“Do not save what is left after SPENDING, but spend what is left after SAVING” -Warren Buffet
Happy almost Tax Day everyone!! This week’s topic is a follow up discussion from Ryan’s Rental Report and also a guest writer will be joining the newsletter. Alex Miller is our trusted mortgage banker who has some great insight for anyone looking to get out of the renters cycle of helping others build equity. Alex graduated with a degree in business administration and started with Pacific Trust Mortgage in 2012 as a transaction coordinator and processing assistant. During this time, he was able to learn the operational components of the loan originating and underwriting process. With a strong operational background, he moved into loan origination with the objective of providing diligent, forthright service for clients and referral partners.
Once again, Zumper National Rent Report for April 2018 (HERE) has San Francisco as the highest rental market with a one bedroom at $3,400 per month and two bedrooms increasing 2.5% to $4,510 per month.
So what can you do as a potential buyer?
For some of the readers out there, the idea of owning Real Estate in the SF Bay Area can be intimidating or unrealistic, but it can be done! Overlooking the possibility of owning real estate and not taking the time to understand the process is a common mistake. Whether you are a first-time home buyer or real estate investor, understanding your current qualifying position and purchasing capabilities can be beneficial to your short and long term financial position. There are many online resources that commonly market the “easy” process of getting a Pre-Qualification letter, although they do not take the time to explain how it works or breakdown the multiple financing options available to determine your best qualifying position. Everyone is different, so there will never be a “one-size fits all” mortgage product. To name a few, there are limited down payment programs, low credit score options, foreign borrower programs, alternative income documentation programs for self-employed individuals, first-time home buyer programs, etc.
With access to multiple loan programs, I believe in the education process and breaking down all financing options available so that YOU understand:
How it works
Your qualifying position
Your max payment and out-of-pocket expense comfort level
Best financing options available
The real estate and mortgage industries are constantly changing and progressing. New underwriting standards and requirements are continually being revised. New loan products are being offered for different qualifying scenarios. The best thing you can do is take the time to go through the full Pre-Approval process so that you truly understand your qualifying position. It gives you the ability to move forward on an offer to purchase the home of your dreams or strategize on how you can be in position to own real estate in the future.
If there is anything I can do to help you achieve your home ownership goals or simply have a question on how it works, please don’t hesitate to contact me. I’m always available to help!