Call Us Today!!
(562) 746 - 7263
 

Monthly Archives: December 2013

The List Of Things To Do After You Purchase A New Home

Posted by jfortunes on December 31, 2013


The List Of Things To Do After You Purchase A New Home

A person’s home is his castle and every castle deserves to be treated like one. There are a lot of people in the country today that have set aside their plans to purchase a new home because of the economic crisis that looms over the land. Though it is a very legitimate reason to be afraid there are still some who brave the financial tight rope and proceeds with their plan to buy a new house.

Our houses are the gauge of our financial standing in society. The more fabulous your house is the higher your success rating is with your peers. Because of this some people ignore or underestimate the true peril that they could encounter in the future for buying a new home.

It’s not because they have the resources to back them up but because of the real need to provide a comfortable abode for their families. For them it’s a risk they are willing to take because the fruits will be reaped in the future.

Now that you have the home you’ve always wanted there are a few things that you need to get busy with. After the purchase of a new home you need to start on some of the things that would be occupying your time in the next few days or even months. These are the simple and complicated things that you need to do to further build your new home.

What to do after the big leap…

Now, to start off you should identify the needs that you would have to have in the house. These vary from the furniture that you would put in place up to the utilities that you need to set up in your home. to make it easier for you and your family, you should prioritize on the things that you will use on a daily basis. So on top of your list should be the utilities. Make sure that there is electricity, water, gas and other utility service that you will need. Ask around on how to get these things going if they are out of order.

Next is the interior of your new home. Some houses for sale have the old wallpaper, carpet and other upholstery still intact. If these are some of the things that you want to change make sure that you make time for it and have the manpower to accomplish it. These things take time and planning, so make sure to have a good plan before you start with this project. Take time to plan out the kind of interior that you have in mind and schedule the different activities needed to be accomplished before you start tearing off the old interior. If you feel the need to be painting some of the rooms or the outside of the house, make sure that you have help. It takes time to finish this and you will need all the help that you can get.

Lastly, choose the right furniture for your new home. If you purchase a new home chances are you are trying to start with a new life, and what better way to do that than to make room for things that is new. But donĂ­t go spending every dime that you have on new things. Some of your old furniture can still be saved.

For more information, do not hesitate to contact us or call James directly at 562-746-7263

The Down Payment

Posted by jfortunes on December 31, 2013


The Down Payment

When you buy a house you have to have enough money upfront to put down which is called a down payment. Now days be prepared to pay 3% to 20% of the sale price for a down payment. However, those people who fall into the excellent credit score category and have a score range of 700+, may qualify on some loans for a 0% down payment upfront. Those who qualify for VA loans also may get a down payment waver depending on the lender.

Lenders (banks) use the down payment as a safety gauge. There was a study done showing the correlation between those who can’t make a down payment and their tendency to default on their loans. The lenders reasoning for down payments are; if a person can’t afford a down payment then they can’t possibly save their money for a monthly mortgage. They contend if one can ‘t pay for a down payment then they most likely cannot afford a mortgage either.

It’s almost a given that if one does not pay a down payment that the monthly payments will run higher. The less you put down in the front the more it will cost monthly when you buy a house, that’s how it works. If you are paying a larger mortgage and do not have a steep bank account then you will have less options to choose from in terms of picking a home. One of the plus things from a down payment on a home is that it affords you the luxury of asking for a larger loan. With a larger loan you have more funds to get the type of house you really want.

When you don’t put anything down on a conventional loan then more than likely you have to get a private loan as well. This is because the rule for getting private loans apply when you are putting down less than 20% of a mortgage. The private loan is called PMI or Private Mortgage Insurance. The lender requests you also get PMI because it protects the lender in case you default on the payments. The PMI will then pay the lender the difference between the 20% and the part you actually applied to the loan. For instance if you put down 5% and default on the rest; the PMI pays for the outstanding 15%. This protects the lender and lets you get a house without putting down 20% as a down payment first. In the past lenders/banks would not even consider giving someone a loan for a home; without a 20% down payment towards the house. Now with PMI’s it makes it possible to take a loan with as little as 5% down towards a home purchase. PMIs are added to the mortgage and paid as part of it. You do not need a PMI once you have paid up to 20% of the mortgage back. It’s a safe guard for the 20% that would have served as a down payment.

