Category: Tips on Buying a Home

March Mortgage Tips

Posted on | by Cuselleration

In the market today, both new and old homeowners face many challenges.

Home buyers need to overcome a low housing inventory. This causes more competition against other home buyers and higher prices for the homes that are for sale.

However, since January of this year, there has been a steady increase in mortgage rates. They may increase with more months to come. There are also chances that the poisoning of the Federal Reserve will lead to it raising its benchmark fund rates to come March, and this will affect the rising of the mortgage rates as well.

But this should not scare you in case you are looking forward to getting a new home because, in this guide, we have your back. We will discuss some of the best tips that can benefit you in navigating the complexities of real estate and the housing market and even find your way to winning your way to the top of this competition.

The National Association of Home Builders’ assistant vice president in the forecasting and analysis field, Michael Neal, said that in the current housing and mortgage industry, it would require a lot of patience for a homebuyer to get a good month. It even takes one, several months or over three, to find a good home with a good deal.

The scarcity of houses and homes that are below $200,000 on the market today makes Neal’s saying true because an entry-level homebuyer will experience a lot of straining in regards to such deals.

Neal has also explained why homebuyers today should tie their shoelaces and be ready to lose a few bids that they put in this mortgage industry journey. Finding a home at the market entry level is already tiresome and challenging for anyone. There has been a continuous decline in home sales and thus puts any new-entry level buyer in a position of looking for a backup plan that he or she will land on, in case of failure of the original plan.

Locking in your mortgage rates is the best way to deal with lack of supply and rising rates. A borrower who is prequalified for a loan and secures the rate has the allowance of locking in today’s current rate. The duration can be up to 120 days for some of the closed rates.

This is of great benefit to people that are looking forward to a multiple offers submission and are avoiding to encounter a hike in mortgage rates while they are in the process. Make sure that before you lock a rate, you are aware of the approximated fee. You will be lucky to have it secured with no charge depending on the length of the lock and the lender.

It is essential to work hand in hand with a real estate agent that fully understands the local market you are interested in. Not all markets have the same requirements. It is vital to have one that will be of aid to you in navigating a specific area or location.

Are you in the market to purchase a home in Rancho Santa Margarita, Coto de Caza, or Mission Viejo? Click here to talk to the Ryan Grant Team today!

How Much Does It Cost to Move?

Posted on | by Cuselleration

Not too long ago, millions were spent by different families in buying and wrapping many gifts, queuing on department stores and shopping for online clothes, toys or just anything that they wished to gift themselves or their beloved ones during the holiday season. However, some families were held up wrapping boxes full of utensils, electronic devices and clothes as they waited on real estate agents to close their deals and shopped online for new school for their children.

Coming this far has undoubtedly entailed a lot of effort and commitment. After celebrating, the question that should ring in your mind is if you are ready for a mortgage application. There are several mortgage industries out here with good deals, but you should choose the one that is best for you.

Another phase that is not as easy as it looks is the moving part. This is when you transfer your items from the previous home to your new home. This practice is costly and requires a lot of arrangement. Is there anything that you can do to prevent the worrying about the moving cost and instead have more time spent in enjoying the new home with your loved ones?

There are three essential factors that determine whether a person is ready to move at the moment or wait a little bit before moving.

Do you think you need professional movers? Packing your content and even moving by yourself is cost-effective. However, in the cases of owning large, priceless, bulky items that need to be relocated, it is best for you to have professional movers instead of your neighbors and friends. The mover’s truck not parking near the location of your home can cost you additional charges. The same applies to the presence of narrow roads or weak bridges. Hauling your home items through the window and having them hoisted down by the movers will also have you spend more money to pay the movers. Other instances where you might pay more is when the movers use elevators to move the items.

There are certain items that you wish to keep for a long time, especially things that cost a fortune. There are crucial factors that you need to consider during the relocation time. This will require a lot more than expected.

Moving companies charge more for their services during peak summer months. Timing your move around September through May will help you save more money. Not moving on holidays and weekends can also save you from spending extra money to move. Moving on a Tuesday or any business day of the week is better.

Are you in the market to purchase a home in Rancho Santa Margarita, Coto de Caza, or Mission Viejo? Click here to talk to the Ryan Grant Team today!

2018 Housing and Mortgage Trends

Posted on | by Cuselleration

2018 so far has been a good year as far as housing and mortgages are concerned. Experts in this field have been very creative, and there are a lot of trends in housing and mortgage that we should expect. This guide simplifies some of the most expected patterns.

