How Rising Interest Rates affect Borrowers and Affordability

  Average mortgage rates jumped from 3.5% in April to 4.125% in July on 30-year fixed rate conventional loans, an increase of .625%. Due to increase in rates, home buyers have lost around 7.5% in purchasing power in just the past four months. HOW RISING INTEREST RATES AFFECT BORROWERS AND AFFORDABILITY Mortgage rates increasing, effects purchase power more than increasing home prices. Chart shows the “impact of rising rates on buyer purchasing power or affordability”. Notice, when rates increase by just 1%,  buyer loses 10% in purchasing power or affordability. Example, notice the payment at 3.5% rate on a $400k loan, is about the [...]

5 Fast Ways to Raise My Credit Score

Want to buy a house? Wondering if you can qualify?  We can help and now is the time to get started. Give us a call and we can review your credit situation and even pull a complete credit profile for FREE! The major purchases you make, like a home or a car, are affected by your credit scores. Saving $35,000 on the average mortgage may be as simple as improving your credit score by 50 points. How amazing if you could put that savings into a retirement account?! In the meantime, here are 5 tips you can utilize NOW to give [...]

7 Tricks to Help Your Purchase Offer Stand Out From the Crowd

The real estate market is as tough as ever and getting any kind of edge over your competitors is great, no matter how small or superficial it may seem. Any real estate agent knows that branding and personality shine in this buyer’s market. Of course, buyers also want a way to out-smart the circling of sharks when a good deal hits the market. It’s good to have a creative, yet transparent offer so that the sellers are confident with the buyers ability to finance and close escrow. Here are some tips to accomplish just that, and then some! 1. Make sure your loan [...]

Think Twice Before You Lease Solar Panels for Your Home

Think Twice Before You Lease Solar Panels for Your Home! "Going Green” is a hot topic across the country. Home owners and home buyers need to consider the many factors below, before committing to solar panels for your home. A recent study has shown that solar panels can potentially add up to $15,000 in value to your home's appraisal price. BUT—AND THIS IS A BIG BUT—This additional value must be offset by the $20,000 to $30,000 you will spend for the panels. AFTER YOU DO THE MATH, YOU MAY HAVE TO ASK YOURSELF: “IS THIS REALLY A GOOD INVESTMENT?” Unless you [...]

Property Types Eligible for VA Loans in California

  California offers a wide variety of homes to satisfy any buyer’s desires. VA loan buyers need to focus on certain types of properties so they can get a final VA Loan Approval. Condos, manufactured homes, co-ops, single-family homes — California real estate has incredible selection. Understanding how VA Loans work is your first step towards buying your dream home. Knowing how your credit and income qualification apply to the VA Loan process and talking it over with an experience loan officer is crucial. A VA specialist loan officer will be able to tell you how much you qualify for as [...]

Getting A California Home Loan: Why So Many Documents?

“Why do I have to provide so many documents when applying to purchase a new home?”   “It seems like the bank needs to know every detail about my financial background, previous residences and additional verification from my employer and the IRS.”   “I’ve heard from my family and friends that the process was so simple just 7-10 years ago when they purchased their homes.”   There are two very good reasons that the loan process is much more difficult for today’s buyer than perhaps any time in history. Our government developed new guidelines that demand banks prove beyond any doubt that you are absolutely capable of [...]

100% Cash-Out VA Refinance

  Does A 100% Cash Out Refinance Make Sense? Orange County, CA - Did you know if you are a Veteran you can refinance the full amount of the value of your home? Reducing your interest rate and consolidating debt are reasons you should consider. What kinds of debt can be paid through a 100% cash out refinance? Use your equity to renovate your home Pay off high interest rate credit card balances Pay off high interest auto or recreational vehicle loans Consolidate a home equity line or 2nd mortgage Pay for College tuition Tax Advantage Paying interest on consumer debt is NOT tax deductable. Paying debts through your cash [...]

Rate Locks & Good Faith Estimates… Know the difference!

Top 5 Questions: 1. What guarantee do you offer with rates provided on your written rate quote? A rate quote is NOT a guarantee of a mortgage rate until the loan is "LOCKED." A quote is a reflection of the rate "At that moment" the loan officer prepared the quote. Mortgage rates can change throughout the day... It's actually possible that the rate quote may have changed moments after the rate was provided... for better or worse. "Rates are a moving target, and without a lock–it’s just a quote" 2. Does my Good Faith Estimate mean my rate is locked? Your Good Faith Estimate [...]

How Many Times Can You Refinance with a VA IRRRL?

Question: How many times can someone refinance their home with the VA Streamline program, sometimes called the VA to VA loan and also known as the IRRRL (interest rate reduction refinance loan)?   Answer: As many times as it makes sense. When interest rates trend downward, as they have been doing for the past few years, it can make sense for someone to refinance their mortgage multiple times within a relatively short period of time. Example: If interest rates go from 7 percent to 4 percent over a 2 year period of time, it may make sense for someone to refinance their 7% mortgage to [...]

When To Know It’s Time To Refinance Your Home Loan

Your home is most likely the biggest investment you have, so refinancing your home is not to be taken lightly. Refinancing your home can be a great way to save money or even improve your financial situation, however before you refinance, you need to determine if you are refinancing for the right reasons and if the market conditions are right for refinancing. THE 5 REASONS YOU SHOULD CONSIDER   1. Mortgage Rates are at 60 Year Lows - Lowering Your Monthly Payment  Refinancing saves you money every month by lowering your interest rate and the size of your monthly payment, so you're paying [...]

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