how much to spend….
How much to spend, does the question ever seem to mean more than when we are shopping for….a home!
One thing is for sure you will need a down payment, how much depends on your budget.
With the financial market being what it is; the loan with the least amount of a minimum down payment is for VA only, where there is a 0% down payment. This is only for Veterans with benefits. The next is FHA this requires a 3.5% down, used mostly by first time buyers and is for primary residences only. These types of loans require PMI (Principle Mortgage Insurance). This adds a 1.75% upfront premium that is built into the loan and a monthly premium based on the loan amount that is applied and paid through the mortgage monthly. FHA loans are great for first time buyers who do not have the required 20% down to avoid an added PMI. Conventional financing is for those who have 20% or more to put down. Another program for teachers is the CalSTRS program; this allows those who pay into STRS to put down 3% while having a 17% silent second for 5 years and avoids PMI. Those qualified are able to purchase more while securely locking into a 30 year fixed rate mortgage. The 17% silent second is rolled in the 80% fist after the 5 year period there is no refinance required.
It is always advised prior to looking for a home to get pre-approved. The pre-approval process lets you know how much you will qualify for. Once you have this information you can securely go look for that home knowing how much you qualify for. Having this knowledge gives the comfort and security to be able to move forward knowing you will be able to buy the home you desire.
Here in the Santa Clarita Valley as of Dec 11th there are 652 homes available for sale; this includes the short sale property which can take up to 4 months and sometimes more to move through the process of having a bank accept an offer.
To find out how much you qualify for call and I walk you through the pre-approval process. Now is the time to get in the real estate market, take advantage of the extended tax credit and move into the home you desire.Remember while you are out there preparing for the holiday’s to shop local. Enjoy all that Santa Clarita has to offer, shops, restaurants, entertainment the list goes on!!
As a mortgage banker, Marcy brings many years of financing experience including prior real estate sales to the industry. She offers her clients a wealth of experience from purchasing to refinancing, home equity lines of credit, including construction and commercial mortgage financing. As a preferred lender with CalSTRS (a program available to teachers), as well as an expert FHA/VA lender, she has and will continue to help people with their dream of becoming a home owner. Marcy is a skilled negotiator with a proven track record of service and loyalty to her clients. She understand’s that every financial situation is unique and that quality information and timely communication are the key to her clients’ high level of satisfaction. If you have any needs give me a call @ 661-755-4883.
Contact for Marcy:
www.marcyjames.net
mjames@gemcorp.com
