Specializing in Southern California Real Estate Financing

In the News

No-Cost Appraisals

For a limited time we will cover the cost of your clients’ appraisal. This could help to save them hundreds of dollars at closing and make the buying experience even better for your clients. It is available for all conventional loans that close before December 31st. At the time of closing a credit for up to $525 will be applied. This opportunity will only last until December 31st, 2018 so don’t wait too long. For more information give me a call today.


Rent Control In San Diego

I spoke with ABC10 News about the rent control debate currently affecting San Diego.High rental costs in San Diego are prompting people to pursue rent controls to limit rental increases. I believe the long term solution is more supply of housing. The current supply has not met the demand in our city. Rent control would serve as a short term solution that may not be feasible and may not result in the needed changes. 

Watch the video here.


Rising Costs Of Downtown Living

I got the opportunity to talk with The San Diego Union Tribune about the rising costs of apartments in Downtown San Diego. With many new developments comes competition to gain tenants, but the high rents are not drawing in as many renters. Apartment complexes have started to offer concessions to draw in new tenants. I believe the high pricing is a step into drawing in new tenants. It is easier to bring down prices than to raise them. It’s a starting point for these new developments and will help them to find the right asking price.

To read more about this situation and the full article click here.


We Are Now On YouTube

I’m happy to announce we are now on YouTube. Our first video is about the new Lock and Shop program. With this new program we can lock in your rate for up to 90 days while you still shop for a home. This will surely help to make the home buying process less stressful for you and your family. Give me a call today for more information and make sure to subscribe for more great videos to come.

Check out the video here. 


Median Home Prices Hit Record High

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.


Secure Your Rate While Still Searching For A New Home

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.


5 Questions To Ask Before Buying A Home

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.

 


Technology Creating “New Normal” In Real Estate

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 Could Be Right For You

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.


2018’s Cities with the Most Overleveraged Mortgage Debtors

Buying a home represents an important milestone for most consumers. But for those who dive in to the deep end of real estate without a financial safety net, the decision could lead to buyer’s remorse in the long run. Mortgage rates are slowly climbing after reaching historic lows in 2013, but still are close to the lowest they’ve been in the past 3 decades. This makes 2018 a tempting time to buy a home. But some industry experts believe 2018 is friendlier toward sellers than buyers because there’s much more demand than supply.

As with any major financial decision, it’s wise to improve one’s credit score before applying for a mortgage in order to qualify for the best possible rates. Using a Mortgage Calculator can also help to determine an affordable monthly payment and realistic payoff timeline, whether borrowing for the first time or refinancing an existing loan. Without a good grasp of how to pay off mortgage debt, consumers might find that debt unsustainable.

In this report, WalletHub determined which cities are home to the most overleveraged mortgage debtors by comparing the median mortgage balances against the median income and median home value in more than 2,500 cities. Read on for our findings, expert homebuying advice and a full description of our methodology.

Read More At Wallethub.com

 

Ask the Experts – Mark H. Goldman

As one of the biggest financial transactions of our lives, the purchase of a home requires careful assessment of our finances as well as the potential impact of a mortgage. For advice on both buying and owning a home, we asked a panel of experts to weigh in with their thoughts on the following key questions:

  • Is now a good time to buy a home?
  • What are the most common financial mistakes people make when buying a home, and which are most costly in the long-term?
  • If someone is currently overleveraged and has trouble affording their mortgage payments, what steps should they take?
  • Is there any way for an individual to tell if his or her local housing market is overpriced?
  • Are there certain housing markets or circumstances in which it is acceptable to be overleveraged in mortgage debt? If so, how much is too much?

 

Is this a good time to buy a home?

It depends on how long someone plans to live in the home. As a rule of thumb, if someone plans to stay in their home more than five years and their anticipated income is stable, this is a good time to buy. Interest rates are heading up. In most markets, home prices are outpacing inflation. The longer people wait, the more expensive a home will likely become. In addition to the probable appreciation, homeowners enjoy a place to live with very predictable costs. Also, a landlord is no longer a major influence on housing decisions from rental increases or the term of occupancy.

I suggest planned ownership for a few years to recover the acquisition and disposition costs. Speak to people who have and have not owned their homes. I find many people get priced out of their neighborhoods over time as home prices increase beyond their means. Many people regret ever selling a property, since equity usually increases over time. Many people buy a home and live in it for a few years. They move out, rent it and buy another home. It can be a great way to accumulate wealth.

 

What are the most common financial mistakes people make when buying a home and which are most costly in the long term?

I find most people should use a competent real estate agent to get informed advice about the price to offer. The financing is a subtle issue. Buyers should evaluate the comparison of loan origination points to the interest rate. Over a long period, it may be beneficial to pay some points to buy down the rate. A competent loan officer can help advise on this issue.

Also, buyers might wish to consider adjustable rate loans if they are fairly sure the will be selling or refinancing in the next 5-10 years. If a buyer expects to refinance in 6 or 7 years, then perhaps a 7-year fixed rate loan would be appropriate. But, remember, we cannot forecast interest rates into the future. So, rates may be higher.

In addition to financing, family issues matter. Young couples should consider space needs if they are starting a family. Of course, schools and proximity to employment, amenities, transportation and shopping are also important. Lifestyle is another important consideration. Do people want an urban or rural environment? “Walk Scores” are increasingly more important to younger and older households.

 

If someone is currently overleveraged and has trouble affording their mortgage payments, what steps should they take?

Financial difficulty may be temporary or long-term. It is imperative to make an objective assessment of the root cause of the difficulty. Act quickly before the financial burden is compounded. If a sale of the home is indicated, do it before credit is impaired with additional late payments or even foreclosure. In my experience, people who are confronted with financial peril become paralyzed to act. The longer people wait, the fewer options they will have.

I have also seen distressed homeowners use loans from family or friends to fend off immediate financial distress. It may be better to get out from under a home someone cannot afford and use those resources for a new housing solution. For example, borrowing from family for a temporary solution that will not solve the problem may only postpone the inevitable loss of the home. In that case, the family resources may be exhausted and/or unavailable to help with a move. So, make a very realistic evaluation of the financial difficulty and try to form a prudent long-term solution.

Basically, if a home is too expensive to keep, you may need to get a less expensive place to live.

 

Is there any way for an individual to know if their local housing market is overpriced?

Some indicators of overpriced homes are if marketing times for listings are getting longer. Also, are homes selling above or below list prices? Use several samples to avoid list prices that may have been unrealistic to start with for a particular property. “The signs are everywhere.” If a neighborhood has a lot of “For Sale” signs in the lawns, the market may be slowing down or the market may be losing jobs. It is a healthy indicator if properties are listed and sold in a fairly short time.

 

Are there certain housing markets or circumstances where it is understandable to be overleveraged in mortgage debt? If so, how much is too much?

If “overleveraged” means someone borrowed more than they can afford to repay, they will likely get into trouble. Time heals many wounds in real estate. If you can hold on long enough, it is probable values will eventually be restored (depending on the reasons for the market decline). If a family purchased a home with a big loan and small down payment without the capacity to support the home, they will likely experience difficulty. This often occurs in markets where there is over optimism for price appreciation. Even though a lender may be willing to make a big loan for the purchase of a home, the most important issue is how much can the buyer afford for their home payment. The month to month value of a home is less important for a family that can afford to live in their home and does not need to sell.

Many homebuyers only consider the home as an investment. I suggest to consider the cost of shelter as a component of their price decision. Shelter costs money whether we rent or own. Consider the utility of the shelter component of owning a home as part of the evaluation of what price and financing to select. It may sound trite, but it is good to live within ones means.

Read More At Wallethub.com