Loan and Finance
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This entry was posted in 1031 Exchange, Buying and Selling Homes, Buying Homes Tips, California Real Estate, Investment Property, Loan and Finance and tagged Buying Tips, California, First Time Buyer, Investment Property, Loan and Finance.
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Woo Hoo! Great News for Home Sales in the upcoming year!
The FHA loan limits will be increasing effective January 1, 2017.
In Riverside county, the 2017 FHA loan limit on a single family home will be $379,500, an increase from $356,500.
In San Diego county, the 2017 FHA loan limit on a single family home will be $612,950, an increase from $580,750.
In Orange county, the 2017 FHA loan limit on a single family home will be $636,150, an increase from $625,500.
Making a Move? We can help! 951-522-0518
Conforming Loan Limits Will Increase in 2017
On November 23, the Federal Housing Finance Agency (FHFA) announced that it would raise the baseline conforming loan limit for 2017. They are also increasing the limits for certain “higher-cost areas” that are above the baseline. This is in response to significant home-price gains that occurred during 2016.
In most counties across the country, the 2017 maximum conforming loan limit for a single-family home will be $424,100. (Riverside County included) That’s an increase of $7,100 from the 2016 baseline limit of $417,000. This is the first time federal housing officials have raised the baseline since 2006.
In higher-cost real estate markets, like Orange County, San Francisco and New York City, the limit for a single-family home loan can be as high as $636,150. San Diego County is increasing to $ 612,950.
Anything above these caps is considered a jumbo mortgage and subject to more scrutiny and higher rates.
What Is a Conforming Loan?
A conforming home loan is one that meets certain guidelines set forth by Freddie Mac and Fannie Mae.
Freddie and Fannie are the two government-sponsored enterprises (GSEs) that purchase mortgages, bundle and securitize them, and then sell them to investors through Wall Street and other channels.
Looking to make a move? Let us help…we are a phone call, text or email a way. Gary and April Greer at 951-522-0518 or firstname.lastname@example.org
Top Reasons to Own a Home-
Buyers all across the nation are making their dreams come true. They’re signing on the dotted line and grabbing hold of the keys to a family home. Despite record low interest rates, many potential buyers are delaying the decision to buy. What’s keeping you on the sidelines?
Let’s take a look at the top reasons to own a home.
Building equity. Writing a check to the landlord is like lining their pockets with your potential equity. It is money you never get back. Owning your home means building equity. Each and every mortgage payment is going towards paying down part of the principal.
Predictability. Gas and grocery prices may rise, but a fixed rate mortgage is as predictable as they come. Your mortgage payment will be X amount for the life of the loan.
Tax Breaks. Did you know that you can deduct the interest you pay each year on your home? You can deduct the cost of your property taxes. Even making energy efficient upgrades can be tax deductible.
Appreciation. Over the years (real estate is a long term investment) your home should gain value. According to the National Association of Realtors (NAR) “The number of U.S. households is expected to rise 15% over the next decade, creating continued high demand for housing.”
Social Benefits. We’ve talked about the financial benefits of owning a home, but did you know that homeowners generally rate themselves as being happier and healthier than their renting counterparts? Part of this is thanks to the stability that homeownership brings. Homeownership can be a great way to secure future financial security and freedom. So, what’s stopping you from getting into the market? There’s never been a better time to buy! exert from realtytimes.com
For tax, investment or ownership advice we suggest you contact an attorney or certified public accountant. All information deemed reliable but not guaranteed.
Feeling inspired? Tired of renting? Want to paint that wall hot pink? Give us a call for a no pressure overview on what it takes to get started down the path to home ownership in the Temecula Valley. We’ve been helping people just like you for 18 years!
Call, Text, or Email April Greer at 951-522-0518 or email@example.com
This entry was posted in Buying and Selling Homes, Buying Homes Tips, Loan and Finance, Uncategorized and tagged Buying Tips, Franchise Tax Board, Internal Revenue Code, Loan and Finance, Riverside County, Temecula Valley.
We often run into people that are “TRYING” to buy a house in our area of California (The Temecula Valley). People who have signed offer after offer to get either no response or multiple counter offers- pushing them out of obtaining the home they want. Eventually these Buyers either start making random offers on houses they don’t even really want- just trying to get one which doesn’t usually solve the problem or they burn out completely on the process. And they go back to renting, discouraged and not building equity in a home of their own.
