Median home prices in San Diego have hit a new record high and prices may not be slowing down. I spoke with the San Diego Union Tribune about this trend in home prices and what it may mean for potential home buyers. The market is very competitive now, and buyers need to be prepared to present their best offer if they are very interested in a particular home.
Read more about this topic at San Diego Union Tribune.
Very excited to announce this new program I can offer to clients. You can now lock in your rate before purchasing your home. This is a new benefit of getting pre-approved which was already a great option to start with. You can now find out what your interest rates will be and lock them in while still searching for that dream home. Home buyers do not need to place a formal offer on a property to secure their rates and they can be locked in for 60 or 90 days. This can give home buyers peace of mind while they are still in the house hunting process. No more worrying about a sudden change in interest rates that could hurt their chance of buying their perfect home. If you are interested in this opportunity give me a call today to get started. Like always, I’m here for all your mortgage and loan questions.
1. How long do I plan to live in this house?
Knowing this can help you plan what the next few years will look like. If you are not planning to spend a long time in a house, you might be able to spend less money in order to be ready for your next move. This will also help you to determine what expectations you will have when house hunting. If you are not yet looking for that “forever home” you might be able to make some trade-offs with items you had on your must have list. Don’t worry too much yet about having all that you want in a dream home.
2. Where do I see myself in five or ten years?
This again goes back to planning. If you know that in five or ten years you will be starting a family, you may want to look for a home with space to grow into. This can mean looking for a yard for kids to play in or extra bedrooms. Financially speaking, it can be harder to make a plan on where you will be. However, if you know you will be changing jobs or possibly relocating you need to consider this when deciding on a home and how much you want to spend on it.
3. Do I have to or want to make home improvements?
Many people look for homes that need some renovations for various reasons. One of those reasons is saving some money. Homes that are outdated or need major functional repairs will sell for less than homes that are move in ready. Buying a fixer-upper also gives you the opportunity to customize your home to have the look you want or add any technological updates you may be interested in. These changes tend to be easier in a home that may already need to be gutted and fixed up. For others, home renovations are not a thing to consider. Many homebuyers will want a house that is move in ready so they do not have to spend too much time on renovations and can enjoy their new home sooner.
4. Do I want to keep cash on hand for other investments?
When purchasing a home, buyers will typically need to place a down payment which can be a large amount of money. For many people, this will be most or all of their savings. One thing to consider is whether buyers are ready to give up that money or if they prefer to save some of it for other investments that will benefit them in the future and perhaps lead a cash inflow. This decision will have an impact on what loan option buyers will be choosing. There are some options that allow borrowers to place less than the typical 20% of purchase price. These options are something to discuss with your mortgage broker, and something I’m happy to help with.
5. How quickly do I want to be debt-free?
This is another financial decision that needs to be considered before starting to look at homes, so buyers can have a realistic idea of how much they want to spend. This also comes back to the question of planning for the future. If you know that in the near future you may have other expenses such as sending kids to college or other large life expenses you may want to pay off your mortgage quickly. Discussing various loan options with your lender will help determine what is the best course of action for paying off your mortgage in the time frame that is ideal for you and your family.
With the many changes occurring in real estate that have been brought on by technology, it can be difficult to keep up with the latest trends. This article discusses the way real estate has changed and how brokers have used technology to build better relationships with clients as well as creating a better experience for them.
Read more about it on RISMedia.
An FHA loan is a great option for potential homebuyers who do not have the typical 20% of a purchase price saved up and ready to be given as a down payment. This can be an option for people who are still renting or for first-time homebuyers. Many homebuyers can achieve this loan, with as little as 3.5% down but there are of course requirements that need to be met. One of those requirements will be a good credit score, typically over 650. Having a credit score above that will help you achieve this loan with a smaller down payment amount. This option could be the right one for you, so don’t wait any longer if you are thinking of buying a home. Rent in San Diego keeps increasing, and it not not likely to slow down any time soon. Give me a call today so I can help you get started or let someone who may be interested know. As always, I’m here for all your mortgage questions and needs.