Tag: sellers

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!