Why are you still renting???

Save your money, ask Santa for cash, file your tax return ASAP! This market is amazing. I ran a few numbers; as of today rates are lower than 5%, but I just needed to plug in an interest rate to get approximate payments for you. You will need to add taxes and insurance, Association fees (if any), and possibly PMI (lender required insurance).


Let's do the basic math!



Are you renting for between $750 and $850. Principle and interest on a $100,000 loan @ 5% for 30 years is $536.82. What's on the market for $100,000? Tons of beautiful single family homes!



Are you renting for $1500/month. Here we go ....Principle and interest on a $200,000 loan @ 5% for 30 years is $1073.64 AND $250,000 for 30 yrs at 5% is $1342.05. What's on the market for $200,000 - $250,000? Gorgeous newer homes with large square footage and sparkling pools.



Purchasing has been described as a 3 legged stool- you need all 3 parts to be stable.



Here's the check list:



1) Credit: Do you have good credit? Prior short sales in your credit history should be about 2 yrs old, and explainable. Credit cards and loans (car etc) need to be paid on time consistently.



2) Income: Are you working a full time job where you can prove your income. Have you filed taxes for the past 2 years. Do you keep money in the bank? You need to meet various income criteria for most lenders. Even if you have changed jobs, you could still qualify.



3) Collateral: Does the property you are looking at make sense to a lender? It has to be in marketable condition. It has to appraise for the purchase price or more. In the lenders perspective, if they have to "take back' the property, they do not want to have to do repairs. Just because you are a fix-it kind of buyer, doesn't mean every bank will finance you.



I work with mortgage brokers who know the lending market inside and out. Having done lending myself, I know what they lenders want for collateral. If your own bank turns you down, that doesn't mean another won't lend to you. I can refer you to a mortgage broker if you don't have one yourself. I of course, will help you choose the right property. I'll work directly with your lender to answer any questions before we make an offer and before you pay for a home inspection and appraisal.


2013 should be known as 'The Year of the Homeowner" because the possibilities are endless! Let's plan your escape from the landlord cycle. When you ring in the new year, let's use a doorbell!



Calculate your principle and interest here: http://www.bankrate.com/free-content/mortgage/calculators/free-mortgage-calculator/



Contact me for a free listingbook account. You can browse the MLS, ask me questions and see what is available in your dream neighborhood! I am a full time Realtor, and am available to answer your questions and help you find your way home!