Buying a Home Archives - San Diego Real Estate

Kids' Opinions Matter When Buying a Home in San Diego

Recently, Harris Poll conducted a survey that was released by SunTrust Mortgage. It stated that the kids’ opinions under the age of 18 played a large roll in their home buying decision.

When looked at in detail, the results showed that 74% of homeowners, parents ages 18-36 said that when buying a home, their kids’ opinions paid a very large role in choosing which house they bought. Eighty-three percent of renters said their children’s input would be taken strongly into consideration when buying a home in the future.

Here are some of the most important features that matter to a kid when parents are buying a home

Kids most important-desirable part of any new home is that they will have their own bedrooms. A large backyard came in right behind. This is so true when selling homes in North Park, South Park, and other San Diego Metro neighborhoods as well. We are able to witness it first hand when we do our open houses on the weekends. Kids are very vocal when they like the house. When they don’t, they also are vocal and want to be heard.

The train of thought behind the survey was explained by Todd Chamberlain, Head of Mortgage Banking at SunTrust.

“As a parent of two kids, I know from experience that including children in the home buying process is not only fun for the whole family, but also educational for our homebuyers of tomorrow.”

Conclusion:

If you have a home that you are thinking of selling, do remember to emphasize the kid-friendly features that come with your house that kids will love. After all, they will have a huge impact on whether their parents are buying the home or not.

Lastly, contact the McT Real Estate Group at 619-818-8122 for expert Real Estate advice. We will assist and guide you through every detail that will help you receive the highest dollar amount for your investment.

Tips for Selling Your House in San Diego

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Are Mortgage Lending Standards Too Loose…or Too Tight These Days?

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With home values in North Park and other neighborhoods in San Diego appreciating at record rates, some people think we may be heading for an additional housing bubble; just like the one, we went through about 10 years ago. Some of the blame of that housing boom and bust was the loosening of standards of lending for mortgage credit.

In the University of North Carolina there was a study done after the crisis that revealed the following:

“Lenders began originating massive numbers of high-risk mortgages from around 2004 to 2007, and loans from those vintage years exhibited higher default rates than loans created either before or after.”

A study completed by John V Duca, John Muellbauer and Anthony Murphy revealed the housing crisis was caused by those risky mortgages.

“Our findings indicate that swings in credit standards played a major, if not the major, role in driving the recent boom and bust in US house prices.”

How does mortgage lending from 2004 to 2007 compare to today’s lending for mortgages?

Mortgage Standards are tracked by the Mortgage Bankers’ Association through appreciating at record rates(MCAI) The lending standards are tightening as shown in the decline indicated in the MCAI, although loosening of

lending

credit is also seen in the increases in the index. The chart below shows that we are nowhere near the standards that aided the housing bubble, although, you can see the index going back to the time between 2004 and 2007 when the housing bubble was caused by the loose standards.

Conclusion:

Mortgage standards today have become very tight in some areas. There are many qualified home buyers out there having a hard time getting a mortgage. If you have been thinking of buying a home but are not sure how this all works, contact the McT Real Estate Group right away. We will be able to sit down and go over a comprehensive plan of action with you that is in line with your goals.

What Are Some Homebuyers Mistakes Made?

Mistakes Homebuyers Make

Buying a home is a big deal and requires a lot of thought and preparation. I have seen homebuyers mistakes many times so decided to share them with you so you can learn from them. Preparing your finances upfront is something that you should do before going out and searching for houses. In today’s competitive Real Estate Market homes are sold quickly. Being prepared will help you get the home you want without missing out on a great opportunity because you did not have your financials in order. I have seen buyers going around searching for homes, and they have not talked to a lender yet. Without speaking to a lender and going over your finances, you are not sure what your affordability is. You may be looking at houses that are way under or over your price range. Once speaking to a lender you will be able to find out exactly what you should be looking at.

Already Found A Realtor

If you already found a Realtor that you would like to work with but you have not found a lender, no worries. An experienced Realtor will have a few great lenders that they can refer you to. A lender will be able to pinpoint what price range to look at based on your budget, qualifications and your comfortability of a certain monthly payment. As a Realtor, we encourage you, the homebuyer, to do this so that we can understand what target price of homes to search for and focus on finding you and your family the best home in that price range.

