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First time buyer help

Repeat of article that was published 2 years ago:

I get many calls from first time buyers who are not sure how to proceed to purchase a home. They have limited funds and are not sure who they talk to about the loan, how much money they need, what a real estate agent does, what is Escrow, etc.

In this Blog, I will write about what it takes from start to finish to purchase a home.

First, you need to review your credit score. Credit Karma online is the easiest way to see your credit score and also any derogative information that may be causing you to have a lower score. Ideally your score will be above 640. Over 720 and you are in very good shape to obtain a loan. If your score is under 640 it will be more difficult and your loan payment may be higher but it is still possible. Try to work on your score to get the highest possible rating. It will save you lots of money in the future. If you are a Veteran, your score is looked at with less scrutiny.

Second, prepare a budget. This is a simple analysis of what you think you are able to pay in a monthly payment. You need to plan for a loan payment of Principal and Interest, Property Taxes and Insurance. This is called PITI. You can estimate this by using a mortgage calculator online or at http://www.FredJGardner.com. The loan estimator (shown below) at http://www.FredJGardner.com wants the Purchase Price of the new home. This goes into the field called Home Value. The Loan amount is the amount being financed after the down payment. On a $300,000 home with a 3.5% down payment it would be $289,500. The interest rate on this loan with a borrower who has a 640 credit score you could assume 3.8% or 4.0% at today’s market rate. Finally, leave the length at 30 years. This is typical for most loans today.

Mortgage calcClick on next.

Your Property Taxes will be a % of your home Purchase Price. If the home was purchased at $300,000, estimate a 1.1% Property Tax Rate, unless you know what that rate is. Take 1.1% of $300,000 and enter the number in the annual taxes block. Estimate insurance at $900 on a $300,000 home and enter into that block Finally, PMI is an insurance that the lender assigns because they want to be insured against default if you do not have a down payment of at least 20%. In this block, enter .85% which is the estimated percentage used to determine the amount. If you are a Veteran and applying for VA loan enter zero. Veterans do not have to pay PMI insurance.      Mortgage calc 2pg

Click on next and see the amount that your payment will be.

Mortgage calc 3pg

This Total Monthly Payments is what comes out of your pocket every month. In many cases, this is just above what your rent amount is, but remember you can write off, on your taxes, all of the interest on your home loan. The interest is most of the total of Principal and Interest during the first years of the loan. So in the loan above you have a deduction of close to $1348.95 per month or a total of $16,187 per year. That can go a long way to reducing your tax liability. You also get the pride of ownership and the appreciation in value over the years. Home appreciation has typically been at 3% per year. However, we are recovering from a recession and it is now at about 1.9%. In a year or two it will be back up to 3% or more and that means money to you. At 3% per year appreciation, a home valued at $300,000 will be valued at $454,000 in 15 years, $519,000 if the appreciation rate is 4%.

Look for my next Blog on Identifying the House Characteristics that you want, what are most important to you and planning for where your down payment is coming from. Maybe zero down! Yes in today’s economy you can purchase a house with zero down payment. I will explain how to do this next week.


First time buyer help

Repeat of article that was published 2 years ago:

I get many calls from first time buyers who are not sure how to proceed to purchase a home. They have limited funds and are not sure who they talk to about the loan, how much money they need, what a real estate agent does, what is Escrow, etc.

In this Blog, I will write about what it takes from start to finish to purchase a home.

First, you need to review your credit score. Credit Karma online is the easiest way to see your credit score and also any derogative information that may be causing you to have a lower score. Ideally your score will be above 640. Over 720 and you are in very good shape to obtain a loan. If your score is under 640 it will be more difficult and your loan payment may be higher but it is still possible. Try to work on your score to get the highest possible rating. It will save you lots of money in the future. If you are a Veteran, your score is looked at with less scrutiny.

Second, prepare a budget. This is a simple analysis of what you think you are able to pay in a monthly payment. You need to plan for a loan payment of Principal and Interest, Property Taxes and Insurance. This is called PITI. You can estimate this by using a mortgage calculator online or at http://www.FredJGardner.com. The loan estimator (shown below) at http://www.FredJGardner.com wants the Purchase Price of the new home. This goes into the field called Home Value. The Loan amount is the amount being financed after the down payment. On a $300,000 home with a 3.5% down payment it would be $289,500. The interest rate on this loan with a borrower who has a 640 credit score you could assume 3.8% or 4.0% at today’s market rate. Finally, leave the length at 30 years. This is typical for most loans today.

