A Window of Opportunity

Mortgage Insurance (MI) for FHA is increasing beginning April 1, 2013. This means that it will be less affordable for first-time homebuyers to afford a new home. Since Redondo Mortgage Center is founded on the principle of helping families own homes, we have sourced out new programs that can assist buyers that fit into the first-time homebuyer category under a similar FHA structure.

Starting Monday, March 18, we will be able to offer first-time homebuyers with limited down payment options, to be able to purchase with just a 3% down payment. The good news is, MI for this program can be financed! What’s more, this program is a conventional loan, meaning, qualifications are less stringent and there are more chances for borrowers to qualify. 

Starter homes such as condominiums and townhomes need not undergo the FHA scrutiny that usually causes challenges and delays to purchase transactions. Aside from the comparable low down payment  this conventional program offers, the prequalification document RMC issues for you to make an offer, will reflect a financing that is conventional—meaning real estate agents are aware that facilitation for the loan file will not be based on several more conditions prior to closing—More chances for you to get an acceptance.

While the FHA program at 3.5% down payment may still be best for a certain profile of buyers,  It may be worth your while to explore its conventional program counterpart. Call RMC now for more details and we will be more than happy to take you through all your financing options.

Our loan officers may be reached at 310-318-899 or visit www.redondomortgage.com and go to the “Quick Apply” tab.

Adjustments and Adapting

So today we spring forward! One hour taken away! If it were I alone, one hour would have not been a big deal. Unfortunately, I have two children at the peak of their hyper-mode to tuck in an hour earlier. I also have a husband to prompt to turn off the video game before his gaming curfew.

Thankfully, I am not as woozy as my sleep-deprived brood. Dragging my seven-year old out of bed is always an exercise and changing a one-year old’s strong- whiffed diaper are enough to wake any zombie up! Plus two cups of coffee helps!

So we all went on our ways this Monday morning, school, playschool, and work. The adjustment was a hump, but we got back on track. Change is not easy—for a one-year old, a seven-year old, a 38-year old, nor a 42-year old, but humans are instinctively trained to adapt.

Another kind of change is a good change. The things that positively affect our lives. A new job, a new home, a new car. These are changes we look forward to and even though it takes adjustments, we don’t really complain. We get excited with a new job even though we have to drive more miles to get to it. We overlook the hassle of moving when we know a new home is waiting. We don’t mind paying a higher lease amount for a newer car model.

A Wiseman once said, “A journey of a thousand miles begins with a single step.” Lao Tzu is right. If we can bring ourselves to initiate changes for the better, a small step is a start. Take for instance considering investing in a home instead of renting an apartment. That monthly rent budget could already be building you an equity in a home that you are owning. Or if you already are paying mortgage, a lower monthly mortgage payment could be a good change. Have you explored refinancing into a lower rate? These are some of the changes that positively impact us and will not make us cringe to undertake—such as it did today when we lost an hour’s worth of sleep.

Adjustments and adaptation go hand in hand. Drastic or trivial, we either just need to get over the hump and move on, or initiate that positive move by beginning with a single step.

For information about homebuying or refinancing, call us at 310-318-8999 or visit www.redondomortgage.com

Still Renting at 30?

Are you turning 30 soon? Have you thought of buying a home? Whatever your relationship status is, 30-years old is around the time homebuying crosses our minds. I was 29 when I first considered buying a house. I was 36 when my husband and I bought our first home.

Heather Taylor of the Economics and Housing Policy confirms on her Characteristics of Home Buyers report that the median age for first-time homebuyers is 31 years old. Published on February 8, 2013 by the National Association of Home Builders, the report gives an interesting insight on the characteristics and preferences of current homebuyers.

What I realized was homebuying does not happen overnight. You contemplate for a few months, consult with family and friends, keep an extra eye out for market trends in real estate, and pop your nose in properties that hoist signs "OPEN HOUSE TODAY!" 

If you are now considering buying a home here are some interesting findings from HousingEconomics.com: 

• The median age of those who preferred a brand new home is 38 years old
• You are most likely to look at six homes (for brand new construction) and 10 homes (for existing homes) before making a purchase
• The median value of homes purchased by first-time homebuyers is at $147,000
• The median value of brand new homes purchased was at around $230,000
• Brand-new homebuyers purchased properties around 2,100 square feet while existing homes that were purchased was at around 1,750 square feet
• First-time homebuyers' median income  range from $59,964 to $64,998
• Buyers of brand new homes had a median income of $81,715

The above national figures may give you a good gauge of how much you should be earning and how much you can afford, depending of course in the area where you work, live, and where you're buying.

If you're 30-something and find yourself among the median range of income and that the amount you want to pay for a home is along the lines of the median pricing above, you may be interested to peek at the buying process below:

1. Find a financial lending company you're comfortable working with

2. Accomplish a loan application and get qualified for a specific amount

3. Gather documents 

4. Get a qualified real estate agent who understands your home "wish list"

5. Visit properties for sale

6. Put an offer...wait for counter offers...wait for an acceptance.

7. Open Escrow

8. Facilitate inspections

9. Sign at Escrow

10. Wait for funding

11. Get your keys and move in

If you're nearing forty and find yourself still renting, do not panic. Purchasing a home is not about deadlines, instead, it should be based on what is cost-efficient for you and your family--this is coming from a real estate lending company who is concerned with its clients' welfare rather than just gaining a business. Redondo Mortgage Center's repeat clients for nearly a quarter of a century, speak of its reputation of integrity. So when you are ready, be sure to check us out at www.redondomortgage.com and chat with our live loan officers confidentially. Or just call us at 310-318-8999.

Blogged by:
Mara M. Gaborro

Corporate Communications Head at RMC