Buying New Vs. Older Home: Here’s How To Decide

by | Aug 21, 2014 | Buyers

You might be asking yourself, should I buy a new home or old home? With so many things to take into consideration when choosing a house like distance from work and family, community feel and home layout, answering the question new or older can help narrow your choices and give your search focus. And with so many new homes being built right here in Southern California, your options have just expanded! I’ve broken down the advantages for both new and “used” homes so that your decision is fully informed. Some facts about new homes might surprise you… New Home Advantages: • Everything is brand new. You have peace of mind knowing no one has used the shower before or walked on the carpet in your new bedroom. It’s even got that new home smell. • A large master suite. Builders are putting more emphasis on making lavish master bedrooms for home buyers than they used to. Older homes have bedrooms which are all about the same size, varying little from master suit to guest room. • Warranty. Each builder will offer a different warranty, some better than others, but they put your mind at ease when investing in a new home. Warranties are typically offered in one, two or ten year increments and each cover different things like labor and materials, mechanical problems, and structural defects.  Make sure you read your contract thoroughly so you know what your basic maintenance obligations are as a homeowner and what the builders will fix or replace when the time comes. • Open layout. New homes are getting bigger and the space isn’t wasted on secluded formal...

FICO Scores, Credit Reports and Mortgages Oh My!

by | Aug 19, 2014 | Buyers

When it comes to securing a mortgage it’s important to understand your FICO score, where it comes from and most importantly, what score you need to qualify for a home loan. Here’s a complete breakdown of FICO scores, how they affect your credit report and an exact breakdown of what credit score you need to qualify for a mortgage. To learn more about the application, about the 4 easy steps to getting a mortgage loan. What is a FICO score? Your FICO score is a number that represents your reliability and creditworthiness – how likely you are to pay back your debts if you borrow from a lender. The FICO score is a credit score, the most widely used in fact in the U.S. FICO = Credit Score How is a FICO score generated? Loan officers and real estate financial advisors have access to mortgage underwriting systems. First you will run your credit through 3 credit repositories: Experian, Equifax and Tansunion (you can run these credit reports for free online). If you need to improve your credit score try these 9 simple tips. Here’s how these respositories come up with your FICO score: 35% – Payment History The largest portion of your FICO score is determined from whether or not you have “derogatory information” in your credit history. Bankruptcy, late payments, foreclosures, etc. will lower your FICO score. 30% – Debt Burden This is most commonly known as your debt-to-income ratio. The lender is looking at how much income you bring in and the amount of money you owe on credit accounts currently. There are a lot of other little pieces that play into this part...

4 Easy Steps to Getting a Mortgage Loan

by | Aug 14, 2014 | Buyers

  Whether you’re buying your first house or moving up to a bigger and better one, chances are you’re going to need a mortgage. That’s why securing a mortgage and getting your finances in order is the first step for any buyer. Where exactly do you start? Well when I started writing this piece I went straight to the source – real estate financial advisor and expert Renee Wiginton. Renee works with a First Team affiliate company helping buyers find the perfect mortgage loan to fit their needs. So what’s the first step for any buyer to getting a mortgage? Same as mine – start talking with the person who knows it all! 1. Consult with a real estate financial advisor The first person you want to speak with is an experienced real estate financial advisor (some call themselves loan officers).  A financial advisor will counsel buyers on tailoring the perfect loan to fit their specific lifestyle and situation. The reason you need to start with a real estate financial expert is because only they have access to the underwriting systems you need to officially and accurately determine once and for all what type of mortgage you will qualify for. Make it easier: The best way to find a trustworthy financial advisor is to get a referral from a real estate agent. If you’re a first-time buyer you will have a lot of questions and a buyer’s agent is the perfect person to answer all of them and connect you with all the help you need throughout the buying process (financial professionals, tax specialists, service contractors, etc.) 2. Get Pre-Approved For...