec. 31st, 2010. . Aimee Snodgrass Klarich Realtor® http://www.AimeeKlarich.com Eileen Horan Mortgage Broker Mortgage California

19. STIMULUS PLAN The bill also increases the first-time home buyer credit from $7,500 to $8,000 through June 30th, 2010. See Appendix for more details Aimee Snodgrass Klarich Realtor® http://www.AimeeKlarich.com Eileen Horan Mortgage Broker Mortgage California

20. Other Tax Credits Homeowners who currently do not qualify for aid under the federal housing-rescue plan still may qualify for tax credits on energy-efficient upgrades. Homeowners may qualify for up to $1,500 in tax credits for adding qualifying windows, doors, insulation, roofs, heating and cooling equipment, water heaters, and wood and pellet stoves. The installations must take place in 2010 to qualify for the tax credit. Aimee Snodgrass Klarich Realtor® http://www.AimeeKlarich.com Eileen Horan Mortgage Broker Mortgage California

22. 5% annual rent increase

23. After 5 years you have spent $66,307 in rent.

24. Net equity gain: $ 0

25. You have nothing to show after spending all this money.Aimee Snodgrass Klarich Realtor ® http://www.AimeeKlarich.com Eileen Horan Mortgage Broker Mortgage California

26. Renting vs Buying a home The rent you pay could build equity in your own real estate. Using this chart, find your month rental payment and you can determine how much money you are “giving away” in rent and interest (5%) over 10, 20, 30 years. Aimee Snodgrass Klarich Realtor ® http://www.AimeeKlarich.com Eileen Horan Mortgage Broker Mortgage California

28. Property Taxes

29. Discount points (closing costs)

30. It is customary in San Mateo County that buyers pay closing costs. This is negotiable.Aimee Snodgrass Klarich Realtor ® http://www.AimeeKlarich.com Eileen Horan Mortgage Broker Mortgage California

32. 20% Down Payment

33. Home Mortgage

34. Interest Rate

35. Annual Interest Paid

36. Annual Property Tax

37. Total Deductions

38. $500,000

39. $100,000

40. $400,000

41. 5.50%

42. 22,000

43. 6,250

44. $28,250Aimee Snodgrass Klarich Realtor ® http://www.AimeeKlarich.com Eileen Horan Mortgage Broker Mortgage California

45. TAX DEDUCTIONS = TAX SAVINGS Aimee Snodgrass Klarich Realtor ® http://www.AimeeKlarich.com Eileen Horan Mortgage Broker Mortgage California

46. Tax Deduction Example 2 Bedroom 1 Bath Condominium West Side San Mateo Purchase Price $340,000 Buyers Combined Annual Salary $65,000 (28% Tax Bracket) Aimee Snodgrass Klarich Realtor ® http://www.AimeeKlarich.com Eileen Horan Mortgage Broker Mortgage California

47. OUR MARKET? Months of Inventory is used as an analytical tool in determining who holds the power in negotiations. Months of Inventory = # homes of sale/#homes sold Supply and Demand… Months of Inventory <4 = Seller Market Months of Inventory =4 = Flat Market Months of Inventory >4 = Buyer Market Aimee Snodgrass Klarich Realtor ® http://www.AimeeKlarich.com Eileen Horan Mortgage Broker Mortgage California

48. FLAT MARKET: SAN MATEO COUNTY SINGLE FAMILY HOMEs San Mateo County Single Family Homes All reports are published Jan. 2009, based on data available at the end of Dec. 2008. All reports presented are based on data supplied by San Mateo County Association of Realtors. Neither the Associations nor their MLSs guarantee or are in anyway responsible for their accuracy. Data maintained by the Associations or their MLSs may not reflect all real estate activities in the market. Information deemed reliable but not guaranteed. * Cities within the county vary from the total.

