Home Loans California & Arizona

How to negotiate a purchase agreement in California with your qualified Real Estate Agent.


Giving and Getting: Why the Terms of the Agreement of a Home Sale Are Far More Important Than the Purchase Price.

Effective Purchase ContractOne of the most significant factors that home buyers and sellers in California focus on when buying real estate property is the negotiated sales price in the purchase agreement. While the sales price is very important, the fact is that other terms in the sales agreement may have more far reaching and significant effects on the purchase transaction.

In fact, lets take a closer look at some of the most important terms when writing up your offer in California, you will see why you and your agent should actively negotiate for improved terms of the purchase while still getting a home that you are comfortable paying for.

Closing Costs Credit From the Seller:

Some buyers and sellers will haggle over a few thousand dollars in the sales price without addressing to the closing costs, the fact is that the closing costs for a typical transaction may cost the buyer between two to five percent of the sales price and this is on average. The cost to purchase a home are lender, escrow, title and buyers prepaid fees. A sales contract may be negotiated so that the seller assumes some or most of the closing costs and this will result in a fair amount of savings to the buyer. Likewise to the seller, when the contract is negotiated in the interest of the property owner, the seller may save thousands of dollars at closing if the contract states that the buyer(s) are responsible for their closing costs.

The Appraised Value of the Property:

In an ideal world, a home would appraise for the agreed upon sales contract, but that does not always happen. A sales contract can be constructed with terms that allow for the sales price to be renegotiated after the appraised value is established and this may benefit both the buyer and seller. Some sales contracts, however, state that the negotiated sales price is final regardless of the appraised value. If the appraised value comes in higher than the agreed purchase amount, the the buyers are coming in the with equity in the home. Should the appraisal come in lower than the agreed upon purchase amount, the seller at that time can move forward with the purchase at the lower price or cancel the transaction because of the out come of the appraisal.

The Property Inspection is Very Important:

Many home buyers in California opt to obtain a property inspection to determine if there are hidden issues with the property's structure, foundation, roof, air quality and other important components of the property. The inspections with reveal what condition the home is currently in, poor, fair, good or excellent condition. The inspection report may reveal that a property needs a few hundred or thousands of dollars worth of repairs. The sales contract may be written so that the buyer may back out from purchasing the home within a set period of time after receiving the property inspection report or the terms of the sales contract may be re-negotiated once the property inspection report has been completed and reviewed.

Special Contingencies During the Purchase Process:

A real estate transaction may extend a couple days or several weeks while the buyer and seller contacts a home inspector, termite and roofing company, a lender and other third parties to ensure a smooth and successfully closing. During this time period, many events can occur that may adjust the interest level or even the ability of the buyer and seller to complete the terms of the purchase agreement. Some sales contracts are drafted on how the buyer may cancel out of the contract within a certain period of time with minimal expense and the out come of the appraisal and home inspection.

Generally, there are standard terms (there are many others) found in many real estate purchase contracts, the terms can be adjusted by either party to benefit the buyer or seller. If you are looking to buy or sell a home, you should actively communicate your needs and desires with your qualified licensed real estate agent so that he or she can negotiated the terms of the contract to be most favorable to your needs.

Before you look for a home to make an offer on, lets get you pre-approved to purchase a home so that you know what your budget will allow you to purchase. My focus is to facilitate a home loan here in California that will meet your monthly mortgage payment. After you have selected a home loan program, then lets connect you with a real estate agent to assist you with your home search. The Agent will assist and guide you with your offer to the seller(s).

The best professional advise I can give is, work with a licensed Realtor® that has a proven track record selling and buying homes for their client. The last thing you want is working with a part time agent and you lose out on a great opportunity to sell or buy your home. I welcome the opportunity to assist with your lending needs before starting your home search to ensure you have a loan secured.

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Posted by Nathan Rufty on October 18th, 2014 8:18 AM

How to buy a home with no money utilizing the USDA home loan program in California.

