Buying a Home in 2018?

Why Getting Pre-Approved Should Be Your First Step

Why Getting Pre-Approved Should Be Your First Step
brought to you by THE KCM BLOG

In many markets across the country, the number of buyers searching for their dream homes greatly outnumbers the number of homes for sale. This has led to a competitive marketplace where buyers often need to stand out. One way to show you are serious about buying your dream home is to get pre-qualified or pre-approved for a mortgage before starting your search.

Even if you are in a market that is not as competitive, knowing your budget will give you the confidence of knowing if your dream home is within your reach.

Freddie Mac lays out the advantages of pre-approval in the ‘My Home’ section of their website:

“It’s highly recommended that you work with your lender to get pre-approved before you begin house hunting. Pre-approval will tell you how much home you can afford and can help you move faster, and with greater confidence, in competitive markets.”

One of the many advantages of working with a local real estate professional is that many have relationships with lenders who will be able to help you with this process. Once you have selected a lender, you will need to fill out their loan application and provide them with important information regarding “your credit, debt, work history, down payment and residential history.” 

Freddie Mac describes the ‘4 Cs’ that help determine the amount you will be qualified to borrow:

  1. Capacity: Your current and future ability to make your payments
  2. Capital or cash reserves: The money, savings, and investments you have that can be sold quickly for cash
  3. Collateral: The home, or type of home, that you would like to purchase
  4. Credit: Your history of paying bills and other debts on time

Getting pre-approved is one of many steps that will show home sellers that you are serious about buying, and it often helps speed up the process once your offer has been accepted.

Bottom Line

Many potential home buyers overestimate the down payment and credit scores needed to qualify for a mortgage today. If you are ready and willing to buy, you may be pleasantly surprised at your ability to do so as well.

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Posted in bellflower ca, cerritos ca, cypress ca, homebuyer, homebuying, homeownership, interest rates, lakewood ca, Lakewood Community, lifeinlakewoodrealtor, long beach ca, los alamitos ca, newsletter, norwalk ca, real estate, renter, renting, rossmoor ca, seal beach ca, Uncategorized, va loans

Rising Prices are Good for You!

How Rising Prices Will Help You Build Family Wealth in 2018

How Rising Prices Will Help You Build Family Wealth in 2018
brought to you by the KCM blog

Over the next five years, home prices are expected to appreciate on average by 3.35% per year and to grow by 24.34% cumulatively, according to Pulsenomics’ most recent Home Price Expectation Survey.

So, what does this mean for homeowners and their equity position?

As an example, let’s assume a young couple purchases and closes on a $250,000 home this month (January). If we only look at the projected increase in the price of that home, how much equity will they earn over the next 5 years?

How Rising Prices Will Help You Build Family Wealth in 2018 | Keeping Current Matters

Since the experts predict that home prices will increase by 4.2% in 2018, the young homeowners will have gained $10,500 in equity in just one year.

Over a five-year period, their equity will increase by nearly $45,000! This figure does not even take into account their monthly principal mortgage payments. In many cases, home equity is one of the largest portions of a family’s overall net worth.

Bottom Line

Not only is homeownership something to be proud of, but it also offers you and your family the ability to build equity you can borrow against in the future. If you are ready and willing to buy, find out if you are able to today!

 

 

 

Posted in bellflower ca, cerritos ca, Coldwell Banker, cypress ca, home equity, homebuyer, homebuying, homeownership, lakewood ca, Lakewood Community, lifeinlakewoodrealtor, long beach ca, los alamitos ca, market update, newsletter, norwalk ca, real estate, renter, renting, rossmoor ca, seal beach ca, Uncategorized, va loans

Why Use a Real Estate Agent?

5-Reasons-to-Resolve-KCM

Some Highlights:

  • As we usher in the new year, one thing is for certain… if you plan to buy or sell a house this year, you need a real estate professional on your team!
  • There are many benefits to using a local professional!
  • Pick a professional who knows your local market and can help you achieve your dreams!

Posted in bellflower ca, cerritos ca, closed sales, Coldwell Banker, cypress ca, FSBO, home equity, homebuyer, homebuying, homeownership, homeseller, homeselling, interest rates, lakewood ca, Lakewood Community, lifeinlakewoodrealtor, long beach ca, los alamitos ca, new listings, newsletter, norwalk ca, real estate, renter, renting, rossmoor ca, seal beach ca, Uncategorized, va loans

Lakewood Weekend Update

All I want for Christmas is a New Home!!!!!

