Mohammed Salim Shaikh (Realtor, Corona)

Hazard Insurance vs Homeowners Insurance Understanding the Differences As a homeowner, it is important to protect your investment and your belongings from unexpected events. This is where insurance comes in. However, many homeowners are often confused between hazard insurance and homeowners insurance and end up purchasing the wrong type of coverage or paying for unnecessary coverage. In this blog, we will discuss the differences between these two types of insurance and help you make informed decisions. What is Hazard Insurance? Hazard insurance is a type of insurance that covers your home from damages caused by risks or perils, such as fire, vandalism, and natural disasters. It is usually required by mortgage lenders to protect their investment in case of unforeseen events. Hazard insurance covers the structure of your home, including the roof, walls, and foundation, as well as other structures on your property, such as a detached garage or shed. ...

What Is an Escrow? All You Need to Know If you have ever been involved in a real estate transaction, whether as a buyer or seller, you have probably heard the term "escrow". But what exactly is escrow and why is it an important part of the process? In this blog, we will dive into the world of escrow and answer all your questions. What Is Escrow? Escrow is a legal arrangement in which a third party, usually an escrow company or attorney, holds funds and documents on behalf of two parties involved in a transaction. This can include real estate transactions, mergers and acquisitions, and even online purchases. In a real estate transaction, the escrow process begins once the buyer and seller have agreed upon a purchase price and signed a purchase agreement. The buyer then deposits the funds into an escrow account, which is held by the escrow company. The seller also provides the necessary documents, such as the deed and title, to the escrow...

Choosing the Right Mortgage: Fixed, Variable, or Adjustable By Your Name Buying a home is a major decision and one of the biggest financial investments you will make in your lifetime. With so many options available, it can be overwhelming to choose the right mortgage for your needs. The three main types of mortgages are fixed, variable, and adjustable. In this blog, we will discuss the differences between these options and help you decide which one is the best fit for you. Fixed Mortgage A fixed mortgage is a loan with an interest rate that remains the same for the entire term of the loan. This means that your monthly payments will also stay the same, providing stability and predictability. Fixed mortgages are a popular choice for homeowners who prefer to have a consistent payment and want to avoid any surprises. One of the main advantages of a fixed mortgage is that it protects you from any potential interest rate increases. If you lock in a...

Navigating Home Inspections in California Buying a home in California can be an exciting and overwhelming experience. You have finally found your dream house and are ready to start the process of making it your own. But before you can fully commit to the purchase, you must go through the home inspection process. What is a Home Inspection? A home inspection is a thorough examination of a property's physical structure and systems. It is typically done before the purchase of a home to identify any potential issues or hazards. The inspection covers areas such as the foundation, roof, plumbing, electrical, and heating/cooling systems. The goal of a home inspection is to provide the buyer with a better understanding of the condition of the property. Why are Home Inspections Important in California? In California, home inspections are not required by law, but they are highly recommended. This is because California has a diverse landscape and vario...

Navigating Home Inspections in California Buying a home in California can be an exciting and overwhelming experience. You have finally found your dream house and are ready to start the process of making it your own. But before you can fully commit to the purchase, you must go through the home inspection process. What is a Home Inspection? A home inspection is a thorough examination of a property's physical structure and systems. It is typically done before the purchase of a home to identify any potential issues or hazards. The inspection covers areas such as the foundation, roof, plumbing, electrical, and heating/cooling systems. The goal of a home inspection is to provide the buyer with a better understanding of the condition of the property. Why are Home Inspections Important in California? In California, home inspections are not required by law, but they are highly recommended. This is because California has a diverse landscape and vario...

Tactics for Home Buyers Grappling With High Mortgage Rates Are you one of the many home buyers trying to navigate the current housing market with high mortgage rates? It can feel overwhelming and discouraging, but don't lose hope just yet. There are tactics you can use to make the most of this situation and still find your dream home. Here are some tips to help you through the process. 1. Improve Your Credit Score One of the biggest factors that can affect your mortgage rate is your credit score. Lenders use this number to determine your level of risk and the interest rate they will offer you. If your credit score is on the lower side, taking steps to improve it can help you secure a lower mortgage rate. Some ways to improve your credit score include paying off debts, making payments on time, and keeping your credit card balances low. 2. Shop Around for Different Lenders Just like you would shop around for the best price on a new car or a piece of furniture, it's ...

Navigating Home Inspections in California Buying a home in California can be an exciting and overwhelming experience. From searching for the perfect property to negotiating a fair price, there are many steps involved in the home buying process. One crucial step that often gets overlooked is the home inspection. In this blog, we will discuss the importance of home inspections in California and provide tips on how to navigate them effectively. Why Are Home Inspections Important? A home inspection is an essential part of the home buying process. It involves a professional inspector thoroughly examining the property's structure, systems, and overall condition. The purpose of a home inspection is to identify any potential problems or defects that could affect the safety, functionality, or value of the home. This information allows the buyer to make an informed decision about their potential purchase and negotiate repairs or adjustments with the seller. What Do Ho...

