Currently in Orange County, demand is high, the average sales price throughout Orange County in October was $785,000 and interest rates are near record lows. So if you’re a millennial or 1st time home buyer, here are 4 simple steps to help you succeed in purchasing your first home in Orange County.
1.Have a plan. Get qualified. You don’t know, what you don’t know. So it’s best to speak with a lender to figure out based on your credit, income and down payment what time of price range and home you should be targeting. I work with some great lenders, that I’d be happy to refer you to.
2.Days of needed 20% down payment are no more, so don’t think you have to save for ever before you are ready to purchase your first home. Based on what you are paying for rent, you may be close to the mortgage payment you would be making on a home you own. So how much down payment do you need?
a.FHA requires 3.5% down
b.VA 0% down
c.Other conventional products with as little as 5% down
3.What if you don’t have a down payment? You can receive a gift from a blood relative. Maybe you are close, but you need a little help. A relative may be able to help you, it’s a potential tax write off for them and it helps you to get into your first home. If you have any questions about the tax consequences, I’m happy to introduce you to some great CPAs.
4.Finally, you have a plan, you have the financing and the down payment. Now what? Know where to search. Not all condos are FHA or VA approved, so this is where my expertise and market knowledge can help you find that perfect home. Once you and your lender have determined the best loan product for your situation, I will create a customized search based on that product (whether it’s FHA, VA or Conventional). This way, once we find a home you love, you’ll be able to get the financing you need to purchase it.
Last week, rates jumped .375, which is the biggest jump in 3 years and it’s expected the interest rates will be will into the 4% range in 2017. So as interest rates increase, home affordability decreases. So even though there’s a lot of competition and not too many homes for first time home buyers to choose from, it can be done! So if you think you are looking to purchasing your first home or have any real estate questions, feel free to call, text or send me an email. I look forward to working with you in the near future.