by Jeff Pittman | Sep 16, 2014 | Buyers, Real Estate News
If you’ve been through a short sale or foreclosure and are looking to get into another home, it’s the type of loan you get that determines how long you have to wait. Educate yourself and check out our quick breakdown of the wait periods after both short sales and foreclosures based on the type of loan you secure. Are you eligible for the reduced wait period? Defining extenuating circumstances For the Fannie Mae and Freddie Mac loans there are reduced wait periods available under extenuating circumstances for foreclosures and short sales. What are these extenuating circumstances? Well there are a few but they’re more restrictive than you’d think. If you had a loss of job or a loss in the family you might be eligible. However things like divorce and general financial hardship do not apply. To be eligible for the reduced wait period you must also have AUS (automated underwriting services) approval and a max LTV of 90%. Each loan has a specific LTV which specifies the percent of the home value a lender will lend to you as a borrower. For example with a 90% LTV loan on a home priced at $600,000, you could borrow up to $540,000 which is a requirement of at least 10% down payment. Calculating your specific wait period: Fannie Mae Foreclosure: Calculated from the date the title was transferred out your name (the borrower) to the date the credit report is pulled on the new transaction. Short Sale: Calculated from the date of competition of the short sale to the date credit report was pulled on new transaction. Freddie Mac Foreclosure: Calculated from the...
by Jeff Pittman | Sep 5, 2014 | Buyers
Here’s some benefits young renters see in owning vs...
by Jeff Pittman | Sep 2, 2014 | Buyers, Sellers
If you own a luxury home priced at $1 million or more, selling presents unique challenges. For luxury sellers, it’s more important than ever to understand the buyer so that you can effectively market your property and entice the highest bid. So who is your most likely buyer and what are they looking for? A study done by the Luxury Institute of consumers with a minimum household income of $250,000 showed that young money is most likely to be your next homebuyer. 43% of younger wealthy consumers expressed interest in buying a residential property in 2014 compared to just 21% of 55+ participants. According to the study these younger buyers are also willing to pay more than their older counterparts. On average, young buyers spent more than $2.1 million on their recent home purchases where as older buyers with the same yearly income spent only half that, $1.1 million. So what is it these young buyers are looking for? Let’s break it down. The Right Amenities An open floor plan and fully automated or wired homes rank as the top amenities all ages of luxury buyers are looking for. Think about everyone’s favorite brand Apple, it’s all about simplicity, technological ease and clean modern lines. Younger buyers however find these amenities more important than the 55+ crowd: pool, outdoor kitchen, home gym, home theater and a wine cellar or room. Today’s generations want to be able to entertain friends and family in their home and these are the amenities that allow them to do it in style. The least important amenities for all age groups include a separate catering...
by Jeff Pittman | Aug 25, 2014 | Buyers, Homes
Buying a house can a long and complicated process and when it comes to buying new construction in Orange County, there are some extra steps to consider in the process. Purchasing a newly constructed home has its pros and cons but if you’ve decided it’s right for you then it’s time to learn about the process from finding the perfect community to move in day. If you’re interested in purchasing new construction in Orange County then it’s time you learned what steps to take. 1. Get a buyer’s agent Buying new construction anywhere can be tricky so the best place to start is with a great agent. Builders have sales agents that will help you through the process but ultimately they are paid by the builder to keep their company’s interests in mind at all times. A buyer’s agent representing you will save you money, hassle and always keep your interests ahead of the builder’s. Traditionally a buyer’s agent is paid by the seller. When it comes to buying new construction you may have to directly pay your agent but you can add that fee to the sales price. This ultimately is worth it because a good agent can you save you thousands more than their commission is worth by negotiating lot prices and securing you credits at the design center. 2. Scope out your choices The first thing to do when searching new homes for sale in Orange County, California is of course to figure out which city or area is the best fit for you and your family. New home developments in Orange County are gaining steam now that the market...
by Jeff Pittman | Aug 21, 2014 | Buyers
You might be asking yourself, should I buy a new home or old home? With so many things to take into consideration when choosing a house like distance from work and family, community feel and home layout, answering the question new or older can help narrow your choices and give your search focus. And with so many new homes being built right here in Southern California, your options have just expanded! I’ve broken down the advantages for both new and “used” homes so that your decision is fully informed. Some facts about new homes might surprise you… New Home Advantages: • Everything is brand new. You have peace of mind knowing no one has used the shower before or walked on the carpet in your new bedroom. It’s even got that new home smell. • A large master suite. Builders are putting more emphasis on making lavish master bedrooms for home buyers than they used to. Older homes have bedrooms which are all about the same size, varying little from master suit to guest room. • Warranty. Each builder will offer a different warranty, some better than others, but they put your mind at ease when investing in a new home. Warranties are typically offered in one, two or ten year increments and each cover different things like labor and materials, mechanical problems, and structural defects. Make sure you read your contract thoroughly so you know what your basic maintenance obligations are as a homeowner and what the builders will fix or replace when the time comes. • Open layout. New homes are getting bigger and the space isn’t wasted on secluded formal...
by Jeff Pittman | Aug 19, 2014 | Buyers
When it comes to securing a mortgage it’s important to understand your FICO score, where it comes from and most importantly, what score you need to qualify for a home loan. Here’s a complete breakdown of FICO scores, how they affect your credit report and an exact breakdown of what credit score you need to qualify for a mortgage. To learn more about the application, about the 4 easy steps to getting a mortgage loan. What is a FICO score? Your FICO score is a number that represents your reliability and creditworthiness – how likely you are to pay back your debts if you borrow from a lender. The FICO score is a credit score, the most widely used in fact in the U.S. FICO = Credit Score How is a FICO score generated? Loan officers and real estate financial advisors have access to mortgage underwriting systems. First you will run your credit through 3 credit repositories: Experian, Equifax and Tansunion (you can run these credit reports for free online). If you need to improve your credit score try these 9 simple tips. Here’s how these respositories come up with your FICO score: 35% – Payment History The largest portion of your FICO score is determined from whether or not you have “derogatory information” in your credit history. Bankruptcy, late payments, foreclosures, etc. will lower your FICO score. 30% – Debt Burden This is most commonly known as your debt-to-income ratio. The lender is looking at how much income you bring in and the amount of money you owe on credit accounts currently. There are a lot of other little pieces that play into this part...
