Buying a New Home or Condo has been gaining momentum amongst First Time Home Buyers, Rehab Property Flippers, and Buy and Hold Cash Flow Investors.
When Buying a Home or Condo, you will want to get your loan pre-qualified first. Part of getting your home loan pre-approved is showing your income and how much house you can afford.
Watch this quick video where I interview a top loan consultant to explain the process of how to show income when getting a home loan. http://www.youtube.com/watch?v=8O0PNruU4kU
To determine your maximum San Diego mortgage amount, lenders use guidelines called debt-to-income ratios. This is simply the percentage of your monthly income (before taxes) that is used to pay your monthly debts. Because there are two calculations, there is a "front" ratio and a "back" ratio and they are generally written in the following format: 33/38.
The front ratio is the percentage of your monthly income (before taxes) that is used to pay your housing costs, including principal, interest, taxes, insurance, mortgage insurance, and homeowners association fees (when applicable). The back ratio is the same thing, only it also includes your monthly consumer debt. Consumer debt can be car payments, credit card debt, installment loans, and similar related expenses. Auto or life insurance is not considered a debt.
These are just guidelines and they are flexible. If you make a larger down payment or have sterling credit, the guidelines are less rigid. The guidelines also vary according to loan program. FHA guidelines, VA guidelines, and Conventional Loan Guidelines all vary.
Whether you want to buy a high end home or a nice comfortable starter home, Oliver will be more than happy to assist you regardless of your budget.
Oliver Graf
Premium Service, Proven Results!
Showing posts with label Del Mar. Show all posts
Showing posts with label Del Mar. Show all posts
Monday
How to Buy a House Step 1 "Get Prequalified for Your Loan" - Real Estate Mortgage Prequal
When Buying a Property many people ask, what is the first step, Should I Get Pre-Qualified for a Loan first?
The answer is Definitely Yes! Before you start looking to purchase a new home or condo, you should review your finances, discuss your home loan options, figure out how much you can afford, and get pre-qualified. Getting Pre-qualified is a simple process thatwill put you in a much better position because you will have the confidence to move forward with a purchase and it will give you significantly more negotiating power when purchasing.
What does it take to get pre-qualified for your loan? Not as much as you might think... With a short phone conversation, we can briefly review information about your employment, debts, income, and assets. We can also look at your credit profile, discuss your down payment options, and cover the different loan programs that can work for you.
Once you get pre-qualified, your loan officer will give you what's called a Pre-Qualification Letter. This letter states that, as your loan officer, they have reviewed your finances and can get you qualified for a loan up to a certain amount. The whole process is simple and to the point,the paperwork is kept to a minimum, and generally your loan officer can provide most clients with a "Pre Qual letter" within about 15 minutes.
Once pre-qualified then you can go out and find the home or condo that catches your eye. Once you and you decide on "the one", being pre-qualified for your mortgage will do a couple of things. First, it lets you know in advance how much you can offer. Second, your real estate agent(me) wil submit your mortgage prequalification letter with your offer so that the seller knows that a lender has reviewed your situation and that you can afford the home.
It puts you in the best possible position and gives you the most negotiating power when buying a house, so make sure you get qualified in advance.
Contact me if you have any questions or need any help,
Oliver Graf
Real Estate Expert
http://www.ThinkOG.com
The answer is Definitely Yes! Before you start looking to purchase a new home or condo, you should review your finances, discuss your home loan options, figure out how much you can afford, and get pre-qualified. Getting Pre-qualified is a simple process thatwill put you in a much better position because you will have the confidence to move forward with a purchase and it will give you significantly more negotiating power when purchasing.
What does it take to get pre-qualified for your loan? Not as much as you might think... With a short phone conversation, we can briefly review information about your employment, debts, income, and assets. We can also look at your credit profile, discuss your down payment options, and cover the different loan programs that can work for you.
Once you get pre-qualified, your loan officer will give you what's called a Pre-Qualification Letter. This letter states that, as your loan officer, they have reviewed your finances and can get you qualified for a loan up to a certain amount. The whole process is simple and to the point,the paperwork is kept to a minimum, and generally your loan officer can provide most clients with a "Pre Qual letter" within about 15 minutes.
Once pre-qualified then you can go out and find the home or condo that catches your eye. Once you and you decide on "the one", being pre-qualified for your mortgage will do a couple of things. First, it lets you know in advance how much you can offer. Second, your real estate agent(me) wil submit your mortgage prequalification letter with your offer so that the seller knows that a lender has reviewed your situation and that you can afford the home.
