7 Ways to Qualify for a Mortgage

Young Family Moving Into New Home

A few years ago, home buyers were qualifying for mortgages who normally wouldn’t qualify for a mortgage. It was easy to get a mortgage because homes were flying off the market before they were even listed for sale. Lenders saw dollar signs, so they found a way to help buyers get a mortgage while throwing lending principles out of the window.

It’s a different story in today’s housing market. Qualifying for a mortgage is harder than it was a few years ago, but it’s not impossible. As a Member of the Top 5 in Real Estate Network®, I advise many clients on how they can qualify for a mortgage in today’s market. Here are some helpful tips:

1. Inspect all three of your credit reports. Pull your credit reports from Equifax, Experian and Transunion. Make sure that all of the information is accurate. If you find an account that doesn’t belong to you, submit the necessary form to all three credit reporting agencies to dispute the account.

2. Improve your FICO score. Unfortunately, mortgage lenders heavily weight your lending eligibility based on a score that doesn’t accurately measure your financial stability. The FICO score only measures your ability to repay a loan. Improve your score by paying down debt, paying all of your credit accounts on time, and keeping open accounts with a zero balance.

3. Save for a bigger down payment. Buying a house with a 10% or more down payment shows you are serious about becoming a homeowner. If you’re looking for a Federal Housing Administration loan, you’ll need at least a 3% down payment.

4. Increase your household income. That’s a tall order in today’s job market, but mortgage lenders want you bringing in enough money to realistically pay for the loan. Two-income families qualify easier than one-income families. Pick up a second job, become a two-income family, or start a home-based business.

5. Choose a realistic budget. The rule of thumb is a mortgage payment that is 25% of your monthly household income. Choose a price range that fits this criteria. If you make $4,000 a month, then choose a price range that gives you a mortgage payment of $1,250. The term “house poor” comes from people that spend the majority of their income on a mortgage payment.

6. Stick with one employer. Mortgage lenders like stability, especially in today’s market. If you can manage to stay with the same employer for more than two years, that will weigh in your favor.

7. Negotiate a price lower than the appraised value. If you negotiated a purchase price that is lower than the appraised value, you can consider it instant equity in the eyes of the mortgage lender. Follow the advice of your real estate agent on how to make the right offer.

Now is the time to buy, but lenders will no longer hand out loans to just anyone. Don’t let this discourage you. Take this time as an opportunity to fine tune your personal finances. For more information on how to qualify for a mortgage, please e-mail me. Also, please forward this email to any of your family or friends who might also be in the market for a mortgage.

Mortgage and Finance, pasadena real estate, pasadena real estate blog

Shopping for a Pasadena Condo or Townhome? Ask These 4 Questions before You Buy

Pasadena Condos /Pasadena Townhomes have always been, and will likely always be, an efficient and economical route to becoming a first-time homeowner. They can offer the comfort, prestige, and even luxury appointments that apartment living may lack, often at a cost that is not much different than rent. With the current first-time home buyer tax credit and the deadline for the move-up tax credit fast approaching, I advise you move fast on any condo purchase you may be considering. 

Pasadena Collection Lofts

With my experience as Member of the Top 5 in Real Estate Network®, I am well aware that not all Pasadena condominiums are the same, however, so make sure you ask the following four questions before you buy: 

What will you own? Read the bylaws and be sure you understand what you will be responsible for and what belongs to the Pasadena condo association. Will you own the boat dock at the back of your unit? Can you elect to build a spa on your patio? Generally, unit owners own and are responsible for the interior of their condos, while costs for outside maintenance including common areas and sewer lines are the association’s responsibility.

Who lives there? Are the majority of residents owners or renters? Owners generally take more interest in proper maintenance and are more willing than renters to serve on the association board and enforce complex rules and regulations–including the regular collection of homeowner dues.  

Surfwood Point Condos in the Caltech Area

What about special assessments? The association should have the power to special assess for needed, one-time large expenditures. Otherwise, things that need to be done may never get done at all, leaving the complex vulnerable to disrepair and lowered property values.  