16 New listings home with bow

 Have any questions or concerns, please feel free to call me,  562-879-9677

Median Sales Price in Lakewood- $551,000

(Curious to know the value of your home?) Go to: http://www.tiny.cc/u9du9x

59 active listings presently on the market!

 

 15  Open Houses

    8 Price Reductions

Posted in bellflower ca, cerritos ca, Coldwell Banker, cypress ca, holidays, homebuyer, homebuying, homeownership, lakewood ca, Lakewood Community, lifeinlakewoodrealtor, long beach ca, los alamitos ca, new listings, newsletter, norwalk ca, open house, pending sales, price reduction, real estate, renter, renting, rossmoor ca, seal beach ca, Uncategorized, va loans

The Cost of NOT Owning Your Home

brought to you by THE KCM BLOG

Owning a home has great financial benefits, yet many continue to rent! Today, let’s look at the financial reasons why owning a home of your own has been a part of the American Dream for as long as America has existed.

Zillow recently reported that:

“In reality, buying or renting a home is an intensely personal decision, with emotional and even financial considerations that go beyond whether to invest in this one (admittedly large) asset. Looking strictly at housing market numbers, there is a concrete point at which buying a home makes more financial sense than renting it.”

What proof exists that owning is financially better than renting?

1. We recently highlighted the top 5 financial benefits of homeownership:

  • Homeownership is a form of forced savings.
  • Homeownership provides tax savings.
  • Homeownership allows you to lock in your monthly housing cost.
  • Buying a home is cheaper than renting.
  • No other investment lets you live inside of it.

2. Studies have shown that a homeowner’s net worth is 44x greater than that of a renter.

3. Just a few months ago, we explained that a family that purchased an average-priced home at the beginning of 2017 could build more than $48,000 in family wealth over the next five years.

4. Some argue that renting eliminates the cost of taxes and home repairs, but every potential renter must realize that all the expenses the landlord incurs are already baked into the rent paymentalong with a profit margin!!

Bottom Line

Owning a home has always been, and will always be, better from a financial standpoint than renting.

Posted in bellflower ca, cerritos ca, Coldwell Banker, cypress ca, homebuyer, homebuying, homeownership, interest rates, lakewood ca, Lakewood Community, lifeinlakewoodrealtor, long beach ca, los alamitos ca, market update, norwalk ca, real estate, renter, renting, rossmoor ca, seal beach ca, Uncategorized, va loans

Lakewood Weekend Update

All I want for Christmas is a New Home!!!!!

12 New listings home with bow

 Have any questions or concerns, please feel free to call me,  562-879-9677

Median Sales Price in Lakewood- $551,000

(Curious to know the value of your home?) Go to: http://www.tiny.cc/u9du9x

66 active listings presently on the market!

 

 8  Open Houses

    9 Price Reductions

Posted in bellflower ca, cerritos ca, christmas, Coldwell Banker, cypress ca, holidays, homebuyer, homebuying, homeownership, lakewood ca, Lakewood Community, lifeinlakewoodrealtor, long beach ca, los alamitos ca, market update, new listings, newsletter, norwalk ca, open house, price reduction, real estate, renter, renting, rossmoor ca, seal beach ca, Uncategorized, va loans, winter

Lakewood Weekend Update

open house

29 New listings – Lot’s To SEE!!!!!!!!!!!!

 Have any questions or concerns, please feel free to call me,  562-879-9677

Median Sales Price in Lakewood- $551,000

(Curious to know the value of your home?) Go to: http://www.tiny.cc/u9du9x

74 active listings presently on the market!

 

 16  Open Houses (lot’s to see !!!!!!!!)

    11 Price Reductions

Posted in bellflower ca, cerritos ca, Coldwell Banker, cypress ca, homebuyer, homebuying, homeownership, lakewood ca, Lakewood Community, lifeinlakewoodrealtor, long beach ca, los alamitos ca, market update, new listings, newsletter, norwalk ca, open house, price reduction, real estate, renter, renting, rossmoor ca, seal beach ca, Uncategorized, va loans
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