How Can a Reverse Mortgage Help You Purchase a Home?

Andrew Scammon from Alpine Mortgage joins me today to help explain how you can use a reverse mortgage to purchase a home.

Today I’m joined by Andrew Scammon from Alpine Mortgage to talk about how you can use a reverse mortgage to purchase a home. 

We work with more and more folks nowadays who are either retired or about to retire and would like to buy a new home but are unsure they can qualify for a conventional loan. This is typically because they either live on a fixed income or are about to live on a fixed income. 

If you’re planning to downsize as part of your retirement plan, a reverse mortgage could be a useful tool for you because when you compare a reverse mortgage to a cash purchase, it effectively doubles your money.

This comes in handy for anyone wanting to sell off their existing home and downsize but knows they won’t realize enough benefit from that sale to make a cash purchase for their next home. If you net $200,000 from your home sale, that’s not going to buy much house. A reverse mortgage can double that sum and allow you to purchase a $400,000 house. 

Of course, there are some cautions you need to take. You need to work with a seasoned Realtor who knows their way around the market. If you’re looking for a condominium, it would have to be an FHA-approved condominium. For many people, though, it’s become relatively commonplace to identify properties they love without having to worry about making a mortgage payment or qualifying for one because of reverse mortgages. 

Reverse mortgages alleviate the worry of having to qualify for a mortgage loan.

With reverse mortgages, payments are allowed but not required. You can purchase a $400,000 house by putting down $200,000 and getting a $200,000 reverse mortgage. When the house goes to your estate or heirs, they have time to prepare the property, market it effectively, and realize the best gains on it that they can. The reverse mortgage balance is then paid off and the heirs divide up the remaining equity. The only age requirement for using a reverse mortgage is at least one of the borrowers must be 62 years old. 

I want to thank Andrew for joining me today. If you know anyone who is looking to use a reverse mortgage to purchase a home, you can call him at (562) 743-0111 or visit his website at effectiveretirement.com. 

If you or anyone you know are looking to buy, sell, or downsize, feel free to reach out to me. I’d be happy to help.

The Four Biggest Mistakes that Property Owners Make

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I know a lot of people who choose to rent out their properties instead of selling them. Not everyone is cut out to be a landlord, and I sometimes see people making mistakes that can cause a lot of turbulence in the process. I have four tips to help you through this process.

1. Not doing a proper financial check on your applicant: We always recommend obtaining a credit report with FICO scores and eviction checks. We also like to have a pay stub and a bank statement to ensure that the applicant is financially capable of paying for the property.

2. Not knowing the law: Tenants are afforded a bevy of rights, and you need to know when you or your tenants are overstepping your bounds. Consult an attorney if you need to, because these issues can become dicey. Research your local laws as well as national ones.

3. Not maintaining your property: Landlords often don't want to spend any money on their proeprties, but this doesn't make sense to me. It's your biggest investment, so make repairs when necessary. Ideally you can be proactive so that nothing disastrous happens, and tenants appreciate someone who keeps things in working order. You might be surprised at how your relationship will improve if you put more effort into maintaining your property. Yearly inspections are generally something that we recommend.

4. Renting your property for less than it's worth: This seems pretty logical, but a lot of landlords charge less than they should. You don't want to have to pay down the mortgage, that is the job of your tenants. Run a rental analysis in the neighborhood to ensure that you're keeping your rent in line with the market.

As a real estate broker and property manager I take a lot of pride in helping people with their real estate issues. Please don't hesitate to contact me with any questions or comments.

I look forward to speaking with you!

Are Home Prices in Orange County Rising or Falling?

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Hey everyone, welcome back to our blog. The real estate market is continuing to sizzle here in Southern California.

In LA county, the median sale price went up in the last year. In May 2014, the average was $430,000, while in May 2015, the average rose to $460,000. Here is a link to a graph that shows the median home price in LA County over time. 

While prices were rising, the supply of homes decreased in the last year. In May 2014, we had 4.1 months of inventory. Currently, we have 3.4 months. 

In Orange County, the median sale price also rose in the past year. After being at $575,000 in May 2014, the average home price in Orange County is now $600,000;  Here is a link to a graph that shows the median sale price in Orange County over time. The supply of homes in Orange county dropped slightly, from 3.8 months in May 2014, to 3.1 months in May 2015.

Local job growth, mortgage rates, and availability of homes all look solid. These factors, in addition to slower home appreciation, helped draw buyers. We saw an increase in the volume of homes sold in Orange County of over 10% for April and May of 2015 compared to the same period last year and about 7% in LA County.

The housing market is doing great right now in Orange and LA Counties. In some neighborhoods, we are even having all-out bidding wars on homes. Sometimes, these homes go for hundreds of thousands of dollars over asking price. In fact, we recently had a listing receive 40 offers.

Supply is not even close to keeping up with demand. So if you have been looking to sell your home, no matter the price, we are in a great market to do so. 

If you have any questions for me, feel free to give me a call or send me a quick email. I would love to speak with you!

Top Reasons to love Los Alamitos & Rossmoor

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Hi everyone!  This is Tim Majka with the Tim Majka Real Estate Experts with Keller Williams Coastal Properties serving Long Beach and the greater Los Angeles and Orange County area. 

