Home Buying Advice

Buying a home soon? Here’s some home buying advice that will help you tremendously along the way!

1.      Find a Great Realtor

HomeBuying AdviceAsk your friends, family, colleagues, etc. for referrals – via email, facebook, twitter…whatever – just make sure you ask around because a great Realtor is an invaluable asset during the home buying process. They will negotiate the best terms and price possible, stay on top of critical deadlines and inspections, work in close contact with a variety of other real estate professionals (such as the lender, title company, etc.) to make sure you close on time – basically, they are your lifeline. They bear the burden so you don’t have to, and they do it gladly.

2.      Find a Great Lender

HomeBuying AdviceAgain, ask for referrals. You can get estimates from a few different lenders – just make sure you compare all of the loan terms, not just the interest rate. A great lender will have a comprehensive understanding of the current mortgage market, and have the ability to explain various loan programs to you in a way you understand.

3.      Prioritize

HomeBuying AdviceEveryone seems to want to buy a spacious home, close to the city with a huge yard, for less than market value. Wouldn’t that be a fabulous find!? The reality is, it’s highly unlikely you’ll be able to find a home that has absolutely everything you want – especially in a market with inventory as scarce as it is now.  Prioritize which features/amenities are most important to you, and ask your Realtor what is a realistic expectation within your price range.

4.      Price Range

Since we’re on the topic of price, let’s take a moment to address some very common mistakes that we don’t want you to make.

HomeBuying AdviceWhat you qualify for may be more than what you’re comfortable paying. You need to be the one to make that decision – but it may help to talk to your lender in further detail before deciding. There’s nothing worse than falling in love with a home that ends up being priced outside your comfort zone.

Focus on the monthly payment. $5,000 has a bigger impact on the seller than it does on the buyer/borrower. Why? Because you’re financing this amount over a span of time, whereas the seller will be receiving it as a lump sum. Every experienced Realtor will be able to recall stories of buyers who lost a great property over a few thousand dollars – an amount that would have only affected the buyer’s monthly payment by a few dollars a month!

To avoid making this same mistake, call your lender and ask what the difference in monthly payments will be. Then ask yourself if the home is worth that extra little bit every month.

5.      Cooperation

HomeBuying AdviceIt’s in everyone’s best interest for you to close on time – yours, the seller’s, the agents’, the lender’s, the attorneys’…the list goes on. So if your Realtor or lender needs something signed or documentation provided, do your best to get it to them immediately. In the world of real estate, time is of the essence – always.

I hope you find this home buying advice helpful! If you have any mortgage related questions, feel free to email me at TonyGarciaLoans@gmail.com or call me directly at 571.246.4373.

Thanks for reading and good luck in your home search!

2013
04/26
CATEGORY
Finance a Home
Leave a comment

Best Cities To Move To

Best Cities To Move To

Best Cities To Move To

2013
04/22
CATEGORY
Finance a Home
Real Estate News
TAGS











Leave a comment

Vacation Home or Investment Property Financing

According to the National Association of Realtors’ 2013 Investment and Vacation Home Buyers Survey, vacation home sales rose 10.1 percent in 2011 and maintained this momentum through 2012.  The median vacation-home price also increased from $121,300 in 2011 to $150,000 in 2012.  All in all, good signs for the real estate market.

NAR Chief Economis, Lawrence Yun, credited improvements in the stock market as part of the reason for this boost:

“We had a strong stock market recovery, which helps more people in the prime ages for buying vacation homes. Attractively priced recreational property is also a big draw.”

Buy a Vacation Home

Raw Numbers

  • There are 7.9 million vacation homes in the US
  • Sales accounted for 11% of all transactions last year, unchanged from 2011
  • 35% of vacation homes purchased in 2012 were distressed homes
  • 46% of vacation homes were purchased with cash
  • The remaining 54% of homes that were financed had a median down payment of 27%

Buyer Profile

  • The average vacation homebuyer’s age was 47 years old
  • Their median household income was $92,100
  • They plan to own their recreational property for a median of 10 years
  • 29% said they were likely to purchase another vacation home within two years
  • 78% of all second-home buyers said it was a good time to buy (compared with 68% of primary residence buyers)

Reasons for Purchasing

Lifestyle factors remain the primary motivation for vacation-home buyers:

  • 80% want to use the property for vacations or family retreats
  • 27% plan to use it as a primary residence in the future
  • 23% plan to rent the home out
  • 23% wanted to diversify their investments or saw a good investment opportunity

Location

  • 45% of vacation homes purchased last year were in the South
  • 25% in the West
  • 17% in the Northeast
  • 12% in the Midwest

The vacation home buyer purchased a property that was a median distance of 435 miles from their primary residence

  • 34% were within 100 miles
  • 46% were more than 500 miles

Contact Tony Garcia at 571.246.4373 if would like to learn more about financing a vacation home or investment property up to $3 million.

