Now that you know what you're looking for, the next step is figuring out what you can afford. A review of your income, savings, monthly expenses, and debt will be necessary. Early on in the process, you'll want to get pre-qualified for a mortgage loan, which helps determine how much you can afford. It enables you to move swiftly when you find the right home, especially when there are other interested buyers. It also indicates to the seller that you are serious and can afford to buy the property.
A pre-approval is a simple calculation done by a mortgage lender that tells you the amount you'll be able to finance through a loan and what your monthly payment will be. When you find a home to buy, a pre-approval also reassures the seller that you have the financial means to purchase his or her home.
Know what you can afford is the first rule of home buying, and that depends on how much income and how much debt you have. It pays to check with several lenders before you start searching for a home. The price you can afford to pay for a home will depend on several factors, such as: gross income the funds you have available for the down payment, closing costs and cash reserves required by the lender your debt your credit history the type of mortgage you select current interest rates that are available.
Every Loan is different, with so many changes happening out there in the lending market you really need to speak to someone who is well versed in that field. Please call me so that I can help you and put you in contact with mortgage professionals.
I have worked with and highly recommend:
Marisol Navar
Mortgage Loan Officer-Habla Espanol
American Capital Investment Group
562-688-2856
mnavar@aciginc.com
Steve Hageman
Mortgage Loan Officer
Bank of America
562-626-8718
steve.hageman@bankofamerica.com
Ricardo The Realtor and his team are committed to servicing the real estate needs of beautiful Long Beach and the surrounding areas. We take the time to consider how your new home will fit with your lifestyle. Our team will assist in whatever you need. If you are looking to Buy or Sell your home, we can help you reach your goals. Call today: 562.533.4003 or visit LiveInLB.com "Assuring you that my team of professionals will make your real estate dreams a reality."
Sunday, February 28, 2010
Friday, February 19, 2010
Monday, February 8, 2010
Looking for a home? Things you should consider...
Before deciding which house to buy, think about your lifestyle, your current and anticipated housing needs, and your budget. It’s a good idea to create a prioritized list of features you want in your next home – you'll soon discover finding the right house involves striking a balance between your "must-haves" and your "nice-to-haves." To start, consider your lifestyle. If you love to cook, you'll want a well-equipped kitchen. If you're into gardening, you'll want a yard. If you're planning your office at home, you may want a room for a separate library or work space. If you have several cars, you may require a larger garage. Use this list as your search guide. Next, think about what you might need in the future. As you consider your housing needs, it's important to consider how long you may live in your home. If you're newly married, you might not be concerned with a school district right now, but you could be in a few years. If you have aging parents, you may want to look at homes that offer living arrangements for them as well as you. It’s important to think about your new home’s location just as carefully as you do about a house’s features. Location is a huge part of any move. In addition to considering the distance to work, you need to evaluate the availability of shopping, police and fire protection, medical facilities, school and day-care, traffic and parking, trash and garbage collection, even recreational facilities. Perhaps the most important decision is deciding on the type of home you want. Do you want a condominium or a co-op? A town house or a detached single-family home? Do you want brick, stone, stucco, wood, vinyl siding, or something else? Do you prefer a new home or an older one? Through all of this, make sure to talk to your real estate professional about where you want to live. While more buyers now use the Internet to gain access to listings, or available properties for sale, it is still a good idea to use me as your agent. The agent brings value to the entire process: he is available to analyze data, answer questions, share their professional expertise, and handle all the paperwork and legwork that is involved in the real estate transaction. CENTURY 21 Beachside and Ricardo Perdomo has the expertise to help their clients narrow down their choices by sharing market trends and local information. Call me with any questions you may have. I am here to help you, have a great day.
www.RicardoPerdomo.com
Thursday, February 4, 2010
Understanding the Basics of Mortgage Lending...
www.RicardoPerdomo.com
Open a newspaper and you're likely to see an advertisement for a lender announcing their mortgage terms and rates. Sometimes the ad will include both the interest rate and the Annual Percentage Rate or APR. You may wonder, “What's the difference?”
The interest rate is the percentage of the loan amount the lender is charging you to borrow the money. It does not include other, less obvious, charges like interest and fees. The Federal Truth in Lending Law requires all banks and lenders to also advertise the Annual Percentage Rate because it is a more accurate reflection of the cost of the loan. The APR incorporates other costs and calculates them as a yearly percentage of the loan amount. When shopping for a mortgage it is the APR that allows you to more easily compare and contrast loans. It is designed to standardized the components and allow for an apples to apples comparison. The following fees are generally included in the APR calculation:
• Points – This covers both discount and origination points. Origination points are fees charged to cover some of the cost of providing the loan. Discount points are pre-paid interest that can be used to “buy” a lower interest rate.
• Loan Processing Fees – A charge made by the lender for accepting the loan application and gathering the necessary documentation.
• Private Mortgage Insurance (PMI) – This additional insurance is typically required by lenders for customers who provide less than a 20 percent down payment.
• Administration or Underwriting Fee – The cost for assessing the risk involved in lending to you. This includes the review of your credit, employment history, debt and other factors..
• Prepaid Interest – Different from a discount point, this is interest paid at the closing that covers from the day the loan commences to the date of your first mortgage payment.
Monday, February 1, 2010
Do not LOSE your Tax Credit!!!
$8000 Federal Tax Rebate
We have news to tell….the home buyer tax credit has been extended and expanded!
First-time home buyers and move-up buyers have another great reason to get on the path to purchasing a new home! The benefit to first-time homebuyers is a tax credit up to $8,000 and for move-up buyers a tax credit up to $6,500. But this opportunity ends in April.
Between November 7, 2009 and April 30, 2010, homebuyers that have a signed binding contract to purchase a home may be eligible for the tax credit. The transaction must close no more than 60 days after April 30, 2010.
First-time homebuyers may receive a credit of 10 percent of the purchase price, up to the $8,000 tax credit amount. If you have never owned a home before or have not owned a principal residence in the last three years, you are considered a first-time homebuyer.
For home-owners, a tax credit of $6,500 is available for homeowners who have lived in their current residence for at least five of the past eight years. Homebuyers can also receive a 10 percent credit up to $6,500 when they contract to purchase a home between now and April 30, 2010, provided they close no more than 60 days after this deadline.
The tax credit does not have to be repaid provided you live in the new home for a minimum of three years. Military families are exempt from this stipulation.
Call me or visit www.RicardoPerdomo.com for more information today.
We have news to tell….the home buyer tax credit has been extended and expanded!
First-time home buyers and move-up buyers have another great reason to get on the path to purchasing a new home! The benefit to first-time homebuyers is a tax credit up to $8,000 and for move-up buyers a tax credit up to $6,500. But this opportunity ends in April.
Between November 7, 2009 and April 30, 2010, homebuyers that have a signed binding contract to purchase a home may be eligible for the tax credit. The transaction must close no more than 60 days after April 30, 2010.
First-time homebuyers may receive a credit of 10 percent of the purchase price, up to the $8,000 tax credit amount. If you have never owned a home before or have not owned a principal residence in the last three years, you are considered a first-time homebuyer.
For home-owners, a tax credit of $6,500 is available for homeowners who have lived in their current residence for at least five of the past eight years. Homebuyers can also receive a 10 percent credit up to $6,500 when they contract to purchase a home between now and April 30, 2010, provided they close no more than 60 days after this deadline.
The tax credit does not have to be repaid provided you live in the new home for a minimum of three years. Military families are exempt from this stipulation.
Call me or visit www.RicardoPerdomo.com for more information today.
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