Loan Amount X Income: How To Calculate It?

Based on today’s interest rates, we can use the following calculations as a guide to see how much mortgage you can afford.  The big caveat is that your situation is unique, and this is in no way a loan pre-qualification. Meeting with a lender to go over your situation is the only way to find out for sure what is the best loan scenario and the most you can qualify for. Also, there are many other loan programs available out there.  You have options like FHA, VA, Self-employed loans and many other options to fit your particular situation. Let’s use $100,000.00 per year income as an example: ●        20% down on a conventional loan. Great credit and No debts = approximately $790,000.00 purchase price and monthly payment would be approximately $4,150.00 including taxes and insurance. ●        5% down on a conventional loan. Great credit and No debts = approximately $645,000.00 purchase price and monthly payment would be approximately $4,150.00 including taxes, PMI and insurance. ●        3.5% down on an FHA loan. Medium credit and No debts = approximately $595,000.00 purchase price and monthly payment would be approximately $3,900.00 including taxes, PMI and insurance. Here are a couple of scenarios for anyone that have bills to pay, like most of us. 20% down on a conventional loan. Great credit and $1000 in monthly car payments and credit card bills = approximately a $600,000.00 purchase price with a monthly mortgage payment of $3150.00 including taxes and insurance. 5% down on a conventional loan. Great credit and $1000 in monthly debts =  approximately a $490,000.00 purchase price with a monthly mortgage of approximately $3150.00 including taxes, PMI and insurance. The above calculations are for loan amounts up to $679,650.00, but these are just rough estimates.  Your personal unique situation will need to be analyzed by your lender. (Above information was a courtesy of Mike Meena). Thinking about buying or selling a home? Contact me at any time.  I am never too busy for you! Mariness Chata / Mariness Chata & Associates / (661)317-3332

Solar Panels and Tax Considerations

I received this great information from Theresa M. Stewart, CPA and I thought about sharing it with you to help clarify the matter of Solar Panels and its tax benefits.

Solar energy is growing, and California is leading the way. More and more Californians each year are installing solar panels on their home, businesses, and rental properties, and the energy cost savings can be substantial.

There can also be substantial tax savings as you may get a tax credit of up to 30% of the cost of buying and installing the panels.

If you are considering putting solar panels on your property, beware that there are many aggressive salespeople who are misrepresenting the tax savings that you may be entitled to. Note the following:

• Leasing solar panels may be the most economical choice for you; however, tax credits are only available if you purchase the panels;
• Roof replacement and repair costs are typically not available for solar credits;
• If you finance the purchase of the solar panels through any of the programs that allow you to make your finance payments through your property taxes, that portion of your property taxes is not deductible as property tax;
• If you install solar panels on your business or rental property, then you may be required to pay back some or all of the tax credits if you sell the property or convert it to personal use within five years of installing the solar panels; and
• If you are an owner of a partnership, LLC, or S corporation that installs solar panels on its property, then you may be able to claim the tax credits on your personal income tax return, but special rules may limit your credit.

There are other tax and nontax considerations regarding whether you should lease or buy your panels or whether you should go with solar at all. Please contact your Tax Accountant or CPA to discuss.

Thinking about buying or selling a home? Contact me at any time.  I am never too busy for you!

Mariness Chata / MarinessChata@outlook.com / (661)317-3332  

Access Information on Homes For Sale and Sold Prices In Your Neighborhood HERE!

What Are Appraisers Looking For?

Agents and borrowers alike often find the appraisal process confusing and opaque – it’s why we consistently field questions on what appraisers look for when inspecting a property and how agents can best prepare. Not only can appraisers’ opinions on value make or break a deal, but they also play a crucial role in determining if the property in question meets all health and safety standards required for a clean appraisal (also referred to as the Minimum Property Standards, or MPS).

Though an appraisal does not replace a full home inspection, Underwriters and Investors rely on the appraiser’s report to determine if the property meets the MPS – this is true of conventional, FHA, and VA appraisals.

FHA and VA appraisals do, however, have slightly different health and safety checks that are required during the home inspection. B/c these different checks can be difficult to parse out online, we created a list below of the common health and safety checks required of all 3 types of appraisals, and the specific checks required for only FHA and VA.

