When the home is listed for $100k and you are going to put 40k down that would give you a great loan rate. However the first thing you should do is talk to a experienced lender who will run your credit and see what loans you can be approved for.
In this current market the rates are still very low, but according to my lender it's very important to have a low LTV (loan-to-value-ratio). That means low debt. Also the more you put down the better the rate on your loan. It sounds like you have very little debt. Once you speak with a lender you will have a better idea of what you can afford.
When purchasing a home you want to understand why you are buying the home. I have clients that are buying just for investments reasons so the neighorhood and schools aren't as important to them. What matters to them is how homes rent and want for, and whether they neighborhood will see a growth.
My clients who are buying to live in are more concerned with noise in the nieghborhood, convenience to shopping, flooring, floor plan, schools, community. So Monica it really depends on why you are buying, where you should looks.
You could probably afford some of these foreclosures, but are they in the nieghborhood you want to live? Speak with a lender and see what you can afford and that might give you more options. With no debt and a good job you will be suprised.
IF you need any other information on Real Estate in San Diego County, please visit my website at http://www.encinitasproperties.net
That's a very good question and one that is very relevant for the current San Diego market.
The first thing to get clear about is WHY do you want to buy a foreclosure?
1. Are you a home buyer looking for a personal residence? In that case WHERE you buy a foreclosure will make all the difference for WHAT community you'd like to live in.
2. Are you an investor looking for cash-flow investments, fix & flip or possibly lease option deals? In that case my recommendation would be to look for properties in solid locations, with strong local jobs and infrastructure to support holding the property for at least 3-5 years. With 10--20% down and a 30yr fixed mortgage you can find properties in certain markets that will rent for roughly what your expenses are. These deals DO exist in San Diego at the moment. Make sure you'll have a reserve account set aside with at least 4% of the sales price for any unexpected costs of ownership like vacancies, repairs and such.
Like many of the good people on Trulia will tell you - get advice from an experience real estate agent and lender about your personal situation. A thorough consultation and financial check up are in order before making any offers on any property in any market. Feel free to use this website to search, sort and save foreclosed, bank-owned properties in all of San Diego County.
Start by learning more. go to http://www.creonline.com and click on "Real Estate Clubs," then find some near San Diego. Attend a few meetings. Keep your checkbook in your pocket (except for whatever admission fee--maybe $10-$20--you might e charged). Listen. Learn. Find out what the opportunities are.
Hope that helps.
The next step is to find a realtor that your feel will work with you in your home search. I have access to the bank owned properties as well as the pre-forclosures. If you are truly buying a foreclosure, then you will need to pay cash only for the full amount... when a bank is foreclosing on a property they set a sale date for the property, you may or may not ever get to see the property, you may or may not get a clear title and you must pay cash. Buying a property in foreclosure is very risky. It is best to wait until the foreclosure happens then it is a bank owned (referred as REO many times). Contact me, I wil be glad to assist you.
1)Mortgage Broker: Find out how much you are approved for. Then follow that up with how much you are willing to spend per month towards mortgage without having to eat cereal for every meal. If you need references, let me know.
2) Find an agent who knows the county well and who can help you navigate where you want to live and which areas have the highest re-sale potential based on location, etc. Seeing as how it being your first purchase you most likely will be wanting to sell and move up when the market and life conditions warrant the move.
3)Looking online is great. Not all sites are dependable. That is why having an agent who has access to upcoming foreclosures, knowing current foreclosures etc..is key, especially if you are first time home buyer! Buying a home is a great investment in your future, but it is important to have as much help and insight as possible to make sure the decision you are making is a postive one.
Good Luck to you!!!
If you need any help or more detailed information on the home buying process, let me know I would be happy to email some to you.
There are multiple bank owned and short sale properties in the San Diego MLS. You should have a Realtor experienced in finding them and a good lender that has pre-approved you for a loan. Once you know the amount you can afford comfortably, you can have the Realtor find some likely canditates. Be careful about foreclosures in San Diego under $100,000, if they are not listed properties. I run a free class on buying foreclosures, short sales and bank owned (reo) homes. See the front page of my web site for seminar information (note that the 22nd of April, class is full). I can give you some names for a knowledgabe and professional Realtor, lender, appraiser and home inspector. Let me know if you need more information.
To your success,
If you would like me to refer you to an agent that can help you to find a good property in your area, and a Mortgage broker to help you to find out what you qualify for, then please let me know. I would be happy to help you!
Selena McNeill, Broker
Century 21 Gold Country Realty
First of all I would contact a loan officer and discuss your current financial situation ie, income, expenses, taxes, credit score and work history and they will help you determine what you can qualify for before you take the next step. I will be happy to send you a couple referrals in your area. This is the best way to get your feet wet during this exciting time when considering your first house. Let me know if I can help. Sandra Zambito, Realty Executives 760-297-0826