Cleaning Up Your Credit

Another reason to speak to a lender before searching for a home is that there may be a few dings on your credit that you did not know about. This will increase the interest rate you will have to pay on a mortgage loan. By speaking with a lender before searching for a home, we may be able to take care of these things so that they come off your credit pretty quickly. This will increase your credit score which will make your payment lower on that possible dream home that you would like to buy.

Having a lower credit score could be ½-1or point more from someone with a higher credit score. What does this mean? It means that the person with a lower credit score will pay $200-$400.00 for the same house. So preparing yourself before you go out and look at houses is extremely important. Falling in love with a house to then find out at that very moment that you just can not afford the monthly payment with break your heart.

Getting New Credit Cards

When buying a home, it is extremely important that you stop shopping. Seriously, homebuyers mistakes include shopping for things they really don’t need at that time. Do you need another pair of slacks or one more pair of shoes? Well, if you do, this is ok but when you get to the cash register and they ask you if you would like to save 10% on today’s purchase, “JUST SAY NO”! BTW, this also includes furniture that you may want for your new home or even a car. This is one of the worst things you can do if you have gotten your offer accepted and you are “In Escrow”. You will most likely get a call from your lender because now, your credit score would have dropped and you may not qualify for the loan that you were trying to get. This is a big deal, so DON’T DO IT!!

Hate Your Job?

You may not like your job anymore and may have been offered a new one. Another one of those homebuyers mistakes is quitting that job before you close escrow on your new home. Here is another bit of advice; DO NOT QUIT YOUR JOB!!. No matter how much you hate it, stick it out. Once your loan has been approved and you are moved into your new home, you can then decide if changing jobs is what you want to do. Hopefully, you will have your next one in line because you now the proud owner of a new house and have a mortgage payment at the end of the month:-)

If you have not spoken to a lender yet or would like a referral to one, just email us or call us at 619-818-8122. We have several high-level professional lenders that we have been working with for years. They would be able to help you figure out what target market you should be looking at based on the information that you give them. Once that is done, we can get you on the road to homeownership.

Should I Buy a Home Now Or Wait Until Next Year?

Buying a home in San Diego can be very exciting but can feel scary at the same time. If you think about it too long and listen to too many people who don’t own a home or even some that do, you may become paralyzed with fear and never jump in. It is ok to be careful and do your homework. But, over analyzing for too long can hurt you in the long run. Constantly asking yourself, “Should I buy a home now or wait until next year”? I can remember meeting people that came in through our Open Houses during 2012- 2016. Some of these people wanted to buy a home but kept saying that they were going to wait for the bubble to burst. It is 2018 as I am writing these words. I still see a few of these people around that still haven’t bought. They are kicking themselves for not buying back then. We also helped many people buy homes during that time period and then they decided to move out of San Diego. We then sold their homes and they left with a lot more money than they had when they initially bought their house. They were sure happy! With this being said, yes, you do have to put much thought into it. It is a big financial decision. But no matter what time it is, it always seems like mortgages are high and one wonders how they are going to pay their mortgage.

How Will I Pay The Mortgage?

So, you’re either going to pay your mortgage or you are going to help your landlord pay theirs. Either way, you are paying a mortgage. Why not it be your own.

My parents bought houses back in the 1970’s and 1980’s. There were times when interest rates were way up at 18%. Sure, the purchase prices were lower, however, with interest rates as high as they were, so was their mortgage. They too asked themselves “how are we going to may this mortgage”. Today, they are sure happy they took those risks. This allowed them to have a large safety net to retire with and not have to work in their golden years.

Should I Buy a Home Now?

So, are you asking yourself, “showed I buy now or wait until next year”?

Buying a home today at $700,000 with interest rates at 4.3%, your mortgage will be approximately $3223.00. With projected interest rates for next year at 5.10% and the price going up to $735,000, your mortgage payment will be approximately $3,629.00. That is a difference of $406.00 a month.

Historical Market Data:

If you are thinking of buying a home and would like to sit down and go over a plan of action, contact the McT Real Estate Group at 619-818-8122. Together we will look at your long-term goals and see if buying a home is the best thing for you today.

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San Diego Homes for Sale Coming Soon

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Homes for sale in San Diego are hard to find these days. With a limited amount of inventory, finding a home and getting your offer accepted before someone else is getting more difficult these days.

