Buying Another Home? Have You Calculated All Potential Monthly Costs?

If you're currently thinking of buying, you're probably think a lot about the current interest rates and your monthly mortgage bill.

But there's more.

It's realistic in the Long Beach area market to consider at least a purchase price of $600,000, so for this post I'll assume the buyer has an approval for this price.  The figure at the right assumes a  down payment of 20% and a loan term of 30 years, interest rate at 3.16%.  As shown, the monthly principal and interest is $2065.35 every month.  

Since this buyer is putting down 20%, the lender usually allows property taxes to be paid directly by the homeowner, not paid into an escrow account.  

Closing costs and the expenditures associated with moving into a new property are not included in these amounts, but buyers must at least consider the total cost of closing escrow. Your lender will be including that in estimates so they should not be a surprise.

So looking at other costs associated with being a homeowner, which the buyer should pay attention to before signing a contract with a seller, there are property taxes, home insurance, and "other costs".  It's the "other costs" that often the homeowner does not calculate directly, or even deal with until it's time to leave the home.  That can often lead to what's known as deferred maintenance, something to be avoided. Because as the deferred maintenance piles up, it leads to faster deterioration.

At least 1% of home's value should be included on an annual basis for such things as roof repair, termite or pest control, paint or stucco repair, fence repair, garage door servicing, to name a few.  If the home predates 1932, foundation or retrofit may come up (home before then were not required to be bolted to the foundation). 

Although used in this scenario, a 20% down payment is not required to buy a home, FHA loans only require 3.5% down payment.

To discover different scenarios, go to the Calculator link for all types of calculations, not just real estate, and read the notes below--they are very informative.  The Consumer Financial Protection Bureau is also a useful source to consult.

For more information about buying a home, please contact me.  I have over 25 years of experience helping clients make home decisions.

 

Julia Huntsman, REALTOR, Broker | www.juliahuntsman.com | 562-896-2609 | California Lic. #01188996

When Am I Able to Buy Again?



Seasoning Requirements
 

The distressed property market began some time ago, and some people are beginning to wonder when they will be able to buy again.

Credit scores are important as well, depending on how severe the situation was and how long it will take to recover.

This is meant as a general guide only. 

For instance, if your short sale closed escrow in September of 2009, you could be eligible for an FHA loan, depending on your other loan criteria of course.  IF you have certain extentuating circumstances and were current on your mortgage at throughout the short sale, you may not have any waiting period for a new FHA loan.

To obtain a conventional FNMA loan, your waiting time is as early as 2 years after a short sale closed if you have 20% down payment.  And, for a FNMA loan, IF you can show certain extenuating circumstances, your wait might be only 3 years after a foreclosure.

Bankruptcy is one of the most damaging events to your credit, but if you work diligently to restore your credit as soon as possible, your wait could be much shorter in order to buy.  Paying bills on time and getting new credit established, perhaps by obtaining a secured credit card, are essential to improving your status as a good loan risk, according to John Walsh of Total Risk.

Please contact your lender (or I can refer you to one) for circumstances about your particular situation, because it may vary somewhat from the information here. Please contact me--I want to help you, even if you're not able to buy now.

Your New Home in the Long Beach Ranchos

A favorite area of Long Beach is "the Ranchos", a neighborhood of houses developed and built by Cliff May.

Built when the California ranch style home was really coming into style, these economical houses were the "tract home" version of the newly popular ranch style. They commonly feature interior courtyards and open floor plans, which are two of the reasons they are still so popular. Updated homes have improved cooling and insulation, but the overall characteristics of well lit rooms, open kitchens and living rooms, and large sliding glass doors to the outdoors, are what popularized the "Southern California lifestyle' of the post-World War II era.

