Tag: real estate

What Makes a Property’s Value Rise and Fall in Orange County?

Posted on | by Cuselleration

In today’s Orange County housing market, buyers and sellers alike try to understand the concept of home value appreciation.

The value of your home may appreciate over time, unlike the purchase of a car which depreciates when you drive it off the lot. Appreciation is based on a few factors.

Location is as important as the home

It’s all about the location, location, location! You have heard this before. Where you buy your home may be the most important and controllable factor to appreciation. If value increase is important to you, make sure to give thought to where you buy.

Ask yourself these questions when buying as it relates to location. Is the house close to major highways? Are there good schools nearby? Is the home conveniently located to entertainment and shopping? Does it have a nice view?

Investing in a desirable location may contribute to equity in your home down the line and can mean more money in your pocket if you decide to sell.

Acres and land accumulate

Another factor to consider is how much you buy. We are talking land, not the physical structure of your house. Think about supply and demand. Land is a precious commodity in Orange County and we are not getting any more of it. As the Earth’s population increases, so does the need for land.

If your budget does not allow for both a big, gorgeous home with a considerable piece of land, you might wish to consider opting for a more conservative home and keep the land.

The benefit of upkeep

Take care of your house. While it may not be as huge a factor as the location and land itself, having a well-maintained house with attractive details and modern amenities might increase the equity of your home. It will also help it sell faster when you are ready. Separate your home from the rest with our home selling tips here!

The external effects

It’s smart to give thought to how your home will appreciate. The reality is that appreciation rates vary based on factors beyond the control of the homebuyer.

The local, national and global economy affects the real estate market. This affects what your home is worth at any given time. To put it simply, the more people could afford to buy homes, the greater the demand becomes for homes. This makes home values rise.

Move fast! Timing is everything

If you are shopping for a house right now, you know that it is a seller’s market. In some locations in Orange County, a house could be under contract within days or hours. This trend has had a positive impact on home values across the nation.

In May of this year, Zillow has reported a national home value index of $199,200. This is an increase of .5% from April this year and 7.4% from last year. To put it simply, sellers have a great chance of getting the most bang for their real estate buck in the current market.

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!

7 Mortgage Facts You Should Know

Posted on | by Cuselleration

The seven mortgage facts below will give you an advantage when shopping for a home or refinancing an existing loan.

1. Mortgage rates are always changing

Similar to the stock market, mortgage rates are changing throughout the day. Mortgage rates you see today might not be available tomorrow. If you are in need of a mortgage loan, make sure to check the current rates being offered by lenders. If you have already done your research and have found your dream house, you should consider locking in your rate as soon as possible.

2. Different mortgage lenders charge different fees

Don’t expect all lenders to charge the same fees for a mortgage loan. Each lender structures their fees differently. The next time you apply for a mortgage loan pay close attention to the rates, closing costs and points being charged.

3. Lenders could sell your loan to another bank

Most home buyers have experience getting a mortgage loan with a certain lender only to find out that the loan has been sold to another bank. This happens because lenders need to free up their liabilities in order to make room to give out more loans. However, it doesn’t affect your mortgage whatsoever and it’s important to pay close attention to your mortgage statement and any correspondence you receive in the mail to make sure you don’t make payments to the wrong bank.

4. Your middle credit score

When you’re applying for a mortgage loan, the lender will pull your credit scores from Transunion, Experian and Equifax to assist them in determining your credit. Your middle score of the three is what lenders will use to qualify for a loan. But the underwriter will review all three scores as part of the loan underwriting process. If you pull your own credit score through an online website, the credit scores displayed to you might be different than what lenders use because they use different credit reporting systems.

5. It’s possible to have a low down payment for a mortgage

You don’t necessarily have to come up with a 20% down payment to get a mortgage loan. You can get an FHA mortgage loan with a 3.5% down payment. The VA and USDA loans require no money down. VA loans are used for military veterans and their families. USDA loan are usually used for farming or rural properties.

You should take note that many lenders will require some type of mortgage insurance for loans that have less than a 20% down payment on a purchase loan or less than 20% equity available on a refinance.

6. You could refinance your home loan anytime

You’re allowed to refinance your mortgage at anytime, but this doesn’t necessarily mean you should. Think about why you would like to refinance. Is it because you want to lower your monthly payments, to take cash out from your equity, or to change the type of loan you are in? Make sure your reason makes financial sense.

7. You could get a mortgage loan after a foreclosure

Most homeowners have experienced a foreclosure after the recent mortgage crisis. There’s good news for these borrowers because they could obtain a mortgage loan after foreclosure. But there are waiting periods involved. For instance, to apply for an FHA loan you need to wait three years after foreclosure to apply. If you would like to get a conventional loan, you will need to wait seven years from foreclosure. For those who would like a VA loan, the waiting period is two years.
Do you have a mortgage question? Click here to contact our partners at the Ryan Grant Team today! And if you’re ready to start searching homes let us know!

Benefits of a Veteran Home Loan

Posted on | by Cuselleration

VA home loans are one of the most powerful loan options on the market for veterans and active military. It’s becoming difficult for many military borrowers to build the credit and assets necessary to move forward with conventional home financing.

 

The advantages of the VA loan program over other loan types are a big reason why VA loan volume has continually increased over the last five years.

VA financing comes with significant financial benefits for those who have served our country. The requirements to secure them are often looser than what would be needed for a conventional or even FHA loan.

For a lot of active military and veterans, the VA home loan program is their only real path to homeownership. The increasing popularity has stemmed from the main advantages of VA loans. Let’s take a deeper look at the great benefits of VA mortgages:

No Down Payment

The VA loan program offers service members and veterans incredible benefits, from zero dollars down to no PMI and more.

