You could probably talk with a lender at your bank and get a good idea of your mortgage options. In general often a higher down payment can get you a lower interest rate but there are many things to consider.
San Jose home values http://julianalee.com/san-jose/san-jose-statistics.htm
Top 3 agent for 3 years nationwide at Keller Williams Realty, the nations largest
Over 20 years experience
Over 1,000 homes sold in Santa Clara County and San Mateo County
Hard to find a good deal on a rental. Because most apartments are 98 % occupied.
So Landlord can charge the maximum.
I dont usually like Condo's .. but your payments wont go higher and you get the tax write offs
If you can find a small house .... that would give the best return on your money.
I am a Real Estate Broker ... good luck
My simple answer is buy if you can. If you can't then find out what you need to do to get qualified to do so.
To help you decide you may wish to come to a free Home Buyers seminar at the Campbell Community Center this Saturday morning from 10 to 12. Locations is 1 West Campbell Ave, Campbell 95008.
You will learn about the multiple 1st time buyer programs available and get a full appreciation of the buying process.
First, here are the details from a lending perspective:
There are lending options with a 3.5% down payment, and with a 5% down payment. The first option is an FHA loan, and allows for lower credit scores as well.
The second option is conventional financing, and your credit scores need to be above 680.
How is your credit? What does your budget allow for a payment amount?
There are many other items to consider, but this is a very good starting point.
I am happy to talk with you in detail if you have the time.
Eric O. Nelson, III
Sr. Mortgage Planner
NMLS # 120412
CA BRE # 01258488
I am a Realtor and Lender who grew up in San Jose and practiced there for 22+ years. Let's have a frank conversation about what you should do. Call me cell when you have a chance.
Mario Pinedo, CCIM
Real Estate Broker & Lender
Keller Williams & CS Financial
BRE Broker 01118365
Not a big dilemma. I have worked with a whole lot of first time home buyers, buying condos, town homes and single family homes. Most start with the same question as you have.
Renting - affords you tremendous flexibility, to move and relocate at will. But, all the rent you pay to your landlord, you have not tax savings by way of tax discounts, there is no element of principal return that adds to your equity, and of course there is no appreciation. There is a huge loss in terms of lost unearned immediate returns, equity build up over the years. The loss is not proportionate to the rent paid, the loss is usually higher.
Buying - you strike roots, become a part of a community, a neighborhood, there is a sense of belonging, there is a huge sense of pride for your family, spouse and kids.
If you have a good employment history, a good credit report, and a reasonable down payment. There is no reason for you not to buy. The benefits of buying outweigh those of renting. it is more than financials. You begin to build your equity. Credit reports can be taken care of unless they are way down. Down payments, you could have even as little as 3.5 %, or 5 % or 10 %.
I could quantify the benefits, financial and not financial. Call me at (408) 781-0976 (Mobile) or GToor@Interorealestate.com
I suggest you look at a buy vs rent scenario. You put in your rent, and factors for purchasing. You can use a 3% appreciation the purchase and 4.5% interest to get an idea.
Also, talk with my lender, he will run numbers for you based on your income, debt, credit, etc and help you to understand what loan program will be available to you. Also, if you have a trusted financial planner they too can help.
As for the actual real estate process once you have decided to go forward then you have a consultation with a Realtor, such as myself, then go from there.
It really depends on your overall situation, income, credit, assets, etc. You may be eligible for one of the down payment assistance programs.
Please feel free to give me a call if you would like to discuss your options.
Elva A. Wormley
Office (408) 615-8500
C2 Financial Corporation
2845 Moorpark Avenue, Suite 209
San Jose, CA 95128
NMLS #331981 / BRE #01274093
Tough decision and one folks deal with every day. It might be a good idea to meet with a local mortgage broker in San Jose. Go through the pre-approval process. This will give you a good idea about what you need to do to buy...then you can compare the numbers to renting...
Having this additional information will assist you in making your decision,