Our mailing Address is 1121 W Valley Blvd, Ste I-319, Tehachapi CA 93561. Make sure you note the address at which we will meet you for your appointment.
Location & Address
Mailing Address is 1121 W Valley Blvd, Ste I-319, Tehachapi CA 93561. Make sure you note the address at which we will meet you for your appointment.
Login form
Registration form

Page 10 of 11

Tehachapi Home Buyers Tip of the Week

What you should know about buying a home in Stallion Springs, Tehachapi, or anywhere in Kern County:

One of the most important aspects of home buying is financing your new home.  Most folks tend to treat financing as an afterthought.  Here are some tips that will help you be prepared:
  • Many lenders currently require down payments of 20 percent or more. One benefit of larger down payments is that you owe less money and usually receives better terms on your mortgage loan. If your down payment is less than 20 percent, most lenders require you to purchase private mortgage insurance, depending on the nature of the loan.
  • You can determine the down payment required by the lender as part of the pre-approval process. The pre-approval process is typically a free service where a lender evaluates your financial situation and determines the terms of the loan it is willing to offer. Most housing experts recommend that you get pre-approved prior to searching for a home.
  • Make sure you understand the difference between getting pre-approved and pre-qualified.  Often a pre-qualification does not provide any assurance that your loan really is feasible.

If you need help finding a reliable lender for your pre-approval before you start looking for your new home in Kern County, please contact me.  I can provide contact information for local lenders that will be happy to speak with you.

No comments

Avoid These Costly Mistakes for First-Time Home Buyers

Buying your first home in Tehachapi can be an exhilarating experience.  Make sure you avoid the common mistakes that some first-time buyers make.

Home Buyers in Tehachapi meed to balance the cost of credit

Home Buyers in Tehachapi meed to balance the cost of credit

For example on a $100,000 mortgage, the difference between a 5% rate and a 6% rate amounts to about $23,000 in interest over the life of the loan.  The larger the loan amount and the higher the interest rate results in an even larger amount over the life of the loan.

Tehachapi home buyers should delay large purchases until after the closing.Shopping for other things at the same time. If you are planning to buy a home, don’t plan on buying any other large ticket items around the time leading up to the close of escrow.  If you want a new car, wait until after you moved in.  Ditto the new appliances or the vacation you wanted to relieve the stress of buying your new house.

Try to avoid any large purchases for at least six months before the house purchase.  This also includes doing things that will flag your credit report.  This is not the time to accept a new credit card to make a purchase because you get 10% off of today’s purchase when you do.

Lenders may check credit scores right up to the time of closing.  It is not impossible that they would refuse to fund a loan if some significant change occurred.

Skipping an inspection. Inspections could fill a blog all by themselves!  Your budget may be tight, but it is best to have inspections performed by professionals.  Cheaping out by skipping inspections or conducting your own inspections is not in your best interest. You are not saving any money if you find out after the fact that that a major repair is required.  The cost of a furnace or septic tank is much greater than the cost of the appropriate inspection.

Buying without contingencies. Make sure your purchase offer is made contingent on the results of your inspections.  One option is to request the seller pay for any necessary repairs.  If they refuse and you are not willing or able to cover the costs yourself, then you can cancel the contract.

Tehachapi home buyers should always have a contingency planNeglecting to budget for insurance. I you are paying cash, you are not required to have insurance, but it is always a good idea to insure an investment as large as your home.  In the event of a catastrophe that destroyed your home, what would you do to recover from that kind of economic devastation?  If you are paying for your home with a loan, then the lender will require that you carry insurance.  Keep in mind that the lender may only require fire insurance, but you will probably want additional coverages.

Start shopping for insurance even before you shop for your Tehachapi area home.  It can be a surprisingly large expense that should be included in your budget from the beginning.

One comment

CA First Time / New Home Buyer Tax Credit

This is probably nearly the last time I’ll talk to you about the tax credits for purchasing a Tehachapi home but I want to make sure you don’t miss the opportunity to get the credit if you are eligible.  The time to get in on the Federal tax credit ended April 30, 2010, but you can still get the California tax credit.   Click the link to get all the tax credit information for California first time or new home buyers.

This is just a brief note because I want to make sure you don’t miss out.  For more information, use the contact form below and I’ll get back to you very quickly.  For fastest response include your phone number in your message.


No comments

Will Mortgage Rates Increase or Remain Stable for Tehachapi Home Buyers?

Tehachapi home buyers may be in a quandary as to whether mortgage rates will rise or remain stable.  The second question is whether or not it should make any difference in the timing of your home purchase.  Let’s look at these issues one at a time.

Will mortgage rates rise for Tehachapi area home buyers? I wouldn’t be surprised if mortgage rates don’t rise at some point in the future.  The problem is predicting when.  That’s where the experts seem to disagree.   One group is espousing the belief that since the Federal Reserve has stopped buying mortgage backed securities (MBS), mortgage rates must go up in response.  Early last year, the Federal Reserve started buying mortgage backed securities.  This helped to keep interest rates low.  However, the Fed stopped purchasing MBS in March.  So far, rates are holding stable.  The California Association of Realtors expects rates to average 5.6% on 30 year fixed mortgages this year.

On the other side of the rising mortgage rate fence, we have Bloomberg’s position that “cheap mortgages may last as investors replace Fed.” Bloomberg’s article says that “The Federal Reserve’s completion this week of its program probably won’t mean significantly higher U.S. home loan rates as investors return to the market, replacing the Fed.”  The article predicts that rates will likely rise less than a quarter of a percent in the next three months.  That is the smallest increase in the second quarter since a drop in 2005.

So, who do you believe?  Are rates going to rise dramatically, remain the same, or fall?  Pretty hard to predict with any accuracy.  One thing remains true though, this is still a good time to buy a house in Tehachapi or elsewhere in Kern County.  Let’s look at the second issue — should mortgage rates define your home buying timing?

What effect should mortgage rates have on your decision to purchase a Tehachapi home now or later? The truth, in my opinion, is pretty much none at this time.  Timing your purchase to what mortgage rates may or may not do won’t have a huge effect on the primary decision which is whether or not to purchase a home at all.  If your budget is so tight that a quarter of a percentage point will seriously affect your ability to pay your mortgage, you should probably be looking at slightly less expensive houses.  To put this in perspective, a quarter percent on a $250,000 loan will amount to about $30 per month.   That’s pretty much equivalent to a pizza dinner.

This is still a great time to buy a home. Prices are still low, but the indications are that they are more stable than they have been for the past year.  In some areas, prices are even rising!  Most of the best “deals” are in the mid to low range of the market.  That is likely to remain true for some time.  However, there are also some higher-end homes priced quite reasonably.  Regardless of what kind of home you are looking for in greater Tehachapi area or elsewhere in Kern County, this is great time to buy.

Please feel free to contact me personally at 661.375.REAL or send me an email if I may help you in any way with your purchase decision.

One comment