Archive for the ‘First Time Home Buyers’ Category

  • Looming Threat Posed by Air Conditioning Units

    There is a significant, Looming Threat Posed by Air Conditioning Units to home buyers, home sellers and any homeowner that owns an older central A/C unit.  And this threat can mean a BIG hit to your pocketbook! For more information, please call or email me, I am happy to help: Craig Sutliff, Real Estate Consultant & Mortgage Planner The GreenHouse Group Cell: 619-857-4954 Email:  Craig@GreenMeansGrow.com BRE Lic# 01735288 NMLS ID

  • New Guidelines = You Qualify for More Home

    New Guidelines = You Qualify for More Home

    Have you been pre-approved but not for enough to buy the home you want?  Well, new guidelines recently released mean you may qualify for a bigger loan than before. Of course, this isn’t’ appropriate for everyone.  But if you have been in a situation where you were hoping for just a little bit more purchase power, you might be in luck.  Recent changes are now letting borrowers qualify for larger loans (relative t their income) than before.  They’re doing this by expanding something called the DTI cap.  That’s basically the relationship between your income and your debts.  Standard expectations were previously set at 45% for conforming loans.  But they’re now pushing that upto 50%.  For example, depending on your income, that could be an increase of 50k or more! Two things to consider You still need to be comfortable with your payment.  So doing the math and affordability calculations with me is critical. Getting a FULL pre-approval (like we do here at the GHG) is vital to making this work. If you’d like to learn more about expanding your purchase power simply click here and shoot me an email.  Or you can call me directly for a quick chat. Jeremy Beck 858-863-0262 Co-Founder / Mortgage Planner

  • Is Renting Really Cheaper Than Owning a Home?

    by Anna Sobrevinas | 04 May 2017 | MPA Mortgage Professional America | www.mpamag.com The responsibility of owning a home can be intimidating for people who’ve only rented in the past, but new data from Zillow suggests renting can actually cost more. Zillow’s analysis found out that sans increasing monthly housing costs, a typical renter can buy a home almost 50% more expensive than the median valued home and still get to keep the same amount of monthly housing budget. The median US home value is $196,500, while the median rent in the country is $1,416 per month – an amount enough to pay for monthly housing expenses needed to own a $289,505 home. “The decision between buying and renting is a financial trade-off between saving more each month on a mortgage payment versus spending more on rent but taking advantage of the location and lifestyle amenities urban renting often offers,” said Zillow Chief Economist Dr. Svenja Gudell. “Recent slowdowns in rent growth may take some of the edge off for renters saving to become homeowners. This is good news, since saving a down payment, qualifying for a loan and finding a home available at a manageable price remain hurdles for millions of aspiring buyers.” Renters in Cleveland can afford a $174,194 home while retaining monthly housing costs, which is representative of more than 80% of homes on the market now,

  • Have Student Loans? The Rules Have Changed

    I may have just missed the student loan debt explosion when I graduated with my undergrad degree in 1998.  While college was expensive to attend twenty years ago, we were all borrowing money to get an education, it was nothing compared to the amounts borrowed during the college financing boom of the last fifteen years. Nowadays young people are in record amounts of debt the moment they are handed a diploma which means starting off their earliest earning years with essentially a thirty year mortgage to pay back.  College ain’t what it used to be and many times all this borrowed money is for a degree that yields earning power guaranteed to tie up their income for the better part of their career. The student loan income-based repayment plans have been a help to many people.  These plans allow monthly payments to be calculated based upon a person’s income which give people a fighting chance to start paying back their loans and be able to eat as well.   This is a big deal for those just starting out but there are at least two challenges tied to this calculation.   First, the debt will take that much longer to pay off and second when you go to apply for a mortgage the bank approving your application will hit the person for up to 1% of the balance of the

  • Beware of Poor Home Flips! Lurking in the Kitchen

    Beware of Poor Home Flips!  Lurking in the Kitchen

  • House Flipping…The Good vs. The Bad!

    House Flipping…The Good vs. The Bad!  