49. STATE OF THE MARKET (Dec 2009): SAN MATEO COUNTY SINGLE FAMILY HOMES At an aggregate level, San Mateo County continues to be a flat market. All reports are published Jan. 2009, based on data available at the end of Dec. 2008. All reports presented are based on data supplied by San Mateo County Association of Realtors. Neither the Associations nor their MLSs guarantee or are in anyway responsible for their accuracy. Data maintained by the Associations or their MLSs may not reflect all real estate activities in the market. Information deemed reliable but not guaranteed. Aimee Snodgrass Klarich Realtor® http://www.AimeeKlarich.com Eileen Horan Mortgage Broker Mortgage California

51. Unit Sales were up 23% to last year

52. Most note worthy was the significant increase in pending sales: up 47% to last year.

53. Average Days On Market was 64 days vs 79 last year

54. Avg Sales Price vs. Original List Price: 93%Median Sales Price: $755,000 (+28% to last year) Each city, neighborhood and area shows a different picture. Schools, commute, weather are all key factors in the variances between cities and areas. All reports are published Jan. 2009, based on data available at the end of Dec. 2008. All reports presented are based on data supplied by San Mateo County Association of Realtors. Neither the Associations nor their MLSs guarantee or are in anyway responsible for their accuracy. Data maintained by the Associations or their MLSs may not reflect all real estate activities in the market. Information deemed reliable but not guaranteed. Aimee Snodgrass Klarich Realtor® http://www.AimeeKlarich.com Eileen Horan Mortgage Broker Mortgage California

55. FLAT MARKET: SAN MATEO COUNTY CONDOs &TOWNHOMEs San Mateo County Condos and Townhomes All reports are published Jan. 2009, based on data available at the end of Dec. 2008. All reports presented are based on data supplied by San Mateo County Association of Realtors. Neither the Associations nor their MLSs guarantee or are in anyway responsible for their accuracy. Data maintained by the Associations or their MLSs may not reflect all real estate activities in the market. Information deemed reliable but not guaranteed. * Cities within the county vary from the total county picture.

56. STATE OF THE MARKET (DEC 2009): SAN MATEO COUNTY CONDOS & TOWNHOMES At an aggregate level, San Mateo County continues to be a flat market. Months of Inventory based on closed sales was 3 last month vs 5.6 a year ago. All reports are published Jan. 2009, based on data available at the end of Dec. 2008. All reports presented are based on data supplied by San Mateo County Association of Realtors. Neither the Associations nor their MLSs guarantee or are in anyway responsible for their accuracy. Data maintained by the Associations or their MLSs may not reflect all real estate activities in the market. Information deemed reliable but not guaranteed. Aimee Snodgrass Klarich Realtor® http://www.AimeeKlarich.com Eileen Horan Mortgage Broker Mortgage California

58. Unit Sales were down 3% to last year.

59. Average Days on Market was 77 days vs 83 last year

60. Avg Sales Price vs. Original List Price: 98%Median Sales Price: $465,000 (+23% to last year) Each city, neighborhood and area shows a different picture. Schools, commute, weather are all key factors in the variances between cities and areas. All reports are published Jan. 2009, based on data available at the end of Dec. 2008. All reports presented are based on data supplied by San Mateo County Association of Realtors. Neither the Associations nor their MLSs guarantee or are in anyway responsible for their accuracy. Data maintained by the Associations or their MLSs may not reflect all real estate activities in the market. Information deemed reliable but not guaranteed. Aimee Snodgrass Klarich Realtor® http://www.AimeeKlarich.com Eileen Horan Mortgage Broker Mortgage California

61. MORTGAGE RATES ARE HISTORICALLY LOW Aimee Snodgrass Klarich Realtor® http://www.AimeeKlarich.com Eileen Horan Mortgage Broker Mortgage California

63. Employment opportunities

64. No more land to build upon since we are flanked by the bay and the ocean

65. Moderate weather

66. Good schoolsAimee Snodgrass Klarich Realtor ® http://www.AimeeKlarich.com Eileen Horan Mortgage Broker Mortgage California

67. WHY BUY A HOME ON THE San FRANCISCO PENINSULA? San Mateo County sub-prime loans are only 1.5% of total housing units. SOURCE: FirstAmerican CoreLogic, LoanPerformance Data, U.S. Census Bureau, and Federal Reserve Bank of New York Dec 07 Aimee Snodgrass Klarich Realtor ® http://www.AimeeKlarich.com Eileen Horan Mortgage Broker Mortgage California

68. Advice FROM First-Time Home Buyers: Top 10 Answers from a Survey of 1000 Buyers by California Association of Realtors on advice they would give other home buyers.