For more information, do not hesitate to contact us or call James directly at 562-746-7263

Three Types of Home Mortgages

Posted by jfortunes on December 31, 2013


Three Types of Home Mortgages

When you go to a lender which is usually the bank (there are intermediary companies called lenders, but they don’t give the money for the loan they are in between you and the bank) for a home loan there are a few that may fit your situation. It is the lenders job to find the loan (in this case the mortgage) that best suits your situation.

The three loans that are primarily available for loans for mortgages are:

1. A Conventional Loan
2. A FHA Loan
3. VA Loan

A Conventional Loan is a regular mortgage loan. This is a go to the bank and take out a loan mortgage. FHA Loans are government loans that make it easier for people to buy a home. The thing about FHA loans is the government guarantees part of the loan. If a person has problems making their mortgage payments then the government will pay it back for you. This is providing you are in default (the bank is in the process of taking your home because you can’t meet the mortgage payments). Since FHA loans are guaranteed they are easier to pay back. Keep in mind that the government will only step in and pay after your house is repossessed. Not all home sellers will agree to take this type of loan. This is because they feel there is too much red tape involved. If you qualify for a FHA loan the house cannot be a fixer upper. An FHA home has to pass the home inspection with flying colors. However there are several FHA programs for those who qualify.

VA loans are for Veterans; those who have served in the armed forces of the United States. The good thing about VA home loans is that you may have the down payment waved. With a VA loan the government guarantees the loan like an FHA loan to make the lender feel comfortable with lending the person asking the money. A VA loan can be combined with a second mortgage. In that case the bank makes the primary loan for the price of the home and the seller makes a separate loan for the buyer so they can cover the rest of the costs involved. The best thing about a VA loan is that it can be qualified so that if a future buyer is interested in your home your hands are not tied if you have to sell it. You can also sell the home to anyone you choose. They do not have to be a veteran.

For more information, do not hesitate to contact us or call James directly at 562-746-7263

Things You Need To Know When You Purchase A New Home

Posted by jfortunes on December 29, 2013


Things You Need To Know When You Purchase A New Home

People plan for months or even years before they can finally decide to purchase a new home, this is because of the heavy burden of change that they need to go through. Change, especially one that is this important, should be considered at length and with the involvement of every one in the family.

If one person’s consideration is not looked into there maybe dissatisfaction with the new home that is purchased. It’s a big decision that a lot of families have to go through and it is a big decision that they should be very confident with.

Aside from the ideas of each and every one in the family, another consideration that you need to look into are things that you need to consider when you are ready to purchase a new home. Be sure that you have done your homework and look into every detail of purchasing a new home.

One important factor to consider when buying a new home is the mortgage. This may be the most important thing that you need to understand when you buy a new home. Simply put, the mortgage is the loan that you take when you purchase a new home. There are different payment plans and schedules for home mortgages, you just need to know who to get it from and how.

1. Solving mortgage issues – Find the right lending company for you. There are countless home payment loan programs and plans all over the country and they tailor fit the loans that they have for their clients according to the needs that are presented to them. Before going into a lending company makes sure that you’ve sorted out your needs to make it easy for the company to process your loan. If you have yet to decide on the property don’t go to a lender first because it might prolong the processing of your loan.

2. Assess your needs carefully – If you think you can afford to get a loan for a five bedroom home then by all means go and get it. But if your current credit score won’t even allow you to owe someone a dollar, a good suggestion is to stray away from the expensive homes. Match the needs that you have with your capacity to pay. If you can only afford a house with two bedrooms, then take that and improve your home over the course of time.

3. Other expenses – If you just purchased a new home then chances are that your expenses and budget will be a little limited for some time. It’s true for most families and it’s not really something to be afraid of. Just make sure that you don’t over spend in the next couple of months until you are able to keep your budget(s) stable again. One way of making ends meet right after you purchase a new home is by making a time table or a schedule of your expenses. It’s a good idea to make everyone involved and committed to making sure that the plans that you have are followed. Be sure to get feedback from everyone in the household.

