Investors Scooping Up Bank Owned Properties..Get in on the Action!

It's no secret that investment firms are capitalizing on the real estate market while the median prices and interest rates of homes are still at all time lows! We are seeing a recovery (allegedly) in San Diego, CA. Although, I believe (personal opinion that I am entitled to) that we haven't seen the worst of it yet. As I drive through my local neighborhoods and see for "sale signs" and "bank owned" property signs going up in the ever so "ole money" wealthy La Jolla, California. Why are home sales going up?

Because big time investors are swooping in to get the goods. Check out this article: San Diego firm gets nearly 700 foreclosed Florida homes in a bulk buy.

Don't miss out! Are you looking to get a piece of the pie? Are you ready to purchase a home or investment property?

Purchasing a home in the down market could be the best investment you make in your lifetime. Don't miss out simply because you don't know your options!

Here are the top 7 things that will prepare you to get in on the action:

Is this the first time you have purchased a home?

Check out local listings for First Time Home Buyer Seminars. Typically these are put on by Real Estate Agents or Businesses looking to educate the general public on the process of buying a home. If you would like a referral, contact us at teamschuco at gmail dot com. Also, many counties have special programs for First-Time Home Buyers, do some research in your area to see if any are offered.

Know how much you can afford!

Knowing the answer to this question will allow you to focus the search of your homes within the correct price range. The most important factor that lenders are looking at is your debt-to income ratio. This ratio takes into account a mortgage payment plus your other personal debt you are carrying such as car loans, credit card debt and student loans.

Typically these are debts that report on your credit report. The ratio is expressed in a percentage of how much of your income is being used to make debt payments. The bank typically uses a guideleine of a ratio lower than 36%. Ratios above this can be denied all together or carry a higher interest rate because of the risk of payment default. The lower your debt-to-income ratio the better your chances are in securing a mortgage loan. Do you know what your debt-to-income ratio is? Contact us for a free consultation on your debt-to-income ratio.

Prioritize what it is that you Need vs. Want in your New Home!

Let's face it...many of us want a mansion with an ocean view, white picket fence in the ritzy part of town (or maybe not), but making a list of those things that you are willing to sacrifice will make it easier for decision time. Make sure your Real Estate agent knows the non-negotiable items, such as must be a two bedroom, must have air conditioning, must have a garage...you get the point. This will help them narrow down options and save time by looking at properties that fit your needs.

Explore Your Mortgage Options!

Start looking into the different types of mortgages available. Knowledge is power therefore, educate yourself so that you remain in control of your financial destiny and get the best loan available to you. I can tell you from experience the days of subprime mortgages are way over and its about time! Recovery is on the rise and A paper credit is going to be key in the affordability of a mortgage payment. Check out our post on the Different Types of Mortgages.

Get Pre-Approved for a Home Loan!

There is a difference between pre-qualified and pre-approved. Pre-qualification is a lender’s estimate of how much you could be eligible to borrow based on information you supply. Pre-qualification does not mean you will get the loan. Pre-qualifications are usually free. Pre-approval usually means that the lender is ready to make you a mortgage loan based on the information and documentation you provided at the time you requested a pre-approval. The pre-approval will say how long it is valid for and may contain some other conditions for you to get the loan. Your lender may not require that you pay any fees except the cost of a credit report at this time.

Find the Right Real Estate Agent

Educate Yourself on the Home Buying Process

Check out our Real Estate Lending Manual for education on the home buying process and how to qualify for a home loan.

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