Tag Archives: first time home buyers

Achieving The American Dream

Achieving The American Dream

The American Dream. Having a loving family, attaining a stable job, and most importantly possessing your own home, even if it’s not in Santa Maria, California or somewhere near the Central Coast. All of these accomplishments can be challenging at times, especially taking the next step of  having your own home. With financial planning and legalities, it all starts with a bit of knowledge of the industry and some research.

Purchasing a Home in the United States

The United States Real Estate market is tremendous, especially the Santa Maria Real Estate area since it is continuing to grow. One thing to keep in mind is that each state has their own unique set of policies, set of laws, and not to mention taxes. So don’t be surprised when you notice different tax rates in various cities and states. Also Keep in mind that their are many incentives for individuals such as veterans who have served our country. Veterans qualify for loans known as VA Loans and many lenders out there offer these kinds of incentives that better help them achieve the home of their dreams.

Property Taxes

As mentioned above, taxes vary by state. So when you are asking yourself how much house can I afford, do not forget to include property taxes as the tend to add up. They are used to fund public projects such as schools, parks, and things such as law enforcement. Knowing ahead of time what kind of taxes you will be paying will give you a better picture of the cost of living in your new home, especially if you are planning on moving out of state; do some research.

Educate Yourself On the Real Estate Market

One should also know what exactly drives house prices in the market, especially in the Central Coast Real Estate area because it has gained popularity in past years. Instability in house prices vary from state to state and from region to region. For example, a home in the Arroyo Grande, California will not have the same price as a beach from property in the Pismo Beach, California area even though their proximity is not to far apart. Same applies to locations such as Los Angeles, California and New York (especially within the city). We at Greater Mortgage Solutions and Valley Hills Realty want to teach you about the macro and micro trends that influence the real estate market. That way you can make a better decision when making a mortgage deal that is being offered to you.

So when you, a family member, or a close friend of yours is ready to achieve The American Dream, consider allowing one of our team of experts at Greater Mortgage Solutions and Valley Hills Realty help you attain the precise mortgage and the home you have always wanted. We are filled with team members that are ready to help you every step of the way.

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What Are The New FHA PMI FEES Going Into Effect

This is the latest in FHA changes and guidelines that is sure to have an impact on the local Santa Maria real estate market and the values of the homes in Santa Maria as well as across the country since it will make financing more expensive to get a home for first time home buyers.

FHA TAKES ADDITIONAL STEPS TO BOLSTER CAPITAL RESERVES
New premium structure will help protect FHA’s MMI fund

WASHINGTON – As part of ongoing efforts to encourage the return of private capital in the residential mortgage market and strengthen the Federal Housing Administration’s (FHA) Mutual Mortgage Insurance Fund, Acting FHA Commissioner Carol Galante today announced a new premium structure for FHA-insured single family mortgage loans. FHA will increase its annual mortgage insurance premium (MIP) by 0.10 percent for loans under $625,500 and by 0.35 percent for loans above that amount. Upfront premiums (UFMIP) will also increase by 0.75 percent.

These premium changes will impact new loans insured by FHA beginning in April and June of 2012. Details will soon be published in a Mortgagee Letter to FHA-approved lenders.

“After careful analysis of the market and the health of the MMI fund, we have determined that it is appropriate to increase mortgage insurance premiums in order to help protect our capital reserves and to continue encouraging the return of private capital to the housing market,” said Galante. “These modest increases are one of several measures we are taking towards meeting the Congressionally mandated two percent reserve threshold, while allowing FHA to remain a valuable option for low- to moderate-income borrowers.”

The Temporary Payroll Tax Cut Continuation Act of 2011 requires FHA to increase the annual MIP it collects by 0.10 percent. This change is effective for case numbers assigned on or after April 1, 2012. FHA is also exercising its statutory authority to add an additional 0.25 percent to mortgages exceeding $625,500. This change is effective for case numbers assigned on or after June 1, 2012.

The UFMIP will be increased from 1 percent to 1.75 percent of the base loan amount. This increase applies regardless of the amortization term or LTV ratio. FHA will continue to permit financing of this charge into the mortgage. This change is effective for case numbers assigned on or after April 1, 2012.

FHA estimates that the increase to the upfront premium will cost new borrowers an average of approximately $5 more per month. These marginal increases are affordable for nearly all homebuyers who would qualify for a new mortgage loan. Borrowers already in an FHA-insured mortgage, Home Equity Conversion Mortgage (HECM), and special loan programs outlined in FHA’s forthcoming Mortgagee Letter will not be impacted by the pricing changes announced today.

