Don’t wait; your problem is High Inflation, not Interest Rates. Interest Rates go up and down all the time, so refinancing will be an option in the future. But INFLATION causes your dollars to devalue, causing house prices to rise. It will most likely be more expensive to buy the same home over time. So don’t wait. You will be sorry if you wait.
(858) 330-1242 - Michael Frey Realtor®
Step 1. Contact Michael Frey, Realtor, at 619-997-1626
Step 2. Get Pre-Approved by a Mortgage Banker.
Note: The Order of Priority Sellers use to Pick the Best Offers: (From Best to lease attractive)
A. All Cash, No Contingencies.
B. Pre-Approval Conventional. No Contingencies
C. Biggest Lender Name, Biggest Broker Name Pre-Approval, All Normal Contingencies.
D. Contingency, sell my existing house first, then buy with contingencies and loan approvals.
E. Online Mortgage Companies (Rocket Mortgage, Quicken, etc.) with Loan Contingencies.
F. Pre-Qualified Offers (Pre-Qualified is a 5 minute check, not good enough)
G. i-buyers, builders, flippers.
Step 3. Talk to Michael about a Strategy to write your Purchase Agreement Contract.
Step 4. Look for Houses with Michael Frey, Using his strategy of View Houses.
Step 5. Write an Offer. Place your earnest Money deposit in Escrow within two days.
Step 6. Home Inspection, Appraisals. (Decide if you want the house)
Step 7. Sign Disclosures. (You will sign them as they arrive constantly)
Step 8. Money in Escrow. (Bank funding)
Step 9. Take the Keys. Prepare to move in.
Review of Steps: I will take care of everything, walk you through the processes, keeping you informed.
Call Me: (858) 330-1242 Michael Frey
Introduction: Unveiling the Mortgage Mystery
Buying a house is like diving into a sea of paperwork and terminology. In that ocean, two terms often float to the surface: "pre-qualification" and "pre-approval." While they may seem interchangeable, they're not. Each plays a unique role in helping you secure your dream home, and understanding the difference is crucial. So, let's break it down.
Pre-Qualification Demystified: Your First Step in Homebuying
What is Pre-Qualification?
A pre-qualification is the initial step in the mortgage process. It's like dipping your toes in the water before taking the full plunge. Lenders will take a quick glance at your financial background—think income, debt, and credit score—to provide an estimate of how much you might be able to borrow.
Why Do You Need It?
Consider this your reconnaissance mission. A pre-qualification gives you a ballpark idea of your purchasing power, allowing you to look at homes within your price range. It’s a no-strings-attached way to gauge your mortgage options without any commitment.
The Caveat: It's Not a Guarantee
Don't pop the champagne just yet! A pre-qualification isn't a promise from the lender. It's a preliminary assessment based on limited information. It's not until you get pre-approved that you can have more confidence in your mortgage capabilities.
The Pre-Approval Power-Up: A Closer Look
What is Pre-Approval?
A pre-approval is a more definitive step. The lender will review your financial documents in depth—tax returns, bank statements, and more—to give you a more precise loan amount. You'll also learn about the interest rate you can expect.
The Importance of Pre-Approval
A pre-approval letter is your golden ticket in the world of homebuying. Sellers are more likely to take your offer seriously when you're pre-approved. It shows you've got the financial backing and seriousness to make a purchase, making you a more attractive buyer.
How Does It Differ from Pre-Qualification?
The main difference is the depth of the investigation. While pre-qualification is a cursory look at your financial standing, pre-approval is a comprehensive review. The pre-approval letter is also more time-consuming to get, requiring various documents and a more detailed application.
To Pre-Qualify or To Pre-Approve? That's the Question
The Short Answer
Ideally, both. Start with pre-qualification to get a general sense of your mortgage capabilities. Once you're serious about making offers, secure a pre-approval to strengthen your position.
The Strategic Approach
Pre-qualify early in your home search to identify any potential roadblocks. Use this time to improve your financial profile if needed. Then, when you're ready to play hardball, get pre-approved.
Conclusion: Why You Need Both in Your Homebuying Toolkit
Understanding the difference between pre-qualification and pre-approval is more than a matter of semantics—it's a strategy for homebuying success. A pre-qualification letter gives you a starting point, while a pre-approval letter solidifies your credibility as a buyer. In the competitive real estate market, arming yourself with both is the smart move.
