Well there have been a lot of good answers and many from realtors. I would say you need your realtor and your lender working together on this one.
The thing is there are a number of subtle differences, the questions need to be asked.
If all we have is the minimum down, where are the closing costs going to come from, that is assuming you do not have the money for those.
1. Your agent can negotiate for the seller to pay these when they make your offer.
The problem is that the competition fof houses is such doing so can hamper your ability to get and offer accepted.
2. As a lender, I can raise your interest rate a little bit and make your closing costs go away. This has been a good option lately as mathematically it makes sense to pay say $20 mor a month rather than pay the $2000 in closing costs.
On conforming mortgages the interest, taxes and insurance really needs to be paid for by you. But when you consider the mortgage insurance options it is a better deal than going FHA. But, on FHA the seller can pay these items or I as the loan officer can pay for them out of rebate.
Based on the price I may guess that the home may qualify for USDA financing. This has no money down and lower MI costs than FHA. Also if you happen to be a vet, that is the best deal of all.
If you like give me a call and I can tell you if you can get the USDA loan.
nmls 287206... more
Hello. At that amount you wish to pay, you should look at about $185,000 to low 190s. Rates have gone up recently. Some parts of Citrus Heights have pretty nice neighborhoods. Carmichael is a good bet also. 95821,95825, 95826 & 95827 may be a good bet as well. Part of this is College Greens area. Howe avenue to past Fair Oaks near Folsom Blvd. A $185,000 purchase puts Principle & Interest at about $937.37, leaving room for your taxes and insurance and mortgage insurance if you are going with an FHA loan. Probably stay close to $185 as you can. Hope this helps
Mike Garozzo, Capitol Home Brokers.... more
Dear Taza Guru: There are no guarantees in real estate investing, except that real estate investing has historically been the best hedge against inflation. When analyzing a real estate invesment, there are several indicators that can easily be calculated. Capitalization rate, cash on cash, return of and on investment, before tax cash flow, after tax cash flow, vacancy rate of rentals in the area, and average market rent of other comparable investments. You just need to decide what your goals are for all of the above indicators of investment value and purchase only investments that meet your personal criteria.
If you are just starting out in investing in real estate, congratulations to you. Put yourself together a team of an accountant, attorney, Realtor and if you need it, a property manager. Some people prefer to manage their properties themselves.
There are books to read on this subject. The worst thing you can do is go into real estate investing uneducated.
Good luck--I hope your journey is delightful.... more
Hi Taza. One of the main reasons why you did not get an accepted offer is because you are competing with cash buyers. Many of the properties in the zip codes you listed are bank owned and banks prefer all cash offers. That does not mean that you can't buy with a loan. It will just take longer and you'll have to be patient and willing to go above asking price to make your offer stand out. Don't get discouraged.
My recommendation would be that you work with a technology savvy real estate agent in this area who is willing and able to watch the market for you with an eagle's eye and write up offers quickly when properties come on the market that match your criteria. The great majority of the properties worth buying are snapped up within days of coming on the market. I would also highly recommend that you keep your pre-approval letter current. A bank will not take your offer seriously if your pre-approval letter is several months old. Keep it fresh. It's a numbers game. The more offers you submit, the better your chances are at getting the winning bid.... more
Most banks are asking for 25% to 30%. The better your credit score and the more money you put down, the better loan you will find. If you need a loan broker, I have an excellant person I work with and he always works hard to find my clients great loans.... more