Southern California Real Estate Video Blog with Scott Himelstein

The Secret to Making Smart Investments

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Today we have some advice for those of you interested in buying real estate as an investment. It's a perfect time to make the market work for you, but we want to share 3 things to know before financing an investment property so you can make the most of it!

Have a sizable down payment: You don't need to come into an investment property with cash only, but private mortgage insurance won't cover investment properties. Because of this, you'll need to have at least 20% to put down for financing. If you can amass 25%, you may be able to qualify for a better interest rate.
It helps to be a strong borrower: There are a lot of factors that go into this - such as loan-to-value ratio and other policies of the lender you're dealing with that could affect your ability to take out a loan. Typically, when you're buying an investment property, any score below 740 can start to cost you money at the same interest rate. If you own other investment properties, the bank will want to make sure you don't have any vacancies to ensure you're not dead in the water.
Avoid the big banks: If your down payment isn't quite as big as it should be, or if you have other extenuating circumstances, you should go to someone who is a direct lender, who has their own money and programs. This will give you more flexibility because they have access to a wide range of loan products and can find programs for you that would not be available from the big banks.

If you're looking to finance an investment property, we highly recommend taking a look at the above tips to inform your decision making. If you would like help with the process, or if you have any real estate questions of any kind, don't hesitate to give us a call or shoot us an email. We would love to hear from you!

How Can You Choose the Right Lending Company?

There are many great San Fernando Valley area homes for sale. Click here to perform a full home search, or if you're thinking of selling your home, click here for a FREE Home Price Evaluation so you know what buyers will pay for your home in today's market. You may also call me at 818-396-3311 for a FREE home buying or selling consultation to answer any of your real estate questions

Once again, we have Brandon Moss of PrimeLending joining us to discuss important topics from the lending world. Today, he shares the top 3 things to consider when choosing a mortgage company.

Use a direct lender: You want the mortgage company you work with to be a direct lender because they're the ones who lend their own money. They make their own decisions and have total control over the loan process, unlike a mortgage broker who is just a middleman. PrimeLending is a direct lender - we underwrite, process, and fund all our loans here under one roof. It gives us better control, better closing turn times, and better customer service.
Use a lender who's familiar with local neighborhoods: You want to work with a lender who is familiar with the local marketplace and who has appraisers who are familiar with the local marketplace. Don't use someone from outside of town - rather, you want to hire someone who understands the real estate conditions of the area. You also want to ensure your lender has national expertise, who knows what's happening at the national level, but focuses on the local level.
Use a company that can perform on time: It's important to find a mortgage company that has a close-on-time guarantee. Work with someone that you know can close your escrow on time, as missing deadlines can be very costly, and may even cost you the home you want. Find a team that will give you that commitment in writing, so you have recourse if they aren't able to get the job done.

We hope you find these tips helpful. If you have any questions for Brandon, you can call him at (818) 256-4330 or email him at BMoss@PrimeLending.com. Of course, if you have any questions regarding real estate, the Himelstein Group is always available to be your real estate resource!

We hope to hear from you soon!

What Do New Loan Programs Mean for You?

Today, we are joined by special guest Brandon Moss of PrimeLending, our preferred lender here at the Himelstein Group. He'll share some insider information about the many changes in loan programs available in 2015 and what they mean for you!

Gas prices aren't the only thing that have dropped in the last few months, as interest rates continue their downward trend. They're currently at all-time lows, with 30-year fixed mortgages well under 4% without points or fees. It's a perfect to time to buy or refinance to lower your monthly payments, as affordability is at an all-time high. As we get into the spring and summer, we're expecting rates to rise, so you need to act soon if you want in on the low cost of borrowing.

This year, 3% down conventional loans are going to open many avenues for different buyers. Basically, it's replacing the more expensive FHA purchase loan. It's a great time for first-time buyers to get a loan without having to put much down, while taking advantage of fantastic interest rates. Buyers who are looking into condos and town homes now have another option, as FHA approvals are beginning to expire. This 3% down option is a great alternative!

For wealthier buyers, there are great deals out there as well. Right now, you can get a jumbo loan for up to $1.5 million for only 10% down! This program is perfect for those who have just recently got a job as a lawyer or a doctor, or anyone who has recently been employed at a high-paying job, but who doesn't yet have the liquid funds to put down.

If you're interested in taking advantage of these incredible conditions, you can reach Brandon by calling him at (818) 256-4330 or emailing him at BMoss@PrimeLending.com (NMLS# 61175). As always, if you have any questions, or need real estate assistance of any kind, we would love to hear from you!