Decelerating of home prices

Are you smiling already? If you are a first time home buyer, this could be the best news for you this year. It is expected that there will be a cooldown of home prices that appreciated last year. The average forecast of eight housing and mortgage industries and lender groups is an increase of 4.1% in the existing house prices throughout the nation, as compared to 2016 where it was 6.5% and almost 6% increase in 2017.

Acceleration of single-family homes

As compared to the previous years, 2016 and 2017, from the view of the economists, real estate professionals and housing and mortgage experts, it is expected to have a rise in the construction of single-family houses because of building permit and applications. An average approximation of single-family housing will rise to 8% this year. This is a rough estimate of 912,500 brand new houses.

Increase of homes to be sold

Late last year, it was a struggle for homebuyers to find houses and condos for sale. The reason for the shortage is often acute for the types of houses bought by first time home buyers. 2018 will come with hope. Most mortgage and housing industries have a prediction that the pinch from housing supply will ease in the last months of the year. There is a possibility of having a massive growth in inventory later this year.

Rise in home sales

The market is expected this year to modestly rise in re-selling existing homes. The median approximation rise of reselling existing homes is 3%. This is almost 5.6 million homes. New home sales are also expected to be on the rise to an average of 7%. This is mainly about 700,000 new single-family houses.

Rise in mortgage rates

In 2018, mortgage rates are expected to head up. Last year in November, the fixed-rate mortgage average of the 30-year was 4.07%. This shows that the interest rates are not easily predicted. The beginning of 2017 had a lot of people expecting a steady rise in the mortgage rates throughout the whole year. They only did for several weeks. The average rate of the 30-year rose in March of the year at 4.5% and then later declined slightly to below 4% during the summer, and finally, there was an increase in the fall.

Continuation of security headaches

There is a high chance that in 2018, there will be a continuation of theft instances and cases, where down payments from home buyers, especially new home buyers, is stolen by a compilation of email hacking to wire fraud. Most lenders, title companies, and escrow companies are aware of the dangers of cyber theft and do everything they can to secure these payments.

Are you in the market to purchase a home in Rancho Santa Margarita, Coto de Caza, or Mission Viejo? Click here to talk to the Ryan Grant Team today!

Debt-Proof Your Credit Cards with These Tips

Posted on | by Cuselleration

The thought of credit cards oftentimes makes people get nervous. Getting credit card rewards or the sign-up offers and bonuses can be enticing. The worrying part is getting entangled in debt accumulations and the interests that come with the debt.

How about the thought of a solid debt-proofing strategy? If you wish to get credit beyond what you can comfortably afford, then this is what you need. To prepare to debt-proofing your credit, there are three necessary steps you should follow to protect yourself from having your credit card debt and sending the debtor’s interest spiraling. Read these steps below.

1. Starting an emergency/precautionary fund

You can face unexpected situations, either twists or turns. Examples include having medical debt, your car being repaired, losing your job or just any other emergency that begs you to get a loan. It is recommended to create an emergency fund to tap into rather than having to rely on the high-interest credit cards to make up for the expenses that are unexpected.

Most people are shaken and discouraged by the guidelines that require one to have at least three-six months of living expenses. From the Consumer Financial Protection Bureau, even a little starter saving fund can be of benefit to you. For instance, having a saving fund of $450 is quite enough for coverage of common and fundamental emergencies like medical expenses or motor vehicle repair costs.

Emergency funds are always an ongoing gift, stress relieving and reassuring way because it gives you a feeling of not being dependent on somebody for the emergency bill payments. You should consider keeping your funds in a savings account, which will not require to pay monthly account maintenance fees.

2. Maintaining good credit to qualify for low-interest loans

It is rare to find all the expenses being covered by an emergency or precautionary fund. You should always have an option B just in case the first one does not go as expected. The plan B could involve you applying and use the 0% introductory credit card (APR). These cards can help you save some money on the interest charged for a reasonable duration of time. It will require you to have an excellent credit score that is 690 or even higher for you to qualify. Maintaining good credit will entail you being punctual and determined in making all the debt payment on time and only use up to 30% of their credit limits.

Having good credit gives a person a variety of options apart from having the time for a credit card application and waiting upon its arrival when you have an urgency to take care of.