  • Mortgage Credit Certificates = More Money In Your Pocket

    Blog Source: Down Payment Resource – downpaymentresource.com – February 2, 2017 While the total number of programs remained consistent, the HPI saw an increase in Mortgage Credit Certificates (MCCs) across the country, representing more than 8 percent of all programs. Between 2010 and 2015, state housing finance agencies increased MCC issuances to homebuyers by more than 400 percent, according to preliminary data from National Council of State Housing Agencies (NCSHA). The MCC is a tax credit program that allows eligible homebuyers to claim a percentage of the mortgage interest they paid as a tax credit on their federal income tax return. The percentage of mortgage credit allowed varies depending on the state or local housing agency that issues the certificates, but the credit itself is capped at a maximum of $2,000 per year by the IRS. The buyer may continue to receive an annual tax credit for as long as they live in the home and retain the original mortgage. “The mortgage interest rate tax deduction has long been a core homebuyer benefit, but most homebuyers are unaware of Mortgage Credit Certificates. This credit directly impacts a homebuyer’s bottom line by reducing their annual tax bill,” said Chrane. “We see more lenders adding MCCs to their product offerings.” Qualifying homebuyers are permitted to use an MCC alongside another type of down payment assistance program, such as a grant or forgivable

  • Renters! 2017 Is Your Big Opportunity

    I was talking to a property manager this past weekend who has been managing rentals in San Diego for 30 years.  I asked him what he is seeing for 2017 and he said all of his properties are seeing on average 4% rent increases this year. This is true for the rest of the country as well.  Rent was up nationwide in 2016 so will that trend continue in 2017? So far the answer looks to be yes.  Here’s a better question for all the renters.  What is your pain tolerance for another rent increase in 2017?  And here’s an even better question.  With home value increasing how much equity did you earn last year by paying rent? If you are paying $2,500/mo in rent and you see a 4% increase that calculates to $100 more rent per month.  Right now with mortgage interest rates where they are that $100 = $20,000 in home price.  Another current fact is that mortgage applications are down and lenders are looking for ways to increase loan volume which means they have enhanced credit guidelines so that borrowing money is easier. Click here To Find Out How Much Your Rent Translates To Home Purchase Power.   By David Hughson Mortgage Planner / Turning Renters Into Homeowners

  • What Are The 3 Biggest Homebuyer Mistakes?

    Posted on December 5 on DownPaymentResource.com Are you making these classic homebuyer mistakes?  It’s true you often learn from your mistakes, but what if you could avoid as many as possible? Buying a home will likely be your biggest financial purchase in your lifetime so it’s important to get it right. Even though you may start your home search online, more than 90 percent of you will end up using a real estate agent to help you navigate your purchase. Inman News polled its agent readers about homebuyer mistakes they see buyers make. 1. Not talking to a lender first As they say, success is 90 percent preparation. It’s no different when it comes to home buying. Unless you are paying cash for a home, you will need a home loan and a lender. Instead of finding your dream home online and scrambling to make an offer, start talking to lenders early. Shop your loan. Plan to interview at least three lenders to find the right one. Check out our 5 essential mortgage lender questions to brush up on what you should ask. Get pre-qualified to better understand your home search price range and loans that may fit your situation. If you haven’t looked for a loan in a few years things have changed–there are now more low down payment options available. Ask your lender about homeownership programs that could

  • The Election and Down Payments

    By Rob Chrane – CEO of Down Payment Resource The election has left Republicans in control of the House, Senate and White House for the first time in over a decade. The new alignment provides a viable path to far-reaching changes in federal housing policies affecting housing finance and housing markets. Increasing homeownership is at the top of the agenda for the new Congress and Administration. Changes may be in store for the Dodd-Frank Act, including restructuring or terminating the Consumer Financial Protection Bureau and raising the threshold for tougher bank regulation above its current $50 billion asset level. President-elect Trump has promised to reduce regulations, across the board, and financial institutions are likely to embrace his deregulatory stance. In housing finance, policy-makers may focus on reducing risk. Programs like FHA may see major changes and the role of GSEs will continue to evolve. The role of government in housing markets and housing finance could change dramatically. If so, it will take at least a couple of years, but it’s too early to tell because this wasn’t addressed in detail during the campaign. Only by increasing the numbers of first-time buyers can we reverse the multi-year decline in homeownership. Saving for a down payment continues to be the greatest single barrier keeping first-time buyers from becoming homeowners. Low down payment programs and down payment assistance are effective and critical strategies

The GreenHouse Group, Inc. | Real Estate Consulting & Mortgage Planning. "Moving People With Purpose."

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