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

How To Get Ready For a Mortgage Before You Need One

Getting Ready for a Mortgage?

Are you waiting until you are ready to move out of your current home to begin the process of getting financially prepared to buy a home? Most people don’t have a pile of cash laying around to buy a home outright. They depend on financing the loan through a bank and having a mortgage. Applying for a loan is not always very easy to do if your finances are not in order.

There are certain requirements that one must pass to secure a mortgage. Don’t wait until last minute to get everything in order as it will be a bit frustrating if you do.

What Is The First Step To Prepare Your Credit To Buy A Home?

It is always a good thing to know what your credit score is before you start searching for a home. Checking your credit score is so easy these days. Download the “Credit Karma” app to your smartphone, and you will have instant access without taking a hit for pulling credit the traditional way. If your credit score comes back low, you will then have time to start working on raising it. You can also see if there are fraudulent activities showing up and work on getting them off immediately. This typically will take some time to remove so getting a head start is always a smart move on your end.

One way of raising your score is to set up payment reminders. You can set this up either on your google calendar or directly with your bank. Setting these up with text or emails is probably the easiest way and quickest to start seeing that score rise quickly.

Lowest Interest Rates Available

Everyone is always searching for who has the lowest interest rates available when buying a home. You’ll find that you will need a Fico Score of 760 or higher to take advantage of the lowest interest available. If your loan is less than this, don’t worry, most lenders require that your Fico is at least 620 or more for a conventional mortgage. The interest won’t be as low as if you had a 760 but it is still not bad because of how low our interest rates are these days.

Applying for A New Credit Card That You Don’t Need Is a NO NO

Every time that you apply for a new credit card your credit score decreases a little bit. So, if you don’t need one, just don’t do it. The only time that I would recommend applying for a credit card is if you are one of those people that have paid everything in cash. Kudos to you but in the credit world, this, unfortunately, is a bad thing. It is one of those things. If you don’t already have credit, lenders do not want to lend you money. Go figure.

Get Those Credit Cards Paid Down

I know that it is easier said than done but paying your credit cards down is one of the best ways to get ready to buy a home. If you find yourself with several credit cards, try paying the one with the smallest amount on them. Once that is paid off, you take that payment that would have gone into paying that card and roll it over to the next one with the smaller amount on it, and so on….

Your Report Shows Errors

When there is fraudulent activity taken place behind the scenes, this can definitely hurt your credit score in a big way. It is recommended that you check your credit score once a year. Go line by line and if something is not right, contact the Federal Trade Commission for tips on disputing and getting these things removed from your credit.

Old Accounts Are Old But Closing Them Could Harm Your Score

You may not have use a specific credit card for a long time. Now is not the time to close it. It would then show that you have less available credit and decrease the average length of time that you have had credit.

Save Money For Down Payment and Closing Costs

Alas, saving for the downpayment. When buying a house, you will have the down payment, and then the rest is what you will take out on a mortgage loan. Most people think that they can’t afford to save 20%, but they will be able to afford the monthly mortgage payment. This is when you have to go over the numbers with your Mortgage Broker/Lender. These days you don’t have to come in with 20% down. There are many loan options including 3.5% down payment (FHA). If you have a military background, you don’t even have to have a down payment. Know that this comes with a price and that is with an FHA loan you will have to pay MI (mortgage insurance) until the equity in the house builds up to 20%. At that time you can have it removed with a little bit of back and forth with the bank that owns the loan. Know that the higher the down payment and credit score, the lower the interest rate that you will have.

5 Questions To Ask Your Lender

Do you offer loan rate locks?
What are your closing costs?
What are the Origination Fees and Discount Points?
What is the interest rate?
Is the mortgage rate fixed or an ARM rate?
What is the monthly mortgage payment?
Does the monthly payment include PITI (principal, interest, taxes, and insurance)?
What is the minimum payment necessary for that monthly payment?

Buying A Home In San Diego?