Play video below on how to locate the approved lending areas for this 100% no money down home loan program. 
The USDA home loan program in California is the prefect loan programs to purchase a home with a buyer that has limited funds for the down payment. The home needs to be designated in the approved lending area by the USDA lending map. Watch the video on how to locate the approved areas that you are looking to purchase a home in.

The benefits with the USDA home loan program is that it offers the buyers the opportunity to buy a home with no money down, not limited to first time home buyers. No prepay penalty in paying the loan off earlier, the best part of the program is if the home appraises at a higher amount than the agreed upon purchase price then we can finance your closing in the loan, this is the only purchase loan program you are allowed to do this.

So image purchasing a home with no money down and no out of pocket funds for the closing costs. I have assisted many home buyers with the USDA home loan program with very little out of pocket cost, I welcome the opportunity to explore this one of a kind lending program. Call me direct and let's get started on the path of homeownership.
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Posted by Nathan Rufty on October 12th, 2014 8:47 AM

VA refinance

Sometimes there is a need for a little extra cash. Especially if you are a veteran or currently on duty, you probably don’t have a lucrative form of income. Maybe you have other loans to pay off or you have tuition fees to may, maybe you just need a little extra cash to pay the bills or buy basic items. In this case maybe just getting a VA loan is not for you; rather a VA refinance would be an excellent option. The VA refinance allows for persons to get a lower monthly rate

What is VA refinance?

The VA refinance program is for personals who are actively on duty or for persons who have served at war since 1940 and is now a veteran at way. This is for persons who already have a VA loan and is now looking to refinance it to get the lowest rates out there. VA refinance basically is a loan system that was set up in order to refinance your loan at the lowest rate possible. It is also known as Interest rate reduction loan. It is also known as an IRRRL which means Interest Rate Reduction Refinancing Loan, also some people may refer to it as streamline VA.

VA Interest Rate Reduction Refinancing

The VA Interest Rate reduction (IRRRL) also known as streamline refinancing is one of the easiest ways in which a veteran can obtain reduce rate on a loan. This is so because it does not require any further appraisals or out-of-pocket costs. The closing cost of their home can also be added eventually to their loan and no down payment would be necessary. In other words the closing cost that would normally have to be pain in a VA loan would not be necessary if a candidate got an IRRRL.

VA Cash Out Refinancing

This allows eligible candidates to take out a loan on a property that is already owned. In this case a veteran is not required have a VA loan in order to receive cash out refinancing. Also in many cases the loan may be more than the possible cost of that property.

Who is eligible?

The same groups of persons that are eligible for a VA are eligible to apply for a VA refinance. These groups of persons are: Active men and women on duty providing that they have been on duty for more than 181 days, members of the reserve and Guard members. Also the wife of a dead veteran that is not remarried is eligible. One main thing that should be noted is that a candidate would have to apply for a VA loan before they apply for a VA refinance. Because what the VA refinances mainly is, is looking for the cheapest possible interest rate and monthly payment on your current VA loan. Also the only exception is in the case of a VA cash out refinancing were the buyer does not have to have an existing VA loan just a property they would like to add a loan to.
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Posted by Nathan Rufty on September 28th, 2014 1:00 PM

Three Ways That Your Mortgage Credit Score Affects the process of your chances of obtaining a Home Loan in Rancho Cucamonga CA.

If you're thinking of buying a home, you may have been thinking a lot about your credit score as well. Credit scores control so much of what we do in the financial world, but what does your credit score really have to do with your home loan in Rancho Cucamonga? There are two parts to your credit report, the credit scores and what is in the body of the credit report, such as late pays, collections, judgement, bankruptcy, etc.. and all of these factors effect how your credit scores are establish amongst the 3 credit bureaus.

Here are three ways that your credit score could impact your mortgage loan application.

Your Middle Credit Score Affects Your Ability To Obtain A Mortgage

The first thing your credit score tells a mortgage lender is whether your score is lendable at all. In some cases, if you have a very low credit score, you may not be able to obtain a mortgage until the overall credit profile is addressed.

