Factors That Can Affect Closing On Time

According to National Association of Realtors, roughly 60% of purchase contracts actually settle on time. This means 6 of 10, of your transactions close on time.

What gets in the way? 

Financing:           39%

Appraisal:           16%

Title and Deed:   11%

Contingencies:     8%

Sellers/Buyers cold feet, HOA obstacles, etc.

Financing being the number one reason why a transaction fails to close. What specifically interferes is buyer’s income is not completely verifiable. Second, is down payment, and last but not least, buyers do something ill-advised during the processing of their loan file.  Call Joe Costa with San Diego's Park Place Financial Group today to guide you through the loan process and help close your escrow on time.

Your Down Payment

Lots of buyers can qualify for a mortgage loan, but they don't have a lot of money to pay a down payment. Get started here

Tighten your belt and save. Scrutinize your budget to discover ways you can cut expenses to save for your down payment. You might also decide to enroll in an automatic savings plan at your bank to automatically have a specific amount from your take-home pay moved into your savings account. You could look into some big expenses in your budget that you can give up, or reduce, at least temporarily. For example, you may move into less expensive housing, or stay local for your annual vacation.

Sell items you don't need and find a part-time job. Look for an additional job. This can be rough, but the temporary difficulty can provide your down payment money. In addition, you can put together an exhaustive list of items you can sell. Unused gold jewelry can be sold at local jewelers. A closet full of small things could add up to a nice sum at a garage or tag sale. You might also look into what your investments may bring if sold.

Tap into your retirement funds. Explore the details for your particular plan. Some homebuyers get down payment money by withdrawing funds from their IRAs or borrowing from 401(k) plans. Be sure to ask your plan representative about the tax consequences, repayment terms, and possible early withdrawal penalties.

Ask for help from generous family members. First-time homebuyers are sometimes lucky enough to get help with their down payment assistance from giving parents and other family members who are willing to help them get into their first home. Your family members may be pleased at the chance to help you reach the milestone of buying your first home.

Learn about housing finance agencies. These types of agencies provide special loan programs to low and moderate-income homebuyers, buyers with an interest in rehabilitating a house in a targeted area, and additional specific kinds of buyers as specified by the agency. Financing with this kind of agency, you may be given a below market interest rate, down payment help and other advantages. These kinds of agencies may assist you with a lower interest rate, get you your down payment, and offer other assistance. The main goal of not-for-profit housing finance agencies is boosting residential ownership in particular parts of the city.

The satisfaction will be the same, no matter which method you use to come up with the down payment. Your brand new home will be well worth it!

Want to discuss the best options for down payments? Call Joe Costa at Park Place Financial Group located in San Diego, California 646-245-7856.

The Benefits Of A Mortgage Broker

There are many benefits for a borrower when obtaining a loan through a mortgage broker as opposed to a retail lender such as a large bank.  A mortgage broker is able to shop around and find many different loan options for the borrower whereas a retail lender is restricted to only the loan products that the institution carries.  A mortgage broker has the ability to be much more hands and community oriented with a borrower allowing the broker to build a solid realtionship with his/her client and walk the clients through the entire loan process.  A retail lender, on the other hand, is often restricted to telephone conversations and online access to their clients.  At  Park Place Financial Group, a San Diego, California based mortgage brokerage firm, we thrive on our philosphy that we are value based and relationship oriented and work diligently to find the best loan products and financing that meet our client's needs. Call Joe Costa at 646-245-7856 with any questions.

Joe Costa at Park Place Financial Group Can Help You Get A Loan This Summer

Before looking to purchase a home this summer, call Joe Costa at San Diego, California's Park Place Financial Group for a loan prequalification or preapproval letter.  This makes it easier when you find the perfect home to know that you already have a lender in place.  Joe Costa has been in the mortgage industry for over 25 years and can answer any questions you might have regarding interest rates and financing for a variety of purchase loan products that are available.