Archive for the ‘Home Buyers’ Category

3 Reasons Why Buying Is Better Than Renting

Traditionally, a huge part of the American dream was home ownership. Many people have worked towards that goal. Following the recent housing colapse, many people began to question whether buying a home was actually smarter than renting, with some advocating that home ownership came with lots of risks and not enough rewards. That couldn’t be further from the truth! There are many advantages to buying your own home, and several of them are below.Raasons why buying a home is better than renting

  1.       Tax breaks. It’s been said that the only guarantees in life are death and taxes – so why not get a break on how much you owe each year?? One of the major benefits of home ownership is the tax deductions. There are tax advantages and tax breaks whether you are a home owner with only one primary residence where you live, or whether you also own investment properties that you rent out. Home owners are eligible for tax deductions on the mortgage interest they pay, for thousands in savings. These tax deductions reduce your total taxable income, as long as you itemize your deductions. Lower taxable income results in a lower tax owed to Uncle Sam and more money back in your pocket at tax time.
  2.       Homes are valuable assets. When you own your own home, every month you’re be making a payment directly towards a tangible, valuable asset: real estate. When you rent, you hand your money over to someone else, who will eventually own land and a building that has no mortgage on it (thanks to your monthly rental payments). The owner could choose to live there, “rent free” (minus taxes, insurance, and other normal living expenses), or they could continue to earn income on it. Although real estate values can certainly fluctuate in the short-term, in the long-term real estate is nearly always a winning move. There’s also something nice about the idea of owning a home where you know you’ll stay, where your kids will grow and maybe even where your grandkids will come and visit. That home will be a built-in part of family memories.

3.      Home ownership gives you freedom. With most rentals, you’ll be subject to a lease and all the rules, terms and conditions of that lease. You likely won’t be able to personalize it with paint, carpet, hardwood, or new kitchen appliances. You may not be able to own pets, or you might be limited in the type and number of pets you can own. You may even be restricted to who can visit and how long they can stay. But when you own your home, you have the freedom to make a house your home because it is 100% yours!

For more information on this topic:
619.384.2248
Ryan@RyanYourRealtor.com

Here’s Why It’s Still A Good Time To Buy A Home!

Here are four great reasons buy a home today, instead of waiting.

1. Prices Will Continue to Rise

CoreLogic’s latest Home Price Index reports that home prices have appreciated by 6.7% over the last 12 months. The same report predicts that prices will continue to increase at a rate of 5.0% over the next year.

The bottom in home prices has come and gone. Home values will continue to appreciate for years. Waiting no longer makes sense.

2. Mortgage Interest Rates Are Projected to Increase

A recent Freddie Mac survey shows that interest rates for a 30-year mortgage have hovered around 4%. Most experts predict that rates will rise over the next 12 months. The Mortgage Bankers Association, Fannie Mae, Freddie Mac and the National Association of Realtors are in unison, projecting that rates will increase by this time next year.

An increase in rates will impact YOUR monthly mortgage payment. A year from now, your housing expense will increase if a mortgage is necessary to buy your next home.

3. Either Way, You Are Paying a Mortgage 

There are some renters who have not yet purchased a home because they are uncomfortable taking on the obligation of a mortgage. Everyone should realize that, unless you are living with your parents rent-free, you are paying a mortgage – either yours or your landlord’s.why you shoud by a home and not make landlord rich

As an owner, your mortgage payment is a form of ‘forced savings’ that allows you to have equity in your home that you can tap into later in life. As a renter, you guarantee your landlord is the person with that equity.

Are you ready to put your housing cost to work for you?

GO HERE TO SEE HOW MUCH YOUR PAYMENTS WILL BE

4. It’s Time to Move on With Your Life

The ‘cost’ of a home is determined by two major components: the price of the home and the current mortgage rate. It appears that both are on the rise.

But what if they weren’t? Would you wait?

Look at the actual reason you are buying and decide if it is worth waiting. Whether you want to have a great place for your children to grow up, you want your family to be safer or you just want to have control over renovations, maybe now is the time to buy.