Different lenders will have their own set of criteria for determining safe and unsafe lending situations. Typically, if your middle credit score is lower then 600, you may have a difficult time obtaining a home loan.

If you are concerned about a low credit score, do not despair - you will need to work a little to clean up the derogatory markets that appear through out your credit report. Some lenders will still lend to home buyers with lower credit scores (just make sure you are working with legitimate lenders and not mortgage scam artists). If time is on your side, you can work towards building up your credit score so that when the time comes to re-applpy for a home loan in the Inland Empire, your scores will be much more attractive to lenders.

Your Credit Score Affects What Type Of Home Loan in California You Can Obtain

The second item a lender learns from your credit score is which types of mortgage you qualify for. If a lender sees you as a higher risk, their underwriting guidelines may not necessarily allow to offer you a traditional home loan.

In most cases, if you have a credit score of less than 620, you will not qualify for a traditional  conventional mortgage though Fannie Mae or Freddie Mac. In addition, if you have a lower credit score, you may have to make a larger down payment in order to qualify for the type of mortgage that will meet your monthly budge.

Your Credit Scores Will Affect Your Interest Rate

The final thing that a lender learns from your credit score is what interest rate they will have to offer you. As a general rule, the higher your credit score, the lower the interest rate. In turn, lower the credit score the higher the interest rate and a higher down payment may be required.

However, with the higher credit score, does not always mean you will automatically receive a great mortgage rate. There's more that goes into the pricing of a home loan in California than just the interest rate, so watch out for additional factors like extra fees, mortgage insurance, lock-in periods, and so on.

Your credit score tells a lender a lot about what type of borrower you are. Ultimately, a higher credit score means that you'll be able to borrow money at a lower interest rate. But if your score is low, don't worry - there's a lot you can do to bring up that score before you apply for a mortgage, so do not throw in the towel just yet!

Every financial situation is different, so if you want to find out more about how your credit score and how it will affect your mortgage in your specific circumstance, speak with a local and knowledge mortgage professional such as myself. I welcome the opportunity to assist you with your home loan needs when applying for a purchase or refinance home loan i Rancho Cucamonga California.

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Posted by Nathan Rufty on September 21st, 2014 1:48 PM
Can you image not having to pay FHA mortgage insurance anymore on your California property? With the equity that we have experienceRemove my FHA mortgage insuranced in the past 12 months here in California, you may have the equity in your home to removethe FHA monthly mortgage insurance and start saving that payment. If you purchased a home that required mortgage insurance, now may be the time to remove the MI to reduce your overall mortgage payment.

The mortgage insurance may not be tax deductible in the future, need to check with your tax preparer on what you can write off on your taxes, deductions change from year to year, he or she will be the best person to turn to ensure proper tax filings.

We can explore the equity in your home to see if you have the required value to eliminate mortgage insurance. The benefits of removing MI can be, reduce the term of your loan, paying it off earlier, replace the mortgage insurance payment with cash in hand to pay off debt or do some need home improvement, the list can go on and on what you can do with the extra money. 

The FHA loan program where there to get you into the home and now the conventional loan is here to get you out of the the FHA program to remove the monthly mortgage insurance. You will need to qualify with the conventional loan with 3 parts, income (debt to income ratio), credit scores (higher the better) and equity in your home (at least have a 95% loan to value). 

You need to definitely call me if your FHA case number was issued after June 3rd of 2013, that is when the mortgage insurance will remain through the term of the loan if you put less than 10% down payment when you purchased your home utilizing the FHA home loan program.

It is time to cut out that payment and place yourself on some stable long term financing. Does not hurt to explore this option, at least you will know if you can refinance at this point or will need to wait a little longer for the equity to increase or work on your credit is the scores are not as strong as they should be, I will advise you on status of the refinance.

Stop paying and start saving, call me at 909-503-5600 or email and let's see your options on refinancing out of the FHA home loan and into a conventional fix program.
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Posted by Nathan Rufty on September 1st, 2014 4:59 PM

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