3. When you notice your debt is growing, you need to act fast

It is wise for you to take action as soon as you come to know that the credit card interest is getting started in piling up. The quick steps that you can consider include cutting off extra expenses, having side jobs and getting another credit card (specifically the balance transfer card).
Are you in the market to purchase a home in Rancho Santa Margarita, Coto de Caza, or Mission Viejo? Click here to talk to the Ryan Grant Team today!

When is the Best Time to Buy a Home?

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We all know that the best time to buy or sell their house would be spring. However, this is not necessarily true, it’s just that spring is real estate’s busiest time of the year. Real estate experts and home building technicians note that the emphasis on spring as the best buying season has its good reasons, nevertheless, there are some common enduring misconceptions that have been made about the real estate market.

Many buyers and sellers in real estate should then rethink about the seasons, and consider looking at the best season that will suit their house and area of location. Even though fall and winter are known to offer less inventory, most people who buy homes during this time are serious buyers (buying a house with a purpose). They have a very good reason to relocate. Unlike the spring buyers who might come in large numbers to check out your house, a larger percentage will just be looking. It’s better to deal with two serious buyers in winter who will come with their agents and close a deal within a few days, than to deal with more than 30 looking buyers with a very low chance of actually buying the house. Also, the other hidden advantage with winter is that the low inventory increases the amount of time spent shopping. Buying or selling a house in the spring can be challenging because the real estate spring season sometimes may not coincide with what the calendar is saying.

In the real estate market, January marks the beginning of spring. At this time, everyone seems to have a handful of activities to deal with after the holidays come to an end. The season ends around mid-May. At this time, many people tend to list and sell their homes and this trend continues throughout summer. As you move closer to the end of summer, the listings will begin to tail off. September will be a low month because the graph continues dropping for the subsequent months until you have the lowest listings in December. This doesn’t mean that in December, real estate will experience zero activities, it’s just that the inventory will be low.

Most buyers and sellers in the real estate market should not depend on your agent’s enthusiasm when experienced with a scenario of low inventory and high competition for the buyers. This will turn into a bidding war and only the smartest agent will win.

Having a moving timetable is very helpful. Obtain your own personal real estate schedule that dictates when you prefer to move in or out of the house. Start working backwards using the timetable. Calculate the average time needed from the contract negotiation to the closing a deal, depending on the region (most agents suggest the time span to be around 4 weeks). But to be on the safe side, it can take up to three months.

Look at what builders are offering you with regards to building a new home from scratch. This is very crucial for buyers who would like to move to a newly built house. The one-month time frame might be possible for a buyer who wants to purchase a spec home (quick move-in), a new house that is partially or fully built by the house builder. A longer period of time will be required for home buyers who are designing and constructing a new home from scratch and a have large volume builder. The bigger contractors offer more efficiency and shorter building time, unlike the custom/small builders who take a few more months. The custom house building process can even take many months as both the constructor and buyer look for the best model/design.

Are you in the market to purchase a home in Rancho Santa Margarita, Coto de Caza, or Mission Viejo? Click here to talk to the Ryan Grant Team today!

How to Negotiate the Best Price For Your New Orange County Home

Posted on | by Cuselleration

So here’s a question: when you want to buy something, do you:
Settle for the price with no questions asked?
Cave in when you ask for a deal and it is rejected?
Stubbornly hold on to every last cent so you can say you won?

If you see yourself in one of these categories, you might want to read some tips on how to negotiate a deal in the hot SoCal real estate market. Right now it is definitely a seller’s market, but you don’t have to be taken to the cleaners. You have to work smart, knowing when to start negotiating, and more importantly, when to stop.

Right now there is a shortage of inventory in the Orange County area, so that means you need to get your financial house in order, and know what you can and want to pay for a property in order to move quickly on it. For example, a home in Orange County that is under, say $750K may be off the market within a day or two.

So do you need a real estate agent? Think about this. Your home will likely be the most expensive purchase you will ever make. You only make that decision a few times in your life. Why would you think you should do it alone, rather than get the advice of a professional who works with buyers and sellers every day? At The Kovacs Connection, we have a team of experienced agents with an in-depth knowledge of the market, and we have negotiated many, many deals, and know what it takes to get you from “I want it!” to “Sold!”

