Romancing the loan
Or, How I Stopped Worrying and Learned to Love Buying a Home.
O
kay, 2020 is finally behind us. Unclench your hands. Stand up and stretch. Take a deep breath, and let it out real slow: In with the new. Out with the dumpster fire.
Cents and Sensibility
Despite a year of economic and societal volatility — or maybe even in part because of it — San Diego’s housing market has remained competitive, with homes selling quickly with multiple offers above list price. Even without mentioning the B-word (or “bubble,” for those who aren’t superstitious), should There are this market inflation deter buyers from programs out trying to get into a home of their own?
After that rollercoaster of a year, you deserve some good news for 2021 and beyond. The new year brings fresh hope for stability — particularly as the turbulence calms from 2020’s wild markets — and with it, fresh opportunity to build long-term wealth there to help Schreier says no. “Realistically, there in real estate. Whether you’re already a is no better investment in the U.S. almost everybody homeowner or interested in becoming than homeownership. It is the greatest buy a home. one, this year presents a historic range of wealth builder, hands down. There ways to finance your next home to make the will always be ups and downs, but real most of your investment estate assets appreciate over time and dollars and turn your monthly provide leverage, especially when they’re paying housing payment into something toward a place of their own and not just funding their you’ll someday own. landlord’s mortgage. With dozens or hundreds of public and “If you look at the historic appreciation for real estate private mortgage assistance programs value, the math works out. Plus you’ll be paying the same out there, how do you find the one monthly mortgage for the life of your loan, while rent might that’s best for you? We sat down with go up 4.5% year by year, and current forecasts are for Russ Schreier of Point Mortgage to property values to appreciate even faster than historic get the scoop. rates. The cost of waiting is real.”
Some Like it House Finding and buying a home can be quite an adventure. And like any great adventure, it’s better with solid friends by your side: the team you assemble will be your greatest allies in creating your bright new future.
Mortgage Mythbusters “The biggest misconception buyers have is that there’s no way they’ll qualify for a loan,” Schreier says. “Loan assistance programs are designed to get people into homes — people who otherwise wouldn’t be able to own. And individual buyers often qualify for multiple programs, particularly now that the loan market is opening up again.” Adds Schreier, “Buyers often start by inquiring about a specific program — usually one mentioned on TV, or one that helped a friend buy their dream home. But there’s no need for a buyer to decide on a loan program in advance. Each buyer has different needs, sometimes needs that they’ve never sat down to identify,” not to mention factors that vary for the type of property they’re seeking. “First-time buyer? Looking for a multiplefamily dwelling? Do you need help with the down payment or closing costs? A lower monthly payment? Does your buyer profile qualify you for a lower interest rate, or even for a loan with an income ceiling?” Schreier continues, “The self-employed can get into a house. Non-citizens can get loans. Got dings on your credit and think you can’t qualify? Think again! Buyers with a lower credit score may still qualify for an FHA loan at historically low rates. Loans can be structured to cover up-front costs. If you have the right profile, you can get in with alternative income verification.” There’s one preconception that does hold water, though, with programs especially applicable here in San Diego. “Veterans!” exclaims Schreier. Along with other perks available to those who have served, “The interest rate can be much lower. And right now, VA has removed the loan size limit!” So with all these options, where do you start?
Schreier suggests meeting with both your agent and loan specialist before setting your sights on a particular home, and even before beginning your home search. “You need to know what you qualify for, no question. You also need to work as a team to make a game plan, so when you do decide to make an offer, all the pieces are in place to move quickly and smoothly. “Together, we look at each property to see how we might be able to get you in. Then it’s a negotiation with the seller, who wants to see more money, more certainty — the buyer needs to make an offer that stands out and shines.” Timeliness is key, says Schreier. “Rates can literally change by the minute. Large market forces can cause volatility and affect the rates, and your loan officer may have seconds to get a loan locked at that low rate.” This means good communication with your agent and lender is not just a good idea, but one that can save you large amounts of money over time. “Nobody knows for sure what will happen with the market and loan rates in the future,” Schreier adds, “and we work hard with our clients, sometimes over the course of months, to get them to qualify. No matter where you are in your decision to find a house, it’s never too early to get started.”
About Russ Schreier:
Russ Schreier is the Vice President of Sales at Point Mortgage Corporation. With over 30 years of experience, he is a featured industry expert in local and national media, and coaches teams of loan originators on how to improve the borrower experience. A minority owner/shareholder of Point Mortgage Corporation owns a majority interest in Coldwell Banker West.
Ready to begin your home hunting adventure? Contact your favorite REALTOR® today to start putting together your dream team!
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