Home Loans California & Arizona

Buying a House in California and the cost of doing so. Buying a California house can be very affordable with the down payment and closing cost.

Let's explore the 3 main areas on the cost of buying a house in California. Those 3 areas are; the down payment, the up front out of pocket cost and the closing cost. The funds to buy a house can come from a checking, savings, stocks, bonds, IRA, retirement account, 401K, Life Insurance policy, Gift from a family member,
down payment assistance home loan program, employer loan, sell something of value (need to document the sell with a proper paper trail), as you can see there are many avenues to obtain funds to purchase a property in California.

The first area that we need to cover when buying a house in California is the Down Payment. There are home loan programs that offer no money down such as the VA home loan program and the USDA home loan program which are available in the state of California.

Other purchase home loan programs will require at least 3% on the Conventional first time home buyer program. FHA purchase home loan program requires a 3.5% down payment of the purchase amount, example, purchase amount of $300,000 at 3.5% will require $10,500 for the down payment and those funds can come for any of the sources mentioned above. If you have budgeted for a larger down payment, that is always welcomed, more down payment will reduce your monthly mortgage payment and with enough down payment, mortgage insurance will not be included in the monthly mortgage payment.

The earnest money deposit also known as the EMD that is used to open escrow will count towards the cost of the loan. You will need to discuss the amount of the funds to open escrow with your real estate agent. The more money you open with, shows the seller you are a serious buyer. 

The second area is the up front out of pocket cost when buying a house in California. These cost will included the earnest money deposit, the credit report fee, the appraisal report fee and property inspection reports such as (these are not required but recommend), home inspection report and a termite report (a termite report is required on VA purchase home loans in California). Other inspections if elected by the buyer to pay for can include a roof, foundation, mold, well and septic reports. The cost for each inspection will range from vendor to vendor.

These inspections on non-refunded, these are paid to third party vendors. The seller, real estate agent and lender do not have control over the outcome of these reports, once the inspection is complete and report is delivered to the buyer(s), the fee is non-refunded.

The third area is the cost of buying a house in California are the closing cost. The closing cost will consist of four areas; lender fees, escrow fees, title fees and the buyer's pre-paid fees. The lender fees will include but not limited to the processing fee, underwriting fee, flood certification and additional credit report fees if supplements are needed.

Escrow and title fees are other cost associated with buying a house. These fees are paid for at the time of closing and will differ from vendor to vendor. Escrow will be the service provider to receive and distrust funds to all the appropriate parties. Title will ensure your property you are buying is clear from any and all liens at the time of closing and they are the service provider that will record the new Deed of Trust with the local county recorder's office.

The last set of fees will be the buyer's prepaid items such as per diem of interest, home owners insurance for one year, impound account of the property taxes and homeowner's insurance. The fees will vary based on the property type, purchase amount and loan amount. Note: The Conventional purchase home loan program with 10% or more on the down payment does not require the buyer(s) to have an impound account. 

Even though there are down payment assistance home loan programs for buyers to take advantage of and the seller(s) if elected can pay up to a certain percentage of the buyer's closing cost. This can help in a buyer's market where the sellers can assist with closing cost, a little tough to get when we are in a seller's market. This is the reason to plan ahead when you are looking to buy a house in California so that you can save as much money as you can to contribute towards your home purchase. 

Check out some down payment assistance home programs in California HERE and I welcome the opportunity to discuss these programs with you. The cost to buy a house in California can be affordable and may surprise you how much you may need or my not need to own a home.

You will never know until you explore your options on what it the cost will be to purchase a house, I welcome to explore those options with you on how and where we can locate some funds to buy a property of your very own. We can break down the 3 areas to ensure you have the required funds to buy a house in California.

One of the top answers surveyed by potential home buyers was, "What is holding you back from buying a house", this was the number 3 answer, "Do not know how much it will cost to buy". That is why buyers need to speak with a licensed loan officer in California to see what the income, credit and cost will be to own a home.

How much does it cost to buy a house in California? You never know til you start to explore your options and begin your path of homeownership by contacting me directly via call or text at 909-503-5600 or email me HERE to get started. I look forward in speaking with you.

