Who pays for what in a Santa Clara County Home Purchase

Whether you are buying or selling a home in Santa Clara County, you should be aware of what fees is paid by which party. Note that the fees I have listed below vary by county to county and is negotiable by contract. These are not an all inclusive list, but I have tried to include the most common items. Fees generally paid by seller: Real estate commission Document transfer tax ($1.10 per $1000.00 of sales price) Any city transfer or conveyance tax Owner's title insurance premium Escrow Fee Tax proration (for any unpaid…continue reading →

Everything you wanted to know about FHA condominium approval

In this blog post I will try to answer all FAQs related to FHA condominium project approval. Beginning this year, FHA made some major changes to the Condominium process. I have done a lot of speaking on this topic and have written several blog posts. In this post, I am trying to get the most frequently asked questions and answers to those questions in one post: Where can I go to find if the FHA project is already approved? Go to FHA Condominium page to check if a project is approved with FHA.…continue reading →

It’s official – CA $10,000 Home Buyer Tax Credit has been extended

On March 25, 2010 Governor Schwarzenegger signed Assembly Bill 183 which provides $200 million for home buyer tax credits. The $200 million will be divided between first-time homebuyers and “move up homebuyers. The following a summary of the legislation: The Tax Credit: Eligible purchasers may qualify for a credit against their state income taxes in an amount equal to the lesser of 5% of the purchase price or $10,000. The credit will be applied over a three-year period. The credit may only be applied to the purchase of one qualified property. Property Eligibility:…continue reading →

$10,000 California First Time Home Buyer Tax Credit may be extended

As reported in my blog posted on Jan 14th the California governor is considering to extend the $10,000 First-Time Home buyer Tax Credit that expired last year. Here is the link to that blog post that gives you all the details - CA Proposes extension of $10,000 First-Time Home Buyer Tax Credit Download our FREE eBook "How to Buy Your First Home in the Bay Area - A Step-by-step guide to the Home ownership" by entering your information in the form below. Get the eBook NOW First Name: Last Name: Email: State: AL…continue reading →

Stimulus Deadlines Threaten Rates and Affordability; Act NOW!

The great author and speaker Og Mandino once said, "I will act now. I will act now. I will act now." This is great advice for prospective homebuyers over the next 45 days, as two key government programs that have kept home ownership more affordable than ever wind down to their completion. First, the Federal Reserve's Mortgage Backed Securities (MBS) purchase program will come to an end on March 31, just two weeks away! Without this program home loan rates could have been at least 1.00% higher...and potentially even higher...over the last year.…continue reading →

Overview of the Appraisal Process On A California Mortgage

One of the most critical parts of getting a California mortgage is Appraisal. The purpose of an appraisal is to confirm the sales price for the lender. What is an Appraisal? An appraisal is a professional estimate of the value of the property that you are planning to purchase. The person who does the appraisal is called an appraiser. Why do we need appraisal? Lenders always require a home appraisal before they will issue a mortgage. They do this to protect their investment: if the actual market value of the property is lower…continue reading →

9 Benefits of Home-Ownership

Home ownership is the greatest American Dream, is it not? Even in this era of record foreclosures, the percentage of U.S. households that now own, rather than rent, is an all time high. It's not a surprise given several benefits of homeownership. Rent vs. Buy No Matter what you are currently paying for rent, your total cash outlay over a period of several years will probably add up to a much higher total than you may have realized. Compare a renter who pays $1800/month with 5% increase in rent every year and a…continue reading →

Fixed Rate vs Adjustable Rate Mortgage (ARM)

Whether you are buying a new home or planning to refinance, you may be asking the question - ARM vs Fixed mortgage rate - which one is better? When you are trying to make a decision on whether to take an Adjustable Rate Mortgage or a Fixed, you should consider two factors: How long you plan to stay in the property? What is the difference in the interest rate between an ARM & a Fixed? Let me elaborate this: Rates on ARMs are usually lower than fixed rate loans. But the rates are…continue reading →

Documents needed for San Jose First-Time Home Buyer Mortgage Pre-Approval

As a San Jose First-Time Home Buyer you should get a mortgage pre-approval done before you start looking for a house. Pre-approval helps you in 3 ways: It lets you know how much mortgage you can qualify for. This will help you search for homes in the same price range It gives you an estimate of what your total housing payment would be, and If you like a house and would like to make an offer; a "Pre-approval" letter makes your offer stronger. You start the process by completing a loan application. You…continue reading →