If you have been searching for “coming soon” real estate listings but have not been successful at it, here is a good place to start. The McT Real Estate Group are real estate experts in the San Diego area and always have a list of homes for sale in San Diego County that are not yet quite on the MLS, Realtor.com, Zillow or any other website except ours. Before we put homes on these other sites, we spend time with the seller preparing them first, so they are the nicest ones in the area for their price range.

What Do I Mean By Preparing the Home For Sale?

How one lives in a place and how one sells a home is quite different. When we live in our home, we tend to fill it up with stuff we love and makes us feel good. When we are getting ready to sell a home there are certain things that one should do that a home buyer will look at before entering your house. It starts right when they drive up to your house. If the front is not tidy and cared for they may not even want to step inside.

With this being said, when the McT Real Estate Group gets a listing, we work with our sellers and help them with this process of getting their home to look nicer than the competition. Do make sure to check in with us to see what we have in the pipeline, what we will be putting on the market soon and how to be the first one in to see it. Call us at 619-818-8122 right away!

See Our Current List Of Homes Coming Soon for Sale

Affordable Homes for Sale in North Park

North Park, like other neighborhoods in the San Diego Metro Communities, have gotten expensive throughout the years. However, with today’s low-interest rates and the cost of renting a house, it may be better to search for an affordable home for sale in North Park in the long run.

Check out the most affordable homes in North Park today!

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Top Reasons for Buying a Duplex as a First Home

You have decided to buy your first home in San Diego. This is great news! The first thing that comes to mind is, should you buy a Single Family Home, a Condo, or a Townhouse? These are all great options but let’s not forget about another great option. What about buying a Duplex or a Triplex? These are great investment strategies to think of.

There are a lot of advantages in homeownership with buying a Duplex for Sale in San Diego. Having someone else help pay for your mortgage is one of these advantages that owning a Single-Family Home does not have.

Below are some of the reasons and advantages and why you should consider buying a Duplex instead of a Condo, Townhouse or even a Single-Family Home:

Mortgage Relief

When you apply for a mortgage, banks will have lower interest rates if you are going to be occupying the home as opposed to someone who is buying a home to rent out. Also known as a non-occupied loan. When you apply for a loan to buy a Duplex or a Triplex, they still consider this as an owner-occupied loan since you are going to live in one of the units. You will also qualify for a larger loan because the other units will be helping you pay the mortgage loan.

Tax Write-Off

One of the beauties of homeownership is being able to write off the mortgage interest when having an owner-occupied property. However, if you own a Duplex or a Triplex, you are not able to write that off on the units that you don’t live in but you can write off other things such as the cost of any repair done to the other units, the cost of managing the other units and the costs that it takes to get those units rented out. Other costs would include if you share the electric, cable/internet, and water.

Short Term Rental Vacation Rental

You may not want to be a long-term lease landlord. Being a landlord is not for everyone. You may not want to live in such close quarters with a tenant. Another option is to use the other unit/units as Vacation Rentals. This is a side business that can bring in a lot more money than a regular long lease tenant would. It would also give you the flexibility of not having the same tenant for such a long period. You can even open it up to family and friends that would like to come to town and visit on occasions. You may also want to keep it as a home office. This, of course, takes you back to tax savings and something to discuss with your accountant.

Duplex Investment Strategy

Ok, so you’ve lived in your home for 2 years, and you feel good about being a landlord. You can now go out and buy another duplex or triplex home and use the rental income from the other units to qualify for the loan. As long as you are going to move into the new property, you can get another owner-occupied loan and benefit of the lower interest rates. This is a great way of creating and building wealth for your future with residual income.

Buying a Duplex with 3.5% Down Payment

You can buy a Duplex Home with as little as 3.5% down payment. As long as you are going to live in the home, you can apply for an FHA loan which is a great way of getting into the market. Yes, they do have MI (mortgage insurance)that you have to pay, but this is the cost of doing business. Once you can prove that you have 80% equity in the property, you can speak to your lender and re-fi out of the FHA and eliminate the MI insurance.

For more information on how to get started with buying your first Duplex or Triplex home in North Park, South Park or any other neighborhood in San Diego, contact the McT Real Estate Group right now.

Buying a House in San Diego

How To Buy A House In San Diego

You have reached a point in your life where you know it is the right time to buy a home but not sure exactly where to start. There is so much information out there. Because of this would think that making a decision would be a little easier. But in fact, it sometimes is more confusing. This holds true even if you have previously purchased a home in San Diego in the past, or in any other part of the Country.

