Tag Archives: new home buyer

Top 5 Tips for Opening a New Escrow!


Opening escrow, especially for the first time, can be a bit like navigating uncharted waters. Based on our experience opening multiple escrows for over 12 years, The Mendelsohn Group has compiled a list of useful tips to help homebuyers through escrow with ease!

  1. Read through all paperwork and stay on top of all signatures. If you were to print out every single piece of paper involved in the purchase or sale of a home, the file would easily be three inches thick! As you can imagine, it can be a bit overwhelming to deal with all of that paper. Do your best to stay on top of it and READ and sign as it is sent to you. Don’t hesitate to call your agent with any questions before you sign.
  2. If you are currently renting, DO NOT GIVE NOTICE of your intended move-out date until ALL CONTINGENCIES are removed on your sale. This is incredibly important because if something falls through, you could potentially be out of a place to live! As Revi always says, “I’d rather you have two places to live than none!”
  3. Avoid posting anything on social media regarding the sale. This helps protect you against your landlord finding out of your plans to move prematurely. Posting on social media during negotiations could also affect you negatively because you never know which friends buyers/sellers have in common. When Revi is representing you, she is always planning strategically to get you the best possible deal! As Revi says, she keeps things “in her back pocket” to benefit you in the deal.
  4. Do not discuss any repair or inspection matters with your lender under any circumstances. This is key to ensuring a smooth lending process. If you are unsure of any matters, consult your real estate agent. Bringing inspection matters to the lender’s attention can complicate the loan, and potentially cause the deal to fall apart.
  5. While in escrow, do not make any large purchases such as a new car, furniture, or anything that can affect your credit score and ability to get the loan. The lender repeatedly checks your credit ratios during and up to the close of the loan. Before making any changes such as employment, opening or closing bank accounts, or making large deposits, speak to your realtor and your lender to confirm it has been set up properly. Revi and The Mendelsohn Group team are here to help you every step of the way — no question is too big or too small!

If you have any questions regarding the escrow process, or real estate in general, do not hesitate to contact Revi Mendelsohn at 310-963-7384!

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Buying a Home is STILL Cheaper Than Renting!

With the prices of homes in metropolitan areas still below their highest values and mortgage rates still teetering on historic lows, the monthly mortgage payment on a median priced home is less than at almost any time in the last 25 years.

In a recent report from Trulia, it is explained that owning a home remains cheaper than renting with a traditional 30-year fixed rate mortgage throughout the 100 largest metro areas in the U.S. Nationally, the price of owning is an average of 35% less expensive than renting. In the Los Angeles area, that rate is between 20-40%!

How is this possible you ask? Let’s take a look at the numbers:

  • Interest rates have remained low and even though home prices have appreciated around the country (3.9%), they haven’t greatly outpaced rental appreciation (3.7%). In the past year, these two trends have made homeownership even more affordable compared with renting.
  • Some markets might tip in favor of renting next year if home prices increase at a greater rate than rents and if mortgage rates rise, due to the strengthening economy. However…
  • Nationally, rates would have to rise to 10.6% for renting to be cheaper than buying – and rates haven’t been that high since 1989!
  • The National Association of Realtors performed a study in which they looked at income growth, housing costs and changes in the share of renter and owner-occupied households over the past five years. They found that a typical rent rose 15% while the income of renters grew by only 11%.
  • The average renter in the United States pays 30% of their income on housing compared to that of a homeowner who can expect to spend 15%.


The bottom line is that buying a home makes sense. Rental costs have historically increased at a higher rate of inflation. Now is the time to lock in a low interest rate and work towards your goal! Consider the following if you are on the fence about taking the leap into homeownership:

  • There are many benefits to homeownership. One of the top ones is being able to protect yourself from rising rents and lock in your housing cost for the life of your mortgage.
  • Homebuyers who purchased their home over the same five-year period locked in their housing costs and were able to grow their net worth as home values have increased and their mortgage balances have gone down.web-layout-sm
  • According to a poll by DigitalRisk.com, over 60% of first time homebuyers who recently bought a home put down less than 20%, while 36% put down less than 5%.
  • Speak with a realtor you can trust – they can help you plan your journey to buying a home, and making it as stress-free as possible!
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First-Time Home Buyer Tips!