Mortgage calcClick on next.

Your Property Taxes will be a % of your home Purchase Price. If the home was purchased at $300,000, estimate a 1.1% Property Tax Rate, unless you know what that rate is. Take 1.1% of $300,000 and enter the number in the annual taxes block. Estimate insurance at $900 on a $300,000 home and enter into that block Finally, PMI is an insurance that the lender assigns because they want to be insured against default if you do not have a down payment of at least 20%. In this block, enter .85% which is the estimated percentage used to determine the amount. If you are a Veteran and applying for VA loan enter zero. Veterans do not have to pay PMI insurance.      Mortgage calc 2pg

Click on next and see the amount that your payment will be.

Mortgage calc 3pg

This Total Monthly Payments is what comes out of your pocket every month. In many cases, this is just above what your rent amount is, but remember you can write off, on your taxes, all of the interest on your home loan. The interest is most of the total of Principal and Interest during the first years of the loan. So in the loan above you have a deduction of close to $1348.95 per month or a total of $16,187 per year. That can go a long way to reducing your tax liability. You also get the pride of ownership and the appreciation in value over the years. Home appreciation has typically been at 3% per year. However, we are recovering from a recession and it is now at about 1.9%. In a year or two it will be back up to 3% or more and that means money to you. At 3% per year appreciation, a home valued at $300,000 will be valued at $454,000 in 15 years, $519,000 if the appreciation rate is 4%.

Look for my next Blog on Identifying the House Characteristics that you want, what are most important to you and planning for where your down payment is coming from. Maybe zero down! Yes in today’s economy you can purchase a house with zero down payment. I will explain how to do this next week.


This week I received a call from an old Real Estate client that I was referred to two years ago. At that time she was looking forward to moving to San Diego to be near her boyfriend. In 2013 I met with her and discussed the Market Value of her home. I left thinking that it was a good meeting and I should be listing the property soon.

Sometime went by and there was no communication from her. I followed up to see what I could do to help her with her decision. She told me that she had been diagnosed with cancer and would be postponing the listing until she dealt with this. I told her that I understood and would pray for her and also request a prayer group keep her in their prayers as well.

I found out later that her condition was diagnosed as terminal and she was given 6 months to a year to live.

Two years later on July 25, 2015 I received an email from her asking if I remembered her. I replied that I did, for sure, and asked how she was doing. She told me a story about how she and her boyfriend had cancelled a vacation on Viking cruises because of the cancer diagnosis. They still have Plane tickets that they couldn’t cancel and decided to go see her boyfriend’s sister in England. They made contact and found out that the sister was planning a trip to Lourdes and she asked if they would like to go with her. My client and her boyfriend said yes and they all went on a tour of Lourdes.

When she returned to the U.S. she had a follow up appointment with her doctor. They checked on her terminal cancer and told her that she would need to come back for another appointment. The doctor could not find any trace of the cancer in her. On subsequent appointments they could not find any trace of the terminal cancer.

She has been told she is Cancer Free.

The picture below is of Saint Bernadette of Lourdes. Her body never decayed since the 1800’s. Click on the link to read her story and understand why people are attributing Miracles to her.

Bernadette of Lourdes

Click on the link below to read the full story of Bernadette of Lourdes:

http://www.ewtn.com/library/mary/bernbody.htm

Fred Gardner

Realty One Group SW

951.440.0964


Hubble Flyer Updated


This home has been immaculately maintained. If your out today and want something to do, stop by and look at this house. You wont be disappointed. NO HOA

Hubble Open House


Click on the Flyer or Link below for Virtual Tour and more Information:

http://0000aspenrd.view24hours.com/

Aspen rd


With the recent changes in the Mortgage Loan Rates now is the time to invest in your future. This lot in Fallbrook will not get any lower.

My Temecula Valley Blog

Click on the Flyer or Link below for more information:

http://0000aspenrd.view24hours.com/

Aspen rd

View original post


Click on the Flyer or Link below for more information:

http://0000aspenrd.view24hours.com/

Aspen rd


The housing market inventory in Murrieta and Temecula is at a 5 month high.

