San Diego Real Estate Podcast with Eddie Nguyen

What do the experts predict for the housing market in 2020? What can we expect from the housing market come 2020? Well, experts predict that the housing market will heat up in the new year. Low mortgage rates continue to invigorate the buyer’s market. With the increase in buyer activity, inventory will remain low in the first half of the year. This means that homebuyers will have fewer properties to choose from than they’ve had in the past five years. However, the return of biddings wars will be great news for sellers, who may be holding out this year as the market stabilizes. “Explore your options—you may be surprised at how great yours look in the coming year.” Zillow and Redfin expect that about one in every four offers will face a bidding war in 2020, compared to only one in 10 for 2019. This increase in competition will likely push annual price growth in the first half of the year to around 6%, compared to 2% in 2019. Increased competition and faster price growth will tempt more homeowners and builders to list their homes, which will help balance out the supply and demand by the end of the year. So what does this all mean? For sellers, it means that now is the time to list your home and buy another in the area you’ve been wanting to move to. By acting now, you won’t have to compromise on how and where you want to live. Interest rates are really low, meaning you’re in the driver’s seat and can do things on your own terms. At the very least, explore your options—you may be surprised at how great yours look in the coming year. This past year, we’ve helped over 90 families achieve their real estate and mortgage goals. Next year, our goal is to help 180 families take advantage of their real estate and mortgage opportunities. We’d love to help you, too! If you have any questions or need assistance with your next transaction, don’t hesitate to reach out to us so we can discuss your goals and options. Until then, happy holidays! We appreciate all your support over the years. Without you, we couldn’t be where we are today.

This Thanksgiving, we're saying thank you to those who make our business possible. The 2019 holiday season has officially begun! We hope you are as excited as we are.  We’d like to take a moment to express our gratitude to all of you this Thanksgiving. We have met some truly wonderful people, and we’re proud to have helped so many reach their real estate goals over the years.  We wouldn’t be where we are today without all of your support.  Enjoy your Thanksgiving dinner with all of your family and friends—that’s what we plan to do!  In the meantime, please don’t hesitate to reach out to us if you have any real estate or mortgage questions. We would be happy to help you. 

Here are five reasons why any U.S. service member should use the VA loan program. Today I’m sharing my five reasons why the VA loan is one of the most valuable, if not the most valuable loan program available to current military service members and veterans: 1. There is no down payment needed. The VA loan allows you to purchase real estate for as little as zero down. If you were to use virtually any other loan program out there, you would have to save up a significant amount of cash to set aside for the down payment.  2. There are many eligible properties. You can use this loan for a detached single-family home, a condo, a townhome, or even a two- to four-unit investment property as long as you live in one of the units for at least a year. 3. They carry low interest rates. Interest rates for VA loans are commonly the most competitive rates available of any loan program, even with a decent credit score. A borrower can generally get a lower rate than with an FHA or conventional loan.  “Reuse the 100% financing more than once.” 4. There is no monthly mortgage insurance. There is no such thing as mortgage insurance with the VA loan. With other low down payment programs out there for the general public, mortgage insurance is a required monthly premium owed by the borrower, which often eats up hundreds of dollars a month.  5. You can reuse the VA loan for the rest of your life. Reuse the 100% financing more than once. For as long as you make your payments on time, you can sell your home and reuse the VA loan again and again to purchase your next property. If you served in the military you’re missing out if you aren’t using the VA loan. I’ve assisted hundreds of families to purchase their dream home, and I would love to help you out as well.  To receive more information on the VA loan program, or any other loan program, contact us any time for a 100% no-obligation, no-pressure appointment. We’d love the opportunity to help you accomplish your real estate goals. If you have any other questions about real estate, feel free to reach out to us by phone or email. We would be glad to help you.

If you’re looking for a more affordable way to buy a home, one of these four loan programs may be right for you. If you’ve been thinking of purchasing a home but fear that you don’t have enough money for a down payment, I’ve got good news: You’re probably closer to achieving your homeownership dreams than you think. Despite what conventional wisdom says, you don’t actually need 20% down to buy a home. There are several programs that allow you to put down much less than this. Certain loans even allow qualifying homebuyers to buy a home with nothing down at all. Here are four of the most popular:  1. FHA loan program. This is the most popular of these four options, and for good reason. It requires homebuyers to put just 3.5% down while allowing for a considerably lower interest rate than what you could secure with a conventional loan. Better yet, applicants only need a credit score of 580 or greater to qualify.  2. VA loan program. This program allows United States veterans to buy a home with no money down, no monthly mortgage insurance, and at a considerably lower interest rate compared to what’s possible with conventional loans. This loan program also lacks a minimum credit score requirement. “Certain loans even allow qualifying homebuyers to buy a home with nothing down at all.” 3. Conventional 97. This loan, which requires just 3% down, has a credit score minimum of 620 and carries slightly higher interest rates than the other loans we’ve listed, but it is still a popular option.  4. Down payment assistance program. If money is an issue for you, this may be the perfect option. The income limit will depend on the home’s size and location, but it’s usually at or below $120,000. Perhaps the greatest draw to this program is that it allows those who qualify to buy a home with as little as 1% down. Hopefully, you’ve found value in this message. However, before you proceed with any of these programs, make sure you speak to your lender to see what they recommend. If you have any other questions or would like more information, feel free to give me a call or send me an email. I look forward to hearing from you soon.