Taken together, these premium changes will enable FHA to increase revenues at a time that is critical to the ongoing stability of its Mutual Mortgage Insurance (MMI) Fund, contributing more than $1 billion to the Fund, based on current volume projections through Fiscal Year 2013.

http://portal.hud.gov/hudportal/HUD?src=%2Fpress%2Fpress_releases_media_advisories%2F2012%2FHUDNo.12-037

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Buying A Home For The First Time

When its your first time buying a home there are a few things to consider, many times when first time home buyers are considering buying one of the many Santa Maria homes for sale the first thing buyers always consider is the price of homes, and the interest rate of the new mortgage home loan that they will have to get in order to buy the home, and even sometiems how the house “feels”.  But the thing is that there are also a lot of things that won’t come up until after buyers move into their new home. Here are a few home shopping tips to consider if you want to make sure you enjoy your time in your new home.

The Direction The House Faces. The side of your house that gets shade at different times of day can make your yard more enjoyable. In the Summer, the sun beats down on the West side of houses, making them very hot and uncomfortable. If you like having barbeques and picnics in the back yard, you don’t want to purchase a house that faces East, unless it has plenty of mature shade trees.  This is something you would not even think about at most times and if you have ever given gardening a thought it might be something to consider or where your bedroom window is at when the sun is in full power, lighting up your room but also warming it up.

Depending on where you plan on buying your home in the United States will only give you other things to take into consideration such as areas like Salt Lake Real Estate, that get lots of snow, can reduce their winter yard work by having the sun help with the removal of snow and ice, so the South side facing the driving way can help melt the work. Driveways of southerly facing Bloomington MN, Homes melt very quickly. When snow storms are minor, snow melts during the afternoon and shoveling isn’t even necessary. Now you can have yourself one very nice house but if your home happens to be one of those houses that face the North, will see almost no sun on cold winter days, so half the year you will have  some extra work to do which for some can be a big pain.

Do it Yourself “Projects”. Many first time home buyers buy houses that aren’t in a condition where they can truly be happy, but just need some work here and there. They think that it will be easy to take care of the do it yourself projects, and get the house just the way they want. Shortly after starting a do it your self project, homeowners almost always come to the realization that it will take a lot longer than planned, sometimes they find out its not so easy and may cost more than what they expected. They often find that all their free time is spent on home improvement projects. If you like being a handyman, then fixer uppers are recommended. If you aren’t sure if you will like handyman work, then you may want to stay away from homes that require significant work.  The thing is if you have ever watched the show “Home Improvement” most guys think that they can do it themselves and it all looks easy on TV.  Even those cooking shows with that new what ever makes it all look easy until you get and find out its not the same as it is on TV.  But when you have a home you have that you live make sure you know what you are getting into and whether the work is just cosmetic or you really will have to know what you are doing or pay someone that does.

 

Taking Care of the Yard.

Most first time buyers move from an apartment where others take care of the yard, they have gardeners there adn most thing they cannot wait to have their own yard and some want a huge back yard so they can entertain have room for the kids and lots of yard. Caring for gardens, flower beds, and large yards can take up many hours each week, I have been there and let me tell you cutting grass and weed wacking and then when you have done all that you still have to clean up and don’t forget about the weeds.  If you know you enjoy yard work, and have plenty of free time, then this won’t be an issue. If you bearly have enough time to enjoy life as it is, then you probably don’t want a high maintenance yard.  I know its nice to have a big back yard plenty of privacy room for the kids and if you have  a party just remember either you plan on doing the work or you will be hiring someone to do for you so make sure you can budget that expense in there.

Weeds grow, like weeds, and can be out of control if they are neglected for just a few days. If weeding isn’t something you will make time to regularily do, then stay away from yards with large garden areas. Some things that will minimize yard maintenance include: automatic sprinklers, perrenials, weed tarps, and small garden areas.

Buying your first home is an important experience. It is where you will spend your leisure time. Think about how your life will change if you buy a certain house, before making an offer, for many this is the biggest and most important purchase decision of their life.

For A FREE List Of Foreclosures & Pre Foreclosures On The Central Coast Click HERE

If you have any questions about buying a Santa Maria home for sale in the Santa Maria Real Estate market or any properties on the Central Coastand need to get a loan in Santa Maria, CA or any where in the state of so I California not just on the Central Coast, so I can do California home loans, and first time home buyer loans, as well as refinance home loans and just plain simple mortgage loans. So please contact me by sending me an email at: GenePerez@GMSLoans.net

I do also service all the nearby communities and other markets such as the Santa Ynez real estate market, Nipomo Real estate market, Arroyo Grande real estate market, Grover Beach Real Estate Market, and all other surrounding areas regarding the homes on the Central Coast.

my goal is to provide you with resources you need. I can also help in getting the financing for your home. If you have any suggestions or questions in how I can provide more or better

information please let me know. I have been helping my clients for the last 15 years on the Central Coast, Gene Perez – 805-448-7101 , DRE 01321588

ben sig

Important Disclaimer: Questions and answers provided on this website and by Gene Perez is to be considered general information, and is not intended to substitute for informed professional financial, tax, legal, investment, accounting, or other professional advice.