So, whether you're a first-time buyer or a seasoned investor, navigating the road to your dream home becomes easier when you understand these mortgage milestones. Happy homebuying!
Call Me: (858) 330-1242 Michael Frey
This is the Mortgage app I recommend. It’s free. You can adjust all rates, times, etc. But it also allows you to see the Amortization Tables. (Key to see your Interest vs Principal) Talk to your accountant to see how much of a write-off you may be eligible for. (Note: you will need to live in the home)
Special Note, I DO NOT Recommend the Lenders on the App. It would be best if you had an Experienced Local Lender. If you want a strong offer, DON’T use an online lender. I always recommend my seller not to go with an On-line Lender; they may not always close escrow. (Something weird always caused drama with the loan)
This is the App you saw me use.
Military Home Loans is my Top Pick for Veterans who use their VA Loan benefit. Did you know San Diego’s benefit is over 977K in La Jolla and University City? Military Home Loans can go up to 3 million. Call them for the details. I am not a Mortgage Broker; they are.
Call Doug Diemer NMLS#859494 at 858-380-7144 Military Home Loans is my Top Pick for Veterans who with to use there VA Loan benefit.
When the market changed, the advantage went to buyers, AND those buyers who used FHA and HUD loans are having their offers excepted. In the past, it was more difficult. Now is the time to take advantage of these programs. I recommend SUNSTREET Mortgage Kathy Trolinger Loan Officer NMLS#662177 Call her at 619-330-6303.
Construction Loans are added to your purchase amount. Or an ADU? Added to your loan. Almost anything legal you can think of, Angela can figure out. She is your secret to Mortgage Banking. It is worth checking into giving her a call. Angela Weathers Swanson Lending NMLS#1493846 (858) 688-5259
Again, Do NOT use an online banker system. Yes, the rates are lower, but San Diego has some “quirky CCR’s” and incredibly strict contract deadlines.
Online brokers may be difficult to reach at the most important time of the contract. A failed contract could cost you your deposit/earnest money. (And that is 100% on you) Please, use a local lender. Somebody who you can see or give a handshake. You can always refinance later, sometimes with no points down. (Protect your deposit, stay local)
Credit unions are great for Refinancing but can be slow and troublesome on the first mortgage home purchases. (Don’t do it)
It's Simple and very effective.
The inspection contingency deadline comes up fast.
If unchanged, the default in the California Real Estate contract (RPA) is 17 days after the agreement has been ratified. (Signing Date)
You, the buyer, have a right to control property inspections.
The buyer oversees any inspections conducted on the property and has a right to speak with the inspector and ask any questions they may have during the inspection. If a seller has made it difficult to schedule an inspection of the home or is personally interfering in the inspection, the buyer may have a right to an extension of time to conduct these inspections.
Requests for repair must be submitted before the inspection deadline.
The 17-day deadline to make any requests for repairs comes up fast. Nevertheless, this is the date by which you must make your requests to repair items on the property you’re seeking to purchase.
The seller may NOT honor your request. (They don’t have to do anything)
If you request a repair, the seller has the right to ignore, deny, or agree to the request or attempt to negotiate a compromise.
You have to take action by the inspection deadline.
As a buyer, you must either rescind any requests and contingencies on the sale, request additional time to complete more inspections or repairs, or cancel the transaction if requests for repair are ignored or denied.
You may be able to Retain your Earnest Money Deposit (EDM) if you cancel the Sale within the contract (RPA) parameters.
If the seller refuses your requests for repairs, you are likely entitled to a refund of your earnest money on deposit. Even if you cancel the sale after an unsuccessful negotiation of the repairs you requested, rather than an outright refusal to make repairs, a real estate lawyer can assist youin getting back the deposit funds you’ve provided to the buyer so far.
Repairs must be completed before Closing.
If you and the seller do agree that certain repairs, be made to the property, these repairs must be completed by five days before the scheduled close of escrow.
If you need skilled and knowledgeable legal counsel for a real estate transaction or disputed sale in Southern California, contact the San Diego real estate litigation attorney Jon Alan Enochs for a consultation at 619-421-3956. (Referred from SDAR)
Ask your agent to verify that the Seller has completed their Statement of Identity. This is where the "Skeletons come out of the closet." You don’t want to invest Time and Money to have the Escrow fail due to some unseen Liability pop-up. They may owe more than the home’s value, which means that they may have no money left over to sue for. (I always do this for my clients)
BPG Home Inspections.
