5 First-Time Homebuyer Mistakes!

When thinking of purchasing your first home, the primary place to start is contacting a lender to determine how much you can afford. The lender will run your credit report and go through your monthly bills, this is very, very important as most first-time homebuyers are often afraid to get the prequalification, you fear the lender may tell you that you don’t qualify for a mortgage as high as you may want. However this way you’ll make a financial decision rather than an emotional one.



Here are the 4 other things to consider before you start shopping for your mortgage:



If you are thinking of changing your job in a year or two, or may have to move for your job, think twice, ideally picture yourself living in your new home for at least 5 – 7 years.



Make sure you have enough cash/savings to cover closing costs associated with obtaining a new home, including property insurance, taxes, homeowners association dues, any maintenance required immediately, and your new electric and water bills (all usually higher if you are currently renting).



Chose a reliable and reputable Realtor, if you are referred from a friend or family member, ask the agent for references from previous buyers, the same goes for loan officers or mortgage brokers. Often dealing with the actual listing agent, and not your own agent, can pose difficulties as the agents obligations to you may be affected by his/her obligations to the seller also.



Once you have obtained your pre-approval, and taken into account the above, please don’t go our and charge your credit card with major purchases, computers, cars, etc., as your credit score WILL BE RUN AGAIN prior to your loan funding and you definitely don’t want that score to drop even one point.



GOOD LUCK, this IS the time to buy, with interest rates at or BELOW 4%, mortgages are more affordable than ever, and if you are renting, stop paying your Landords’ mortgage and start paying your own!


Jane Loveday
DRE Licence # 01439083
Pacific Sothebys International Realty
619-519-1615 Cell
http://janeloveday.com/
http://www.facebook.com/realestatesandiego
http://www.linkedin.com/janeloveday
http://www.twitter.com/sdrealestate

 


Top 3 things to consider when deciding to own or rent in California


Is your employment stable enough for the next 3 years?

Given the current economic state, knowing you have a job that is secure is very important, also prices are not going to rise much, if any over the next few years, so there is unlikely to be any equity gain in a home you purchase now.

If you are going to purchase a home with 10 – 20% or more down, and find you have to sell within a couple of years there should be no problem, however if you are going to use an FHA loan with just 3.5% down, then you may find yourself upside down if you have to sell.

Obviously if you are planning on staying in your home for many years, then current interest rates and prices make it extremely opportune.

Are you single, or already married with children?

A 1-bed condo doesn’t really fit a family, although it is perfect before you meet your significant other, so bear in mind that size really does matter. Can you afford to look at single family homes or larger condos, if so then do so, it will be a much better return on investment down the road.

Is it really cheaper to own than rent?

Depends on your neighborhood but with interest rates down around 4%, and you factor in taxes and mortgage insurance, you are looking at approximately $600 per $100,000 BORROWED. 2-bedroom condos are renting an average of $1500-$1800 around town right now, if not more, and you can easily find a 2-bedroom condo within the metro areas of San Diego priced UNDER $200,000, in fact over 100 are currently available, making your mortgage payment significantly LESS than a rent payment.

For more information about mortgages, contact Scott Schang, Broadview Mortgage Company - http://www.broadviewmortgagecorp.com/EmployeeDetail.aspx?groupid=430&EmployeeID=12444&

Food for thought, let me know if you need more information, I AM HERE, I CANHELP!


Jane Loveday
Licence # 01439083
Pacific Sothebys International Realty
619-519-1615 Cell
http://janeloveday.com/
http://www.facebook.com/realestatesandiego
http://www.linkedin.com/in/janeloveday

Real Estate Market Update - San Diego

 

Here's the latest real estate update for the city of San Diego as of October 5th, 2011.

Over the past two weeks we have had 326 single family homes and 225 condos/townhomes newly listed.  The average price of the single family homes is $525,823 with $290 per square foot, the highest listing is priced at $2,495,000 and the lowest is just $95,000.

The highest priced home is not actually a home, but a lot in the Santaluz development of Fairbanks Ranch, with complete plans and permits to build a custom 6,850 sq ft home with 4 bedrooms and 4.5 bathrooms, the lot has panoramic views and is .7 acres.  Now the lowest home is down in the Imperial Avenue area just west of City Heights, it's a contractor special so cash only please, has a new foundation but not much else!

We hae had 225 condos/townhomes newly listed also in the past two weeks, the average price is $358,994 with $296 per square foot, the highest listing is $5,500,000 and the lowest just $49,000.

The highest priced is a penthouse at the top of the Harbor Club downtown, 360 degree views, private elevator and entrance, 3 beds, 5 baths, 4,170 square feet, and your monthly HOA bill will be $2,117.00!  At the other end of the scale we have a small 1 bed, 1 bath short sale fixer in City Heights, $250 HOA dues per month.