Don’t miss this great opportunity to become a Pasadena homeowner or to downsize by buying a Pasadena condo (remember, the move-up real estate tax credit does not require you to move to a larger or more expensive home). Please e-mail me for more real estate tips on buying a condo or townhome and forward this information to any family and friends who may be in the market as well. 

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The Craftsman Bungalow is Pasadena’s most known architecture by enthusiasts world wide.  View the latest Pasadena Craftsman homes for sale.  Pasadena’s top neighborhood for craftsman bungalows is Bungalow Heaven.

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Pasadena Luxury Condos for Sale.  Here are active Pasadena Condos and Townhomes over $1 Million.

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The La Canada real estate market offers many luxury homes in the foothills of the San Gabriel Mountains.  Here are active La Canada Foreclosures currently for sale.  Foreclosure inventory is comprised of La Canada bank owned homes and preforeclosure short sale listings.

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For those that seek a bar where drinks are served up with class without being pretentious, the sophisticated social environment of The Bar at the Langham Huntington Hotel, formerly the Ritz-Carlton, in Pasadena is what you need. Expect to go with a somewhat well padded pocketbook since The Bar offers an expensive wine list and full top shelf bar. Also offered is a selection of fine cigars for gentlemen…and ladies that would enjoy to have such on the expansive outdoor patio, which offers beautiful panoramic views of the hotel’s grounds and city lights of the San Gabriel Valley.

If you decide to make it to The Bar on the weekend try to go early for a seat since there is lively jazz and blues performances until midnight every Friday and Saturday, featuring bands that draw in quite a crowd.

Although many patrons are hotel guests and those that live at the Langham’s residential cottages, The Bar also attracts locals in the mood for a dim lit, relaxed location to enjoy drinks while socializing and networking on elegant, but comfortable furniture.

The Langham, Huntington Hotel & Spa, Pasadena
1401 South Oak Knoll Avenue, Pasadena, Ca 91106

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Pasadena Foreclosures

Pasadena Foreclosures, Bank Owned Homes, Preforeclosures

The Pasadena Real Estate Market has been holding steady with home sales going up. What most people don’t know is that Pasadena, like many other other cities, is flooded with what is called shadow inventory.

What is Shadow Inventory? Shadow Inventory are foreclosure properties not on the MLS (multiple listing service).

These properties are comprised of:

• Preforeclosures, homes that have a NOD (Notice of Default) filed
• Auction Scheduled NTS homes
• REO, bank owned homes not on the MLS

Many say that preforeclosed and Auction Scheduled NTS homes cannot be considered as shadow inventory, because they have not been been foreclosed on. The reality is that most people behind on their mortgage are typically behind due to financial distress. Most banks will not forgive a large debt and most loan modifications are not approved. Hiring a short sale specialist may be helpful to avoid foreclosure, but the chances on a short sale approval is slim.

As a lifetime Pasadena resident, I see this Shadow Inventory everywhere. A great way to spot these Pasadena foreclosures is by looking for the following:

• Boarded up windows
• over grown landscaping
• notice of “Do not trespass” typically on the front window(s)
• lockbox on the front door or gate

Search for: Pasadena Foreclosures for Sale         How much is your Home’s Value? 

Written By:

Ramiro Rivas

Rivas & Associates 

626-497-4606

Ramiro@RivasEstates.com

Pasadena Foreclosures, pasadena real estate blog

The Mission District Lofts in South Pasadena

If you are searching for a condo Pasadena is a great place to look since it is a city that has been becoming more urbanized over the past few years. Space in Los Angeles is at a premium, ever increasing, and many L.A. suburbs are starting to become re-urbanized. The most recent trend in many suburbs is retail developments with the inclusion of at least two floors of residential units above a retail city walk. Examples of such urbanization is the Paseo Colorado in Pasadena, and Rick Caruso’s latest development, The Americana in Glendale.