Some home buying tips to consider with your agent:
Do the Math
Figure out how much house you can afford. That means getting your mortgage value pre-approved. A pre-approved buyer is a lot more attractive to a seller because they realize there should be no glitches once both sides agree to a price.
Don’t Be a Donkey
You know who you are…people who will get hung up on a few thousand dollars. Interest rates are low, so a $5000 difference in price over the life of a mortgage can be peanuts when you and your agent pull out the calculator. If you won’t budge, you can lose the house in this market. If your Significant Other has his/her heart set on the house….hmm…might want to be a bit more flexible with your offer.
Be Realistic
You need to put in an offer based on the value of the home. This is where an experienced real estate team is invaluable to you. They know the area, and the comparables, and what prices like-sized homes in that neighborhood are bringing. Say you see a home in a neighborhood you really like, and your realtor tells you it is below market value. Chances are high that the price won’t be going down.
Quick on the Draw
In a seller’s market, a low-ball offer can be rejected quickly. If you fall in love with a property, then give the seller a good, respectable offer. A good offer from a pre-qualified buyer can go a long way with a seller to give you the nod.

Ask Some Questions
Why is the seller moving? Maybe the seller has relocated with a new job out of state and wants to sell quickly at a decent price. Maybe the seller is going through a divorce and wants a quick sell to get legal matters tied up. Is the property in foreclosure? How long has it been on the market? Or maybe the seller doesn’t have another residence lined up, and is waiting for the right price for the property. Having this information from your realtor can assist you in tailoring your offer.
Let It Go, Let It Go
Nothing is perfect. You won’t find the perfect house in the perfect neighborhood at the perfect price at the perfect time. The wisdom is in knowing where you need to compromise. Is the house in a neighborhood you love, but is outdated? Ok, some sweat equity can fix outdated countertops, appliances and carpeting.
Bottom Line
This will likely be the most important purchase of your life, so join with the professionals at The Kovacs Connection to get the house of your dreams at the best price!

APR vs. Interest Rate

Posted on | by Cuselleration

When applying for a mortgage, most people have heard two terminologies being used. Annual percentage rate (APR) is the total sum of loan you will be paying when you finally finish paying the mortgage. It is relatively different from the interest rate. The Interest rate (IR) is the daily cost you will be paying based on the existing balance on your mortgagee. For first time buyers, the terms will be new, and it’s good to understand the terms.

Mortgage interest rate?

This is the daily expense you will be incurring based on your loan and is usually expressed in a percentage rate. It’s calculated per day/per diem figure. Each month you are supposed to pay back a fraction of the amount you had borrowed together with the monthly accrued interest. The amortization formula will be used by your lender to come up with a payment schedule, which will show your mortgage interest on the loan and the principal.

The determinants of mortgage interest rate

The mortgage interest rates tend to fluctuate just like all the other financial variables. The mortgage interest rates can change daily depending on the trends and changes affecting the housing market.

Below are vital factors that affect the mortgage interest rates:

Borrower’s credit score

Lenders will use your credit score to determine your reliability when it comes to making timely payment of the loan. The credit score is just an official summary of your credit transactions. Customers who have higher credit scores get lower interest rates on their mortgage loans.

The principal amount and the down payment

Having a substantial down payment for your home will make lenders want give you a better interest rate since they assume that less risk is involved. A low down payment will require you to get a private mortgage insurance coverage. Also, when it comes to the loan type or prevailing circumstance, the closing costs and the mortgage insurance can be added to your mortgage loan.

Your home location

The location of the home will determine the interest rates, prime areas tend to have different standards compared regions that are not favored in the real estate industry. The location of your home can lower or raise the interest rates of your home.

What is a Mortgage APR?

APR involves a comprehensive measure of the expenses you will incur when borrowing money and is typically expressed in a percentage just like the interest rates. It will determine the total amount of money you will pay the lender annually for the entire time the loan is still active.

What determines my Mortgage APR?

The APR includes the mortgage interest rates, original mortgage fees, discounts points and additional expenses that are associated with getting the loan. A higher APR means higher monthly payments over the loan term.

Points To Note

When lenders market APRs, most of them provide rates the “ideal” market conditions like excellent credit scores by borrowers, spotless documentation, etc. Therefore depending on a borrower’s circumstances, the APR will be adjusted accordingly. The rates will go higher.

Are you in the market to purchase a home in Rancho Santa Margarita, Coto de Caza, or Mission Viejo? Click here to talk to the Ryan Grant Team today!

Top Performing Schools in Mission Viejo

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Location, location, location. We typically think of that in terms of where to place a business for maximum visibility and exposure to traffic. But it also means that buying a home in the right location can give your children a wonderful public education. There are 78 schools located in the Mission Viejo area, and they enjoy high educational rankings in the state of California. At the Kovacs Connection, we know as potential homeowners, you are interested in how the schools rank, so we thought we’d give you the latest stats for schools in Mission Viejo.