For your own personal market update just give me a call or email me, it is all completely free!



Jane Loveday
Licence # 01439083
Pacific Sothebys International Realty
619-519-1615 Cell
janealoveday@gmail.com
http://janeloveday.com/
http://www.facebook.com/realestatesandiego
http://www.twitter.com/sdrealestate
http://www.linkedin.com/in/janeloveday

Home Prices Dropping ... Why is that Good?!



Economists are predicting a FURTHER 2.5% drop in home values for 2012 - they further predict that this will be followed by an anemic growth rate of only 1.1% through 2015...


So why do I bring you such dire news??? And why do I find it exciting???

Because for everyone that is 'waiting for the market to recover' before they list their home OR you are refusing to reduce their price because they say 'I don't have to sell' ... remember that if you do nothing, it will take you until 2016 just to get back to where values are TODAY!

Granted, each sub-market is different but even with the assumption that we Southern Californians are 'better-off', you have to consider that the rest of the nation will act as an anchor - slowing down our own recovery...

Remember also that all news can be interpreted two ways - I see this as creating an opportunity, whether thinking of buying or selling - you should also!


Jane Loveday
Licence # 01439083
Pacific Sothebys International Realty
619-519-1615 Cell
http://janeloveday.com/
http://www.facebook.com/realestatesandiego
http://www.linkedin.com/in/janeloveday

How does 3% of your purchase price granted back to you sound?

 

Attention First Time Homebuyers !!!  Did you know there is a program specifically for you from the State of California that offers 3% of your purchase price which can be applied toward your downpayment or closing costs.  It's like a 0% interest loan which does not need to be repayed until you sell or refinance your home down the road.

You could potentially purchase a home for a s little as 1% of the purchase price using this program, however there are restrictions (of course) !  You must live in your home for at least 3 years, and there are income restrictions depending on how many are in your family, the restrictions currently in San Diego are from $63,400 up to $119,600 currently.

However as an option in this economy, it's a great program, check with my buddies at http://www.homeownershipuniversity.com/ for more information and eligibility status.  Here's to helping you obtain the American Dream of homeownership!



Jane Loveday
Licence # 01439083
Pacific Sothebys International Realty
619-519-1615 Cell
http://janeloveday.com/
http://www.facebook.com/realestatesandiego
http://www.linkedin.com/in/janeloveday

http://www.twitter.com/sdrealestate

Buy a home up to $415,000 with 3% in FREE grant monies!

CHF Platinum is a 3% home buyer grant that can be used to cover down payment or closing costs.

This program is, at this point, perpetually funded with no pre-determined limit to availability of the down payment or closing cost assistance.

The CHF Platinum program is being administered by the National Homebuyer Fund (NHF).

The top 3 things you need to know about the CHF Platinum Grant

1. You must use an approved lender (brokers not allowed) approved to offer a NHF first mortgage.

2. The first mortgage can be either a FHA, VA or USDA loan at the published interest rate. Lenders are not allowed to determine the interest rate for this program.

3. Home buyer must meet income requirements for CHF Platinum program. Income limits are limited to $89,880 in San Diego County.  The maximum purchase price is $415,000.

 This is an incredible opportunity for home buyers to take advantage of historically low interest rates as well as affordable home prices.

Just think, you are looking to buy a home for $300,000 for example, you could receive $9,000 in FREE money to help toward either your downpayment or closing costs.

Want more information, just let me know!




Jane Loveday
Licence # 01439083
Pacific Sothebys International Realty
619-519-1615 Cell
http://janeloveday.com/
http://www.facebook.com/realestatesandiego
http://www.linkedin.com/in/janeloveday

If prices continue to fall, why should I buy now?

While price is the major concern for anyone selling a home, cost should be your primary concern as a buyer.

That means you have to take into account what your monthly payment will be, considering not only the price of the home, but also the interest rate of your mortgage.

Waiting for prices to bottom out while rates are increasing can wind up costing more over the life of your mortgage.  Fannie Mae, Freddie Mac, the National Association of Realtors and the Mortgage Bankers Association are all projecting interest rates will increase over the next several quarters. 

It's best that you meet with your mortgage professional to help you determine what an interest rate increase will cost you based on the expected size of your loan.  Also the knowledge of your Realtor about the area(s) in which you are looking for a new home, what prices have done and are doing, whether the home you are looking at is a short sale or not, or foreclosure, will also help guide you as to what your best decision should be.

Interest rates are still under 5%, they are historically low, if prices drop even further, and the interest rate rises, your buying power can drop considerably. 

America is based on home ownership, your landlord understands this, are you ready?

Jane Loveday
Licence # 01439083
Pacific Sothebys International Realty
619-519-1615 Cell
http://janeloveday.com/
http://www.facebook.com/realestatesandiego
http://www.twitter.com/sdrealestate