Gene Perez is Licensed Real Estate Broker for Valley Hills Realty and a mortgage broker for Greater Mortgage Solutions.

This blog and its content is copyright of Gene Perez 2010. All rights reserved. Any redistribution or reproduction of part or all of the contents in any form is prohibited other than the following: you may print or download to a local hard disk extracts for your personal and non-commercial use only. You may copy the content to individual third parties for their personal use, but only if you acknowledge Gene Perez as the source of the material You may not, except with our express written permission, distribute or commercially exploit the content. Nor may you transmit it or store it in any other website or other form of electronic retrieval system without obtaining Gene Perez’s

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What Are The New Changes For Getting An FHA Loan

There are a few changes in the lending world that will soon be affecting the Santa Maria real estate market as well as all other markets in the U.S with borrowers trying to seek approval for the new mortgage home loan.   Now keep in mind that at this time govt. sponsored lending programs represent about 90% of the mortgage loans that are being generated.  So to say that real estate is recovering is probably more accurate than to say that we have recovered or have stabilized.  But we are hopefully past the half way mark on the recovery process.

As for the changes in getting an FHA loan.

These new rules go into effect this month, and are for FHA loans only, although there are changes happening in Fannie and Freddie Mac’s lending guidelines as well. But for now let us just stick to FHA, without confusing anyone.   FHA = Federal Housing Administration, now for those that do not know they do not loan you the money they insure the money that is being lent to you.  Basically you go to any bank or broker that is approved to originate a FHA loan the lender will loan you the money to get your home loan and as long as they are done per FHA rules and guidelines they will insure those funds so the bank does not have to deal with the risk of losing any money.

In being able to do these loans the FHA charges insurance premiums to the borrowers for getting the loan.  The insurance is for the bank but you as the borrower pay for this insurance so if you happen to default on the loan the bank will get the money, and the only benefit to you is that you get the loan to buy the house you want.

First change is that the premium that is being charged on a monthly basis is being raised to .85 – .90 percent depending on the balance.  It used to be .5 -.55 % so now the difference is for example on a 200k loan x .55% = $1,100.00 annual divide that by 12 you get $91.67 a month.  But now using the same loan amount 200k x .90% = 1800.00 divide that by 12, and you will now be paying $150.00 a month on to your new loan so getting a loan will now cost you more every month.

But the fun does not stop there.

Second change is that when you do get an FHA loan you are charged an upfront premium usually a few thousand depending on the size of the loan, and this is part of the closing costs.  The upfront premium use to be 2.25% and now its down to 1% which is pretty cool for a first time home buyer so rather than paying $4,500.00 for a new loan now you only pay $2,000.00 for the premium and this was part of the one time cost to close a loan when getting an FHA loan making it easier for first time home buyers.

Keep in mind that FHA loans allow you to get into a home with as little as 3.5% down where Fannie Mae or Freddie Mac you could be looking at 10 to 20% down depending on the type of loan and your credit so you can buy a $200k home with as little as 7k down.  Or $20k down payment for the same home and for most the answer is obvious.

For now depending on how the loses are for FHA will also decide how expensive it can be to get into a home, FHA is authorized to increase monthly premiums as high at 1.55% so be grateful its only .90%.  Many in congress also want to increase the minimum from the current 3.5% to 5%.  But if the market is recovering, and too many increases and costs in getting a home will make it come to a stop, and affect the rest of the economy so whether you are in the market to buy a home or not it does affect you.

There are other changes such as a minimum fico score to get an FHA loan, which is significant since getting an FHA loan never required a score to begin with.  But the minimum FICO score is 500 but anyone with a score under 580 must put down a min. of 10% and anyone over 580 can qualify for a loan with as little as 3.5%.  But also keep in mind that even though FHA may allow the BANK to lend to someone with a score as low as 500 many banks may not accept a borrower with a score of less than 620, the banks just have that option to go that low to do a loan for someone with scores that low but more than likely most will not due to risks.  Even though the insurance will pay the bank for any losses, just like your car insurance you do not want to many too loses or accidents or your insurance company may drop you or jack your fees up and make it hard for you to stay with them. Same concept.