If purchasing a home for you and your family is the right thing for you to do this year, buying sooner rather than later could lead to substantial savings.

Ryan Blanco-Realtor-San Diego Real Estate BlogAbout Me: I am a full time agent and I dedicate 100% of myself and my time to my valued clients in addition to the San Diego communities that I serve. It is imperative that I continuously evolve with local and national trends in addition to always looking ahead of the industry. It is a must to always provide the best service to my clients, their families and friends.

619.384.2248
Ryan@RyanYourRealtor.com

 

 

8 Ways To Keep Your Dog Happy During Your San Diego Move 

If you’re moving to San Diego with a pet, you’re in for a real treat as San Diego is one of the top dog-friendly cities in the country, according to Forbes Magazine. In addition to all of the gorgeous dog-friendly parks, like Fiesta Island, Balboa Park, and Marian Bear Memorial Park, there are many dog-friendly retailers, restaurants, and even breweries! In fact, BringFido.com has a listing of 200 restaurants in San Diego that allow dogs. 

Here are 8 tips to help make sure your move to San Diego is a pleasant one, for you and your pet.

8 ways to keep your dog happy during your San Diego move

For more information:

 1. Visit bringfido.com to find pet friendly establishments

 2. Visit petsmart.com to order new ID tags

 3. Visit yelp.com to read vet reviews

 4. Visit humanesociety.org for help with packing a travel bag for your dog

5. Visit hireahelper.com to hire pet friendly movers

  6. Visit vcahospitals.com for tips on managing your pet’s stress

 7. Visit redfin.com for more tips on moving with a pet

 8. Visit cesarsway.com to get tips on being calm and patient with your dog

 

Whether you’re moving to San Diego from another city or just moving across town, planning and executing a move can be overwhelming. There are so many things to do such as packing, hiring a mover, and putting in a change of address. Our guide to moving with a pet will relieve the worry about how to make sure they’re taken care of and allow you to focus on the other things on your list. So get moved in, leash up your pup and go explore San Diego together! Woof Woof!

 

Here’s What Lenders Look At When Applying For A Mortgage

Gone are the days of those so-called “liar loans” that helped pump up the housing bubble of the mid-2000s. It seemed your simple signature was about all that was needed to get a home loan. Today, lenders are much more thorough in determining a potential borrower’s qualification for a home loan. Here is the bulk of information they will look at and verify before approving a loan:

1. Residence History

Documentation for the past two years of residency should include your landlord’s or current mortgage company’s name, address, and phone number. You may also be asked to provide twelve months of canceled rent checks if the landlord is a private individual.

2. Employment History

The past two years of employment history should include the employer’s name, address, phone number, and the dates of employment. Any notable unemployment periods during those two years may have an adverse effect on your approval. Any yes, they will verify your current employment.

3. Income

Show proof of income by providing the most recent pay stubs for the past 30 days as well as your W-2’s from the previous two years. Overtime and bonuses may not be considered as part of your income if your employer does not guarantee this income. Also, if you have any business expenses listed on your tax returns, they will likely be deducted from your income.

what lenders look for to approve a home loan4. Bank Accounts

Be prepared to show bank statement for the past two years and explain any large deposits into your within 60 days of applying for your loan. Retirement accounts are also important in the application decision since the reserves or assets in the account can influence your mortgage approval.

5. Credit History

Review your credit report before applying for a home loan to verify the information on it. The areas to look over on your credit report include:

  • Collections
  • Judgments
  • Authorized user accounts
  • Cosigned loans
  • Any inaccuracies

You’ll also want to check that your credit score is adequate for the loan type you are applying for

6. Tax Returns

Have on hand your tax return for the previous two years. Your tax returns will be reviewed for any deductions that may affect your qualification including deductions for part-time employment, self-employment, rental income or loss, annuity income, or any consistent income.

