The Silicon Valley Real Estate Market During COVID-19 Pandemic has weathered the storm due to the short supply of homes on the market. Currently, some sellers in Silicon Valley are holding off putting their homes on the market as new listings are in short supply.
For example, a Sunnyvale home just listed was viewed on the REDFIN website over 5000 times in just a couple of days.
Silicon Valley is resilient in a slow market due to strong jobs and low housing inventory. The rents are high for the same reason, so investors do well in the area as well. Seller's can take advantage of the seasonal hot market as well as the effect of low-interest rates to get top dollars for their homes. Buyers have done well too. A recent home that was sold recently, was sold for a million dollars more than the purchase price of the 2007 market peak.
One of the most questions asked from first-time homebuyers or even people that have owned homes for a long time is that "what is the loan process for buying a home?" Well, below are the 8 steps of lending when buying a home in Santa Clara county.
The Loan Process
Step 1: Application Your loan process should go smoothly if you complete your loan application properly and provide all necessary documentation to your loan consultant at the time of application.
Step 2: Ordering Documentation Your loan consultant will order the necessary documentation for the loan as soon as it is received. Any verifications will be mailed, and the credit report and appraisal will be ordered. You will also receive a Good Faith Estimate of your costs and details of your loan.
Step 3: Awaiting Documentation Within approximately two weeks, all necessary documents should be received from your loan consultant. Each item is reviewed carefully in case additional items may be needed from you to resolve any questions or problems.
Step 4: Loan Submission Submitting your loan is a critical part of the process. All of the necessary documentation will be sent to the lender, along with your credit report and appraisal.
Step 5: Loan Approval Loan approval may be obtained in stages. Usually, within one to three days, your loan consultant should have pre-approval from the lender. If the loan requires mortgage insurance, or if an investor needs to review the file, final approval could take additional time. You do not have final loan approval until ALL of the necessary parties have underwritten the loan.
Step 6: Lender Preparation of Documents As soon as the loan is approved and all requirements of the lender have been met, the loan documents will be prepared. These documents will be sent to the escrow officer, and you will be asked to sign the documents. Your lender may require an impound account for tax installment payments, depending on the type of loan.
Step 7: Funding Once you have signed the documents and they have been returned to the lender, the lender will review them and make sure that all conditions have been met and all of the documents have been signed correctly. When this is completed, they will “fund” your loan. (“Fund” means that the lender will give the title company the money by check or wire.)
Step 8: Recordation When the loan has been funded, the title company will record the Deed of Trust with the county in which the property is located (usually by the next day). Upon receipt of confirmation of the deed being recorded, title or escrow will then disburse monies to the appropriate parties. At this time, in most cases, your loan is considered complete.
We have developed great relationships with seasoned and trusted lenders in our business since 2004. Feel free to contact us for quality introductions.
Curious about local real estate? So are we! Every month we review trends in our real estate market and consider the number of homes on the market in each price tier, the amount of time particular homes have been listed for sale, specific neighborhood trends, the median price, and square footage of each home sold and so much more. We’d love to invite you to do the same!
You can sign up here to receive your local market report, delivered as often as you like! It contains current information on pending, active, and just sold properties so you can see actual homes in your neighborhood. You can review your area on a larger scale, as well, by refining your search to include properties across the city or county. As you notice price and size trends, please contact us for clarification or to have any questions answered.
We can fill you in on details that are not listed on the report and help you determine the best home for you. If you are wondering if now is the time to sell, please try out our INSTANT home value tool. You’ll get an estimate on the value of your property in today’s market. Either way, we hope to hear from you soon as you get to know our neighborhoods and local real estate market better.