Homeownership Is a Hedge Against Inflation Inflation is the general rise in the prices of goods and services in an economy over time. It is a natural occurrence in any economy and can have a significant impact on our purchasing power. As prices increase, our money becomes less valuable, and we are unable to buy the same amount of goods and services as before. Inflation can be particularly troublesome for those who are not prepared for it, but there is one smart financial decision that can act as a hedge against rising prices - homeownership. Stability in Housing Costs One of the main benefits of homeownership is the stability it provides in housing costs. When you own a home, your mortgage payments remain fixed throughout the term of your loan. This means that even if inflation causes the prices of goods and services to rise, your housing costs will remain the same. Renters, on the other hand, may face annual rent increases as landlords adjust for inflation. ...

Homeownership Is a Hedge Against Inflation Inflation is the general rise in the prices of goods and services in an economy over time. It is a natural occurrence in any economy and can have a significant impact on our purchasing power. As prices increase, our money becomes less valuable, and we are unable to buy the same amount of goods and services as before. Inflation can be particularly troublesome for those who are not prepared for it, but there is one smart financial decision that can act as a hedge against rising prices - homeownership. Stability in Housing Costs One of the main benefits of homeownership is the stability it provides in housing costs. When you own a home, your mortgage payments remain fixed throughout the term of your loan. This means that even if inflation causes the prices of goods and services to rise, your housing costs will remain the same. Renters, on the other hand, may face annual rent increases as landlords adjust for inflation. ...

Why Homeownership Wins in the Long Run Today's higher mortgage rates , inflationary pressures , and concerns about a potential recession have some people questioning: should I still buy a home this year? While it's true this year has unique challenges for homebuyers, it's important to think about the long-term benefits of homeownership when making your decision. Consider this: if you know people who bought a home 5, 10, or even 30 years ago, you're probably going to have a hard time finding someone who regrets their decision. Why is that? The reason is tied to how home values grow with time and how, by extension, that grows your own wealth. That may be why, in a recent Fannie Mae survey , 70% of respondents say they believe buying a home is a safe investment . Here's a look at how just the home price appreciation piece can really add up over the years. Home Price Growth over Time The map below uses data from the Federal Housing Finance Agency (FHFA) to show ju...

The True Cost of Selling Your House on Your Own Selling your house is no simple task. While some homeowners opt to sell their homes on their own, known as a FSBO (For Sale by Owner), they often encounter various challenges without the guidance of a real estate agent. If you're currently considering selling your house on your own, here's what you should know. The most recent Profile of Home Buyers and Sellers from the National Association of Realtors (NAR) surveyed homeowners who'd recently sold their own homes and asked what difficulties they faced. Those sellers say some of the greatest challenges were prepping their home for sale, pricing it right, and properly managing the required paperwork, just to name a few. When it comes to selling your most valuable asset , consider the invaluable support that a real estate agent can provide. By partnering with an agent, you can navigate the complexities of the selling process with confidence. Here are just a few of the many wa...

Homeownership Helps Protect You from Inflation [INFOGRAPHIC] Some Highlights Wondering if it makes sense to buy a home today even when inflation is high? When other costs go up due to inflation, buying a home helps you keep your monthly housing expense steady . Rents typically increase with inflation . Maybe that's why, according to a recent survey, 65.1% of landlords say they plan to raise the rent of at least one of their properties within the next 12 months. Especially when inflation is up, having a stable housing payment can be helpful. Let's connect so you can learn more and start your journey to owning a home today.

What Homebuyers Need To Know About Credit Scores If you're thinking about buying a home , you should know your credit score's a critical piece of the puzzle when it comes to qualifying for a home loan. Lenders review your credit to assess your ability to make payments on time, to pay back debts, and more. It's also a factor that helps determine your mortgage rate . An article from Bankrate explains :  "Your credit score is one of the most important factors lenders consider when you apply for a mortgage. Not just to qualify for the loan itself, but for the conditions: Typically, the higher your score, the lower the interest rates and better terms you'll qualify for ." This means your credit score may feel even more important to your homebuying plans right now since mortgage rates are a key factor in affordability , especially today. According to the Federal Reserve Bank of New York , the median credit score in the U.S. for those taking out a mortgage is 765 ...