CONVENTIONAL, FHA & VA

• Test for a properly working and strapped heater
• Validate every bedroom has 2 points of egress
• Ensure oven hood is present in any full kitchen
• Verify that there are properly placed CO and Smoke detectors
• Identify any exposed wiring or missing electric box cover plates
• Address any water damage issues
• Verify adequate heat source (does not need to be permanent)
• Check for evidence of termite damage
• Check for signs of foundation damage
• Verify no other obvious health and safety issues present (broken glass, broken doors/walls, animal droppings, etc.)

FHA & VA

• Identify any chipping, peeling or cracked lead-based paint – interior and exterior.
• Verify the property has proper drainage
• Test for permanent working heat-source
• Test for adequate water pressure (both hot and cold) and ensure no water leaks
• Test for a working oven hood/fan (carbon monoxide danger)
• Ensure major appliances/garage door opener work
• If the garage is attached, ensure the door from house to garage is self-closing
• Verify roofs have at least a 3-year remaining life
• Complete a head and shoulder inspection of attic and crawl space.

(Beau McGlasson)

Thinking about buying or selling a home?  Contact me at any time.  Let’s talk about your options and create a game plan to achieve your goal.  I am never too busy for you. 

How Much Is Your Home Worth? Click HERE for latest sales in your area.

Mariness Chata / Mariness Chata & Associates / (661)317-3332

 

What Is A Seller’s Market?

Buyers and sellers often recognize changes in the market after the changes have already affected them. Homeowners who consider selling their homes but stay on the sidelines watching sales pass them by often miss the boat.

A seller’s market, like all other markets, is not a permanent situation and can change anytime. The opportunity to sell a home for the highest possible price will not last forever.

Buyers are often tentative and second-guess the market by overanalyzing property values. Many times, waiting for an exceptional deal or the perfect home in the desired price-point is not a wise move in a seller’s market. The combination of a low inventory of available homes, rising prices, and the expanding number of buyers in the market may result in a buyer losing the opportunity to acquire the desired home unless the buyer takes quick action. 

Pricing a home under these conditions is not a license to grossly overprice it. If a home is listed far above the market value, it will not sell and even after several price reductions, it may sell for less than the desired market value. Many of us know about a home that has been for sale for several months while surrounding homes sold quickly.

The key to buying or selling a home in this market is to understand it and to have access to recent data on what is happening in the area that you are looking to buy or sell a home. Also, most importantly, it needs to fit your short and long-term needs and goals. 

Thinking about buying or selling a home?  Contact me at any time.  Let’s talk about your options and create a game plan to achieve your goal.  I am never too busy for you. 

Click HERE to search for homes for sale and sold prices in your area

Mariness Chata / (661)317-3332 / MarinessChata@outlook.com

 

How To Get Your Offer Accepeted!

First, let’s define a seller’s market:

A seller’s market occurs when a substantial number of motivated buyers exceeds the number of homes available for sale.

If you are thinking about buying a home, there are a few steps that you must take to ensure that you won’t miss out on the best home for your family:

Step #1: Get a loan pre-approval from a reputable lender. In a competitive market, sellers will only consider offers from lenders that have a track record in the community

Step #2: Hire a Realtor that is committed to helping you find a home. A fulltime realtor in the community is someone who knows the neighborhoods and is committed to the local real estate market.

Step #3: Don’t delay! When the best home for you hits the market, you need to act. Searching for homes only on the weekends is no longer an option in a competitive market. The best homes sell within a day or two.

Step #4: Don’t haggle, remember you are competing with many other qualified buyers and your goal is to get your offer accepted and secured before someone else does.

Step #5: Sit with your agent and go over the conditions of the market in the area you are looking for. Ask how many homes are for sale, how many recently sold, how long it took to sell, and what was the average sales price. By understanding the market you will make an educated decision about types of offers.

Thinking about buying or selling a home?  Contact me at any time.  I am never too busy for you!

https://marinesschatarealtor.com/

Mariness Chata &  Associates / (661)317-3332 / MarinessChata@ outlook.com

Are There Signs For A Market Crash?

The lack of inventory of homes for sale got everybody talking and speculating what’s going to happen next.  Being concerned is a normal reaction when we do not have the answers.  I believe that a healthy dose of information quiets and heart and can clear the mind.