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Donomore

Open House at 40219 Donomore Ct, Temecula – Sat/Sun 12-4 pm – $405,000

Click on the picture for more information:

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After a sharp decline in October of 2014 it has climbed back above 2010 levels. This is good news to buyers who are looking for their dream home in the terrific Murrieta-Temecula Valley area of the Inland Empire. Some might think that available housing is a good thing but the financing is hard to get. As a Consultant Realtor in this area, I am not seeing that. Actually the Interest rate is still at the lowest levels in 70 years and financing is available with 3% down on a FHA or Conventional Loan. It could go a low as a .5% down FHA through many Mortgage companies if you qualify using their down payment assistance programs. Many home owners from the 2008-2009 who suffered through the recession now have a great opportunity to purchase another home.

Click on the link below for more information:

http://www.fredjgardner.info/realty_one_group_website_8-19-2014_006.htm

Housing Trends for Murrieta

TIG, TANTO, OZ


Senate

As two-year anniversary of Benghazi marked, answers remain elusive

It was exactly two years ago that Islamic militants attacked a U.S. compound in Libya, killing four Americans — including U.S. Ambassador Christopher Stevens — and touching off a major political controversy that divides Washington to this day.

The assault on the compound, a consulate facility in Libya’s second-largest city, began at nightfall when more than 100 militants armed with rocket-propelled grenades, AK-47s and truck-mounted artillery closed off streets and moved in on the building where a skeleton crew of State Department workers lived and worked, and where Stevens was visiting from his office in Tripoli. By the time it was over, Stevens, career Foreign Service worker Sean Smith and two CIA contractors who had come to their rescue, Tyrone Woods and Glen Doherty, were dead.

But controversy over what really prompted the attack and what the highest level of the U.S. government did or did not do in the face of it continues to swirl on Capitol Hill. The White House initially portrayed the attack, which came just two months before the 2012 presidential election, as a spontaneous event triggered by Muslim outrage over an obscure online video deemed insulting to Islam. But the narrative crumbled in the months that followed, as witnesses described a coordinated attack and some even charged that service members stationed nearby were ordered not to intervene.

“It is for them that we must establish all of the facts of what happened in Benghazi, beyond any reasonable doubt.”- Trey Gowdy, R-S.C.

On Sept. 17, a House Select Committee on Benghazi, which has been taking depositions from several witnesses who were close to the scene or the decision-making process, will hold a public hearing that Republicans say is aimed at getting at the truth about what happened before, during and after the attack and why four Americans were killed.

“It is for them that we must establish all of the facts of what happened in Benghazi, beyond any reasonable doubt,” said Select Committee on Benghazi Chairman Trey Gowdy, R-S.C. “And it is for the American people, and those who serve our nation overseas — to restore their faith and confidence — that the Committee will establish the facts in a fair and impartial manner.”

Three members of a U.S. security team stationed nearby told Fox News last week that they were held back from immediately responding to the attack on the American diplomatic mission on orders of the top CIA officer there. Speaking out publicly for the first time, the three security operators at the secret CIA annex in Benghazi said word of the attack reached the CIA annex just after 9:30 p.m. Within five minutes, the security team at the annex was geared up for battle, and ready to move to the compound, a mile away.

“Five minutes, we’re ready,” Kris (Tanto) Paronto, a former Army Ranger, told Fox News. “It was thumbs up, thumbs up, we’re ready to go.”

But according to the security operators, they were delayed from responding to the attack by the top CIA officer in Benghazi, whom they refer to only as “Bob.”

“It had probably been 15 minutes I think, and … I just said, ‘Hey, you know, we gotta — we need to get over there, we’re losing the initiative,’” said John (“Tig”) Tiegen, another of the three security operatives. “And Bob just looks straight at me and said, ‘Stand down, you need to wait.’”

They described desperate calls from the State Department employees trapped in the compound, and said that they believe they could have saved the victims’ lives if they had been permitted to.

But The White House and Democrats have dismissed the claims, and the incident in general, as an “old story.” Rep. Adam Schiff, D-Calif., a senior member of the Select Committee on Benghazi, said the “so-called new allegations” have been examined by previous House and Senate committees which all concluded that there was no ‘stand down’ order.

“These old myths are resurfacing at a time when the Select Committee is preparing to hold its first hearing on how well the State Department is implementing the recommendations of the Accountability Review Board,” Schiff said. “I hope that the Committee won’t divert its attention away from what could be a valuable part of the ‘lessons learned’ from Benghazi to re-litigate baseless claims that have been debunked time and again, and in bipartisan fashion.”

Stevens was the first U.S. ambassador to be killed on duty since 1979, when Adolph Dubs, America’s top diplomat in Afghanistan, was killed by militants in Kabul.

My Thanksgiving will remember these men and remind me why America is so great.

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