There are a few key benefits of getting pre-approved for a home loan. Learn more here. It’s important to understand that when a seller accepts your offer, you are asking them to remove their property from the market as an active listing while you meet your contingency dates. Therefore, the stronger the financial evidence that you include with your offer, the more likely the seller will accept your offer over other prospective buyers. Your proof of funds will help the seller believe and trust that your pre-qualification is evidence that you’re a serious consumer who poses minimal risk to them. What’s the difference between pre-qualification and underwriting? If you’re a buyer applying for a mortgage, never assume that you are truly and correctly involved in that process without having your lender outline the steps that must be completed. Understand that a pre-approval letter is a quick and shallow look at your financial ability to perform—it doesn’t mean that a full underwriting process has occurred. During the full underwriting process, a potential buyer is vetted through a thorough examination of personal financial documents such as tax returns and bank statements. The borrower may even receive a loan commitment with final, approved conditions attached. It’s also critical to understand the timeframe within which the process will be completed in order to finance contingency dates as are outlined in the purchase agreement. “A pre-approval letter is a quick and shallow look at your financial ability to perform—it doesn’t mean that a full underwriting process has occurred.” When it comes to paying cash for a property, you may feel reluctant to share your bank statements, and rightfully so. Therefore, we suggest an alternative: Request a letter from the financial institution that has the funds secured. Such a letter, written on the letterhead of the financial institution, may very well be your greatest advantage when it comes to securing a contract versus other, less competitive bids. Understanding that you must start the purchase process by learning how to secure financial pre-qualification or proof of funds will set up the next and third course module in our series, where you’ll learn how to refine your search for a property’s features that are most important to you while understanding what your money will actually buy in today’s marketplace. In the meantime, if you have any questions about today’s topic or real estate in general, reach out to us. We’re here to be your real estate resource.

If you’ve been thinking of investing in the San Diego real estate market, today’s message is for you. Investing in San Diego real estate is a fantastic way to build wealth, and there are four reasons why you should consider pursuing this opportunity: 1. The local housing market is still a bargain. Homes in our area remain relatively affordable, and properties have continued to appreciate over time. Those who purchased a $500,000 home five years ago, for example, have most likely seen that property’s value grow to about $650,000.  2. Home prices are still good. As I mentioned in the last point, buyers have retained a great deal of purchasing power with list prices remaining fairly low. Sellers these days are extremely motivated, which has allowed me, personally, to negotiate some great deals on investment properties. You could very well do the same.  3. The rental market is amazing. One of the best ways to generate cash flow from an investment property is by renting it out, and the San Diego rental market is absolutely thriving. Even in less sought-after neighborhoods, you can rent out a 3-bed, 1-bath home and still get $2,500 or so in rent. And, with an average mortgage of $2,000 per month, this gives you a positive cash flow of $500.  4. There is a large population of renters in San Diego. Between students from the many nearby colleges and the high volume of people moving in from out of state, there is never a shortage of renters in our city.  After taking all these points into account, you may be thinking, “This sounds great, but how do I get started?” Well, real estate investing is simpler to dive into than most think. Let’s go over a few steps you’ll need to take. “One of the best ways to generate cash flow from an investment property is by renting it out.” First, you’ll need a 20% down payment to buy an investment property. If you happen to already have that kind of cash on hand through your savings account, you’re in a good place to start. However, if you don’t have enough already saved up, you still have some options. Interest rates are incredibly low right now, which means it’s a great time to pull equity out of your own home and apply it toward a down payment on an investment.  Or, if you’re thinking of moving to a new home soon anyway, another great option is to simply turn your current home into an investment property instead of selling it. Unlike the purchase of a new investment property, you can purchase your next primary residence for as little as 3% down. Hopefully, this has given you a better understanding of why (and how) to invest in our San Diego real estate market. If you have any other questions or would like more information, feel free to give me a call or send me an email. I look forward to hearing from you soon.

The Fed recently dropped some big news about interest rates that make now a prime moment to refinance. Here’s what you need to know. A few weeks ago, the Federal Reserve cut interest rates by 0.25%. What now? With unemployment sitting at a half-century low, mild inflation, and the economy growing at a solid rate, this is the moment you’ve been waiting for if you’ve been thinking of refinancing.  Here are the four refinance options you have before you: 1. Lower your term from a 30-year mortgage to a 20- or 15-year mortgage. This will help you pay off your home sooner, lower your interest rate, save you hundreds of thousands of dollars. 2. Lower your interest rate. For example: On a $500,000 loan at a 4.5% interest rate, your principal and interest payment is $2,533. On a $500,000 loan with an interest rate of 3.5%, your principal and interest payment is $2,245—a monthly savings of $288. Moreover, throughout the life of the loan, you’ll save approximately $104,000 in interest. 3. Take cash out. If you’ve owned your property for a few years and built its equity, you can take some of that equity and reinvest it into your home, pay off your debts, and so on. With rates this low, we could possibly take out the money you want and keep your monthly payments similar to what they are now. “Lowering your mortgage term will help you pay off your home sooner, lower your interest rate, save you hundreds of thousands of dollars.” 4. Move to a conventional loan. Changing from an FHA loan to a conventional loan can get rid of your mortgage insurance. If you’re currently using a VA loan, we could refinance you out of that loan into a conventional one, allowing you to use the VA loan again in the future to buy another great property. These are the four most popular options in the market right now. With interest rates being this low, it makes perfect sense for you to examine all the facts and numbers so that you can make a great business decision for you and your family. If you have any questions, reach out to me. It’s time to set up a consultation so that we can discuss your goals, questions, and concerns and develop a plan to help you turn your real estate dreams into reality.