1. Buy A HOME ON THE SAN FRANCISCO PENINSULA 2010 Aimee Snodgrass Klarich Realtor ® Alain Pinel Realtors Burlingame, Ca Business 650-931-2957 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 market

9. 2010 Peninsula Real Estate ForecastAimee Klarich Realtor ® http://www.AimeeKlarich.com Eileen Horan Mortgage Broker Mortgage California

11. $8000 First Time Home Buyer tax credit on purchases through 6/30/10 for qualified buyers.

12. $6500 Tax Credit for current qualified homeowners

13. San Mateo County is a Buyer’s Market giving home buyers more negotiation power than we have seen in years.

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

16. It can be a tax write-off

17. House expenses usually increase slower than renting

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

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

20. 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. San Mateo County, San Francisco County and numerous other counties in California experienced a marked decrease in their conforming loan and FHA limits on Jan. 1, 2009 and the stimulus bill reinstates 2008 loan limits through Dec. 31, 2009. On Nov 13th, 2009, congress extended this thru Dec. 31st, 2010. This means lower interest rates for those getting a loan between the $729,750 and $625,500. Aimee Snodgrass Klarich Realtor® http://www.AimeeKlarich.com Eileen Horan Mortgage Broker Mortgage California

21. STIMULUS PLAN The bill also increases the first-time home buyer credit from $7,500 to $8,000. It also extended the expiration date for the credit from July 1, 2009 to Dec. 1, 2009. However, on November 3rd, 2009, it was extended until June 30th, 2010. See Appendix for more details Aimee Snodgrass Klarich Realtor® http://www.AimeeKlarich.com Eileen Horan Mortgage Broker Mortgage California

22. 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 2009 or 2010 to qualify for the tax credit. Aimee Snodgrass Klarich Realtor® http://www.AimeeKlarich.com Eileen Horan Mortgage Broker Mortgage California

24. 5% annual rent increase

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

26. Net equity gain: $ 0

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

28. 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

30. Property Taxes

31. Discount points (closing costs)

32. 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

34. 20% Down Payment

35. Home Mortgage

36. Interest Rate

37. Annual Interest Paid

38. Annual Property Tax

39. Total Deductions

40. $500,000

41. $100,000

42. $400,000

43. 5.50%

44. 22,000

45. 6,250

46. $28,250Aimee Snodgrass Klarich Realtor ® http://www.AimeeKlarich.com Eileen Horan Mortgage Broker Mortgage California

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

48. 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

49. WHAT is a BUYER’S 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

50. BUYERS MARKET: SAN MATEO COUNTY SINGLE FAMILY HOMEs In Sept 07, months of inventory increased and moved the home market into a buyers market.* 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.

51. STATE OF THE MARKET (May 09): SAN MATEO COUNTY SINGLE FAMILY HOMES At an aggregate level, San Mateo County continues to be a buyers market. Months of Inventory based on closed sales was 4 last month vs 4.7 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

53. Unit Sales were down 14% to last year

54. Most note worthy was the significant increase in pending sales: up 5% to last year.

55. Average Days On Market was 54 days vs 48 last year

56. Avg Sales Price vs. Original List Price: 93%Median Sales Price: $728,000 (-14% 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

58. A significant decrease in home sales above $1,000,000All 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

59. BUYERS MARKET: SAN MATEO COUNTY CONDOs &TOWNHOMEs In August of 07, months of inventory increased and moved the condo market into a buyers market.* 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.

60. STATE OF THE MARKET (May 09): SAN MATEO COUNTY CONDOS & TOWNHOMES At an aggregate level, San Mateo County continues to be a buyers market. Months of Inventory based on closed sales was 4.5 last month vs 5.3 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

62. Unit Sales were down 7% to last year.

63. Average Days on Market was 67 days vs 59 last year

64. Avg Sales Price vs. Original List Price: 92%Median Sales Price: $420,000 (-21% 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

66. A significant decrease in home sales between $500,000 - $1,000,000All 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

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

69. Employment opportunities

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

71. Moderate weather

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

74. 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

75. 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.

