Buyers

What To Focus On When Home Shopping

Francisco Montes de Oca · February 28, 2023 · Leave a Comment

So you’re starting your house-hunting journey… you’ve set your budget, gotten pre-approved, and discussed your wants and needs, and now it’s time for the fun part — going to see the homes you’ve narrowed down!

However, the universal truth of home buying is that you will never find a house with everything on your “must have” list. So, when walking through houses, it’s important that you try and focus on your list of needs… specifically on the things you cannot change.

To help break it down for you…

Pay attention to:

Location, neighborhood, and distance from your work, shopping, schools, etc.
Yard size and the view / what is surrounding the home.
Square footage of the home.
The number of bedrooms/bathrooms, the bedroom sizes, etc.
Your non-negotiables list.
Make sure to look at the condition of major systems like the HVAC and roof (these are not small expenses).

Ignore things like:

Seller’s style and decor
Clutter and disorganization
Poor landscaping

Don’t worry about the paint color, and who cares if the house has horrible brass fixtures and ugly carpet? You can change those things in a couple of days without dropping a ton of money. Try and look beyond the surface, and even the dated kitchen, to see a home’s hidden potential, and you might just check off all of your “must-have” items!

If you’re thinking of buying, save this post for later! Have questions about the home buying process and where to start? Send me a message; I would love to help you get started in your home search!

Higher Interest Rates VS Paying Over Appraised Value

Francisco Montes de Oca · December 8, 2022 · Leave a Comment

The market over the past few years has been tough for buyers, to say the least. However, now that interest rates are on the rise, we have seen buyers backing out of the market, not wanting to “overpay” for a home.

The ideal scenario is to buy a home when both interest rates and home prices are low, but that isn’t always possible. So, as you’re considering home prices versus interest rates, it’s important to keep in mind that one isn’t necessarily better than the other.

Home Interest Rate Hacks

Francisco Montes de Oca · December 8, 2022 · Leave a Comment

With interest rates continuing to rise, buyers are becoming more price-conscious than ever. If you were ready to buy before rates increased, don’t let the current rates deter you from purchasing a home this year.

If you have been on the fence about buying, let’s chat. I’d love to discuss different ways to get you into your new home with a payment you are comfortable with!

2-1 Buydown

A 2-1 buydown is a type of financing that lowers the interest rate on a mortgage for the first two years before it rises to the regular, permanent rate. The rate is typically two percentage points lower during the first year and one percentage point lower in the second year. Either a buyer or a home seller can pay for a buydown (in the form of a seller assist).

This Is a great option if you are planning on getting a raise in the next few years, or paying off debt.

Adjustable-Rate Mortgage (ARM)

An adjustable-rate mortgage (ARM) is a home loan with a variable interest rate after a certain set period. This means that the initial interest rate is fixed for a period of time (this can be anywhere from 5-10 years), and after that, it can adjust periodically, up to a certain “cap.”

For example, a 5/1 ARM would stay fixed at a lower rate for the first 5 years, and then after the 5 years, can adjust up (or down) no more than 1-2% a year, with a maximum amount it can increase over the next 25 years of the loan. The most common types of ARMS are 3, 5, and 7-year ARMS.

This is a great option if you are planning on moving In 5-7 years, or refinancing when / if rates drop.

Improve Your Credit / Maintain Good Credit

A good credit score helps you qualify for a mortgage with the best loan terms — this includes the interest rate, PMI (mortgage Insurance), and upfront fees. Make sure you maintain good credit by paying your bills on time and utilizing under 30% of your total available credit.

SHOP AROUND FOR LENDERS (AND THE BEST RATE)

Different lenders will offer different terms and charge different fees for a home loan. It’s important to get quotes from more than one lender, compare your options, and ask questions. It doesn’t hurt to play them against each other either to get the best terms (not just the interest rate). Most lenders will get quite competitive to gain your business.

If you decide to shop around, make sure you do so within the 45-day window so that there will be minimal effect on your credit, and don’t apply with too many. Ask friends or your agent for recommendations or reach out to me for a list of a few of the best lenders in our area!

Tips For Saving For A Down Payment

Francisco Montes de Oca · October 31, 2022 · Leave a Comment

With the high inflation that we have seen this past year, saving seems to be more difficult than ever, and saving up enough to buy a home can feel almost impossible.

Here are a few ideas and strategies to help save for a downpayment:

Crack down on your budget.
Make sure you have a monthly budget in place and follow it.
Reduce or cut back on dining out or getting takeout. Plan out your meals, check for local sales and coupons, and buy in bulk if possible.
Skip a vacation this year, and plan a staycation instead.
Set up automatic transfers from your checking to your savings account each month.
Put away tax returns, raises, bonuses, etc., into a high-yield savings account.
Pick up a side hustle like freelancing, ridesharing, pet sitting, or babysitting, or get a part-time job. Remember, it’s short term to achieve your goal of homeownership!

Although 20% down allows you to avoid monthly mortgage insurance, there are loan programs that allow for as little as 3-5% down.

Have questions about the home buying process and where to start? Send me a message, I’d be happy to send you a FREE copy of my homebuyer guide!

How To Get The Best Interest Rate!

Francisco Montes de Oca · August 15, 2022 · Leave a Comment

How To Get The Best Interest Rate!

For some reason, there has always been this focus on the “interest rate” — why aren’t we focused more on the “monthly payment” and “affordability” than one small factor in the equation?

There are 2 (ok, 3) things every buyer must understand about interest rates:

1. They are always changing.

2. You are NOT stuck with the same rate forever.

3. You can refinance & cash out your equity later at a different rate and term.

Now, if you really want to get the best interest rate, it’s time to take a look at your credit and explore different rate programs with a lender. The higher your credit score, the lower your interest rate … but did you know rates vary by loan product? Consider looking at the rate of a 15-year or 7-year ARM (adjustable rate mortgage), compared to a 30-year fixed Conventional / FHA.

Reach out if you’d like to talk more about ways you can structure your mortgage and how to get yourself in the best position with your investment — I’m always happy to connect you with my trusted lenders and financial advisors!