The first thing you should consider is, how much money you can afford to put out every month to pay for this house. What this means is, just because you spoke to a Bank/Mortgage Broker/Lender and they told you that you can afford” X” amount does not mean that you will feel comfortable doing so, once it is said and done. You are the only one that knows what you will feel comfortable with.

A good rule of thumb to determine how much of a mortgage you can afford is to determine what 30 percent or less of your income is. This is what should go into paying your mortgage. I know that this is not easy based on the purchase price of what homes in San Diego sell for but this is a general guide line. This is not to say that Banks will not lend you their money if you go over this number.

You can start to figure this out by finding out what your new utility bills will look like based on the house square footage and the area where the home is located. Contacting the utility departments in that area and asking them would be a good idea. Other new bills would include new home insurance and property taxes. You can contact the San Diego accessors office and speak to someone in the Realty Division. As for home insurance quotes, ask your Realtor for a few referrals. They should have a few people that they can recommend who would be able to help you figure out the numbers.

What Kind Of Down Payment Do You Need?

You have most of the numbers for buying a house in place. Now you must determine how much of a down payment you can afford to put down or are willing to put down. Remember to keep in mind that you have to set aside money for closing costs, appraisals, and home inspections. In some cases, it behooves you to do several specific inspections, and they do come with a price. You are better safe than sorry so listen to your Realtor when they recommend such inspections. Another cost to consider is the cost of moving and the cost of gas to go to and from work (if further away), we must not forget this one.

Having 20% down to buy a house in San Diego is great and more attractive to lenders that are lending you the rest of the money. However, there are other loan programs that you can use with 0% down (VA loan), 3.5% (FHA), 5% Conventional and several others.

These other loan options come at a higher price but it is the cost of doing business with the banks that are willing to loan their money to you. You will have to pay private mortgage insurance with loans below 20% down.

What Is Private Mortgage Insurance?

PMI aka private mortgage insurance is the fee that the bank charges you for the risk that they take in lending their money to you. If someone puts down less than 20% to buy a home, they should know all about PMI. With FHA loans, you will have this payment for the life of the loan. With other loan programs, you will be able to cancel the PMI once you have 20% equity in the home. Speak to your lender about this. Make sure that you understand this thoroughly before choosing a loan option.

How Much Difference Does Interest Rates Make?

With the prices of homes for sale in San Diego, this can be the difference of costing thousands of dollars more over the entire time of the loan period. Even a slightly higher increase in interest rate can cause the lender not to lend you the funds because it will increase your monthly payment to a point that your debt to income ratio is out of balance.

Tips for Buying Your First House

Once you have done your homework, know what neighborhood you would like to live in and have all of the numbers put down in front of you, this is the time to have a serious conversation with your Realtor. Based on the numbers that you and your lender have come up with, your lender should be able to provide you with a DU approval instead of just a pre-qualification. Once you are confirmed with the price of the home that you are able to buy, you will then be able to start touring homes with your Realtor.

What is a DU approval?

This will make you a stronger buyer, especially if you are in a multiple offer situation. If a typical buyer simply provides a pre-qualification letter with their offer, this means that they still have not filled out a loan application and the lender does not know if they truly qualify for the loan. If you have a DU approval, this means that you have already provided the lender with your employment history, assets and income and debts and they become “Approve Eligible”. You will most likely receive final approval unless something with the title or appraisal comes back with something negative.

Click on the value range of the homes that you would like to see. You will be directed to the MLS. When you see something you like, call us at 619-818-81222

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What to know when buying a for Sale by Owner in San Diego

As you search for homes for sale in San Diego’s hot market, you may come across a “For Sale by Owner”. You may be tempted to knock on the door or call the number advertised. You may think that going directly to the seller, this may save you a lot of money. Well, the complete opposite may be true. home for sale by owner

Most Home Sellers will Work with Your Agent

Just because the seller has put their home up for sale by owner does not mean that they will not work with your Realtor. They are well aware that most homebuyers are working with agents so they will agree to pay the buyers agent a commission so do get your agent involved. This will only help you in the long run. A great buyer’s agent is priceless and will not cost you a thing. The seller is the one that will pay for this service that will save you thousands of dollars and aggravation in the long run.

