Tag: home buying

4 Easy Ways to Buy Your Orange County Home Fast

Posted on | by Cuselleration

The real estate market has become extra competitive. You can wait for years before a potential buyer comes your way. However, there are some skilled steps you can follow that will hasten the home buying process.

1. Have a team of real estate experts
Having a team of reliable experts who are well aware of the real estate environment you are house hunting should be the first thing to do. Your team should have experience and be very updated with the current real estate trends in the region.

Your team should consist of: a mortgage banker, real estate attorney, and a real estate broker. It will be best if your team had previously worked together on similar projects. The board of the team is you, the others are just your executives.

Your agent should have enough connections that will be useful to your house hunting process. He will be aware of all the properties that will soon be available for sale in the market before the properties are made public. If you build a very good relationship with your agent, he/she will always keep you updated on the best properties in your area of interest.

2. Make sure you have a home loan ready that is pre approved
We all know that buying a home will involve a lot of paperwork with the longest part being the mortgage approval. Some of the legal documents you will need are: 1099s, debt information statements, gift letters, W-2s, and bank statements. To save time and a last minute headache, start gathering all these papers early enough and have them checked and confirmed for pre approval. Make sure your loan officer gives you a pre approval letter way before you begin hunting for a new house. With your pre approval letter, you can show the seller that you are indeed a serious buyer and able to financially afford buying the house.

3. Make high inventory areas your first house hunting zones
Everyone has a wish list when it comes to moving to a new hometown. Some common factors include easy transportation and access to social amenities like shopping centers and move theaters. The other factor to consider is high-inventory regions.

Research shows that homes located in low-inventory areas tend to slow the whole home buying process. Look at the surrounding region in your preferred area that match the same criteria you are looking for. With an area that is less economically prosperous, you will get a stronger offer with a possible discount. Avoid looking at properties that don’t meet your criteria.

4. Sell your current before you purchase a new house
A contingency sale is one of the most common ways of slowing down a possible purchase. Most buyers who are in fast-moving real estate markets aren’t ready to handle any form of contingency sale.

If you want to have a faster successful house hunting process, it’s good to first unload your current home. Make sure the amount of your equity in the bank is ample enough and the closing date of your house is flexible. This means you will have to look for storage facilities where you can store up your stuff for a few weeks or months. Early packing will prove to be very useful at this point.

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

Deed vs. Title in Orange County

Posted on | by Cuselleration

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!

How to Prepare to Buy an Orange County Home in 2018

Posted on | by Cuselleration

The home-buying process is extensive and could be overwhelming. This is especially true for new homeowners who don’t do their homework.

If you are in the market to buy a home next year, now is the time to start preparing. We are here to help!

Getting Pre-Approved

The moment you choose to buy a house, work with a mortgage lender to get pre-approved for a mortgage loan. Knowing how much you qualify for will narrow down your options and direct your research.

But do not overextend yourself. Just because you qualify for a two hundred fifty thousand dollar loan, this does not mean your house should cost two hundred fifty thousand dollars. You need to consider other expenses such as taxes, interest payments and homeowners insurance.

Prioritize Your Top Priorities

After you have an idea of how much you would like to spend, make a decision on the lifestyle that suits you and your family. You should consider factors like proximity to shopping and entertainment, great schools and how much land you would like. Deciding what is most important to you will help further focus your search.

Start Saving Money

Most mortgage lenders require a down payment towards your mortgage loan, which could be up to twenty percent. If you do not have enough money at your disposal, you can save for a bit longer or perhaps borrow against your IRA or retirement account.

Despite how you come up with the initial deposit, make sure you can prove the source of the funds. Lenders will not accept cash payments and if your down payment was a gift from a generous giver, be prepared to bring a gift letter.

Count the Cost

You need to also be prepared for other out-of-pocket expenses during the home buying process. You will need money for things like closing costs and home inspections before your close, appliances, furniture and utilities afterwards. Do your homework to understand how much money you will be paying upfront and save accordingly.

Credit Matters

You need to be extra careful with your credit during this process. Review your credit report and make sure there are no inaccuracies. Don’t open new credit accounts and make major purchases. Several inquiries could negatively impact your credit score. This can impact your loan decision and your interest rate.

Hire a Pro

When it comes to finding your dream house, you shouldn’t have to go at it alone. A qualified real estate agent is familiar with the ever-changing real estate market and can guide you through the process. This includes contract negotiations.

A mortgage lender can help you make a wise choices based your monthly budget and lifestyle needs. They also share tricks and tips with you along the way to save you time and money.

Clean House

When you find the perfect home, you will be moving in a matter of weeks. Take the time early in the process to get rid of items you do not want to bring with you. Starting this early on will make it easier to pack when the time comes.

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