Santa Cruz Mortgage

The mortgage application process can be confusing -- so you only want to have to go through it once when buying Santa Cruz real estate.  Keep these tips in mind as you complete the application process to make sure you get the answer you want: Approved!

• Make Sure Your Credit is Clear: If there are any lingering issues on your credit report, get them resolved prior to application and get your credit in high standing for the best loan rates. 

• Lower Your Debt: If you meet the income requirements, but have substantial debts elsewhere – car payments, student loans, credit card debt – your application may be denied.  Budget, save up and pay off as much as you can. 

• Have the Required Income: With the tightening of regulations, any…

As the new year starts, pursuing your dream of buying a Santa Cruz home may be on your list of resolutions. Prices and interest rates are extremely low, which means 2012 could be the perfect year to buy a home. As exciting as that is, I bet it can also feel a little overwhelming.

One of the best ways to attack a big goal is to break it down into smaller goals. So here are four smaller goals you can tackle to accomplish your larger goal of buying a home:

1) Prepare for battle: Before you begin looking for a house, look at your financial situation. Do what you can to clean up any credit blemishes, pay off debt and save toward a down payment.

2) Check your qualifications: There's no sense looking at million dollar mansions if that's not in your…

With a new year beginning, it’s time for you to get rid of last year’s baggage and concentrate on making 2012 the best it can be. So if you had a home for sale in 2011 and it’s still on the market, then you only need to have one New Year’s resolution: do whatever it takes to sell that house!

This economy has made it challenging to get acceptable offers from prospective buyers. While this is extremely discouraging, the lack of offers might mean it’s time to bite the bullet and lower the price on your Santa Cruz real estate. Then you might be able to sell quickly and start a new lease on life.

Below are reasons you should lower your price now to sell fast and start anew:

• It costs time and money to keep a house on the market. Maintaining a house and…

Urban legends can be found within every industry, and Santa Cruz real estate is no exception. Getting a big discount because a home needs minor repairs or being able to acquire 100 percent financing in a snap definitely isn’t as easy as it sounds and is probably just what you think — a big fat myth.

Whether you’re an experienced buyer or it’s your first time purchasing Santa Cruz real estate, do your research and don’t get sidetracked by enticing fables that might cause you to miss out on your dream home. Below are three debunked mortgage urban legends that have been plaguing the industry for years.

1. You can get a foreclosed home for almost nothing. While foreclosed homes do tend to sell consistently lower than other homes on the market, they’re not…

Now is a fabulous time to take advantage of today's real estate market and boost your investment portfolio with Santa Cruz short sales. Here are the top ten reasons why investing in short sales might be beneficial for you:

1. Short sales benefit buyers, sellers and investors. You get to help a lender and homeowner out of a tough financial situation.
2. You can make a nice profit because Santa Cruz short sales are priced at or below market.
3. Banks are closing them faster than ever before and, from start to finish, it’s not as painful as it used to be.
4. There is a huge inventory of short sales from which to choose.
5. The competition is low because there aren’t enough investors to gobble them all up.
6. It doesn’t take a ton of time. You’ll spend even less…

Second mortgages on Santa Cruz homes are used by people who need to access the equity on their homes. Here’s some information to help you decide if a second mortgage is right for you.

What is a Second Mortgage?

A second mortgage is taking out a second loan on top of the existing mortgage on your home. The collateral for the second mortgage is your home. The loan process is similar to getting a primary mortgage, including the need to pay for appraisals and closing costs.

The maximum amount of the second mortgage is determined by the equity in your home. The equity is the difference between what you owe on the home and the current fair market value of your home.

Why Get a Second Mortgage?

People take out second mortgages on their Santa Cruz homes to:

In this economy, cash buyers have the advantage and are swooping in on great housing deals to beat out buyers obtaining loans through banks. Sellers are jumping on these offers because the cash is already secured, they don’t have to worry about finances falling through at the last minute, and it can guarantee quick closing dates on their Santa Cruz homes for sale.

While dealing in ready money definitely gives real estate investors an advantage, don’t get discouraged. There are a few guidelines financed buyers can follow to give them a better hand when it comes to beating out competitors that throw down the cash card.

• Get pre-approved. Talk with a reputable bank and get a pre-approved home loan for a certain amount before you start shopping for Santa…

If you get a mortgage for more than 80% of your Santa Cruz real estate’s fair market value, your lender will require that you pay Private Mortgage Insurance (PMI). PMI payments are expensive at about 0.5% to 1% of the entire loan amount on an annual basis.

Obviously, it would be a good thing if you didn’t have to pay PMI. To help you achieve that goal, here are several tips to avoid paying PMI on your Santa Cruz real estate:

• Save for a big down payment: The easiest way to avoid PMI is to have a down payment of at least 20% of the value of the home you want to purchase.

• Borrow to get 20% down: Check with friends and family for down payment assistance. You can offer repayment with interest and still never pay as much as you would have to for…

If you're a potential buyer of Santa Cruz real estate, when scanning the listings of homes for sale, you may see references to “short sales.”  You may hear vague warnings about avoiding short sales from some people, while others tout the advantages.  So who is right?  Well, it depends…

Short Sales Defined
First, what is a short sale?  A short sale is a situation in which the current market price of a home would not, in fact, cover the amount the home owner owes on the mortgage.  Yes, that's what people mean when they say they are “underwater” – they owe more on their home than it is worth.

Since the mortgage can't be paid off by the sale of the house, short sales become an option, albeit a complicated one. The seller and the bank (or banks, as is…

If you're sitting in your apartment right now thinking: I wish I could paint it, but my lease doesn't allow it, maybe it's time to talk to a Santa Cruz real estate agent about purchasing a new home.  Before you rush off to the store to look at paint samples or, more importantly, sign on the dotted line of any mortgages, consider the pros and cons of buying.

Pros

1. Financial Investment: Given the gloomy news on foreclosure rates across the country, it is easy to forget that buying Santa Cruz real estate is also a means of saving and investing.  The money you pay in rent to your landlord goes to your landlord; the money you put toward a mortgage goes toward building equity in your home.

2. Pride of Ownership: By buying a home, you will be able to paint…