Once you do your inspections, a lot of things may come up that you will want to take a second look at and may want to renegotiate because of certain repairs needed. Your agent will serve as a buffer and be able to know exactly how to get this negotiated where it makes more sense to your financial pocket. The buying process is an emotional one for both the buyer and seller. Having your agent as your buffer will give you an advantage as you can discuss things over with them before making a decision on certain things that the seller is asking for.

Is The Home Priced Right?

Many times a seller who has decided to put their home on the market as a “For Sale by Owner” is doing so because they feel that the Real Estate market is so good for sellers right now that they may not need a Realtor. They may have spoken to a few Realtors but have not liked the price that was recommended for their home so they figured they would be able to go at it themselves at a higher price and save the commission.

Your Agent will be able to show you the comps and help you determine what price you should offer if you decide to put an offer on this home.An experienced agent will be actively visiting properties in the area and will be well versed on the comps in the neighborhood.

What questions to ask when buying a for sale by owner?

With this being said, when selling a home in San Diego, there are certain disclosures that a seller is supposed to provide to a buyer with the sale of a home. Because the seller of a For Sale by Owner is typically not experienced with these documents, they will not have filled them out and ultimately not realize that they are supposed to disclose certain things about the property.

Your agent will know exactly what questions to ask so that the seller will have to disclose everything they possibly know about the property (the good, the bad and the ugly) without leaving anything out.

If you were to buy this home and all of a sudden you run into a problem with it, you can then re-examine the sellers disclosures. You may discover that the problem was ongoing and the seller did not disclose it. At this point you will be able to go back and address the issue and most likely get compensated because the seller did not disclose a material fact.

If you are in need of an expert buyer’s agent in San Diego, contact the McT Real Estate Group right now. We will go over the process of buying a home and together come up with a game plan to get you the right home that you desire.

Just Bought the Home- Now What?

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Just Bought a Home in San Diego, Now What?

You just bought a home in San Diego and are super excited and nervous at the same time. There is a lot of responsibility that comes with owning a home. There is also a lot of satisfaction and freedom that comes with doing so as well.

Just Bought a Home

First, you can remodel the home however way you would like to. Meaning, if you want red walls, purple, blue or any color walls for that matter; guess what, you can paint them any color you want and not have to ask the landlord permission. If you are planning on living there for a while, then doing whatever makes you happy is great. However, if at some point you are planning on selling, I would recommend losing the personal colors and toning it down a bit.

If your home needs some remodeling, be smart about it. Don’t just start ripping things out with not have a plan about what you are going to do. Sit down and think about it. If you have a significant other, make sure that you are both on the same page. Go to Houzz.com or sites like Pinterest to get some ideas. Once you figured out what you would like to do, figure out if you will be doing the work yourself or you will be hiring it out. A good source of referrals is your Realtor. She or he should know several different tradespeople that you can get estimates from. As for referrals from friends and co-workers as well. Just from this group of people, you will have a gold mine of great tradespeople.

Handyman repairing stucco repairs — Negotiating Repairs

Once you figure out what you are going to do and who you are going to use, I would recommend creating a budget for your projects. Be realistic about the numbers and whatever that number you think it will be, add another 20% to it. Believe me, you will reach it and you don’t want to feel strapped and have to cut corners. With this being said, avoid being too cheap. This can cost you big bucks in the long. You may think that by doing something yourself you may be able to save money but then once you figure out that you are not able to, you will have to hire a professional to come fix what you started, hence, costing you more than had you just hired that person from the beginning.

Another pointer is to not overspend on materials needed for the projects. If you plan things out properly, you will be able to find certain things that go on sale, or you may be able to shop around and compare, and not have to buy last minute which will save a good amount of money. If you plan out your projects, you will avoid last minute changes and add on’s which can be very costly.

If you just bought a home in San Diego and are doing all of the things mentioned above, remember to save all receipts for work completed on your home. You will be able to write off certain home improvements so make sure to be very organized so that you can share this with your accountant when it is time to do your taxes. Other tax write-offs include such things as mortgage interest, points that were paid when taking out a loan, Real Estate Taxes, Energy Credits, Home Equity Loans and several other things that your accountant can go over with you. These are write offs that homeowners can benefit from when tax time comes around.

If you would like a second opinion before you start your project, contact the McT Real Estate Group. We will be able to share with you what types of things will be a great return on your investment when it is time to sell your home.