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

What is a Pre-Approval for buying a home?

When starting to look for a new home, the most important first step is to obtain a pre-approval from a Lender.  They will check your credit score, your credit history, your past two years of tax returns, and verify your employment income.

The higher your credit score, the lower your downpayment and monthly payments.  If your credit score is below 640 or 660 you may have higher fees to obtain your mortgage or will need a higher downpayment.  You can improve your chances by pulling your credit report and ensuring you are not being unfairly penalized for old, paid or settled debts.

Also STOP applying for new credit of any sort, and don't charge anything large during the purchase process! 

Contact your bank, credit union or private lender such as Broadview Mortgage Corp, and check their fees for obtaining your loan, also ask what amount you'll need for closing costs, and what points you maybe paying to obtain your mortgage.

Once you have your pre-approval you can start looking for a new home, when you find your new home, your pre-approval will need to be submitted with your offer to purchase.  It is better to be prepared ahead and be armed with the knowledge of what you will need which will make your new home search much more exciting!



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
http://www.linkedin.com/in/janeloveday

Interest rates and Mortgage Payments - boring? Read on ....

As you may have heard interest rates for mortgages are at an all time LOW! We haven't seen them this low for at least 30 years if not longer. So how low are they?

4.25% right now, have been for a few weeks. Can they go back up - definitely - that's one reason to keep your eye on them if you are thinking of buying instead of renting and paying your Landlord's mortgage for him.

Back in the mid 90's interest rates actually went up to around 18%! Not anticipating that again though, just an FYI!

So if you are thinking of buying, and you are looking at a purchase price say, $250,000, your monthly payment would be around $1,230 a month, with approximate property taxes of $260 (you can include those in your mortgage or pay twice yearly to the City) and insurance is approximately $40 for a condo, $75 for a house.

If the interest rate starts to rise, and you are pre-qualified for $250,000, the amount you would then be pre-qualified for would go DOWN - that's because it would cost you more for your mortgage! If you have questions, let me know, I am here to help!

Love your Home, Love your Realtor!

Jane LovedayWindermere Real Estate Agent Lic # 01439083 619-519-1615 Cell http://janeloveday.com http://www.facebook.com/realestatesandiego

HOW TO BUY A HOME 101 !

Choose your Realtor - Make sure you find someone who not only understands your needs, the area you are searching but is also someone who you get along with and can trust. visit www.janeloveday.com to search San Diego!

Obtain Pre-Approval from a lender – It is imperative that you meet with a lender to determine how much house you can afford, how much you will need for your deposit and closing costs. A first step would be contacting Broadview Mortgage Corp, they also have homebuying seminars and can be reached at 866.667.6724 or email inquiry@broadviewmortgagecorp.com

Find your Perfect Home – once you have given us your criteria, and the more detailed the better, I will be able to create a custom search to totally suit your needs, I'll show you all the property available and make your search a success!

Making an Offer – I'll prepare your paperwork, explain and advise the contingencies you will be under, and help you make the best offer based on current market conditions – this is currently a strange market, prices are low but not necessarily dropping, and it is not unusual to encounter multiple offers on properties. We will help negotiate on your behalf to ensure a successful response from the seller.

Open an Escrow! - Congratulations, once you have acceptance you will need to place your initial deposit into escrow which is held until your loan is funded and final documents are signed.

Your Contingency Period – This is a time frame during the beginning of the escrow period that protects you, it is written into the purchase contract and is usually 17 days from the opening of escrow. This applies to obtaining an appraisal, conducting a property inspection, reviewing the pest inspection, reviewing seller disclosures and getting your loan in place.

Home Insurance etc - After the contingency period, and before close of escrow, you will need to obtain home insurance for your future home, file a change of address with the Post Office, submit a change of address to the Registrar of Voters, make arrangements for your move, cancel and order any services such as gas and electric, cable, water.

Close of Escrow – Prior to close, you will need any balance of deposit to be placed into your escrow account, your lender will have all your paperwork to sign ready, you’ll have any balance of closing costs also deposited with escrow, a Notary will meet with you to sign all and last paperwork, and a day or so later, the County Recorder will record your new trust deed and you will take ownership of your new home. CONGRATULATIONS !!!


Jane Loveday
Windermere Real Estate Agent
619-519-1615 Cell
http://www.JaneLoveday.com