Eco-Friendly, Energy-Efficient Homes Attract Buyers Are you planning to sell your house? If so, you may be surprised to hear just how much buyers value energy efficiency and eco-friendly features today. This is especially true as summer officially kicks off. In fact, the 2023 Realtors and Sustainability Report from the National Association of Realtors (NAR) shows 48% of agents or brokers have noticed consumers are interested in sustainability.  So, if you're considering selling your house, why does this matter to you? It helps you know what you can do to make your house even more appealing to today's buyers. According to Jessica Lautz, Deputy Chief Economist and VP of Research at NAR:  "Buyers often seek homes that either lessen their environmental footprint or reduce their monthly energy costs. There is value in promoting green features and energy information to future home buyers ." Consider Upgrading Your Home To Make It More Appealing If you want to upgrade y...

Why the Median Home Price Is Meaningless in Today's Market The National Association of Realtors (NAR) will release its latest Existing Home Sales (EHS) report later this week. This monthly report provides information on the sales volume and price trend for previously owned homes. In the upcoming release, it'll likely say home prices are down. This may feel a bit confusing, especially if you've been following along and seeing the blogs saying that home prices have bottomed out and turned a corner . So, why will this likely say home prices are falling when so many other price reports say they're going back up? It all depends on the methodology of each report. NAR reports on the median sales price , while some other sources use repeat sales prices . Here's how those approaches differ. The Center for Real Estate Studies at Wichita State University explains median prices like this: " The median sale price measures the 'middle' price of homes that sold,...

Saving for a Down Payment? Here's What You Need To Know. If you're planning to buy your first home , then you're probably focused on saving for all the costs involved in such a big purchase. One of the expenses that may be at the top of your mind is your down payment. If you're intimidated by how much you need to save for that, it may be because you believe you must put 20% down. That doesn't necessarily have to be the case. As the National Association of Realtors (NAR) notes : " One of the biggest misconceptions among housing consumers is what the typical down payment is and what amount is needed to enter homeownership ." And a recent Freddie Mac survey finds : " . . . nearly a third of prospective homebuyers think they need a down payment of 20% or more to buy a home. This myth remains one of the largest perceived barriers to achieving homeownership ." Here's the good news. Unless specified by your loan type or lender, it's typically n...

How Owning a Home Grows Your Wealth with Time [INFOGRAPHIC] Some Highlights If you're thinking of buying a home this year, be sure to factor in the long-term benefits of homeownership. Over time, homeownership allows you to build equity. On average, nationwide home prices appreciated by 290.2% over the last 32 years. That means your net worth can grow significantly in the long term when you own a home. Let's connect so you can start your homebuying journey today.

Why Buying or Selling a Home Helps the Economy and Your Community If you're thinking about buying or selling a house, it's important to know that it doesn't just affect your life, but also your community. The National Association of Realtors (NAR) releases a report every year to show how much economic activity is generated by home sales . The chart below illustrates that impact: As the visual shows, when a house is sold, it can make a big difference in the local economy. The impact comes largely from the workers required to build, update, and buy and sell homes. Robert Dietz, Chief Economist at the National Association of Home Builders (NAHB), explains how the housing industry adds jobs to a community: " The economic impact means housing is a significant job creator. In fact, for every single-family home built, enough economic activity is generated to sustain three full-time jobs for a year, per NAHB research. . . . And one job for every $100,000 in remodeling s...

A Drop in Equity Doesn't Mean Low Equity You may see media coverage talking about a drop in homeowner equity. What's important to understand is that equity is tied closely to home values. So, when home prices appreciate, you can expect equity to grow. And when home prices decline, equity does too. Here's how this has played out recently.  Home prices rose rapidly during the 'unicorn' years . That gave homeowners a considerable equity boost. But those 'unicorn' years couldn't last forever. The market had to moderate at some point, and that's what we saw last fall and winter.  As home prices dropped slightly in the back half of 2022, equity was impacted. Based on the most recent report from CoreLogic , there was a 0.7% dip in homeowner equity over the last year. However, the headlines reporting on that change aren't painting the whole picture. The reality is, while home price depreciation during the second half of last year caused equity to drop,...

Your Needs Matter More Than Today's Mortgage Rates If you're thinking about selling your house right now, chances are it's because something in your life has changed. And, while things like mortgage rates are a key part of your decision on what you'll buy next, it's important to not lose sight of the reason you want to make a change in the first place. It's true mortgage rates have climbed from the record lows we saw in recent years, and that has an impact on affordability . With rates where they are right now, some homeowners are deciding they'll wait to sell because they don't want to move and have a higher mortgage rate on their next home. As Danielle Hale, Chief Economist at Realtor.com , explains : ". . . homeowners who locked in a 30-year fixed rate in the 2-3% range don't necessarily want to give that up in exchange for a rate in the 6-7% range." But your lifestyle and your changing needs should matter more. Here are a few of the ...