Here is the list of the Great Schools Rankings for individual schools in Mission Viejo.

Good schools start with great teachers, and teachers want to work here. For example, in just 3 days, the Capistrano Unified School District had 278 applicants for teaching positions. Below are a few comments from parents from an elementary school, an intermediate school, and high school. These are representative of all the schools in the Mission Viejo area, but will give you an idea of the quality of instruction and the parents’ feelings about their child’s education here.

Parents’ Reviews for De Portola Elementary School

“We’ve been through three excellent principals during our time with De Portola. Each principal brought a unique perspective and personality to the school, and I feel that my students have thrived with each change. Have there been bumps in the road, yes – but when we personally encountered one, the principal at the time took his time to work with us to find solutions and made sure that we were all a team working for the best solution for our student. We couldn’t have asked for a better response.”

“My daughter transferred to this school in the beginning of 3rd grade, too late to be tested for GATE for that year. She thrived in GATE during her 4th grade year earning top honors throughout the year. Transferring from Anneliese Academy, a small private school, to de Portola was the best decision we’ve made for her education and sociological development. I’m proud to have my daughter at de Portola and I’m grateful for the opportunities she’s been given.”

“De Portola fosters both strong academics and a great community environment for the students. There is great parent involvement to pull off a number of fun events throughout the year…”

Parents’ Reviews for La Paz Intermediate School

“It has been amazing! I was really concerned with my son going to middle school but this has been so organized that my son has done very well there, and he has made good friends.”

“My 8th grader has really soared at this school. He went from average grades to all A’s and a few B’s. It is obvious how much the teachers enjoy teaching by their enthusiasm and my own student’s development. The parent involvement is pretty great. Those parents who are involved put in 100% and put together: International Day, 7th grade Renaissance Fair, Zombie Fundraiser, etc.”

Parents’ Reviews for Capistrano Valley High School

“I love this school! My boys have had a great High School experience and I couldn’t be happier. The staff is always very helpful, our principal has an open door policy and genuinely cares for our students, and we have had great experiences with the teachers that my boys have had.”

“CVHS is really an amazing school that is a source of pride here in Mission Viejo. The biggest gem is the guidance department. My son’s academic advisor did everything should could to take care of my son and he will be attending UC Berkeley next year after a great educational experience in the AP Program at this school.”

“I am a parent of a Freshman at Capo and am thrilled my daughter is attending this school! The academics are challenging, the teachers are motivated to teach, and the Principal takes an active interest in the students. I’ve also received wonderful support form the Guidance department.”

We know that if you have children, or are planning to start a family, that the school district is a huge determination in where you buy. Our Kovacs Connection Team are experts in knowing the best schools in Mission Viejo and can pinpoint you in the right direction, so call us today!

Tap the Equity in Your Home with These 5 Reverse Mortgage Tips

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If you’re in your sixties and own your home, chances are you have heard about reverse mortgages. Reverse mortgages allow you to tap the equity in your property. But they have risks and could be costly. Here are five tips you should consider:

1. Weighing your options

Whether you need money to pay bills or could use some extra cash, a reverse mortgage should be your last resort. Other options include selling your home and downsizing or renting. You can also take out a home equity loan or line of credit. If credit cards are the issue, you can consider consolidating that debt. If paying real estate taxes or house maintenance costs are the problem, look into local government assistance programs that could help. You have a lot of options. So ask your state agency on aging about lower-cost, less risky ways to fulfill your needs.

2. Understanding the costs, fees and risks

Even though you will not be making any interest payments as long as you live in your home, your interest rate matters. If you choose to move, you will have to pay back the reverse mortgage plus compounded interest. The same thing is true if you have to leave your home for more than twelve months. You should ask about all costs and fees which includes any prepayment penalties.

3. Recognizing the full impact of your decision

The income or lump sum you receive can affect your eligibility or your spouse’s eligibility for a variety of state and federal benefits. This includes Medicaid. It may not have the same home-equity protection that would otherwise apply if you have a health emergency and need to enter a nursing home that you can only pay for by liquidating assets.

4. Getting independent advice

Reverse mortgages are known to be complicated transactions. The federal government requires borrowers to meet with HUD-approved counselors prior to getting a federally guaranteed loan. You will need to confirm that any counselor recommended by your lender is truly independent. You could do this by asking whether he or she receives any funding from the lender or the mortgage industry.