Today I wanted to go over some reasons to love the city of Los Alamitos and the community of Rossmoor

The first reason is great schools!  The Los Alamitos Unified School District which covers the schools for Los Alamitos, Rossmoor, and Seal Beach offer some of the best schools in California. Some More facts about the Los Alamitos Unified School  District:

• Only District in OC and one of six in the US on the College Board's AP Honor Roll five years in a row

• Three elementary schools in the top 10 in OC

• LAHS ranked #87 (top 1%) in the United States

• Highest college enrollment rate in OC

• Record number of scholar artists and athletes

Because of this, there is always a high demand for homes in the area, especially from folks looking to get their children into the schools.  This keeps property values strong. 

Another reason to move to Los Alamitos is great location. Los Alamitos and Rossmoor are located on the border of LA and Orange County.  This gives you the benefit of being able to tap into everything  LA and Orange County have to offer. For example, if you want to go surfing at Bolsa Chica or hit the mall at South Coast Plaza in Orange County, you're only 30 minutes away.  Additionally, if you want to hit the beaches in the South Bay or see a show at the Hollywood Bowl or a Clippers game or Lakers game in Los Angeles, you are only 45 minutes away

Along with that – living in Los Alamitos and Rossmoor give you the opportunity to tap into 3 major job markets – Long Beach, Orange County, and Los Angeles. 

These are just a few of the reasons that make Los Alamitos and Rossmoor a great place to live.  There are so many more amenities to list here.  If you have any questions about moving here or you would like any more information about the area, please contact me. 

If you know of anyone thinking of moving to Los Alamitos, Rossmoor, or the surrounding areas, we would love to help them find the perfect home.   Thanks for tuning in.

The Perils of Online Home Searches

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You may also call me at 562-900-9430 for a FREE home buying or selling consultation to answer any of your real estate questions.

Hey everyone, today I am going to discuss the hazards of online home searches and home evaluation websites. As you will see, there are a lot of inaccuracies in them that can be solved by looking elsewhere.

The top real estate sites in the country like Zillow, Trulia, and Realtor.com play an important role in our industry. On one hand, they are a good source of local real estate trends. On the other hand, they aren't so good at providing accurate value estimates or information about homes for sale. Why aren't they as accurate as some other sites?

For starters, they gather data from tax records, which is not always accurate in terms of providing fair market information. For example, if somebody sold their home to a family member or relative, they may sell for less than market value on purpose. However, this value will skew the home's value.

Another technique these sites employ is an algorithm to determine your home's value. This algorithm is only taking into consideration public information from public records - things like bedroom count, bathroom count, and square footage. The problem is they are not taking anything from inside the home into account. You may have made some great improvements to your home, which increased its value, but that won't show on these sites. This could lead to your home being undervalued by as much as 25%.

If you are looking to buy a home, you need to know the home listings online are typically delayed anywhere from 1-5 days. What often happens is that by the time a home is listed for sale, every agent and every buyer working with an agent is already aware of this property. If you are in a hot market, it has probably already been sold.
 
If you want to have access to homes the instant they go on the market, the only way to do that is by working with a real estate professional, like myself, who can get you access to the MLS.

If you have any questions for me, feel free to give me a call or send me an email. I look forward to talking with you soon!

Why Is Long Beach an Ideal Place to Live?

Considering Buying? Click here to search all available homes in your area 

Considering Selling? Get a Free Home Evaluation

You may also call me at 562-900-9430 for a FREE home buying or selling consultation to answer any of your real estate questions.

Hey everyone, thanks for joining me once again. I love Long Beach, and today I want to go over some of the top reasons why I do.

The best thing about Long Beach is right there in its name. The beach is in a beautiful location, nestled on the border of Los Angeles and Orange County. It's close enough where you can go catch a show at the Hollywood Bowl or catch a Clippers game at the Staples Center, but far away enough that you aren't bothered with traffic and big city noise on a daily basis.

One of the next best things about Long Beach is the food scene. This area has some of the best restaurants in the world, and showcases a variety of cuisines for you to indulge in. You name it, we have it here, ready for you to eat in Long Beach.

Finally, the atmosphere of the city is second-to-none. Whether you are enjoying the nightlife, the beach, or the marina, there is always something to do. I think of Long Beach as a cross between living in a small town and a large city. You get all the excitement from the city, but also that wonderful California beach vibe.

These are just a few reasons why we love Long Beach. If you have any questions, be sure to give us a call or send us an email.

What's the Best Process for Selling Your Old Home and Buying Your New One?

Considering Buying? Click here to search all available homes in your area

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You may also call me at 562-900-9430 for a FREE home buying or selling consultation to answer any of your real estate questions.

Today I am going to be discussing how to purchase a new home when you already own one. Should you buy first, sell first, or own two at once? I've compiled a list of 5 typical ways to get from your existing home to a new one. Here they are:

1. Temporary Rental 
This is when you sell your home first, and then rent a property for a few months while looking for your new home. This will give you more time to find the perfect home, but will require you to move twice.
 
2. Contingent Offer 
You can make an offer on a new home and have it be contingent on you selling your current home

3. Contingent Sale 
Another option is a contingent sale. This is where you sell your home first, but make the sale contingent on your ability to find a new home. This way you won't close the sale until you've found your new home.

4. Sell and Rent Back
You can also sell your home, and ask the buyers to rent back the home for a few months to get time to purchase your new home.

5. Bridge Loan
A final option is obtaining a bridge loan against the equity on your current property, then using the loan on a down payment for a new home purchase. This gives you peace of mind to find the perfect home, but will result in you having two mortgages for a short period of time.
 
There you have it, the top 5 ways to buy a new home if you currently own one. If you are nervous about this process, you shouldn't be. I'm here to help guide you and provide you with expert advice. If you have any questions at all, please give me a call or send me an email.