Qualified veterans can get a VA loan without making any down payment. Compared to FHA and conventional loans, this gets converted into significant monthly savings.

The minimum down payment amount on an FHA loan is three and a half percent. In conventional financing, it’s oftentimes five percent. On a quarter million dollar mortgage, a military borrower would need to come up with eighty-seven hundred dollars in cash for an FHA loan and twelve thousand five hundred dollars for the conventional loan. These are significant and insurmountable sums for the average military borrower. The average VA borrower has just under nine thousand dollars in total assets.

The great benefit of being able to buy a home with a zero dollar down payment helps veterans and active military members get a slice of the “American dream” without having to spend years scraping and saving for a sizable down payment. This means those who serve our country can get into homes in the present, not in the future years down the road.

No Mortgage Insurance

Unlike FHA and conventional loans, a VA loan does not require monthly mortgage insurance. FHA loans come with both annual and upfront mortgage insurance charges. On a quarter million dollar mortgage, the FHA annual mortgage insurance can add about one hundred seventy dollars per month to your monthly mortgage payment.

According to VA estimates, veterans who secured a VA loan last year will save more than forty billion dollars in private mortgage insurance costs over the life of their loans.

Conventional borrowers who cannot put down twenty percent usually have to pay for private mortgage insurance.

This is an additional monthly fee that is tacked on to your monthly mortgage payment until you build twenty percent equity. The cost would vary by the loan amount, but it is not uncommon to pay more than one hundred dollars per month for PMI.

Competitive Interest Rates

Since the VA guarantees a portion for every VA loan, financial institutions could offer lower interest rates to VA borrowers that are typically one half to one percent lower than conventional interest rates. Rates are based on the inherit risk considered by the lender to finance the loan. The VA’s guarantee brings lenders a sense of security that allows them to charge competitively lower rates.

On a thirty-year quarter million dollar loan, the difference between paying a four percent and four and a half percent rate can mean approximately forty thousand dollars in savings over the life of the loan.

Closing Cost Limits

Closing costs and fees are included in all mortgages. But the VA actually limits how much veterans could be charged when it comes to these expenses. Some fees and costs need to be covered by other parties involved in the transaction. These safeguards assist in making homeownership affordable for homebuyers that are qualified.

Do you have a question on a VA loan for a home in Rancho Santa Margarita, Coto De Caza and other Orange County surrounding cities? We recommend you talk to the Ryan Grant Team, OC’s top mortgage lender!

Mortgage Do’s and Don’ts

Posted on | by Cuselleration

If you are looking forward to venturing into mortgage investments in Orange County, it is important for you to have a clear understanding about what you should do and should not do. This will assist you in avoiding frustration when you are dealing with your investments.

First time home buyers should learn more about the loan process to be adequately prepared for buying their first home.

Here is a list of DO’s and DON’Ts to keep in mind when you are dealing with mortgage investments in OC.

DO

Take a look at your credit report
Initially, you should take a look at your credit report. If you have a high credit score, you have the opportunity to go for a better mortgage. If you can pay it in a timely manner, you will be able to improve your credit score in the future as well. If you want to get a better understanding of your credit score, you should take a look at your FICO score. It is offered to you for free by financial institutions at the end of the month. You are also provided with the ability to purchase FICO from one of the reputed credit rating agencies. If your credit score is not good, you don’t need to worry because there are effective tips that you can follow to improve it within a short period of time. It includes paying your bills and debt on time and reducing the number of debt you owe. Click here to get your free credit report.

Reduce the debt to income ratio
Your debt to income ratio tells how you are capable of managing your monthly payments. As a result, the mortgage lenders take a look at it before lending the requested amount. To create a positive impression on an Orange County mortgage lender, you will have to reduce the debt to income ratio. It would be better if you can reduce the ratio down to 36%. If you have a stronger ratio, you will be provided with the opportunity to go for a better mortgage rate. Increasing your monthly gross income and reducing your monthly recurring debt can be considered as two of the best options available.

DON’T

Spend too much on your mortgage
After you obtain the mortgage, you shouldn’t spend most of your money on it. If you do, you will end up with financial difficulties in the long run. Based on your income, most companies push you to take the largest loan you are approved for,  which is why you want to find the right mortgage provider. Ryan Grant is a great Orange County mortgage company who provides a more educated loan process and look at all your finances to help you determine the best mortgage for your overall financial situation. This doesn’t mean you need to go ahead and obtain that maximum recommended amount. If you do, you will have to spend most of your monthly income on the mortgage payment. As a result, you will have to compromise on many other things in your life. Just take a look at how many years are left for you to pay the mortgage installments. You will realize how much frustration you will have to go through and the sacrifices you will have to make when you have pay too much on your mortgage.

Expect refinancing to reduce the interest rate
There is a possibility for you to save money. You just have to focus on shortening the term of your loan. In other words, you will be able to save money if you go for a 10 year fixed rate by giving up your 20 year mortgage.

On the other hand, cash out financing can also assist you with some major savings. With this approach, it would be possible for you to let your home equity settle down the other debts. This way, your monthly installment would increase because you shorten the duration of the mortgage. Also, you would be able to reduce the rate of interest, which can help you save money in the long run.

All in all, we conclude that the mortgage rates are always changing. If you’re interested in learning more contact Orange County’s top lender, Ryan Grant.

Ryan Grant’s team of mortgage experts focus on giving their clients a more educated, more motivated and more confident home buying experience so we trust you will be in good hands!

We take great pride in ensuring all clients have a phenomenal experience buying a home. Visit us at cotoconnection.com and a member of our team will contact you shortly. We look forward to speaking with you soon!