70. Buyers Agent (Realtor ® ): Fiduciary responsibility to buyer(s)

71. Selling Agent (Realtor ® ): Fiduciary responsibility to seller(s)

72. Escrow Officer: Neutral 3rd party manager of the transaction

73. Appraiser: Hired by lender to confirm property values

74. Inspectors: Provide insight into the condition of a home Aimee Snodgrass Klarich Realtor ® http://www.AimeeKlarich.com Eileen Horan Mortgage Broker Mortgage California

76. Get Pre-Approved for a loan

77. Search for a Home

78. Find a Home

79. Submit an Offer and Negotiate

80. Final Agreement on Terms and Price

81. Open Escrow with a Title Company.

82. Deposit your earnest money deposit into Escrow Account

83. Appraisal and other further needed inspections and reports

84. Secure Home Insurance as a requirement of the lender

85. Removal of remaining contingencies

86. Final Inspection and Walk Through of Home

87. Secure loan funds. Deposit your remaining funds into escrow.

88. Record Deed of Title

89. You take possession of propertyAimee Snodgrass Klarich Realtor ® http://www.AimeeKlarich.com Eileen Horan Mortgage Broker Mortgage California

91. Income

92. AssetsThe most important part of this is for you to decide how much you WANT to pay on a monthly basis. Aimee Snodgrass Klarich Realtor ® http://www.AimeeKlarich.com Eileen Horan Mortgage Broker Mortgage California

94. Homebuyers need to pay more attention to their credit scores than they did before.

95. Credit history

96. Your credit score may impact your interest rate.

97. Your credit score may impact your down payment requirements.

98. But you don’t need perfect credit to buy a home.Aimee Snodgrass Klarich Realtor ® http://www.AimeeKlarich.com Eileen Horan Mortgage Broker Mortgage California

101. Principal & Interest.

102. Property Taxes

103. Insurance

104. Mortgage insurance - if your down payment is less than 20%.

105. Association fees - if applicable.

106. Your maximum monthly payment is calculated using:

107. Your housing monthly debt.

108. Your other debt

109. Again, the most important part is to be comfortable with the calculated monthly payment:

110. Repairs and maintenance costs are part of homeownership.Aimee Snodgrass Klarich Realtor ® http://www.AimeeKlarich.com Eileen Horan Mortgage Broker Mortgage California

112. 2 pay stubs

113. 2 years W2s and Federal Tax Returns

114. 2 months bank statements

115. What type of product?

116. What kind of rate?

117. How long a term?Aimee Snodgrass Klarich Realtor ® http://www.AimeeKlarich.com Eileen Horan Mortgage Broker Mortgage California

119. Conforming loans up to $417,000* for a single-family.

120. Jumbo Conforming loans $417,001 up to $729,750*

121. Jumbo loans greater than $729,750*.

122. Combination loans: conforming first + a second mortgage.

123. Government loans: FHA & VA.*The conforming ceiling of $417,000 has been raised in high-cost housing markets starting 01/01/2009. The loan limit on these “conforming jumbo” loans varies by location but doesn’t exceed $729,750 in the continental U.S. Aimee Snodgrass Klarich Realtor ® http://www.AimeeKlarich.com Eileen Horan Mortgage Broker Mortgage California

124. What type of mortgage should I get? What kind of rate? Aimee Snodgrass Klarich Realtor ® http://www.AimeeKlarich.com Eileen Horan Mortgage Broker Mortgage California

125. What type of mortgage should I get? How long a term? Aimee Snodgrass Klarich Realtor ® http://www.AimeeKlarich.com Eileen Horan Mortgage Broker Mortgage California

127. Get Pre-Approved for a loan

128. Select Your Team of Professionals

129. Search for a Home

130. Find a Home

131. Submit an Offer and Negotiate

132. Final Agreement on Terms and Price

133. Open Escrow with a Title Company.

134. Deposit your earnest money deposit into Escrow Account

135. Appraisal and other further needed inspections and reports

136. Secure Home Insurance as a requirement of the lender

137. Removal of remaining contingencies

138. Final Inspection and Walk Through of Home

139. Secure loan funds. Deposit your remaining funds into escrow.

140. Record Deed of Title

141. You take possession of propertyAimee Snodgrass Klarich Realtor ® http://www.AimeeKlarich.com Eileen Horan Mortgage Broker Mortgage California

143. How well does he or she listen to you?

144. Do you feel that the agent will be respectful of your desires, enabling (not forcing) you to make your own decisions?