For more information, do not hesitate to contact us or call James directly at 562-746-7263

The Right Place To Purchase A New Home

Posted by jfortunes on December 29, 2013


The Right Place To Purchase A New Home

People plan the purchase of their new homes for a long time. When people purchase a new home they have a lot of things in mind that they would like to consider. Some people consult other people and compare their experiences with purchasing a new home with them. Some people go to professionals for their expert advice on the matter. Some people even pray for guidance so they would be able to decide wisely.

What people really need to do to make a sound decision about the purchase of their new home is to do the right research. By asking the right people and consider the right factors that could land them a good deal on a property and a good location. Now, when buying a property you have the first consideration to think about. Are you buying an existing property or are you building from the ground up.

Both of these options have the ups and downs. Let’s look at the ups and downs of an existing property first. One of the advantages of an existing property is that you don’t have to think about how your house to look like. Planning a house can be very tolling and complicated plus it takes a lot of time. You also have to hire professionals that will draft the blue print of your new house for you and that could mean huge amounts of professional fees. Another good thing about an existing property is that you have little to worry about the interior of the house.

Everything is there and all you need to do work with it. Some of the downside of an existing property is the condition that the house is in internally. Though you would be able to check out the house from all angles you may not be able to check between the walls and floorboards and the ceiling where it would matter the most. Some homes deteriorate from within because of pest and insects. Another problem you may encounter would be the proper documents not being in place. It has happened to a lot of people before and it could happen to you.

Let’s look at building a new home from the ground up. When you purchase a new home everything is served to you, when you build your new home you have to plan everything that you want to put in there. One of the major advantages of building a new home versus to purchase a new home is the fact that you are moving into the house with everything new. You get to enjoy a truly new home. Another good thing about it is that you have nothing to worry about in terms of the stability of your new home. Since it has just been built the foundations are strong and the walls are secure. Though the downside of it is that you need to spend a lot of money for you to be able to accomplish it and it takes a longer time than to purchase a new home that already exists.

For more information, do not hesitate to contact us or call James directly at 562-746-7263

How To Qualify For A Home Loan

Posted by jfortunes on December 29, 2013


How To Qualify For A Hone Loan

As you know not every person who tries to get a loan qualifies for a loan. Banks want to feel that whoever they give a loan to is able to pay it back. The first thing you need to do is you have to have your financial business in order if you want to get a loan. The four main things that lenders look for when you go apply for a loan for a home are:

1. Down payment money- Lenders require you to have enough money for a down payment. A down payment for a home is usually anywhere from 3% to 20% of the purchase price.

2. Two years of steady employment- The lender wants to see that you can hold a job so you can pay the loan. It can be in the same field or one job that was held for two consecutive years.

3. A Good Credit Score- A lender will be quicker to give someone with a good credit score a loan. A good score is considered anything from 600 and above.

4. Your monthly income has to be two to three times higher than the mortgage you are going to pay. They want to feel that you can cover your mortgage without having hardships that may cause a default (force you to go into foreclosure and the bank repossesses the house)

If for whatever reason you do not have these 4 things you don’t have to panic. You can still meet with a lender anyway so they can tell you what you need to do in order to qualify for a loan eventually. There are however other loan options you may want to consider.

Low Doc or No-Doc Loans are loans that require a minimum amount or no amount of documentation in order to qualify for a loan. They do however carry high interest rates. These type of loans are an option for people that regular lenders consider a high risk for a loan. A high risk by lender terms; is someone that will be unlikely able to meet the loan payments. People who don’t want to reveal their financial situation also tend to gravitate to these type of loans. That is because to get one of these loans you don’t necessarily have to show pay stubs or tax returns to qualify for these type of loans. Low Doc loans may require a little more documentation that a No Doc loan. Of these type of loans, the No Income Verification Loan is the most popular also called the NIV. Like it states you do not have to show your income to qualify for it.

No Doc Loans are also called NINA Loans which means No Income No Asset Loans. These type of loans are also commonly called the Don’t Ask Don’t Tell loans. Because they don’t ask you and you don’t have to tell them your financial business to get one.

For more information, do not hesitate to contact us or call James directly at 562-746-7263

 

Designed by Master Mind Marketing LLC | Powered by Christian Alva