The two key players on your team in a home search are the lender and your real estate agent. Once you have these selected, they can help you line up the additional help you need. The best recommendations for a real estate agent is one who is well educated about the market in your area. If you’re a first time homebuyer you may not have a resource of competent mortgage enders, reputable inspectors, or a trustful escrow company that will successfully help you through the purchasing of a home;  Therefore it would be of utmost importance to choose a Realor® that will have this resource of people to recommend to you to have the option of using.

The Del Mar Metro Station and Archstone Apartments

A first step is to find out how much you can afford. Most buyers will obviously need a mortgage in order to complete a home purchase. A lender will qualify you for a certain loan amount depending on how much cash you have available for a down payment and closing costs—the various fees associated with buying or selling a home. Other relevant factors are your credit score, your verifiable income and what type of mortgage you decide to use for your purchase. You can work with a mortgage broker who will shop the mortgage market for you and place your loan package with the lender that offers the best deal. Or, you can work directly with a lender, such as Bank of America or Citibank. Just make sure that you understand what kind of loan is being offered. You might want to consult with an independent party like your accountant or financial advisor to determine what kind of financing is best for you.

If you’ve never bought a home before, you should use an agent who is a good communicator and who will take the time to explain the process. Also, keep in mind that your agent will be interfacing with the other parties in the transaction. You want someone you trust and who you are sure will represent you professionally and work diligent on your behalf.

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Within the Arts and Crafts Movement, the Craftsman style was a progressive architectural design that proliferated in the early part of the 20th century and to this day stands as a form of residential architecture most commonly associated with Pasadena Real Estate.

It can arguably be said that the two brothers, Greene and Greene, were the Pasadena architects that have made the Craftsman style so prevalent in the San Gabriel Valley of Los Angeles. Initially most of the work of Greene and Greene was implemented into smaller Craftsman designed California Bungalows for residences that were built for the middle class communities in and around Pasadena. As the Greene & Greene Architectural firm became more renowned they began receiving commissions for much larger custom Craftsman homes that became termed as the ultimate bungalow. The most prime example of a Greene and Greene ultimate bungalow is one of Pasadena’s, The Gamble House, which has been deemed by enthusiasts as America’s Craftsman masterpiece.

At the beginning of the 20th century many people chose to make a move to Pasadena for its warm, arid climate and it was because of this that the Pasadena Craftsman Bungalow reached its full potential in California. The San Gabriel Valley lends well to Craftsman homes because of the broad front porches that is a common feature of the architectural style, which allows a homeowner to take full advantage of the year round sunny weather that is typical to the Pasadena area.

Craftsman lantern that is a common fixture on the porches of Craftsman homes in Pasadena

The Bungalow was part of a movement in the United States that provided housing that the working class could afford. Unlike today’s affordable housing, which many times uses the cheapest materials, Craftsman Bungalows were built with old-growth timber, real plaster, wooden windows and doors, and built-ins that are now mostly found in high-end homes. It is because these homes were built so well, in a city that finds importance in preserving culture, that many Craftsman Bungalows still stand today. The Pasadena Craftsman Bungalow, many which are now over a century old, continue to provide housing for residents that appreciate a flourishing city with such a colorful past.

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Pasadena Rose Bowl

Held on the second Sunday of every month, the Rose Bowl Flea Market in Pasadena is the largest swap meet in California. Such a wide diversity of items can be found at the Rose Bowl swap meet, attracting all walks of life to explore and shop for unique items that over 2,500 venders are selling.

Among over 20,000 buyers, you will observe fashionistas going through endless racks of vintage clothing, interior designers that find value in irreplaceable antiques, and collectors looking for nostalgic objects of the past.

The flea market is sectioned off into three areas. The first section starting from the entrance is vendors selling brand new items, the second is all antique furniture and collector’s items, and the third is an entire parking lot of vendors selling vintage clothing.

Admission: 5am-7am $20. 7am-8am $15. 8am-9am $10. After 9am, $7. Kids free

Parking: Free lot

Hours: Second Sunday of the month 5am-4:30pm
 
Payment Types: Cash

Directions to the Rose Bowl

Pasadena Blog, Rose Bowl Flea Market