Understand Your Loan Options When Buying Del Mar Homes

If you are considering buying a Del Mar home, you have more options available to you today that ever before.  From traditional, fixed-rate mortgages to ARM and hybrid loans, there are lenders offering packages that suit the needs of every different type of buyer.

The goal: Find a loan that best fits your current and future financial position. 

Most loans are categorized into one of the following: fixed-rate, adjustable-rate or ARM, and hybrid loans ( these loans combine features of both ARM and fixed ).

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How to Calculate Return on Equity for Del Mar Homes Investments in the First Year

Many Del Mar homes investors use leverage in their purchases to decide whether the home they are prospecting is a viable and profitable one.  You can determine the expected Return on Equity for the home's first year using the formula below.

Determine the Cash Flow After Taxes. We'll use a CFAT of $17,000 as an example.

Then calculate the cash needed to invest as a down payment or for renovations - any up-front cash needed to get the property occupied.  We'll use $220,000 in this example.

Divide the CFAT by the cash invested:

$17,000 / $220,000 = .077 or 7.7% Return on Equity

You only need a calculator and a few minutes of your time to determine the return on equity for any property that you are considering purchasing. Choose a bottom line ROE and only invest in properties that meet those criteria.  This will assure your success as a real estate investor.  This method will be successful in any market condition. 

4 Credit-Scoring Myths for Buyers of Del Mar Homes

When you are preparing to buy a Del Mar home, it's important to know what information will help and hurt your chances of getting a loan from a lender.  Mortgage lenders themselves are broadcasting the things that have a positive and negative impact on your credit score, and some of that information is not accurate.  Here are some facts that will help you to best prepare your credit standing for applying for a loan.

The following information is NOT true and will not help your credit score. 

1. Closing accounts can help your credit score

Closing accounts will never increase your credit score; rather closing accounts may hurt your score.  It is true that having too many open accounts can hurt your score but once the accounts have been opened the damage is already done.  Closing the accounts will just make the situation worse.  Why?  Your credit score is based on the ratio of used credit versus available credit.  If you close accounts, your available credit decreases, increasing your debt to available credit ratio.

Instead of closing accounts, pay down the debts on any credit card accounts.  That will improve your score.

2. Checking your FICO score can hurt your credit

Applying for new credit is what can negatively impact your score. Ordering a copy of your own credit report or credit score doesn't count.

You can minimize the damage credit inquiries can deliver to your credit score by shopping for a mortgage over a short time period. The FICO score treats multiple inquiries in a 45-day period as just one inquiry and ignores all inquiries made within 30 days prior to the day the score is computed.

3. Credit counseling will hurt your score as much as a bankruptcy

For the past 3 years, the FICO formula to determine credit scores has ignored any reference to credit counseling.

The mortgage lenders who don't like credit counseling tend to treat people with counseling as if they filed for Chapter 13 bankruptcy which requires a repayment plan and looks better on credit than a Chapter 7, which eliminates most debt accounts.  Working with these lenders will most likely get you a higher interest rate than other lenders that do not look negatively upon credit counseling.

4. Your FICO isn't the only score you need to check

All three credit bureaus offer the Experian-named FICO credit scores using the same formula - they just use different names.  With Equifax they call their credit score the Beacon score and TransUnion calls its score Empirica. 

In most cases, individuals have three different scores from the three different bureaus as the bureaus don't all use the same data. This is why it's important for you to pull your credit reports from all three credit bureaus before you applying for a large loan.

Earth Day Is Every Day For Owners of Del Mar Homes

Owners of Del Mar homes have been living green for quite some time, and it shows. School aged children of Del Mar homes are seeking ways to green their life for a better planet. Although they are learning these practices in school, the real learning begins at home. Here are a few ways that you can live by example.

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Open House Checklist: Ten Great Open House Ideas For Your Del Mar Homes

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Removing and Recycling Large Items From Your Del Mar Homes

What happens when you need to remove a large appliance, piece of carpeting, or furniture from your Del Mar homes.  Some people may be tempted to put it on the curbside and hope that it appeals to a passerby. Most owners of Del Mar homes are making an effort to live a greener lifestyle in their Del Mar homes, which raises some questions about how to recycle these larger items.

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How much Will You Have To Pay In Capital Gains When you Sell Your Del Mar Homes?

When your Del Mar home is your principal residence, and you are selling it, the basic tax rule is that you can exclude gains of up to $250,000 if you are a single taxpayer and $500,000 if you are a married taxpayer filing jointly, provided the Del Mar home was your primary residence in at least two of the preceding five years. This exclusion can be used once every two years. While this rule seems fairly straightforward, there are a number of special situations to keep in mind:

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What is Covered Under Home Protection Plans For Your Del Mar Homes?

The last thing buyers of Del Mar homes want to worry about after closing is what could possibly break or malfunction in their new Del Mar homes. Since that can cover a multitude of items and systems, for peace of mind, it's a good idea to get a home protection plan. It's especially a good idea to obtain a home warranty if you're a first-time home buyer with no experience maintaining a home.

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How Can You Be Sure That Your Getting A Good Deal On Your Del Mar Homes?

Know your market. Gone are the days of "sure thing" home purchases when buyers of Del Mar homes would bid up prices and then watch the values of their houses soar like tech stocks in 1999. Today, if buyers are bidding at all, they're far more likely to insist on lower prices and to walk away if they don't get what they want.

Now more than ever, location is crucial, and Del Mar homes have the advantage. Focus on good school districts, crime statistics and any impending construction or public works that could increase or decrease the value of a home. Conduct preliminary research online at Web sites like Zillow.com, Trulia.com and greatschools.net.

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Selling Your Del Mar Heights Homes? Get Your Mortgage For Your Next Home Figured Out First!

One of the biggest mistakes I see property owners make when selling their Del Mar Heights homes is not getting pre qualified before they put the real estate sign in the front yard.  I think it makes sense that a buyer should get pre qualified before starting a home search, but what about you as a home seller?  In many ways it is more important that you get pre qualified first before you start looking for a buyer for your Del Mar Heights Home. 

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