Bay Area First Time Home Buyer Seminar At ICC, Milpitas, CA

If you are thinking of buying your first home in the Bay Area, you don't want to miss this free event. I am leading a panel discussion titled - "How to buy your first home in the Bay Area". The seminar is on October 27th, 2013 at 3:00 PM. The event is hosted by India Community Center, 525 Los Coches St, Milpitas. You do not need to be a member to attend. The panel will consist of a Mortgage Lender (Me), Real Estate Agent and a Financial Planner. The goal is to educate…continue reading →

Home Warranty: Learning the Basics

Why you need Home Warranty? For many new owners, this is a great way to gain peace of mind about problems that they used to call the landlord to fix; ones that often aren't covered under their homeowner's insurance. But make sure you read your contract carefully to see what is covered, and the company offering the warranty will fix the water heater when it breaks on a wintry Saturday midnight. Two Types of Coverage: New Homes and Pre-Owned Pre-Owned Home Warranties: - This covers normal wear and tear but not major pre-existing…continue reading →

Home Owner’s Insurance: Why you should and need to get one

Most lenders will require that you have homeowners insurance in place before the closing. This is also be called hazard insurance because it covers natural disasters like fire and storms, and theft. Why do you need insurance for a house? The lender won't fund the loan on a property that isn't insured, and the lender will often require certain types of insurance and at a specific financial level (usually at least the amount of cost of replacement) to make sure they won't lose their money in the event of a disaster. Depending on…continue reading →

First Time Home Buyer Free Web Workshops

As part of Home Ownership Workshop (HOW) for first time home buyers, I am conducting a series of four webinars where I will talk about all aspects of home buying. The entire series is free. Find below the topics I would be covering along with a link to register for each of them. If you register and not able to attend, we will email you a recorded version of the webinar. Of course, I encourage you to attend the webinar live, because that way you can ask me questions during the webinar. Webinar…continue reading →

The ABC’s of Home Inspection – What’s Included, What’s Not?

What is home inspection? A home inspection- is a limited examination of a home's condition and is done when a home is put on the market for sale. State Laws do not require to have a home inspection or the number of inspectors you should bring. But even if the seller has done an inspection and given you an inspection report and disclosures, it is in your best interest to get a general inspection done. How much does home inspection cost? General inspections are relatively inexpensive costing between $200 and $600 depending upon…continue reading →

Home Ownership Basics: Ways to Hold Title

Title to real property may be held by individuals, either in Sole ownership or in Co-ownership. Co-ownership of real property occurs when the title is held by two or more persons. There are several variations of how a title may be held in each type of ownership. The following brief summaries reference seven of the more common examples of Sole ownership and Co-ownership. Sole Ownership 1. A Single Man/Woman - A Man or Woman who is not legally married. 2. An Unmarried Man/Woman - A Man or Woman who having been married is…continue reading →

Demystifying the Home Purchase Contract: Understand the Nuances

The process of purchasing a home is often much more complex than the average individual expects it to be. Items involved in your purchase contract can have a significant impact not only on the success of your purchase transaction, but on your stress level as well. Below, I have listed out some of the important items you should be aware of, that require you to make decisions as a home buyer in entering into a purchase contract. Loan or Financing Contingency Loan contingency is the period of time the seller is giving you…continue reading →

FHA + CHDAP = 0.5% Downpayment Loan For CA First Time Home Buyers

By combining an FHA loan with California Homebuyers Downpayment Assistance Program (CHDAP), First Time Home Buyers in California can buy a home for as less as 0.5% downpayment. Here's how it works: We do FHA Loan as the first mortgage of 96.5% Loan-to-Value Ratio (LTV) and combine that with 3% second mortgage provided as part of CHDAP. CHDAP is a deferred payment second mortgage which becomes due in full when you refinance or sell the home. However, CHDAP may be resubordinated in some cases at the time of refinance and hence may not…continue reading →

FHA Wont Allow Cancellation Of Mortgage Insurance Anymore; Increases Premium

FHA recently announced changes to mortgage insurance premium for home loans insured by the agency. The new guidelines will make FHA loans more expensive. You will also need to pay mortgage insurance for the life of the loan in most cases. Changes to FHA Annual Mortgage Insurance Premium The below chart shows the changes coming to FHA mortgage insurance premium. This goes into effect for loan applications on or after April 1, 2013. If you got a 15 Year Fixed loan with a Loan to Value (LTV) ratio under 78%, you could avoid…continue reading →

Qualifying For FHA Loans To Become Tougher, Costlier

Last month FHA announced increase in mortgage insurance premium and prolonging cancellation of mortgage insurance (read the full report here). But looks like those steps are not enough to restore FHA's reserve requirements as mandated by congress. FHA commissioner and government are proposing/considering several new proposals that would make qualifying for FHA loans tougher and costlier. Let's look at some of these proposals: Down payment on loan amounts over $625,500 to be increased by 1.5%. From 3.5% it would be raised to 5%. FHA is also considering eliminating loan amounts over $625,500 altogether,…continue reading →