It puts you in the best possible position and gives you the most negotiating power when buying a house, so make sure you get qualified in advance.
Contact me if you have any questions or need any help,
Oliver Graf
Real Estate Expert
http://www.ThinkOG.com
Friday
Senate Bill 458 gives added protection to short-sale hopefuls
On Friday July 15th 2011, Gov. Jerry Brown signed Senate Bill 458 (Corbett) into law. The new law, which contained an urgency clause and became effective upon signing, protects homeowners pursuing short sales by barring first and secondary lien holders from going after sellers for money owed after the short sales close.
Making sense of the story
-- A short sale – a transaction in which the homeowner sells the property for less than is owed on the mortgage – must be approved by the lien holder or lien holders, if there is more than one.
-- Under previous law (SB 931 of 2010), a first mortgage holder could accept an agreed-upon short-sale payment as full payment for the outstanding balance of the loan, but the rule did not apply to junior lien holders. SB 458 extends the protections of SB 931 to junior liens.
-- The CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) sponsored the bill and urged lawmakers to pass this much-needed legislation.
-- “The signing of this bill is a victory for California homeowners who have been forced to short sell their home, only to find that the lender will pursue them after the short sale closes and demand an additional payment to subsidize the difference,” said C.A.R. President Beth L. Peerce. “SB 458 brings closure and certainty to the short-sale process and ensures that once a lender has agreed to accept a short-sale payment on a property, all lienholders – those in first position and in junior positions – will consider the outstanding balance as paid in full, and the homeowner will not be held responsible for any additional payments on the property.”
From July 21, 2011. C.A.R's Market Matters
Reprinted with permission of the CALIFORNIA ASSOCIATION OF REALTORS®
Contact me if you have any questions or need any help,
Oliver Graf
Real Estate Expert
Follow me on Twitter: Twitter.com/OliverGraf360
Making sense of the story
-- A short sale – a transaction in which the homeowner sells the property for less than is owed on the mortgage – must be approved by the lien holder or lien holders, if there is more than one.
-- Under previous law (SB 931 of 2010), a first mortgage holder could accept an agreed-upon short-sale payment as full payment for the outstanding balance of the loan, but the rule did not apply to junior lien holders. SB 458 extends the protections of SB 931 to junior liens.
-- The CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) sponsored the bill and urged lawmakers to pass this much-needed legislation.
-- “The signing of this bill is a victory for California homeowners who have been forced to short sell their home, only to find that the lender will pursue them after the short sale closes and demand an additional payment to subsidize the difference,” said C.A.R. President Beth L. Peerce. “SB 458 brings closure and certainty to the short-sale process and ensures that once a lender has agreed to accept a short-sale payment on a property, all lienholders – those in first position and in junior positions – will consider the outstanding balance as paid in full, and the homeowner will not be held responsible for any additional payments on the property.”
From July 21, 2011. C.A.R's Market Matters
Reprinted with permission of the CALIFORNIA ASSOCIATION OF REALTORS®
Contact me if you have any questions or need any help,
Oliver Graf
Real Estate Expert
Follow me on Twitter: Twitter.com/OliverGraf360
Thursday
Median Home Prices Keep Dropping
The median price continues to fall and if the trend holds it should be under $400,000 by year’s end. That will be close to a 40% decline.
From the figures in the MLS the Median price of all homes sold last month (September) comes in at $429,000. That’s down another $11,000 from August.
As of October 4, 2008, there were 4,232 pending sales in Orange County with a median asking price of $399,500. My tracking of pending sales has been an accurate predictor of future prices thus far and it will be interesting to see if the trend holds true.
I have a lot of contacts in the REO business and I’m being told that the number of BPO (broker price opinion) orders are high. Lenders order BPO’s when a property enters foreclosure to get an idea of what the property is worth for when it’s an REO or for a short sale negotiation. These contacts feel that the next wave of foreclosures could be big. Not surprising considering everyone who bought for about a two to three year period is underwater.
Even the house next door to mine is empty and the lawn is brown. It would have sold for more than $800,000 two years ago. I’m told no neighborhood will be immune in the next wave.
--
Real Estate Home Prices
Real Estate News
Real Estate Market Update
Subscribe to:
Posts (Atom)
Posts