Jeff Stemmerman Professional home inspector.
760-613-9398 direct. 800-285-3001 office
An additioal Souorce, I have met Jeff. Good guy.
As soon as possible, get a quote for “Homeowners” or Fire Insurance the first few days after accepting the offer. Most new homeowners wait; it’s a mistake.
Pete Williams Insurance Agency, inc.
1020 Prospect St. CU-2, La Jolla, CA 92037
858-587-2116 Office# 760-809-3171 Cell
License # CA Producer LIC OG51406
Call Pete for Home Insurance, he is easy to work with and understands the Real Estate Community. Highly Recommended.
Javier Reyes Lic#0163335
5973 Avenida Encinas Suite 110
Carlsbad, CA 92008
(760) 203-6836 Office
License # CA Producer LIC 0163335
Call Javier for Home Insurance.
NOTE: HomeServices is an Affiliate of Berkshire Hathaway HomeSerivces. Michael Frey Recives Zero Compensation for the refural.
Termite Inspections? Call Mike Lawson at 858-352-6603
I highly recommend UC Pest Control for Termite Inspections, Fumigation, and any or all pest control needs. Mike is very knowledgeable and a genuinely good guy.
3268 Governor Dr #392 San Diego, CA 92122
Monday - Friday: 8AM–5:00PM
Some buyers assume a home inspection covers the solar system, but home inspectors will not perform a Residential Solar Inspection©. Home inspectors do not offer to perform Residential Solar Inspections© because they do not have the required expertise to evaluate a solar system.
If you have put in an offer to buy a house with solar, it is important that not only should you have a home inspection, but also that you have a Residential Solar Inspection© performed by The Solar Detective. 858-519-8415 call them
Realtors or home inspectors do not evaluate this. Solar Inspector will.
Solar panels (like them or not) are part of the home buying processes in San Diego, CA. It is essential to know before you enter any obligations or RLA-RPA contracts. Whether the homeowner purchases the system outright; in that case, you need to know about the system's maintenance, capacity, and longevity. If leased, you will need to get approved by the leasing company, and you will want to know about easements, if any, to access the panels. Call me if you have questions, or better yet call The Solar Detective directly at 858-519-8415
Curious where all the SHORT-Term rentals are located? The “Nice Neighbor” organization is a group of San Diego stakeholders trying to identify the Bad Actors: Party Houses, Nose, unlicensed or neighborhood disruptors. You can also add to their list if you know of other bad actors In Shor Term Rentals. (Take the information for what it is)
This is oven overlooked by other Real Estate Agents; it’s a nasty little surprise 6-12 months after you purchase a home in San Diego County. Supplemental tax is the difference between the newly assessed sold property amount and the old property value that the original owner paid tax on. The difference is divided by the remaining day of the tax collection year fiscal year. (June 30th) that sum is multiplied by the tax rate. (1 t0 1.2%) The video explains this in good detail.
Feel Free to Try Facebook Messenger URL: m.me/MichaelFreyRealtor
1299 Prospect Street, La Jolla, California 92037, United States
07:30 am – 08:30 pm
The owner of the Website is: Michael Frey Realtor® DRE#02069869
Call (858) 330-1242 or (619) 997-1626 (Licensed in California)
Berkshire Hathaway HomeServices California Properties La Jolla, CA DRE#01317331 All Rights Reserved. Copyright © 2023 Equal Housing Opportunity. email@example.com
©2023 Berkshire Hathaway HomeServices California Properties (BHHSCP) is a member of the franchise system of BHH Affiliates LLC. BHH Affiliates LLC and BHHSCP do not guarantee accuracy of all data including measurements, conditions, and features of property. Information is obtained from various sources and will not be verified by broker or MLS. Buyer is advised to independently verify the accuracy of that information..
© 2023 Berkshire Hathaway HomeServices California Properties is a member of the franchise system of BHH Affiliates LLC. BHHS and the BHHS symbol are registered service marks of Columbia Insurance Company, a Berkshire Hathaway affiliate.
Buyer is advised to independently verify the accuracy of that information. "Good to Know"
Michael Frey 619-997-1626 cell