Important factors to consider are the vibrant CA economy, the increases in the stock market, the increasing numbers of Californians that have new jobs and more importantly, the unhealthy lending practices that fueled the previous crash are non-existent today.

According to Ralph McLaughlin, chief economist of Trulia, Price declines are nowhere in sight yet and cannot be totally ruled out, he said, but “we think the potential negative impacts [of the tax bill] will be muted by the likely fact that most households will actually have more money in their bank accounts at the end of the year because of the tax plan.”

According to Ralph G. DeFranco, Ph.D, global chief economist, Mortgage Services, Arch Capital Services Inc., “Our research shows few signs of a housing bubble because the typical warning signs aren’t present. Overall, the shortage of housing paired with a robust job market should keep the housing market strong and growing, short of an unexpected event and despite the contrary pressures that may be created by the tax bill.”

The California Association of Realtors forecast home prices will increase an additional 4.2 percent in 2018. If the forecast proves accurate, that existing single-family home price will exceed record highs set in 2007. Prices, however, will remain well below pre-recession records when taking inflation into account.

Per Bill McBride, who runs the Calculated Risk blog, he doesn’t think home prices are inflated this time around. Unlike in 2005, lenders are acting responsibly and the Wild West of real estate speculation hasn’t returned. There is less to speculate on, too. Compared with the overbuilding that preceded the bust, today’s pace of construction isn’t fast enough, he said.

Thinking about buying or selling a home?  Would you like to chat about your options?  Call me at any time.  I am never too busy for you.

Mariness Chata / Mariness Chata & Associates / (661)317-3332 

https://www.marinesschata.com/

How To Prevent Property Tax Reassessment For Your Children?

Many homeowners are able to keep their homes in the family by passing on their home to their children when they no longer need it.  Often people miss out on the opportunity to do so fearing tax consequences.

Certain transfers within families are excluded from the general rule that a change in ownership triggers reassessment of a property. These exclusions include transfers between spouses and domestic partners.

This information focuses primarily on transfer exclusions between parents and children (Proposition 58). Transfer of property between parents and children is not subject to reassessment; children will pay the same lower rate paid by their parents. However, there are significant limitations to this general rule. Please consult a tax specialist or an attorney before claiming this exclusion.

Each parent may transfer their principal residence and up to the first $1 million of the full cash value of another property to their child without automatically triggering a reassessment.

Assessor Prang’s office is available to answer any questions and guide homeowners through this process. For more detailed information on property transfers between parents and children, visit the Assessor’s website at: https://assessor.lacounty.gov.

Thinking about buying or selling a home?  Contact me at any time.  I am never too busy for you!

Check out FREE access to the MLS and Home Values in your area by clicking on: https://marinesschatarealtor.com/

Mariness Chata & Associates / (661)317-3332 / MarinessChata@outlook.com

What’s the difference between Wills and Trusts?

Everyone has heard the terms “will” and “trust,” but not everyone knows the
differences between the two. Both are estate planning devices that serve
different purposes.

One notable difference between a will and a trust is that a will goes into effect only
after the death of the party, while a trust takes effect as soon as it is created. A will
is a document that directs who will receive a property upon death, and it appoints a legal representative to carry out these wishes. By contrast, a trust can be used to begin distributing property before death, at death, or afterward. A trust is a legal arrangement through which one person (or an institution, such as a bank or law firm) called a “trustee” holds legal title to property for another person called a “beneficiary.” A trust usually has two types of beneficiaries: one set that receives income from the trust during their lives, and another that receives whatever is left over after the first set of beneficiaries has died.

A will covers any property that is in an individual’s name when he/she dies. It does not cover property held in joint tenancy or in a trust. A trust, on the other hand, covers only property that has been transferred to the trust. In order for the property to be included in a trust, it must be put in the name of the trust.

Another difference between a will and a trust is that a will passes through probate. That means a court oversees the administration of the will and ensures the will is valid and the property gets distributed the way the deceased intended. A trust passes outside of probate, so a court does not need to oversee the process, which can save time and money. Unlike a will, which becomes part of the public record, a trust can remain private.