There may be different guidelines for loan approval regarding past bankruptcies, foreclosures, and short sales depending on which loan program you’re applying for. Car repossessions, judgments, liens, collections, late payments, and credit inquiries can also have an impact on qualifying for a mortgage –as do auto loans, student loans, installment loans, credit cards, child support, and alimony.

Gather all the documentation needed before applying for a loan as missing documents can cause delays.

Here are the basic documents you’ll need:

  • Most recent 30 days’ pay stubs
  • Most recent two months’ bank statements
  • Previous two years of federal tax returns and W-2s
  • Past two years of residence history
  • Past two years employment history or any periods of unemployment
  • Separation, divorce, and child support paperwork
  • Bankruptcy (if occurred in the past seven years)
  • For the self-employed, you may need your last two years of business returns
  • Depending on the loan you’re applying for, other documents may be required

Having these essential documents reduces frustration and delays, as does a trusted mortgage professional.

 

Ryan Blanco-Realtor-San Diego Real Estate BlogAbout Me: I am a full time agent and I dedicate 100% of myself and my time to my valued clients in addition to the San Diego communities that I serve. It is imperative that I continuously evolve with local and national trends in addition to always looking ahead of the industry. It is a must to always provide the best service to my clients, their families and friends.

619.384.2248
Ryan@RyanYourRealtor.com

 

 

Don’t Fall Into These Real Estate Traps!

Real Estate is one of the safest investments you can make, isn’t it??  So why does a quick observation of the housing market tell us otherwise? Foreclosures,subprime loans, housing bubbles, defaults, homeowner assistance programs-all these things have become common terminology in the last few years. This leads those easily intimidated to believe that it’s nearly impossible to ever build wealth (or at least not lose it) in real estate. Like most things in life that come with a reward, successful real estate transactions require due diligence and discipline. They also require you to stay away of some easily real estate traps.

don't fall in love with a homeGet Emotionally Involved With a Property
You say you “fell in love” with that great new two-story custom home by a park. Good for you. Make sure you let the sellers know that, so that they can raise their price accordingly. Never give monopoly power to the person you’re doing business with!

You fall in love with people, maybe your pet. Which is to say, things that don’t come with economic potential. Real estate is for investing in, not for having an attachment to.

Buy the Pick of the Litter
The neighborhood is just ok, but the house in question is the best around! It’s twice as big as any other on the block, with decorative water fountains and many other custom upgrades. It stands to reason that such a house will make a better investment over the lessor homes around it, right?

Well, it won’t. You might not like this, but a house’s surroundings have as big an impact on its value as the house itself. In fact, the house mentioned about will only help the values of the other “lessor” homes in the area.

Remember, shopping around for a favorable interest rate is at least as important as shopping around for a well priced home. Getting a mortgage loan with even a few basic points in your favor can put you in a much larger house than you might otherwise have budgeted for. (Or, it could keep you in a smaller house at a much lower payment.)

Put Down as Little as Possible, Preferably Nothing
Don’t delay your gratification? That’s for suckers! You want it and you want it now. Saving up 20% of the price of a house for down payment could take years. Without that 20% 20% down payment for a new housedown payment, you will likely end up paying private mortgage insurance until you have 20% equity in the place.

Don’t leave money on the table. At the same time, never spend money you don’t need to. When you put little or nothing down, you’re already overextending yourself. Paying monthly mortgage insurance is the equivalent of undergoing a credit check that costs you hundreds if not thousands of dollars every year.

The Bottom Line
When you buy a house, you are not simply buying four walls and a roof. You are purchasing decades worth of mortgage interest and possibly, mortgage insurance. It’s helpful to think of the entire purchase as one item, and understand that a $300,000 house can end up costing you over $550,000 among principal, interest and insurance, not to mention property taxes.

Understand that a desirable property has financial potential. Many people who switch houses, whether they’re trading up or trading down, never think (or care to) keep the original house and rent it out. They want the cash to buy the new home. But what if you could rent it out for more than the mortgage payment? You could then use that difference to help pay for part of the new house.

