Anthony Saunchez~ Fontana & Inland Empire Real Estate

WHAT TO DO IF YOU THINK YOU CAN'T
AFFORD YOUR CURRENT HOME

Buying a house for the first time or upgrading from an existing house is a big decision. It's important that you have a good understanding of what you can and cannot afford to buy.

Contingencies

If you already own a house and have decided to move but don't yet have your first house sold, there is the option of putting a contingency offer on the second house. This means that the second house is being held while you get your first house sold.

Keep in mind that contingency contracts usually only hold the house for a limited amount of time, and in some cases, you can get bumped if another buyer shows up with a better offer, meaning no contingency, more cash, better credit. Although this is an option, it should be carefully considered.

If you have great credit or have cash to put down, you can usually make an offer without a contingency. However, if you need to sell your first house before you have the money to close a deal on a second house, then you have a real dilemma.

Often sellers are uncomfortable working with contingencies in that they want more certainty. To come to a compromise, sellers might accept the contingency contract as long as it has a "kick-out" clause. This clause states that if a better offer comes through, the seller has the right to accept the new offer, thus canceling your offer.

It is a far better solution to sell your first house before you put a contract on a second house. Going this route will end up saving you effort, disappointment, and money.

If you are uncertain about your financial situation, meet with a financial advisor or mortgage lender before signing a contract.

Bankruptcy and Divorce

Unfortunately, this is the situation of many people. Many divorced people end up filing for bankruptcy due to the financial issues involved. What are the options for someone in this situation where they have a good income, but need a loan for zero down loan because their savings has been depleted?

There are viable options allowing qualified borrowers to finance the entire purchase of a house, including closing costs. These options allow a buyer to purchase a house with no down payment. The catch is that credit history needs to be spotless and with a bankruptcy, there could be problems qualifying. One thing to remember is that if you have filed bankruptcy, after two years have passed since its dismissal and you've maintained good credit since, you could qualify.

However, you should really look at your current situation and determine if this is the right time for you to buy. If you have just gone through a divorce, more than likely your bank account has been drained. Lenders prefer that you take time to rebuild your savings and get your feet back on the ground. Obviously, from their viewpoint, they don't want to put you in a situation of defaulting on a loan because you weren't ready.

One of the factors taken into consideration for a mortgage loan is the credit score. If you aren't sure what your credit score is, contact the three leading credit-reporting agencies and request a copy of your report plus your score. Scores in excess of 700 are considered the best. Scores over 680 are also good but if you fall below 630, the lenders view it as you having potential trouble qualifying.

If your credit score is not quite up to par, you should wait a little while before pursuing a house. Take the next year or two getting all your credit in order, bills paid off, and money socked away in the bank. Although it's tough waiting, it also provides you with a goal, which in the end will eliminate a lot of unnecessary stress.

Once that has been accomplished, you should consider a Federal Housing Administration (FHA) loan, which requires only 3% down. In addition, their underwriting guidelines are less stringent than other types of loans.

The best thing you can do to prepare is create a budget and stick with it. Once you see a plan written down on paper, you will be able to track your progress much easier. Make sure to speak with a mortgage broker to find out from them what you can or cannot afford. With lower interest rates you may be surprised at the amount of a loan you may be able to afford.

If you can't buy your Fontana Home right away, don't be discouraged. It's far better to be thoroughly prepared so when you do close, you will be able to enjoy your house and feel much better about your decision.

Contact Anthony Saunchez,REO Realtors® in Fontana California at 909-731-1094

to purchase a property in Fontana,The Inland Empire or Hi-Desert.

Call us today at 909-731-1094 or . Contact us by email if you prefer . We know Fontana Real Estate. and will help you get your home Sold if you need to Sell and help you buy your Fontana home

Call us today.

Foreclosures produce great opportunities for home seekers and investors. Many times you will hear stories of people grabbing a home for 50% off. These stories are not common during strong markets, but that does not mean there are not great deals in the market.

