Before you start shopping for your new Santa Cruz home, take the steps required to get pre-approved for a home loan. Being pre-approved gives you a few advantages when you are shopping for a home:

• You know how much you can afford to pay for a home. This saves you time and reduces your frustration because you can look at only those homes that are within your price range.

• It makes you a more attractive buyer to sellers because they know you can get a loan to purchase their Santa Cruz home.

In order to get pre-approved for a loan, you need to:

• Find a lender. Shop around because terms and rates vary. Getting pre-approved does not obligate you to that particular lender.

• Provide your financial information. Be prepared to supply your…

1535 Views, 0 Comments

Read Full Post

Even though you’re a first-time Santa Cruz home buyer, you may want to skip the starter home and drive straight to your dream home. Due to lower housing prices and interest rates, you may be able to afford (or at least qualify for a loan for) your dream home. But that doesn’t mean it’s the right move for you.

What is a starter home?

A starter home is a home that is less expensive than the average Santa Cruz home. It's usually less expensive because it is smaller, older or a fixer-upper.

What are the benefits of buying a starter home?

If you’re struggling to let go of your desire to own your dream home right now, consider these benefits of buying a starter home:

• It’s easier to qualify for a smaller mortgage.
• You can stop paying rent and…

1712 Views, 0 Comments

Read Full Post

You’ve found the Santa Cruz home you want to live in, you and the seller have come to terms, and you now have a signed contract. What happens next?

Here’s an overview of the things you need to do after you and the seller have signed the real estate contract:

1. Get answers to your questions: If you have any questions, now is the time to ask them. Sit down with your team of real estate professionals, including your agent, home inspector, and lender to get answers to all your questions. Keep asking questions until you completely understand every step of the process and all the paperwork.

2. Dive into the disclosure: Carefully review the disclosure documents to be sure you're aware of any past or present problems.

3. Finalize your mortgage:…

1419 Views, 0 Comments

Read Full Post

As home buying picks up pace with spring in full bloom, here are a few tips every Santa Cruz home buyer should keep in mind:

1. Plan to stay in the property more than 5 years.  Typically, home values appreciate 7% per year; that number has been 2% to 5% recently, so it will take longer to break even and begin making a profit or building equity in your home.

2. Do the math.  First, figure out what price range you can afford.  Then, calculate how much income is left after paying the mortgage, taxes and insurance.  Use an online affordability calculator to make this easier.

3. Explore the neighborhood.  At various times of the day and night, visit the neighborhood of a Santa Cruz home you are interested in.  Find out if it’s an area in which you’ll…

1821 Views, 0 Comments

Read Full Post

Mortgage lenders are primarily concerned with your ability to repay your Santa Cruz real estate mortgage.  They will consider your credit score, debt-to-income ratio and how much you have for a down payment before telling you what you can afford to spend on Santa Cruz real estate.

Credit Score

One of the first things your lender will review is your credit score.  Credit scores range from a low of 350 to a high of 850.  In this case, the higher, the better.  The lower your credit score, the higher your interest rate and points will be, and the lower the amount of home you’ll be able to afford. If your score is too low, you may not qualify for a mortgage. If your score is low, you may need to take some time to improve your credit score before buying…

1632 Views, 0 Comments

Read Full Post

Short sales in Santa Cruz are used by homeowners to prevent losing their homes to foreclosure.  When you see an advertisement for a short sale, the home is in pre-foreclosure.

What is a short sale? It is an agreement between the sellers of a home in the beginning stages of foreclosure and their lender which allows the home to be sold for less than the existing loan balance. If an agreement is reached by all parties, a short sale could save the sellers’ credit by avoiding a foreclosure.

A short sale is not a short process, however.  It is a lengthy process with many legal and financial aspects.

The basic short sale process flows as follows:

• The seller contacts the lender to discuss the possibility of a short sale.
• The seller issues a letter…

1163 Views, 0 Comments

Read Full Post

Are you unsure about buying Santa Cruz real estate? Warren Buffet was recently quoted as saying, “If I had a way of buying a couple hundred thousand single-family homes…I would load up on them and… take mortgages out at very, very low rates…it’s a leveraged way of owning a very cheap asset now, and I think that’s probably as attractive an investment as you can make now.”

Homeownership in the United States is dropping and we are becoming a society of renters, according to a Morgan Stanley Housing Market Insights report.  Why is this happening?

• It’s harder to get mortgages: Banks have made it more difficult for people to become homeowners. If they have marginal credit or small down payments, they won’t get approved.

• Some have a fear of buying:…

1468 Views, 0 Comments

Read Full Post

Your home is usually the most important and sizable investment you will ever make. Whether you’re buying a starter home or the home of your dreams, you can’t afford to invest in Santa Cruz real estate that won’t steadily increase in value over time.
In order to assess a home’s potential and maximize your profit when it comes time to sell, we’ve compiled a list of five helpful questions to ask when choosing a property.

1. Are businesses investing locally? Ask your potential neighbors about new businesses in the area and check the local papers. If businesses are investing, it’s a good sign that the neighborhood will continue to enjoy financial stability.

2. What amenities are in the area? Buyers will pay a premium to be near amenities such as parks,…

1471 Views, 0 Comments

Read Full Post

Consider buying foreclosed properties if you are looking for real estate bargains. Foreclosure is a legal process in which the insurer or lender repossesses the property from the borrower who defaulted on their loan.  Santa Cruz foreclosures are easy to find with just a little work.

Here are nine tips to help you find the best Santa Cruz foreclosures:

1. Find a real estate agent: The first step is to get a reliable and trusted real estate agent.  Never try to purchase a foreclosed property by yourself.

2. Get pre-approved for a loan: If you’re not paying cash, pre-approval is a must. It means you have met with a loan officer and he or she has “pre-approved” you for a certain amount you can afford.

3. Locate foreclosed properties: You can…

1833 Views, 0 Comments

Read Full Post

If you are financially distressed, it might be time to cut your losses and minimize the damage to your financial future. If you’re feeling the economic pressure of an impending foreclosure, then consider putting your Santa Cruz real estate up for a short sale.

While it might seem like short sales should be a speedy process, they’ve been known to play havoc with many unsuspecting sellers. In honor of April Fool’s Day, we’ve created a list of the many short sale pitfalls sellers encounter.

• Settle your accounts – Strive to pay off all your other debt. Your bank might not approve your short sale application if you have judgments from other creditors pending.

• Pay your HOAs – Even if you’re defaulting on your mortgage, it’s important to meet your…

1416 Views, 0 Comments

Read Full Post