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

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

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

80. Appraiser: Hired by lender to confirm property values

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

83. Get Pre-Approved for a loan

84. Search for a Home

85. Find a Home

86. Submit an Offer and Negotiate

87. Final Agreement on Terms and Price

88. Open Escrow with a Title Company.

89. Deposit your earnest money deposit into Escrow Account

90. Appraisal and other further needed inspections and reports

91. Secure Home Insurance as a requirement of the lender

92. Removal of remaining contingencies

93. Final Inspection and Walk Through of Home

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

95. Record Deed of Title

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

98. Income

99. 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

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

102. Credit history

103. Your credit score may impact your interest rate.

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

105. 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

108. Principal & Interest.

109. Property Taxes

110. Insurance

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

112. Association fees - if applicable.

113. Your maximum monthly payment is calculated using:

114. Your housing monthly debt.

115. Your other debt

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

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

119. 2 pay stubs

120. 2 years W2s and Federal Tax Returns

121. 2 months bank statements

122. What type of product?

123. What kind of rate?

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

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

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

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

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

130. 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

131. 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

132. 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

134. Get Pre-Approved for a loan

135. Select Your Team of Professionals

136. Search for a Home

137. Find a Home

138. Submit an Offer and Negotiate

139. Final Agreement on Terms and Price

140. Open Escrow with a Title Company.

141. Deposit your earnest money deposit into Escrow Account

142. Appraisal and other further needed inspections and reports

143. Secure Home Insurance as a requirement of the lender

144. Removal of remaining contingencies

145. Final Inspection and Walk Through of Home

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

147. Record Deed of Title

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

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

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

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

153. Do you feel a rapport?

154. Are they clear on their services and expectations?

155. Per the survey of Home Buyers from CAR:

156. Check references

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

159. Single Family Home, Condo or Townhome

160. Number of bedrooms and bathrooms

161. Home square footage and lot size

162. One story vs two story

163. Desired neighborhoods

164. Location vs. commute to work/school

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

166. Your family size- current and projected

167. Hobbies or special needs to accommodate

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

169. Any non-negotiable points for you

170. Current housing and terms of current contracts

171. 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

173. Get Pre-Approved for a loan

174. Select Your Team of Professionals

175. Search for a Home

176. Find a Home

177. Submit an Offer and Negotiate

178. Final Agreement on Terms and Price

179. Open Escrow with a Title Company.

180. Deposit your earnest money deposit into Escrow Account

181. Appraisal and other further needed inspections and reports

182. Secure Home Insurance as a requirement of the lender

183. Removal of remaining contingencies

184. Final Inspection and Walk Through of Home

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

186. Record Deed of Title

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

189. Compare sale and list price

190. Months of Inventory

191. Days on market

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

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

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

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

196. Closing Costs

197. Repairs

198. 30 day rent backs

199. 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

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

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

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

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

205. Examples of Contingencies

206. Financing

207. Appraisal

208. Property Condition

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

210. 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

212. Traditionally done by your Realtor.

213. Deposit your earnest money deposit into the Escrow Account

214. Complete appraisal and inspections

215. Secure home insurance as a requirement of the lender

216. Remove contingencies (if all is satisfactory)

217. Final Inspection and Walk Through of Home

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

219. Record Deed of Title

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

222. Improved outlook in second half 2009

223. Weak job picture, unemployment rate up

224. Inflation no longer a concern – for now

225. Permanent Stimulus Package in 2009

226. CRITICAL CONCERN: How soon will financial system stabilize and enable economic activity to return to normal? Once the market turns around, the fed level to slow inflation will be increased interest rates.Aimee Snodgrass Klarich Realtor ® http://www.AimeeKlarich.com Eileen Horan Mortgage Broker Mortgage California