Let me show you these great deals! Weekly I will place together a list of foreclosures in your desired area for your review, all for FREE and with no obligation. Plus I will also share with you other homes that might peek your interest, this way you are not limited to what is currently being offered.

Fill out the form and I will get you your first Free Report right away! If you have any questions, always feel free to call so I can answer them immediately.

Contact Anthony Saunchez,REO Realtors® in Fontana California at 909-731-1094

to purchase a property in Fontana,The Inland Empire or Hi-Desert.

Call us today at 909-731-1094 or . Contact us by email if you prefer . We know Fontana Real Estate. and will help you get your home Sold if you need to Sell and help you buy your Fontana home

Call us today.

The best things a first-time homebuyer can do are conduct research and ask many questions.

Remember that buying a house is never easy for anyone. However, interest rates are currently lower than they've been since the 1960's so if you can buy a house, this is probably a great time.

With being a first-time homeowner, there are many questions you'll want to ask. It's easy to focus in on the size of the rooms, the structure, the lot, but there are other options to consider - things you need every day to live. Here are some examples:

• Public transportation - If you depend on public transportation then you need to check into what options are available in the area you are interested in looking.
• Aging parents - More and more families are taking care of elderly parents, therefore, you should think about any special needs as you start looking.
• Public safety - What is the crime rate in the preferred area? How close are public services such as police, fire, and hospital? · Parking - Will there be any issues with parking? If the house you're interested in doesn't have a garage, is there ample off-street parking?
• Utilities - This is an important finance to look at. Usually the seller can provide copies of the past few months for you to review, giving you an idea of what you would need to budget for.
• New communities - If the area you want is in an entire new community, what recreational amenities are offered? Is there a clubhouse? Pool? Playground? Exercise facilities?
• Property taxes - Some tax rules provide special benefits for veterans, elderly citizens, and even long-time residents. You should inquire what these benefits are and whom they cover.

When you get to the point of being serious about buying a house, these are the steps to follow to make the qualifying and purchase as easy as possible:

• Establish good credit habits and cleanup any unfavorable reports.
• You should start saving for the down payment, closing costs, and extra for any hidden expenses. Don't forget about utilities, moving expenses, and items needed for the home.
• Research and read. Go to your local library and read up on as much as possible about financial management and home buying.
• Start looking at various areas where you might be interested in living. Go to some open houses and do some comparison-shopping.
• Meet with a reputable real estate agent and start the preliminary process.

Just remember that there is no reason to be afraid or intimidated when it comes to buying a house. The main concern expressed by couples is that they aren't sure where to begin. There is also the fear of rejection when it's very possible that the credit situation isn't as bad as they believe.

Home buying has become increasingly easier thanks to the Internet. Years ago, people hated the one-on-one approach of determining if they qualified for a loan. The Internet has made it so much easier where people can now go to various lenders, provide some information, and be notified online whether or not they qualify.

In addition, mortgage advice is also readily available. Whatever questions you have can easily be asked from the privacy of your own home. Responses are accurate, thorough, and always confidential.

Contact Anthony Saunchez, Summit Realty Group, Inc. Realtors® in California at 909- 731-1094

to purchase a property in The Inland Empire or Hi-Desert.

Call us today at 909-731-1094 or . Contact us by email if you prefer by clicking on email me on the right side of the page below our photo. We know the Inland Empire. and will help you get your home Sold if you need to Sell and help you buy your Southern California Home; call us today.

There are things you to know about credit prior to buying your home:

· Payment history - one of the first things any lender will look at is your credit line and payment history. If you have made payments on time that is a positive step.