Current listings are in the range of $515,000 to $649,000 (this is down more than $100,000 at the peak of the market). Original floor plans ranged from about 1100 sq. ft to about 1400 sq. ft., with attached 2-car garages, board and batten siding on single story homes on slab foundations, open kitchens with built-in ovens and formica counters, hardwood floors and low-pitched rooflines. While not officially an historic district, this area has many loyal followers of this style who more and more create additions and remodels that adhere to the Cliff May style. Interestingly, Cliff May, who was not an architect but was proficient at building homes, was descended from one of the early California families and loved the old Spanish/Mexican influence architecture designs in the early villas that were also characterized by courtyards and the feeling of outdoor acess with privacy. The "Ranchos" are not homes with the traditional "front yard"--over time the courtyards have accommodated landscaped patios, tree-covered decks, or great areas for fenced-in pools.
Contact me for more on selling prices in this neighborhood! Click on the link to see current listings in the Ranchos.  If there is something listed but you don't see it here, please let me know!

Bixby Village: Your Next Home

The Bixby Village area began as a new development of over 350 homes and townhomes in the 1980's.

The single family homes that sit along the east side of the complex have golf course views. On the interior are the townhome groupings with tree-lined greenbelts and guest parking areas, entered from the interior roadways. This area is actually one of the few townhome developments in Long Beach and is well situated adjacent to CSU Long Beach, a major grocery chain store and shopping center, and other nearby shopping malls within several minutes' driving distance.

The townhome floorplans may be 2 or 3 bedrooms, and range between 1700 sq. ft. to over 2300 sq. ft. and include vaulted ceilings, fireplaces, formal dining areas, larger kitchens and patios for sitting or entertaining off the living room and dining areas, and attached 2-car garages. Some floorplans in both types of properties include a downstairs den or bedroom. Most bathrooms are still furnished with the original marble-style counters, large tubs and shower enclosures. The homeowner association includes a pool and clubhouse. The architecture is Cape Code style in several shades of blended exterior colors, ranging from warmer sand to cooler blue tones.

Single family homes are larger 3-bedroom plans, going up to over 2700 sq. ft.

Currently, there are 5 active listings in this development, 4 are single family homes ranging in asking price from $749,000 to $899,000; the townhome is currently listed at $665,000. Selling prices in the last 3 months for the townhomes (no SFR sales in that time) ranged from $580,000 to $665,000.

This complex is a great opportunity to live within a 5 minute drive of the beach and Belmont Shore, yet be close to the 405 freeway.

For more information, call me at 562-896-2609 or visit my site for Long Beach Condos, Lofts and Associations to search for current properties in Bixby Village for townhomes and condos. For condos, townhomes and single family homes in and adjacent to Bixby Village and the golfcourse, see the Bixby Village area listings here.

Julia Huntsman, Broker, e-PRO®, REALTOR®

Bay Harbour, Long Beach--Finding Your Next Home

Bay Harbour's private residential area near Alamitos Bay was developed by Warmington Homes in the 1980's. If you're looking for larger single family homes near the cool ocean breezes and great association amenities, this could be for you--plenty of opportunity for exercise with lovely greenbelts, three tennis courts, two pools and spas, and a 24-hour "guard shack" at the gated entry.

Of 198 homes, seven are currently on the market (see map locations) and range in size from about 2500-3000 sq. ft., depending on the plans. These three- and four-bedroom plans in contemporary Tudor and Mediterranean architecture are open and contemporary layouts designed for gracious living and entertaining. Many features include: cathedral ceilings and crown molding, central air and heat, open family rooms, double-side fireplaces, laundry room, walk-in closets, patios for outdoor dining, direct access from garage and many more individual upgrades with specific properties.

Low HOA fees are another great feature of the association. (Compare to the much higher $400-$500/month fees for luxury condos along Ocean Blvd.)

For current listings, please contact me by phone or e-mail. Asking prices currently range from the higher $900,000s to about $1,500,000, a great price range when comparing to other properties of that size and general location!
Or, to see current listings right now in Bay Harbour, please go to my Long Beach Condos, Lofts and Association Homes link for Bay Harbour.

Julia Huntsman, Broker
01188996