You’ve decided to go for it and start the process of buying your first home. Buying a home can be thrilling and nerve-wracking at the same time, especially for a first-time homebuyer. It’s difficult to know exactly what to expect and if you are making the best choices for your budget, lifestyle, and goals.

That’s why we’ve created a list of the Top 5 Tips for the smoothest first-time home buying experience possible!

 

1.     Seek help from a professional agent you can trust.

Speaking to an agent about specific budgets and goals can help set you up for the best plan of action, and what is best suited for you. The years of industry a realtor can provide you with is worth the costs and can help expedite the process.

2.   Reach out to elders and mentors with experience for advice.

There is no greater value than getting advice from people who have been in your situation. They can help you navigate what mistakes to avoid and even give some tips on things like loans and interest rates.

3.   Research and narrow down the type of housing and neighborhood works best for you.

Having a strong grasp on exactly what you are looking for can help save a lot of time and stress down the line. This is especially crucial if you plan to use this property as an investment—things like proximity to major landmarks, school districts, and value of the neighborhood can pay off later on when you go to sell.

4. Fully prepare for short and long term expenses.

While upfront costs to purchasing can seem quite obvious, home-buying can come with a lot of unpredictable charges. There may be home owner’s association fees and unexpected repairs involved, so make sure to save and prepare for these potential road blocks.

5. Take your time.

There is no need to rush this process. It is a very rewarding thing to be able to purchase a first home, and it takes a lot of courage to commit! Once you commit to your decision, make sure to not get caught up in the hustle of finding the place you are looking for. Make sure it has what you are looking for and you are absolutely happy with your decision!

If you have any questions, or are looking to make this exciting move in the next few years, Revi would be happy to talk you through this process! Call or email anytime for more tips and advice to help you reach your home-buying goals!

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Millennials Heat Up The Home Buyer Market!

The Next HomeBuyers

Millennials are dominating the homebuyer market and changing the market for going on the second year in a row – and these exciting changes are sure to do great things for real estate in the coming years!

With more jobs on the horizon and more focus on establishing financial success before marriage, the real estate market has continued to see a boost thanks to this growing group of new buyers. According to the National Association of Real Estate, millennials are making up about 32% of the buying market, which is majority over all other buyer groups. This is proving beneficial to everyone in more ways than expected – it is boosting our economy and driving home values up!

Want to know where to start before buying your first property? The Mendelsohn Group can help point you in the right direction! Follow these helpful tips for millennial home buyers:

1.     Seek help from a professional agent you can trust.

Speaking to an agent about specific budgets and goals can help set you up for the best plan of action, and what is best suited for you. The years of industry a realtor can provide you with is worth the costs and can help expedite the process.

  1.    Reach out to elders and mentors with experience for advice.

There is no greater value than getting advice from people who have been in your situation. They can help you navigate what mistakes to avoid and even give some tips on things like loans and interest rates.

  1.    Research and narrow down the type of housing and neighborhood works best for you.

Having a strong grasp on exactly what you are looking for can help save a lot of time and stress down the line. This is especially crucial if you plan to use this property as an investment—things like proximity to major landmarks, school districts, and value of the neighborhood can pay off later on when you go to sell.

  1.   Fully prepare for short and long term expenses.

While upfront costs to purchasing can seem quite obvious, home-buying can come with a lot of unpredictable charges. There may be home owner’s association fees and unexpected repairs involved, so make sure to save and prepare for these potential road blocks.

  1.    Take your time.

There is no need to rush this process. It is a very rewarding thing to be able to purchase a first home, and it takes a lot of courage to commit! Once you commit to your decision, make sure to not get caught up in the hustle of finding the place you are looking for. Make sure it has what you are looking for and you are absolutely happy with your decision!

If you have any questions, or are looking to make this exciting move in the next few years, Revi would be happy to talk you through this process! Call or email anytime for more tips and advice to help you reach your home buying goals!

 

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