In super hot real estate seasons this happens. Lots of offers. Lots of chaos. Only the strong and cash rich get the best houses. Insider trading so to speak, etc. There are seasons. ( roughly 2011-2013 in our area ) And you have to know what season you’re in when you go out to purchase a home (or sell one). In some cases only certain areas of the market are being affected by the season. You have to know this too.
But what if the season is neutral? It’s not a buyer or sellers market right now so a reasonable offer and reasonable negotiations should net you the home you want. Mortgage rates are awesome, Sellers have gained equity back. So why isn’t your offer being accepted? Here are some issues to consider:
- OFFER IS TOO LOW TO BE TAKEN SERIOUSLY Unless you have some insider information that the Seller is desperate or they have verbally opened themselves up to a low price…this is dangerous territory. You run the risk of insulting the Seller and now we are on slippery footing. Your Realtor should provide you with recent sales around the home so that you are educated on value. Make reasonable adjustments for upgrades/downgrades and put together a serious offer. If it’s determined that the house is not priced right to begin with- it usually indicate that the Seller isn’t being serious yet either and well, there’s nothing to be done about that yet.
- YOU HAVE MULTIPLE OFFERS OUT Unless you are an investor buying up multiple homes…you shouldn’t have more than one offer out. Every offer you sign is a good faith promise to purchase (if the home passes all your inspections) Why would you be promising to purchase more than one home at a time? If I’m the listing agent and I find out you have offers out on more than one house? You won’t be taken seriously.
- YOU’RE NOT PRE-APPROVED Listen the market is faster and smarter than ever before. You need to be armed with the exact loan dynamics you are planning to purchase this home with. This information needs to be in writing, submitted with your offer and it needs to be verifiable. Your financing needs to be clear in your offer to purchase. If you go house hunting before you have this we run the risk of not being able to obtain the home you want because we can’t prove (yet) that you are capable of the purchase.
- YOUR REALTOR IS NOT A PRO Here are some examples of how your Realtor can cost you the house;
- Poor Communicator- If you have any issues communicating with your agent- this could be an indicator that your agent may have trouble communicating with others, other agents and ultimately-communicating your offer satisfactorily.
- Not Accessible- Is your agent part time? Only available nights and weekends? Doesn’t answer their phone or return their calls quickly? Your agent needs to be 100% accessible during the negotiation stage of your offer.
- Not Experienced- There are exceptions to this- we all had to get through our first sales. But I would argue that most aspects of our business (real estate) cannot be taught. They have to be learned through trial and error. Are we better Realtors after 15+ years in the trenches? Absolutely.
So long story, short- The average days on market in the Temecula Valley have moved into the 30-60 day margin. This clearly indicates that the market has leveled and has become a more neutral ground for Buyers and Sellers to negotiate in. If you’re making offers and they are not getting accepted…take a look at this list. If you determine that a professional, full time real estate team may be the answer…give us a call, text or email at (951) 522-0518 and firstname.lastname@example.org
Connecting Qualified Buyers and Sellers in the Temecula Valley since 1998!
Some helpful financial tips for when preparing to purchase a home and take out a new mortgage:
APPLY FOR NEW CREDIT Changes in credit can cause delays, change the terms of your financing or even prevent closing. If you must open a new account (or borrow against retirement funds) please consult with your loan officer first. Please know you would not be the first person to lose their house by buying a new car while in escrow!
CHANGE JOBS DURING THE PROCESS Probationary periods, career or even status changes (such as from a salaried to a commissioned position, leave of absence or new bonus structure) can be subject to very strict rules. It is not uncommon for the loan company to call your employer very close to your closing date to verify or even re-verify your terms of employment!
MAKE UNDOCUMENTED DEPOSITS Primarily large but sometimes even small deposits must be sourced unless they are identified. Make copies of checks and deposit slips. Keep your deposits separate and small. Avoid depositing cash. The lender will continue to collect current bank statements all the way until closing!
EVER BE AFRAID TO ASK QUESTIONS If you’re uncertain about what you need or what you should do, call your loan officer or real estate professional and seek guidance.
Ready to take the first step and find out what type of loan program might be right for you? Would you like to know what your current buying power is? Not sure if it’s the right time? We are happy to provide you with a list of local, professional and proven loan officers to help fill in the blanks. Just email us a request at email@example.com and we will send it right over.
We’ve been connecting qualified Buyers and Sellers in the Temecula Valley since 1998. This includes, Temecula, Murrieta, Menifee, Sun City, Wildomar, Winchester and Lake Elsinore. We’re just a phone call away. (951) 522-0518 for April or (951) 522-6308 for Gary and we’re here to help!