Kevin Smith Real Estate Podcast

.embed-container { position: relative; padding-bottom: 56.25%; height: 0; overflow: hidden; max-width: 100%; height: auto; } .embed-container iframe, .embed-container object, .embed-container embed { position: absolute; top: 0; left: 0; width: 100%; height: 100%; } You don’t need to pay more than 20% down or have a FICO score 780 or more to get a loan. Here’s the truth about these myths. Buying a home? Click here to perform a full home searchSelling a home? Click here for a FREE Home Price Evaluation Today I want to address two common myths floating around out there that keep people ( especially millennials) from getting a mortgage. Myth #1: You need to have more than 20% down. I recently worked with young couple who wanted to buy a $500,000 condo. A 20% down payment on that $500,000 property would’ve cost $100,000, which for them would’ve been an exorbitant amount of money. That’s why I suggested they pay only 10% down. Paying less meant they’d have to pay the PMI (private mortgage insurance), but that payment would only be an additional $247 a month instead of the additional $50,000. Ideally, paying 20% down would be awesome, but in some instances it might be better to talk to a lender and see if there’s a way you can come up with less money down and still get a house right away instead of paying a huge amount like $50,000. The world of lending is more flexible than you think. Myth #2: You need to have a FICO score of 780 or more. Obviously, that’s a great credit score, but the fact of the matter is that 54% of all people typically have a score that’s less than that. There are many different loan programs out there, and any lender will probably be able to get you a loan if you have a score between 640 and 680. Just make sure you’re not in the 500s. Whether you’re trying to buy a new home or buy your first home, don’t fall for these two myths. If you have any questions about this or any other real estate-related topic, feel free to reach out to me via phone or email. I’d be happy to help.

.embed-container { position: relative; padding-bottom: 56.25%; height: 0; overflow: hidden; max-width: 100%; height: auto; } .embed-container iframe, .embed-container object, .embed-container embed { position: absolute; top: 0; left: 0; width: 100%; height: 100%; } Cash offers are usually more appealing than financed offers, but as you’ll see today, there are other things to consider before you make a decision. Buying a home? Click here to perform a full home searchSelling a home? Click here for a FREE Home Price Evaluation Are cash offers always the best offers when it comes to selling your home? I just recently had a client who faced this same question. They listed their home for sale and received two offers—one of them cash, one of them financed. The cash offer was about $10,000 less than asking price, but it didn’t require any contingencies or inspections. Furthermore, the buyer wanted to close quickly in 15 days. The financed offer, on the other hand, was at asking price, but that buyer wanted a multitude of inspections done and needed a larger closing period. There’s more than meets the eye when it comes to cash offers. In this instance, my seller went with the cash offer. In fact, they were happy to do so. The price was lower, but the quick closing period and the lack of inspections and closing costs were more than a fair tradeoff. If your home is on the market and receiving multiple offers, though, should you always go with the cash offer? It depends. You have to consider other variables within the offer, like how fast it’s going to close and how many inspections it will require, and decided how important those variables are to you. If you have any other real estate questions, please feel free to call, email, or text me. I look forward to helping you!

.embed-container { position: relative; padding-bottom: 56.25%; height: 0; overflow: hidden; max-width: 100%; height: auto; } .embed-container iframe, .embed-container object, .embed-container embed { position: absolute; top: 0; left: 0; width: 100%; height: 100%; } Barry Krevoy from Finance of America Mortgage is here to discuss two great programs that help buyers who can’t quite afford a down payment: CHDAP and the Golden State program. Buying a home? Click here to perform a full home searchSelling a home? Click here for a FREE Home Price Evaluation Recently, one of my clients asked me about a lease on a property. When I asked if he was interested in buying it, he said that he couldn’t afford the down payment. Today, Barry Krevoy from Finance of America Mortgage is here to discuss different down payment assistance programs available in California. One great down payment assistance program is called CHDAP, which you can use with a conventional or FHA loan. You could also look at the Golden State program, which is actually a grant program. If you go with the Golden State program, that money does not need to be paid back. Both of these programs are income-driven, so you need to meet certain income caps in order to qualify. Some of these limits vary depending on which county you live in. For example, in Orange County, if you are single, you have to make less than $85,450 a year to qualify for the CHDAP program, which provides down payment assistance up to 4% of the purchase price. As for the Golden State program, single homeowners have an income cap of $97,750. If you have more than one person in the home, CHDAP income requirements go up to $97,650 for two people, $109,850 for three, $122,050 for four, and $131,000 for five. It doesn’t matter whether you are married, have two kids, three kids, or your mother-in-law has moved in. CHDAP looks at the number of people living in the home, not the number of dependents you claim on your taxes. You can get into a home with little to no money down. Many millennials just out of college would definitely qualify for this program. If you are making less than $100,000 a year, you won’t be out looking at $700,000 homes. CHDAP is a great program to help millennials into townhomes or small, single-family residences. It can also help people get into a home when they make good money but haven’t saved enough for a down payment yet. The only downside to CHDAP is that you will get a slightly higher interest rate. However, there is a no prepayment penalty. If you are on the loan for at least six months, you can always refinance later to take advantage of a lower interest rate. Barry has helped many people do just that.   If you use an FHA loan or conventional loan, the lender can give you a credit to help with closing costs. However, that is not the case with the Golden State program or with CHDAP. If you do use either of these programs, your agent could negotiate for the seller to give you a closing cost credit instead of the lender. So, even though you might not have enough money for a down payment, there are options available to help you get into a home. If you have any other questions for Barry, you can reach him at [email protected] or 949-735-4009. You can also visit his website, www.LoanOfficerBarry.com. As always, if you have any real estate questions, please don’t hesitate to reach out to me. I would be happy to help you!

.embed-container { position: relative; padding-bottom: 56.25%; height: 0; overflow: hidden; max-width: 100%; height: auto; } .embed-container iframe, .embed-container object, .embed-container embed { position: absolute; top: 0; left: 0; width: 100%; height: 100%; } Buying a home? Click here to perform a full home searchSelling a home? Click here for a FREE Home Price Evaluation What can you expect from the real estate market here in Southern California? Well, heading into 2016 you can expect a seller's market because of a low volume of inventory. Your home will sell if you price it correctly and have it in good condition. It's a great time to be a home seller in Orange County - and it's not even spring yet!There are almost 4,400 homes available in Orange County, which may sound like a lot but that number will increase to 8,000 in the summer. In San Clemente, there are 198 homes for sale, but in the last 30 days 72 of them have sold. The average price in that area is $1 million. This goes to show that homes are selling quickly in all price ranges.How is inventory affecting the current value of your home? It's raising the value, because when fewer homes are available, buyers are usually willing to pay more for them. However, the increase in interest rates will drive prices down as we head into the summer. Buyers will not be able to afford as much home, and that will hurt your sale price. As a whole, right now is the time to buy a home in Southern California. Interest rates are going to rise, and the market is only going to get more crowded. You can buy an affordable home without too much competition.Sellers will have an opportunity to sell for maximum value right now. Rising interest rates will push more buyers on the market, and this could create bidding wars that will bring you top dollar.If you're looking to buy or sell in 2016, please don't hesitate to contact me. The spring selling season will be here before you know it!