Rates are still pretty low and the costs of a loan are still reasonable but in time there maybe more changes to come and waiting for the perfect may never come.  But hopefully there are not too many changes, because the economy does rely on real estate activity to fuel it and making it harder to get lending will only slow things down or stall the recovery that I have yet to feel myself. 😉

For A FREE List Of Foreclosures & Pre Foreclosures On The Central Coast Click HERE

If you have any questions about buying a Santa Maria home for sale in the Santa Maria Real Estate market or any properties on the Central Coastand need to get a loan in Santa Maria, CA or any where in the state of so I California not just on the Central Coast, so I can do California home loans, and first time home buyer loans, as well as refinance home loans and just plain simple mortgage loans. So please contact me by sending me an email at: GenePerez@GMSLoans.net

I do also service all the nearby communities and other markets such as the Santa Ynez real estate market, Nipomo Real estate market, Arroyo Grande real estate market, Grover Beach Real Estate Market, and all other surrounding areas regarding the homes on the Central Coast.

my goal is to provide you with resources you need. I can also help in getting the financing for your home. If you have any suggestions or questions in how I can provide more or better

information please let me know. I have been helping my clients for the last 15 years on the Central Coast, Gene Perez – 805-448-7101 , DRE 01321588

ben sig

 

Important Disclaimer: Questions and answers provided on this website and by Gene Perez is to be considered general information, and is not intended to substitute for informed professional financial, tax, legal, investment, accounting, or other professional advice.

Gene Perez is Licensed Real Estate Broker for Valley Hills Realty and a mortgage broker for Greater Mortgage Solutions.

This blog and its content is copyright of Gene Perez 2010. All rights reserved. Any redistribution or reproduction of part or all of the contents in any form is prohibited other than the following: you may print or download to a local hard disk extracts for your personal and non-commercial use only. You may copy the content to individual third parties for their personal use, but only if you acknowledge Gene Perez as the source of the material You may not, except with our express written permission, distribute or commercially exploit the content. Nor may you transmit it or store it in any other website or other form of electronic retrieval system without obtaining Gene Perez’s

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First Time Home Buyers Looking For A Mortgage

Here is some advice if you happen to be qualifying for a first time home buyer loan trying to buy a home looking for a mortgage.  Usually a big concern we all have is trying to not make a mistake since a home is such a big step.  For most people buying a home is going to be the biggest investment or purchase that they will ever make.  So yes this is a big step for anyone.  First and foremost is that the last few years have taught us a few things, one is to live within our means and two that becoming a home owner, and owing our own house is not a right but a privilege.  So hopefully this will be of some help to those looking buy a home for sale in Santa Maria or anywhere for that matter.


big debtSo lets start off with what can you afford forget about trying to keep up with your friends that is how most of us end up in situations we wish we never were in.  We bought the car that we can’t afford and have more things in the garage than we know what to do with.  So forget about having a house nicer or bigger than someone you know, or just as a big, you are shopping for yourself and the last thing you want to be is basically poor and own a home.  What I mean by that is that your paychecks are being consumed every month just to pay the mortgage forget about having a life or taking the wife and kids out.  Because at the end of the month there just is not enough left over for anything to buy or do.  Keep your new mortgage payment less than 40% of what your gross income is.  You may qualify for more and that’s great but here is the thing to think about, what if you had a reduction in pay, what if your wife had a reduction in pay, what if you had unexpected finances pop up?  You need  to have that cushion for what if.  So lets say that your gross income is $3,000.00 a month that is before deductions then your new mortgage payment should not be more than $1,200.00 with taxes and insurance the whole nine yards.  For those trying to figure out how do I figure out my mortgage payment here is a great website with just about every calculator you will ever need.

Now the thing I hear more than anything is “but homes in that price range are not on the side of town that I want”.  “Or homes in that price range are older” or etc etc etc.  Of course you want a home that you can be happy in and live in that will be good for you and your family.  But do keep your expectations reasonable you are a first time home buyer this is your first home and maybe not your last.  If you cannot compromise then maybe you are not ready to buy a home at this time.

When you do finally get a home and ready to make that big step forget about the whole buy now and sell next year mentality and cash out 50k.  Its not going to happen in this market or any time soon.  If you are looking on how to get rich quick on real estate stop reading this now and order those “Carlton Sheets”  programs.  Buying a home should be an investment that you hold on to for at least a few years.

Which Agent to choose

Last but not least is a Realtor, of course you can buy a home without real estate agent you can also represent yourself in court without an attorney, and the funny thing is even attorney’s get an attorney to represent themselves when going to court.  The reality is like any industry there are good apples and there are bad apples.  So try to select a Realtor that does real estate not 5 different things and real estate is just a hobby for him.  Also I know it’s very tempting to just call the guy with his name on the sign on the house you just saw.  There are two sides to the real estate transaction you have the selling and the buying side.

The listing agent (the guy with his name on the sign) is going to represent the seller, selling his home and try to get the best deal for him when selling his home.  You as a first time home buyer want someone to represent you and try to get the best terms for you.  I am not going to say that a real estate agent cannot represent both sides fairly but I think you can see that there is some sort of conflict of interest here.  So do yourself a favor and find yourself an agent and when you see a home that you like call your agent and get the details make them do the work for you, so find someone to represent you that does real estate as a career not a hobby.

 
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