While many loans are federally guaranteed, most lenders offer proprietary loans that are not. Even if you are applying for a proprietary loan, it is a good idea to get advice from a trusted financial adviser who has no interest in either the reverse mortgage or any investment you plan to make with the proceeds. Prior to agreeing to a reverse mortgage, you should consult with legal and tax professionals who know the consequences of reverse mortgages for residents of your state and who are not connected in any other way to the transaction or the lender.

5. Being skeptical of reverse mortgages

Be very skeptical if someone urges you to get a reverse mortgage to make an investment or buy an insurance product or a security. You should particularly do this if they are promising high returns. They are encouraging you to speculate with your home equity. You might need for more critical purposes down the road. If you cannot afford to get a low return or the loss of your home, you should not be investing with your home equity funds.

Are you in the market to purchase a home in Rancho Santa Margarita, Coto de Caza, or Mission Viejo? Click here to talk to the Ryan Grant Team today!

Deed vs. Title in Orange County

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When a couple purchases a house, whose name gets written on the title and whose name goes on the mortgage deed? For most homebuyers, the simple answer will be that both names go on both documents. But there are always exceptions with good reason. Here are a few things to know about this complex topic before you buy a home.

What’s the Difference Between Title and Mortgage

It is worth clarifying for the uninitiated that a property title and mortgage deed are not the same thing. The term “title” particularly refers to the rights of ownership. A title grants an individual or individuals exclusive possession, use and transfer of ownership rights for a given real estate property. A mortgage, called a “deed of trust” in some states, pledges real property to secure the loan.

Just over half of home buyers will use a home loan to purchase their home. This means that they will have both a title and a mortgage. For these people, a decision will need to be made about whose name gets written on the title and the mortgage. Since both documents are not the same, this answer for each could vary.

Leaving Your Spouse Off the Mortgage

There may be a good reason to apply for a mortgage under only one name for some couples. Mortgage lenders usually apply a minimum FICO rule. This is when the credit score used to judge the mortgage application is the middle-lower score of the two applicants. If one person has bad credit, it could affect the interest rate they qualify for and lead to higher costs.

A short or unusual work history is a common reason some couples go with a joint mortgage application. Most lenders have “2/2/2” documentation requirements. This is two years of tax returns, two years of W2 income statements and two months of bank statements.

Saving Money by Applying for a Loan By Yourself

The Washington Post recently reported on a twelve-year study by the Federal Reserve that found many couples were leaving money on the table by applying jointly when one spouse could have qualified for the mortgage alone, and the results were striking.

Out of more than six hundred thousand conventional loans issued between 2003 and 2015, ten percent could have qualified for a lower interest rate by having the better-qualified buyer apply alone.Nearly ten percent of prime borrowers who applied for their loans jointly could have lowered their mortgage interest rate at least one-eighth of one percentage point if the mortgage was applied for by the applicant with a higher credit score and an income high enough to qualify for the mortgage loan. Federal economists revealed that a further twenty-five percent of borrowers could have significantly reduced the cost of their home loan by having the more qualified borrower apply singly.

How Both Names Could Be on the Title and Not the Mortgage

The same Washington Post article noted that many couples applying for a home loan have strong feelings about applying jointly for their mortgage loan. While the couple is purchasing the house together, there is a feeling of joint ownership that is important to them, even though both individuals could be on the legal title to the house without both being on the mortgage. This arrangement is also available to both married and unmarried couples.

But how can this be? A mortgage deed involves an agreement to pay back the loan amount borrowed to buy the home. But the title is a separate matter of ownership entirely.

Issues Raised by Deed and Title Assignment

Divorce is a common issue for houses with a joint mortgage or title. If a house is paid for, lawyers will usually look for a way to divide up the assets. This oftentimes gets accomplished through a quitclaim deed, where one party gives their ownership rights over to the former spouse. If there is a mortgage loan on the home, lawyers then look at ways to divide liabilities. The party who remains in the house will often refinance the loan individually before the other party cedes ownership through a quitclaim.

Another common question is what happens to a title and mortgage loan when one spouse dies. As with most matters in real estate, it oftentimes depends on the location. The laws governing property transfer upon death and inheritance are largely chosen at the state level and not all states agree on the best way to go about it.

Are you in the market to purchase a home in Rancho Santa Margarita, Coto de Caza, or Mission Viejo? Click here to talk to the Ryan Grant Team today!