Posted by Nathan Rufty on October 18th, 2015 8:35 PM
Buying a house in California is always a good time and what better time than now. Purchasing a home in California is a long term investment with advantages. 

When looking to buy a house in California, explore all your options whether it is your first, second or multiple times purchasing property, you should think long term. This is a home, where your family can start, grow or expand and start new chapters in your life.

It is always a good time to buy real estate in California, yes values go up and down. That is where the long term investment plans a key role in your decision to purchase. Whether you buy at the height or the low of the market, you will always gain equity in the property because the values will increase and you will be paying your loan down month after month.

I speak with homebuyers in California daily and I hear a lot of reason to buy now or wait. The ones that buy now, always come out ahead than those who wait. The ones that wait and call me after a year or two, always say "I should have bought last year" or I should have bought when I first spoke to you."

Not everyone is in the position to buy a house now, due to credit, income or down payment. Those buyers, taken the proper steps will be homeowners one day. Always give yourself a reason to speak with a loan officer in California about your desire to purchase a home. The best thing can come out of it is, you will know where you stand when buying a house. If you can not purchase now, than you will at least know what you need to do in the future to be in the position to one day own a home.

I know advise from family, co-workers and friends are valued but speaking with someone that is in the business and stays abreast of the every changing lending guidelines will be your best resource. As loan officers we need stay informed of guideline changes and new products that come to the market where we can inform and educate our borrowers of the new developments. I do not speak to my friends who are in construction about my medical issues, that is what my doctor is for.

The reason I support you buying a house now is, when you set a budget on how much you are willy to spend towards a mortgage payment each month and you can purchase because you meet the income, credit and down payment requirements, then what is stopping you from buying a home in California? Is it fear, is it lack of knowledge about the home buying process or you think you do not qualify because of something you heard from another person? 

That is why you need to speak or sit down with a mortgage loan officer and discuss your needs and goals of owning a home. The process of buying a home in California is not that difficult when working with the right licensed knowledgable loan officer that only has your best interest in mind. I have been in the home loan business since 1988 and have assists thousands of people purchase and refinance real estate in California. Over those years one thing remains consent, those who bought real estate on a fix rate mortgage seem to come out ahead that vast majority of the time than those who could not or should have bought a home because the lack of the 2 items, credit and income.

Real estate by far is one of the safest investments you will buy in your life time, because you will always month after month will be reducing your balance. Yes you have the ups and downs, but if your mortgage is a home fix rate, then you will not have the fluctuations in the payment. The stock market losses and gain in such dramatic swings you can loss more than you gain. Look at the vast majority of wealth in our county, if you were able to look at their portfolio of investment, I can bet you more than 50% is invested in real estate.

You do not have to have a truck load of money to buy a house, there are programs like VA and USDA that are 100% financing, no money down purchase programs. With available down payment assistance home loan programs in California, FHA and Conventional home loan programs are still an option to own a home. 

if you are trying to time the market on when  to buy a house, guess what you will loss. That is why Las Vegas has the money and you don't, do not gamble when purchasing property, just do not. In the long run you will come out a winner because you set a budget and a goal with yourself and your loan officer on what you are looking for when exploring your options to purchase a home.  

After 23+ years in the mortgage business, I meet incredible people that I had the privilege of working with and I treat my clients the way I would like to be treated. Sometimes the truth hurts when someone tells you, "You can purchase a home at this time". Believe you me, I do not like saying that to anyone. But once we set a plan so that one day you can buy a house in California, you will be in a better situation to afford a home. That is one of the main goals, once you are able to buy a home, you continue to own that home til the day you pay it off or sale it and made a profit. You are not looking to purchase real estate to one day loos it through a short sale or worst a foreclosure.

I welcome the opportunity to work with you and explore all options so that your goals and budget are meet when looking to buy a house in California. My goals is to make the process of purchasing a home as smooth, stress free and enjoyable as I possibly can. Connect with me HERE or call or text me direct at 909-503-5600. I look forward in speaking with you very soon. 
Posted by Nathan Rufty on September 6th, 2015 1:20 PM



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