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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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Buying a Home in San Diego from Across the Country

Know What You Want in a House

Knowing what you want in a house will enable your Realtor to help you find a neighborhood that suits your lifestyle. Buying a home in San Diego from across the Country can be scary. But, if you are teamed up with a great Realtor and have created a list of what’s important to you, it is possible. Do you like yoga? You might want to live near a park, or in a neighborhood with a few yoga studios. If you work remotely from your computer, a place with plenty of coffee shops give you plenty of options to operate your business. If nightlife is your thing, a place like North Park, with tons of restaurants and bars will be right up your alley. Whether or not you have children, the proximity to good schools will affect the resale value of homes in some neighborhoods.So, when buying a home in San Diego, make sure that you have a sharp agent that is aware of this.

The Lifestyle in San Diego is different than in other parts of the country. Have you experienced year-round outdoor living before? If you’re moving from New England, as an example, the prices of a house will seem high, based on the value and square footage that you are used to. That’s because in Connecticut, for example, you have to be inside your house for the whole winter.

Here in San Diego, you can sit in the sun and relax in your garden on a January morning. “But I Love the Skiing,” you say. Not to worry! Bear Mountain is less than a three-hour drive from San Diego, and there are several more nearby. Wouldn’t you love to be able to have fun in the snow, and have a short drive back to the year-round sunshine? You don’t have to worry about digging your car out of the snow before work the next morning.

With a lot of cash buyers present, the San Diego market is quite rapid and competitive. If you are going to be buying a home in San Diego, you’ll have to be comfortable with making an offer on a property the first day you see it. That might seem extreme, but it’s the nature of the current market. You’ll see homes for sale that come and go off the market quickly. If you take too long to think about it, you’ll miss out on many great properties. Knowing what you want will give you the confidence you need to be able to move with the fast-paced market here. This leads us to our next key aspect of buying a home in San Diego from across the Country.

Find the Right Real Estate Agent

First off, if you are buying a home in San Diego, you’ll want a local Realtor who’s an expert in the neighborhoods that you’re looking at. If you don’t know what neighborhood you want, a good Real Estate Agent will be able to help you with this based on your interests. With this being said, good communication is key.

Depending on whether you are buying a property to invest in or to move to for work or retirement, your search for a house will be very different. You’ll want a Realtor that has experience with the type of property you are searching for. If you’re looking at an investment property, find a Realtor that owns investment properties themselves. They will have better insight than a Real Estate Agent that has never purchased an investment property before. They will be able to point out important things to look for and to consider as well as things to be aware of.

Is Your Realtor Tech Savvy?

Today’s technology makes it easy for a tech-savvy Real Estate Agent to use a number of tools to accurately convey a property from wherever you are. Video walkthroughs, 3D rotating cameras, and video calls can accurately convey much more than still photos.

Make sure your Realtor is familiar with these tools. Also, make sure that you’ll feel confident buying a house that you’ve never physically been inside of. Even though you will see walking video tours, it is still a little different than being at the property in person. If you are comfortable with this, then you’ll be swinging in your hammock on your back porch in no time. You will be thinking about all those times you were jumping over puddles of ice-water on your way to work.

Get Your Ducks in a Row and Pre-Approved

As previously mentioned, it’s a high-speed Real Estate market that we are experiencing in 2017. Have patience; you could lose out on a property you like if you’re not 100% ready to go. Have your ducks in a row before you start your home search. One thing to keep in mind is to make sure no obstacles are holding you back.

You’ll need to be pre-approved for a loan, and not just with any lender. An experienced Realtor will have many great referrals for you if you don’t already have someone that you are working with. You may have a local Lender where you currently live. Speak to your Realtor about this. We find that working with a local lender near the home you are trying to buy typically works best. They know the timeframes and things to look out for that are not always the same in other parts of the Country. If you are thinking of buying an investment property and not planning to live in it, you will need to get approved for a loan as a non-occupied-owner-investor. Typically, this type of loan requires that you put down at least twenty-five percent down when buying a home. On the other hand, if it is not an investment property that you are looking for, but instead, you are planning on moving into the home, you’ll be able to look into an FHA loan. With this type of government loan, you only have to put as low as 3.5 percent, whether it’s a single-family house or a duplex/multi-unit house.