145. Do you feel they will negotiate hard for you?

146. Do you feel a rapport?

147. Are they clear on their services and expectations?

148. Per the survey of Home Buyers from CAR:

149. Check references

150. What online services does the Realtor provide?Aimee Snodgrass Klarich Realtor ® http://www.AimeeKlarich.com Eileen Horan Mortgage Broker Mortgage California

152. Single Family Home, Condo or Townhome

153. Number of bedrooms and bathrooms

154. Home square footage and lot size

155. One story vs two story

156. Desired neighborhoods

157. Location vs. commute to work/school

158. Desired amenities (garage, laundry, pool, etc)

159. Your family size- current and projected

160. Hobbies or special needs to accommodate

161. Preferred condition of the property (fixer upper?)

162. Any non-negotiable points for you

163. Current housing and terms of current contracts

164. Learn and discuss types of salesAimee’s Buyer Services Packet in Appendix Aimee Snodgrass Klarich Realtor ® http://www.AimeeKlarich.com Eileen Horan Mortgage Broker Mortgage California

166. Get Pre-Approved for a loan

167. Select Your Team of Professionals

168. Search for a Home

169. Find a Home

170. Submit an Offer and Negotiate

171. Final Agreement on Terms and Price

172. Open Escrow with a Title Company.

173. Deposit your earnest money deposit into Escrow Account

174. Appraisal and other further needed inspections and reports

175. Secure Home Insurance as a requirement of the lender

176. Removal of remaining contingencies

177. Final Inspection and Walk Through of Home

178. Secure loan funds. Deposit your remaining funds into escrow.

179. Record Deed of Title

180. You take possession of propertyAimee Snodgrass Klarich Realtor ® http://www.AimeeKlarich.com Eileen Horan Mortgage Broker Mortgage California

182. Compare sale and list price

183. Months of Inventory

184. Days on market

185. Know the current property offer and disclosure packet activity, if any

186. Know the property condition and short-term repair expenses (including HOA Assessments)

187. Know the seller's situation and motivation for selling.

188. Examples of other things to negotiate on other than price:

189. Closing Costs

190. Repairs

191. 30 day rent backs

192. Know your financing options and have your pre-approval letter from your lender for the exact offer priceAimee Snodgrass Klarich Realtor ® http://www.AimeeKlarich.com Eileen Horan Mortgage Broker Mortgage California

194. Traditionally, the accepted deposit (earnest money) is 3% of the offer price.

195. The down payment and amount financed will be determined.

196. Understand what is included with the purchase of the home as in fixtures & appliances and negotiate accordingly.

197. Decide on needed inspections and contingencies to be negotiated into the contract

198. Examples of Contingencies

199. Financing

200. Appraisal

201. Property Condition

202. The close of escrow date will need to also be negotiated

203. The lender will most often influence the closing date so your lending partner must be involved during the negotiation processAimee Snodgrass Klarich Realtor ® http://www.AimeeKlarich.com Eileen Horan Mortgage Broker Mortgage California

205. Traditionally done by your Realtor.

206. Deposit your earnest money deposit into the Escrow Account

207. Complete appraisal and inspections

208. Secure home insurance as a requirement of the lender

209. Remove contingencies (if all is satisfactory)

210. Final Inspection and Walk Through of Home

211. Secure loan funds. Deposit your remaining funds into escrow.

212. Record Deed of Title

213. You take possession of the propertyAimee Snodgrass Klarich Realtor ® http://www.AimeeKlarich.com Eileen Horan Mortgage Broker Mortgage California