2013
04/17
CATEGORY
Finance a Home
TAGS










Leave a comment

Should You Refinance Your FHA Loan Into a Conventional Loan?

Refinance FHA Loan into Conventional Loan

Image Credit: ddpavumba / FreeDigitalPhotos.net

As you’ve probably heard, the value of homes has been consistently climbing for quite some time.  There are a couple of different variables playing a role in value improvements, such as inflation and depressed supply, but we’ll skip the lesson in economics and stay on track with the subject at hand: Refinances.

So, why should you refinance your FHA loan into a conventional loan?

Over the past few years, FHA loans have become more and more expensive due to a rise in mortgage insurance premiums. For this reason, you might save hundreds of dollars a month by refinancing into a conventional loan, even if your interest rate is only reduced slightly.

  • If you have as little as 3 percent equity in your home, you can significantly lower your mortgage insurance premiums by switching to a conventional loan.
  • If you have 5 percent equity, you can eliminate mortgage insurance premiums all together!

Now, let’s take this out of word format and put it into numbers format.  To know exactly how much this switch could save you per month, call me directly at 571.246.4373 or email TonyGarciaLoans@gmail.com.

2013
03/20
CATEGORY
Refinancing Your Home
TAGS

















Leave a comment

Homeownership for Gen X & Y

Gen X & Y InfoGraphic

2013
03/04
CATEGORY
Real Estate News
TAGS









Leave a comment

3.8% Tax on Real Estate – Effective 2013

The 3.8 percent tax on real estate will take effect January 1, 2013 and will affect everyone differently.  To learn how this tax impacts you, read the following informational brochures:

National Association of Realtors Explains the 3.80% Tax

Wall Street Journal Explains the 3.80% Tax

Top 10 Things You Need to Know About the 3.8% Tax

2012
11/21
CATEGORY
Real Estate News
TAGS






Leave a comment

3.8% Tax on Real Estate in 2013: Get the Facts Here

Here are some facts about the 3.8 percent real estate tax coming in 2013.

  • When you add up all of your income from every possible source, and that total is less than $200,000 ($250,000 on a joint tax return), you will NOT be subject to this tax.
  • The 3.8% tax will NEVER be collected as a transfer tax on real estate of any type, so you’ll NEVER pay this tax at the time that you purchase a home or other investment property.
  • You’ll NEVER pay this tax at settlement when you sell your home or investment property. Any capital gain you realize at settlement is just one component of that year’s gross income.
  • If you sell your principal residence, you will still receive the full benefit of the $250,000 (single tax return)/$500,000 (married filing joint tax return) exclusion on the sale of that home. If your capital gain is greater than these amounts, then you will include any gain above these amounts as income on your Form 1040 tax return. Even then, if your total income (including this taxable portion of gain on your residence) is less than the $200,000/$250,000 amounts, you will NOT pay this tax. If your total income is more than these amounts, a formula will protect some portion of your investment.
  • The tax applies to other types of investment income, not just real estate. If your income is more than the $200,000/$250,000 amount, then the tax formula will be applied to capital gains, interest income, dividend income and net rents (i.e., rents after expenses).
  • The tax goes into effect in 2013. If you have investment income in 2013, you won’t pay the 3.8% tax until you file your 2013 Form 1040 tax return in 2014. The 3.8% tax for any later year will be paid in the following calendar year when the tax returns are filed.
  • In any particular year, if you have NO income from capital gains, rents, interest or dividends, you’ll NEVER pay this tax, even if you have millions of dollars of other types of income.
  • The formula that determines the amount of 3.8% tax due will ALWAYS protect $200,000 ($250,000 on a joint return) of your income from any burden of the 3.8% tax. For example, if you are single and have a total of $201,000 income, the 3.8% tax would NEVER be imposed on more than $1000.
  • It’s true that investment income from rents on an investment property could be subject to the 3.8% tax. BUT: The only rental income that would be included in your gross income and therefore possibly subject to the tax is net rental income: gross rents minus expenses like depreciation, interest, property tax, maintenance and utilities.
2012
10/25
CATEGORY
Mortgage News
Real Estate News
TAGS


Leave a comment
Lending with Integrity Nationwide.

I'm committed to client satisfaction, and it drives me to work diligently on every loan. But my dedication is only part of the story. With over 12 years of mortgage experience and a thorough knowledge of the industry, I can customize the perfect loan for clients, while getting them to closing on time.

Whether you're referring a client or you're a homebuyer, I'm confident you'll appreciate what I can do for you. By offering a wide range of loans and a variety of terms, I am well prepared to handle everything from complex financial situations to larger loan sizes.

I'll always be available to answer questions throughout the mortgage process from beginning to end. So let's start today.

Tony Garcia
Sr. Loan Officer
Cell (571)246-4373
Fax (866) 477-7727
tonygarcialoans@gmail.com
www.tonygarcialoans.com
NMLS #224036


Follow

Get every new post delivered to your Inbox.