Buying And Selling A Home

You may currently own a home that you would need to sell before buying a home in San Diego. Before a homeowner will consider accepting your offer and taking their home off of the market, they would want to see that your present home is under contract.

This can all be very stressful. You may not feel 100% comfortable buying a home without seeing it in person. If so, another option will be to plan on moving to San Diego first. Renting an apartment or home for a couple of months or even a year may make you feel more at ease. There are a lot of short-term rentals available if you decide that this would work better for you. Yearly rentals are available, but they are also competitive. If you find one that you think you may want, you will have to move quickly.

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For more information on buying a home in San Diego, contact the Mct Real Estate Group. We would love to help you with the buying process.

More About Buying a House in San Diego

Not buying a home is the single biggest millennial mistake

Not Buying A Home?

While some people that are not buying a home think that claim it’s “the American nightmare,” self-made millionaire David Bach is doubling down on his faith in real estate. He thinks that not prioritizing homeownership is “the single biggest mistake millennials are making.”

Keys and house

Being in the Real Estate Business in San Diego for over 13 years, I too feel the same way. Over the years I have seen the benefits of people who bought homes many years ago, even when they thought that it was going to be a challenge and costly; however, fast forward, selling that property now, these people walk away and have moved somewhere else where the cost of living is a lot less, and now they have a lovely next egg. If these same people had decided to rent instead of buying a home back then, they would be leaving with nothing but memories.

Buying a home is “an escalator to wealth,” Bach tells CNBC.

Young adults, in particular, aren’t hopping on this escalator, and it’s a costly mistake, Bach warns: “If Millennials don’t buy a home, their chances of actually having any wealth in this country are little to none. The average homeowner to this day is 38 times wealthier than a renter.”

The self-made millionaire is quick to say that the smartest investments he’s ever made have been the three homes he’s purchased. He tells CNBC: “I first bought a home in San Francisco. It skyrocketed in price. I moved to New York and bought another home. It skyrocketed in price. My net worth has gone up millions and millions of dollars, simply because I’ve lived.”

Bach argues that you have to live somewhere for the rest of your life, so you might as well invest in a home that you could own permanently.

Why Not Pay Your Own Mortgage?

I have always said, “As a renter, you are still paying a mortgage; it is just someone else’s. Why not make it your own?

As Bach writes in “The Automatic Millionaire,” “As a renter, you can easily spend half a million dollars or more on rent over the years ($1,500 a month for 30 years comes to $540,000), and in the end, wind up just where you started — owning nothing. Or you can buy a house and spend the same amount paying down a mortgage, and in the end, wind up owning your own home free and clear!”

If you want to get in the game of homeownership, start by crunching the numbers, Bach says: “Actually do the math. Look and see what things cost, starting with the smallest options. This way, you’re really clear on your goals, and you won’t just say to yourself, ‘I’ll never afford this.'”

A good rule of thumb is to make sure your total monthly housing payment doesn’t consume more than 30 percent of your take-home pay. He also recommends having a down payment of at least 10 percent, though more is always better. Finally, recognize that “oftentimes, buying your first home means you’re not buying your dream home,” Bach tells CNBC. “You’re just getting into the market.”

A lucrative market, that is. “The fact is, you aren’t really in the game of building wealth until you own some real estate,” Bach writes.

Building Wealth

As for someone who has helped many first-time homebuyers and experienced homebuyers that have bought many homes in San Diego, I have seen first hand the benefits of owning real estate and also the benefits of keeping it long term. Not only are you building wealth, but you are also helping families live in a nice environment they can feel safe in and call home.

If you are thinking a buying or selling a home in San Diego, contact the McT Real Estate Group at 619-818-8122. We would love the opportunity to discuss a plan of action that will help you achieve your goals.

This article was found at CNBC and written by Kathleen Elkins