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Home Purchase/Sale

Buying or selling a home is an exciting but ofen complicated and challenging job - that is when professional knowledge and advice come in handy to help guide you through. At CalMBA Realty, we work on all aspects to make this process more enjoyable by truly listening to and understanding your unique needs.

If you are looking for a new home, or try to sell your existing home, we are here to help! Even if you are not ready yet, feel free to contact us with any of your questions, and you can receive free, no-obligation consultation.

Should I buy a home?

In addition to providing you with a place to live, owning a home can provide you with a possible investment for many reasons including potential equity growth, the stability that comes with having ownership in a community, and possible tax advantages.

Renting might make more sense for a mobile lifestyle or if you may need to move because of a job change or other factors. If you do not foresee staying in your home for several years, the amount of equity that you build up over the first year or two may be lost through selling costs and real estate commissions.

Can I afford to buy a home?

Normally, you need to have enough savings to cover a down payment of 5% to 20% of the purchase price plus an additional 3% to 7% of this price for closing costs. If you do not have the down payment, you may be able to qualify for a loan under various government programs that are available.

Before you begin looking for a home it is wise to decide what you want and can afford. Various factors are considered when a lender qualifies a purchaser for a home purchase including credit history, job stability and the size of the down payment. Contact CalMBA Realty today and we can help you estimate the loan you can afford and received a pre-approval from lender.

What factors to consider when finding a home?

Before you look for a home, you should determine the features that you need such as the location, number of bedrooms, size of the lot and proximity to stores, schools, work and other services such as fire and police protection. You should also determine if there are any special taxes, assessments or homeowners association dues that could affect your monthly expenses.

What to remember before presenting an offer?

simply not our style. We understand that an offer can only be presented when you, as a buyer, are completely satisfied and comfortable with the home, and price. we will review the contract thoroughly with you before you sign it and make certain that you understand it.

Two most important factors in the contract are:

Price: you decide what you wish to pay for the property. A good basis for this is to look at what other properties in the neighborhood have sold for - At CalMBA Realty, we will provide you all the information needed and assist your decision.
Contingencies: Make sure that your offer contains any contingencies or special conditions that you desire in the contract. This would include your need to qualify for a loan, repairs that you want the seller to complete prior to the close of escrow, as well as pest control inspections, home inspections, home warranty programs, and any other specific items. Remember, if your offer is accepted and thus becomes a binding contract, failure to complete the purchase could affect the return of your deposit. At CalMBA Realty, we will make sure to work with you to consider all the contingencies you might need.

Real estate terminologies

Housing-to-Income Ratio: This ratio compares the sum of monthly housing expenses to monthly gross income. The mortgage industry's conservative guideline is that housing expenses should be 28% or less of income.

Monthly housing expenses include payments for principal, interest, property taxes, hazard insurance, private mortgage insurance (if required), and condo or homeowner's fees (if required).

A lower ratio may be required for low down payment loans (for example, if the down payment represents 5% of the home price, a 25% housing expense-to-income ratio may be required).

Alternatively, a lender can use a more aggressive ratio, such as 34%, if other factors are thought to compensate for the higher risk of a loan made that exceeds the standard 28% ratio. For example, if you've made timely rent payments that are close in amount to the projected mortgage payment, or if you make a large down payment, a lender might use higher ratios.

Debt-to-Income Ratio: This ratio compares the sum of monthly debt obligations (including the prospective mortgage) to monthly gross income. The mortgage industry's conservative guideline is that these debt payments should be 36% or less of income.

Like the housing expense-to-income ratio, this is a flexible guideline. A lender can use a tighter or looser guideline, depending upon your specific financial circumstances.

Glossary of Real Estate Terms