I Wish I Had Known…!

How many times have you visited a friend’s house in a different neighborhood and discovered something new about that area? You also may have commented that, had you known sooner that the area offered so many worthwhile activities and amenities, you might have looked for a home there.

For example: Newport Heights in Newport Beach is about a mile or so from the beach. The weather is comfortable all year, which keeps utility bills down since you’ll need much less heat and practically no air conditioning. Also, lots are larger in Newport Heights than in some areas closer to the beach so you can enjoy a garden and have a nice place for the children to play.

Newport Heights also attracts a large number of families since really good schools at various grade levels are within easy walking distance. An excellent public library, an ample selection of stores, and delightful parks all are nearby. Freeways are easily accessible and John Wayne Airport is very close.

Those of you who are in the market to buy residential property, please let me know what your needs might be and I will be happy to help find and sort through your choices and preferences, for example:

• south facing house; • at least 3- or 4-bedrooms to accommodate my family; • one-story or two-story house; • a condo with a homeowner’s fee of under $300 a month; • near a hospital; • close to a shopping center; • close to a freeway since I work in or frequently travel to Los Angeles, San Diego or wherever; • any combination of these or other factors.

In other words, I will not just send you (or your friends or relatives) random real estate information. I’m here to help you brainstorm. You have no obligation to buy or sell any property. Just use my many years of real estate experience to explore potential opportunities available to you.

For more about me, what my clients have to say, my featured listings, and to get in touch, I invite you to visit http://jeremyburns.bhhscalifornia.com.

If you have any thoughts or questions, please call: 949-300-1549

VA Home Loan Guarantees

You may be eligible for VA benefits, including home loans, if you were discharged from active duty under any condition other than dishonorable. Some benefits may be used by active-duty Servicemembers. Spouses, children, and survivors of Veterans or Servicemembers may also be eligible for VA benefits.

Buying a home using your VA loan benefits can be a frustrating and mystifying process with its highs and lows. Unfortunately, like everything connected with government transactions, the process is full of acronyms that need explanation like: COE (Certificate of Eligibility), GFE (Good Faith Estimate), APR (Annual Percentage Rate), MPR (Minimum Property Requirements) and others. All the more reason for using an experienced real estate agent and one of the VA-approved lenders that I work with.

Understand that once you earn the VA home loan benefit, it’s yours for life, not simply a one-time lending option or a program exclusively for first-time homebuyers. You can use these VA home loan benefits over and over again.

At some point in the VA loan process you will need to have your Certificate of Eligibility (COE). But don’t worry about this immediately unless it would make you feel better to obtain proof of your benefit. If that’s the case, use the VA’s eBenefits portal (https://www.ebenefits.va.gov/ebenefits-portal/ebenefits.portal).

Looking for a home to buy before you’ve got a clear idea of how much a lender is likely to extend doesn’t make sense. Hence you check with http://www.veteransunited.com/welcome-pages/va-home-loan-overview/ to get your VA loan prequalification and preapproval. As a prospective VA homebuyer with a preapproval letter, home sellers and their real estate agents will be much more welcoming.

Your credit profile will be important for your ability to get a home loan, but initially don’t worry about that either. You can get a copy of your credit report but even if it includes your credit score, a qualified lender will pull your credit score and use it in a formula weighted especially for mortgage lending.

The VA Loan Guaranty program does not set a maximum amount that the eligible veteran may borrow using a VA-guaranteed loan. Lenders may make loans to Veterans over the calculated maximum loan limit; however, lenders may require Veterans to make a downpayment in these types of transactions.

The VA released late last year its 2014 VA loan limits for the nation’s more expensive real estate markets, including Orange County. These latest VA loan limits apply to all loans closed through Dec. 31, 2014. The VA’s loan limits do not represent any kind of maximum loan amount or ceiling on how much you can borrow. There is no limit like that within the VA home loan program.

Qualified VA borrowers have two layers of loan entitlement. VA loan entitlement is basically a dollar amount that the VA promises to repay back to a lender in the event you default on your mortgage.

VA's guaranteed home loans have no maximum loan amount, only a maximum guaranty amount, which is set in law. However, lenders typically require that the VA guaranty, plus any downpayment provided by a Veteran, total 25 percent of the loan amount. As a result, an amount equal to four times the VA's maximum guaranty amount is customarily referred to as a "loan limit."

Loans for the loan limit or less are typically available to Veterans with no downpayment; loans for more than the loan limit generally require downpayments. VA's maximum guaranty amounts are established annually, and vary depending on the size of the loan and the location of the property.

The most that VA borrowers can obtain without putting money down in most parts of the country is $417,000. But in a costlier county, like Orange County, the VA has instituted higher loan limits, thereby increasing the amount qualified Veterans can borrow without having to put money down. In Orange County the VA limit for 2014 is $687,500. For more details, see:

http://www.va.gov/opa/publications/benefits_book/benefits_chap06.asp

and

http://www.va.gov/explore/home-loans.asp?gclid=CMOhkPrr4r0CFROVfgodwB0A1A

I Would Love To Own A House But….

People often say to me, “Oh, I would love to live there but I can’t afford it”…. or I want to buy a house but all of the homes that I can afford are not where I really want to live.

As everyone knows, the reasons why we live or move somewhere change over time. People who have enough savings and good credit should consider buying a property and working with a realtor to find areas where the investment is worthwhile. But another option to consider is buying a house to rent out.

Of course the market for rentals in the area chosen has to be strong enough to justify this kind of investment decision. Your realtor can help you to understand historical real estate and other trends that make the area attractive and affordable for renters today and especially in the future.

Purchasing a home to rent to others affords you flexibility while at the same time providing a beneficial investment. You’re free to change residences as life, job and family circumstances change. From your rental, over time you can explore different communities in the area that may be only a few minutes apart and yet are very different. Here again, your real estate agent can be a valuable mentor and guide.

Some people are buying a property where their children are going to college or graduate school. The children have a place to live while in school and can manage the property until they graduate and move elsewhere or perhaps get a job locally and pay rent. The property stays in the family and appreciates as an investment. Although there are pro’s and con’s for being your child’s landlord, the arrangement can prove to be a win-win.