Have a budget - This is highly recommended and will help you prepare for a home loan as well as keep you on track once you've purchased your home. All too frequently we get further in debt after buying a new home and this can let us fall behind on our payments later. All too often we have to finance new furniture and other items·

Credit Counseling - Sometimes people set up budgets with the best intentions but then slip off their schedule. There are credit counseling services that can help by setting up payment plans to help you stay on budget or get you out of debt. Lenders don't want you to lose your house no more than you want to lose it. Not all lenders will work with credit counseling services, but it's always an option to ask for. If you do get behind always communicated with your lender you will be surprized at how often they can and will help you.

Bankruptcies, tax liens, and foreclosures can haunt you for years. They can stay on your credit report for up to ten years and can have a negative impact on purchasing a home. However, if you stay up to date on payments for two to three years after running into one of these situations, with a strong letter of explanation and the proof that you've been working to stay on target, lenders will work with you. It may take a little more work, but it is possible.

· Debt Consolidation - This is another option for reducing your debt to buy a house. In this case, the balance of your debt remains the same but companies are willing to lower interest rates, which do two things - they help lower your outgoing monthly payment and, they lower the overall balance you will be paying. If you have a lot of debt and need to bring your debt to income ratio down in order to qualify for a house, this might be a consideration. The normal ratio is what's called "28/36",meaning lenders believe you cannot spend more than 28% of your gross income for housing expenses and that the total amount of debt payments cannot exceed 36% of your income for a normal 10% down payment loan.

· Flexible Guidelines - Lenders are becoming more and more flexible as a way of getting people approved for home loans. The way they do that is by allowing a greater percentage of monthly income to be used toward the mortgage payment.

· Pay-off Options - If you plan to pay off some of your debt prior to applying for a home loan, consider going after the ones with the highest balances first. Although it's nice to pay off credit cards, available credit puts a person in risk of recharging after the home loan goes through and may actually hurt you in the approval process.

· Near Pay-off or Minimum Payment- If you are close to having a loan paid off, often times a lender will overlook this debt when looking at the ratios. In addition, lenders don't look favorably at loans where only the minimum payments are made.

· FHA Changes - Recently the Federal Housing Administration, FHA, has created new mortgage programs for potential homebuyers. This means that single-family closing costs can be 100% financed where the borrower doesn't have to come up with so much money to close the deal.

· First-time Homebuyers - There are new programs with the Federal National Mortgage Association, Fannie Mae, to help first-time homebuyers, which allow for slightly more debt when qualifying for a loan, and raise the percentage of gross monthly income that borrowers can spend on housing payments.

· Affordable Interest Rates - This helps more people qualify when buying a new home or larger home, as well as lenders providing more attractive mortgage offers.

· Computer Programs Rate Borrowers- A computerized system called "credit scoring". This new way of assessing one's ability to qualify for a loan still relies on the same information but this new systems helps determine who will default on a loan. To do this, a numerical score is assigned to each factor and then calculated.

The bottom line is getting your credit in order and asking your lender for options.

Call us today at 909-731-1094 or . Contact us by email if you prefer by clicking on email me on the right side of the page below our photo. We know the Inland Empire. and will help you get your home Sold if you need to Sell and help you buy your Southern California Home; call us today.

Fontana residents do you know who to call when things go wrong.

Graffiti in your neighborhood?

Facility rentals?

Need to dispose of hazardous waste?

Community Assistance Program

Dead or nuisance animals? non-working street lights?

Abandoned vehicles?

Water quality problems?

Damaged or sunken road?

Animal Control

Car or Building alarm?

Fontana City Jobs

Overgrown weeds?

The link takes you to the Fontana who you ganna call list

Contact Anthony Saunchez, Realtor®, Summit Realty Group, Inc. Licensed Realtors® in California at 909- 731-1094 to participate in this program or to purchase a property in The Inland Empire or Hi-Desert.

Call us today at 909-731-1094 or . Contact us by email if you prefer by clicking on email me on the right side of the page below our photo. We know the Inland Empire. and will help you get your home Sold if you need to Sell and help you buy your Southern California Home; call us today.