Buying houses in California

As a former broker of a independent office in Downey, California, I can give you my best advice. Buying homes in California is very easy, if your have good credit. Now with the new foreclosure problems in California, the banks are extremely careful about who they loan money to. Years ago, we use to help less than perfect buyers obtain homes through creative financing. But, now that is a thing of the past. If you know what you can qualify for ahead of time, it will save you a great deal of hardship.

The amount that you can qualify for is 33 percent of your income after taxes, in most cases. But wait, you must deduct all your debts. So if you make $5000 per month and you have $1200 in monthly debts, that leaves you with a monthly income of $3800. You take 33 percent of that figure or $1254 per month. That figure includes the cost of PMI (private mortgage insurance), taxes and insurance. If you are putting more than 20 percent down on the purchase of a home, then there is no PMI. Some loans with hard pressed areas, are offering basically no money down loans and no PMI.

Wells Fargo Bank is one such bank offering a loan without no PMI. You can look at their offers through this website:

https://www.wellsfargo.com/mortgage/

If you are looking for a bank that offers no down payment, here is a link for a article listing the major banks. Wells Fargo also does no down payment along with Bank of America. Bank of America is much easier to get a loan through.

http://www.msnbc.msn.com/id/24580917/

As the article discusses, the down payment is disguised through gifts. Normally a down payment must be in your account for over 2 months. Some banks are offering no down payments, where a 3rd party holds interest on the property, such as a lien holder. All of these loans have catches.

California is still the most expensive place to live out west. Home prices generally run in excess of $200,000 unless you live out in the country. California is the land of the rich and the famous, but even Los Angeles has its slums. Some of the nicest areas to live in Southern California is Downey and Lakewood. They are very affordable communities. San Bernardino and Riverside communities are more affordable, but with the drive to commute, many prefer the locality of being close to Los Angeles. 

If you want to find a reputable Realtor, contact the California Board of Realtors at:

http://www.car.org/

A local Realtor will be able to guide you to the best deals and many companies have on line services. One such service would be Century 21Jervis offices located in Downey. If you want any other area, they can direct you. They are the best office there:

http://century21jervis.com/index.htm

Financing can be set up through the home loan departments at Bank of America:

http://maps.google.com/maps?oe=UTF-8&sourceid=navclient&gfns=1&um=1&ie=UTF-8&q=bank+of+america+in+home+loans+at+downey+california&fb=1&split=1&view=text&latlng=2450088227044241933&ei=S_KFSvX9B9nTjAeC3dSiCw&sa=X&oi=local_result&ct=result&resnum=1

These are merely examples of places I have dealt with in the past and know that they are reputable. In no way can I guarantee them today. Buying a home is a simple matter with prequalifying for a loan, finding a Realtor, who will in turn find you the home of your dreams.

Beginning Realtors - Avoid These Pitfalls

The certificate arrives in the mail and now you are an official Real Estate Agent. What exactly does that mean? It means you are self-employed and now the real game begins. As a beginner, you must be careful not to fall and make the same mistakes that others before you have made. It is called, "How to avoid common pitfalls," and it is so easy to do.

Rule number 1

Do not show any homes or talk to anyone until you know what you are doing. Too many agents want to rush out and sell a home when they have not learned the basics. So learn about financing, escrows, banks, how to close a deal and how to treat a client. Your Broker should assign someone to guide you on your first steps.

How can you possibly close a deal on a house when you do not know the current interest rates? How can you show houses to anyone when you do not know how to open a lock box? How can you sell a home if you know nothing about creative financing? Learn the ropes and then talk to potential buyers and sellers.

A typical question from a potential seller is, "How long have you been in the business." A new recruit might say, "1 week." You are not going to list that home for sure. A smart recruit would laugh and say, "It has been so long, I cannot remember." Experience and thoughtful thinking brings rewards.

Rule number 2

Do not take anyone to lunch. It is a trick of many potential buyers to suggest that they are hungry and they want to eat at Red Lobster. Red Lobster can cost a fortune to feed a family. Many Realtors so want to please the buyer and show them how important they are and so they cave in. Only to find out the potential buyer has no intention of buying a home at all or intends to write a very low ball figure.

The cost of Real Estate is huge and it can bankrupt you if you are not careful. The board dues alone can cost close to one thousand dollars. You must buy signs, cards, have a good car, have very nice clothes and shoes and go to all the functions. Think before you spend all your money on dinners for clients.

Any client serious about maing an offer will come to your office and sign the paperwork there. A serious buyer will not try to weasel a free dinner out of you.

Rule number 3

Be different from the rest of the agents. Do not do what every "Tom, Dick and Harry" is doing. If everyone is wearing a blue dress, then wear a white dress. Get information on loans from everyone, but develop your own style. Research what sells and try it out. Remember, honesty and kindness will close more deals. A sure fire way to lose business, is to never keep your promise. A Realtor must at all times be ethical. 

Rule number 4

Do not wine and dine at night. If you want to be a reputable Realtor, then be respectable at night. A Realtor is watched at all times and no one wants to list their home with a drunk.

Rule number 5

Be smart and don't give all your free business cards away. You are trying to make money and if you give it all away, you will be in a negative frame very quick. Make a flyer and copy one business card on the flyer and give the flyer away. 

Rule number 6

Go to many open homes and socialize with the other Realtors. Become a friend and a confidant to many. Learn about what homes are on the market and talk with the listing agent about what the seller is willing to sell for. If a buyer walks into the office and ask you to look at homes and you have no ideal what homes are on the market, you are not going to look professional.

So have an inventory in your pocket. Know many areas of the town and always remember the agents. Deals are closed more often by having friends for listing agents. The listing agent will remember you as a kind and easy going agent and the listing agent will want to help.

Rule number 7

Do not require everyone to be prequalified. When you first meet a buyer and he wants to get to know you, he is often frightened by an agent who will not even show him the time of day, unless he goes to her bank and signs papers. A buyer must first be your friend. Show them five homes and if they don't like those homes, suggest nicely they get prequalified. Suggest that you are only doing this to help them. Hand them a list of homes for sale in the price they want and make an appointment for them with a loan officer.

The nice and easy approach is better than being harsh. Helping the buyer get to know you first is more important than making sure he is qualified. For those five homes that are shown to the buyer, can be used later to show other buyers. This increases your inventory and makes the world love you more.

The world of the Realtor is very "Cut Throat." and you better learn from the beginning how to survive. You need to watch out for these pitfalls and many more, but if you institute these 7 rules of engagement, you will be a success. Real Estate can also be the best job in the world. It comes with many pleasures, satisfactions and rewards. All Realtors should give a gift at closing. It shows how much you appreciate their business and I guarantee you, that simple gift will bring you return business.