Yes, a house is a home. But you’re missing out if you see it only as that. Real estate is a financial instrument that, under the right conditions, can help you solidify long-term wealth.

 

Ryan Blanco-Realtor-San Diego Real Estate BlogAbout Me: I am a full time agent and I dedicate 100% of myself and my time to my valued clients in addition to the San Diego communities that I serve. It is imperative that I continuously evolve with local and national trends in addition to always looking ahead of the industry. It is a must to always provide the best service to my clients, their families and friends.

619.384.2248
Ryan@RyanYourRealtor.com

 

 

FHA vs. Conventional Mortgages

Today in California, fewer than one-third of homes are sold to first time home buyers. That’s the smallest percentage in decades. But now HUD has dropped the FHA or conventional home loanPMI rate (private mortgage insurance) on FHA loans, the mortgages taken out by most first time buyers. So when comparing FHA vs. Conventional mortgages, which is better?

FHA loans are popular because they only require a down payment of 3.5% with a credit score of 580. The down payment doesn’t even have to be your own money – you can use a gift from friends or family. And sometimes home sellers, builders, or even lenders to pick up the tab for closing costs and other fees.

Sounds great, right? A conventional loan still clearly has it’s advantages while FHA loans have some obstacles in front of it:

1. The maximum sale price to obtain a FHA loan in San Diego County is currently $612,950. Two mortgage insurance premiums are required on all FHA loans:  1. The upfront premium is 1.75 percent of the loan amount. This equals $1,750 for every $100,000 of loan amount. 2. The annual premium (but normally paid monthly with your mortgage payment) is as follows:

  • 30-year loan, down payment (or equity) of less than 5 percent: 0.85 percent
  • 30-year loan, down payment (or equity) of 5 percent or more: 0.80 percent
  • 15-year loan, down payment (or equity) of less than 10 percent: 0.70 percent
  • 15-year loan, down payment (or equity) of 10 percent or more: 0.45 percent

2. Banks are very picky. Buyers can help themselves by having up-to-date tax returns, W-2’s, 1099’s and the last three months of bank statements. But it’s not just the paperwork, it’s also your FICO score. While FHA loans technically require a credit score of 580, most lenders won’t consider buyers with credit scores under 640. (Conventional loans normally require FICO scores of 700 and higher).

Part of the reason for this? Since FHA loans only require 3.5% down. This limits home buyer risk, since they don’t have much “skin in the game.” If the housing market goes into another steep decline, these homeowners are more likely to walk away, leaving banks high and dry.FHA vs. conventional loans

3. FHA loans are still more expensive than most conventional loans. The FHA took a big hit during the housing collapse and required a $1.7 billion bailout in 2013. Those losses led to an increase in the fees charged for FHA loans.

But for borrowers with a higher FICO score, it’s  more economical for them to get a conventional loan and pay the PMI, or private mortgage insurance. This is because in addition to FHA’s monthly fees, there’s an upfront charge of 1.75% of the loan amount. So if you took out a $200,000 FHA loan, the loan amount you’d pay back would be $103,000. This is in addition to the monthly PMI payment on the loan of (currently at the new lowered rate of .85%/year).

4. On conventional loans: once a homebuyer has accumulated enough equity to equal 20% of the home’s value, they can request that the mortgage insurance be cancelled. On FHA loans, PMI remains in place for the life of the loan. Thus the only way to get drop it is to refinance into a conventional loan, or sell the home.

 

Ryan Blanco-Realtor-San Diego Real Estate BlogAbout Me: I am a full time agent and I dedicate 100% of myself and my time to my valued clients in addition to the San Diego communities that I serve. It is imperative that I continuously evolve with local and national trends in addition to always looking ahead of the industry. It is a must to always provide the best service to my clients, their families and friends.

619.384.2248
Ryan@RyanYourRealtor.com

 

 

This theme is sponsored by California along with Texas, Radio and corporate office contact address
Sitemap