Wills and trusts each have their advantages and disadvantages. For example, a will allows one to name a guardian for children and to specify funeral arrangements, while a trust does not. On the other hand, a trust can be used to plan for disability or to provide savings on taxes. Please consult an attorney for how best to use a will and a trust in estate planning.

Thinking about buying or selling a home?  Contact me at any time.  I am never too busy for you!

Mariness Chata& Associates / (661)317-3332 / MarinessChata@outlook.com

 

Why do we pay Mello-Roos taxes?

Let’s first be clear on what is Mello-Roos taxes. Mello-Roos is a form of financing that can be used by cities, counties, and special districts (such as school districts). The taxes are secured by a continuing lien and are levied annually against property within the district.

The tax was created in 1982, as a way around Proposition 13, to generate revenue for basic infrastructure needs in new neighborhoods, especially schools. Mello-Roos landowners, usually developers, partner with school districts or cities to form Community Facilities Districts (CFD) that can levy taxes. Once the homeowners move into the newly developed neighborhoods, they are subject to the new tax for decades.

Before Proposition 13, state and local governments used income collected through property taxes to build new roads, schools and other necessary community facilities. In order to continue building residential areas, these same governments were forced to require builders of new communities to pay for these public facilities. Consequently, these funds were added to the cost of the new homes. These price increases hurt new home buyers and fewer people were able to afford these higher priced homes.

Since state funds are not available to provide the quality of facilities necessary in every community in California, Mello-Roos makes the acquisition of timely financing possible. In addition, Mello-Roos can provide financing for other vital community needs. These needs include the construction and maintenance of public roads, traffic light systems, storm sewers, water mains, police stations, fire stations, ambulance services, public libraries, recreational parks, museums and cultural facilities. Now homeowners are paying for these improvements through their Mello-Roos Community District as part of their property taxes, spread out over 20 years or more instead of as an initial increase in their home purchase price.

So California voters approved Proposition 13 to lower their taxes. Our lawmakers took the constraints we imposed on State and local government spending and developed a way to fund all the infrastructure we expect in a new home development. They did it by collecting Mello-Roos assessments from those homeowners in new neighborhood developments instead of taxing all California voters.

Instead of the State, County or local Communities footing the costs for these street lamps and schools – we the new neighborhood homeowner are the bottom line.

Thinking about buying or selling a home?  For over 20 years I have been helping families with all of their real estate needs.

Find thousands of homes for sale and property values at:

 http://www.marinesschata.com/

Mariness Chata & Associates   (661)317-3332     Marinesschata@outlook.com

Another Great Incentive To Home Buyers!

One of the best first-time buyer programs is now available to buyers who have not owned a property in the past 3 years.   The MCC Tax Credit is a federal credit which can reduce potential federal income tax liability, creating additional net spendable income which borrowers may use toward their monthly mortgage payment.  This tax credit will save a borrower thousands of dollars every year!

The MCC Program enables qualified first-time homebuyers to convert a portion of their annual mortgage interest into a direct dollar for dollar tax credit on their U.S. individual income tax returns. The qualified homebuyer is awarded a tax credit of up to 20% of the annual interest paid on the mortgage loan. The remaining 80% of the mortgage interest will continue to qualify as an itemized tax deduction.

 

This program have qualification guidelines such as:

a) Must be a first-time homebuyer who has not had an ownership interest in any residence at any time in the past three years.

b)In order to qualify, the first-time homebuyer’s household annual income cannot exceed program guidelines.

c) The property purchased must be the homebuyer’s primary residence at all times.

d)The property must fall within the list of approved cities/locations.

e) The first-time homebuyer must complete an 8-hour educational course in homeownership from a HUD-approved counseling agency.

f)The buyer must be pre-qualifies by an MCC Participating Lender.  Not all lenders are approved.

Feel free to contact me if you would like further information and a list of the local MCC approved lenders.  If you are on the fence considering purchasing your first home, this may be the right avenue to facilitate your homeownership.

Thinking about buying or selling a home?  Interest rates are still very low and property values are up allowing you to make the move you have been waiting for.  Call or text me at any time.  I am never too busy for you!

Find thousands of homes for sale and property values at:

http://www.marinesschata.com/

Mariness Chata & Associates   (661)317-3332     Marinesschata@outlook.com