Discovering your price range: Steps to Homeownership

This post is the Part Two in a series - Steps to Homeownership

You've made the decision to become a homeowner and now, it's time to take the next step - qualifying for a mortgage.

Here are some key pointers to keep in mind as you undertake the process of qualifying for a loan and shopping for your first home.

760 is the key for credit that is.

Once you reach a credit score of 760 that is when the magic happens. It opens up the most loan options and those low, low interest rates. 760 is where you want to be.

Now, I'm not saying that if your credit score is below 760 you won't qualify for a loan. Even if you have a poor credit score, you can still qualify but you might pay more for it in terms of higher interest rates and only one or two loan options.

But if you start working on your credit now, you can fix it all and erase the past.

Start by visiting myFICO.com. This site will help you obtain your true credit score. If you're buying with your partner or spouse, you might want to consider qualifying for a mortgage using whoever has the lower credit score. If you try to go in together, many banks, mortgage companies and lenders will base the rate on whoever has the lower, less attractive score.

Also, you should pull a free copy of your credit reports at AnnualCreditReport.com. Make sure there are no surprise delinquencies lowering your credit worthiness. If there are, many times they'll be small bills of a medical nature. Get those paid off pronto before you apply for a mortgage.


Save, save and save some more. 

Buying a home is costlier than you might imagine. Traditionally, to get your foot in the door, you'll need a down payment worth 20 percent of the home price, however if you are a First Time Home Buyer, you can get away with a 3.5 percent down payment through the FHA Loan Program, all of which can be gifted money. This route offers the ability to bring the least amount of money to the closing table possible.

There are other ways to get around that steep 20 percent requirement with zero- or low-down loans, but those options can cost and you might have to pay extra for private mortgage insurance or take out a piggyback loan with a much higher interest rate.

Not to mention, closing costs. You'll need money to put at least 3 percent, but sometimes as much as 6 percent toward closing costs, although you can absolutely negotiate who pays closing costs (buyer or seller or between the two.)  

Pre-qualify or better yet - Get pre-approved.

It's very important to pre-qualify or get pre-approved for a mortgage before you start the formal shopping process. By doing this, you can get an idea the home you can afford and what the monthly payment will look like.

If you choose to become pre-qualified, the lender will determine how much you can borrow based on financial information you provide to the lender. Pre-qualification is useful for making preliminary decisions about price ranges, but does not assess your creditworthiness. You will need to fill out a loan application and go through the lender's loan approval process at a later date.

You could also become pre-approved for a loan. When you are pre-approved, the lender conducts a thorough credit check and verifies your employment and deposit. The lender's pre-approval is a commitment to loan up to a certain pre-determined amount. The only thing missing is the lender's appraisal of the home to confirm its value.

Why is pre-approval important at the beginning of the home buying process?

Pre-approval strengthens your offer and negotiating position. A home seller will often choose an offer that is pre-approved for a mortgage over someone whose financial picture is still in question. And yes, it is still somewhat in question when you are choose to go the pre-qualified route.

I and the team at J&M Real Estate do have a recommended lender who we know and trust. I would be more than happy to share that information with you. Just shoot me an email, give a call or leave a comment.

Plan to stay put for years.

Real estate is an investment, but only if you buy and hold. Plan to stay in your new home a minimum of five years, but more like seven before you up and sell. Generally, that is the least amount of time it takes for real estate value to recover and for you to have a good amount of equity.

And most of all.... enjoy hunting.

Buying a home doesn't have to be stressful if you choose a real estate agent and lender who you trust and like. So, find the right person for you and shop your heart away. Go out and find your perfect place.


This post is the Part Two in a series - Steps to Homeownership
Part One - The Big Decision: Are you ready for homeownership? was the first post in the series and can be viewed below.

The Big Decision: Are you ready for home ownership?

This blog post is Part One in a series - Steps to Home Ownership.


Buying a home can be intimidating, lengthy and riddled with anxiety, but if you take the right steps it can be a smooth-sailing and even pleasant process.

 Is the time right? Am I ready for home ownership? What can I afford?

These are just a few of the many questions that might be floating in your mind as you begin what can be the most difficult and overwhelming step in the process toward home ownership - The Decision.

As you begin to consider buying, here are some of the questions you should ask yourself to determine if the time is right for you.

1. Do you budget your finances?
This is one of the biggest financial decisions you will ever make, so approach it like you're making a business decision.

If you're the type that you already have a budget in place, then you're off to a running start. Good money management skills are key to owning a home. When the faucet leaks or the yard needs tending, it's on the homeowner. No longer is there a landlord with an emergency hotline. Not to mention you have to factor in taxes and possibly HOA fees and Mello-Roos. There's no way around it. Owning comes with it expenses.

If you don't have a household budget right now, start one. You need to know where you are financially — where your money is coming from and where it goes every month — to know exactly how much you can afford to spend on a new home.

2. Can you afford the down payment?
Traditionally, to get your foot in the door, you'll need a down payment worth 20 percent of the home price, however if you are a First Time Home Buyer, you can get away with a 3 percent down payment through an FHA loan, all of which can be gifted money.

There are ways to get around that steep 20 percent requirement with zero- or low-down loans, but those options can cost and you might have to pay extra for private mortgage insurance or take out a piggyback loan with a much higher interest rate.

Also, don't forget to consider moving expenses and closing costs, which are typically about 3 percent of the purchase price.

3. Is your income reliable?
Buying a home is a long-term financial commitment, so you'll need consistent cash flow to cover those monthly payments — not to mention the little extra expenses that come with homeownership. If you're in school, plan to go back to school, have a less-than-reliable job or plan to start a family, you need to take a good look at your future cash-flow abilities. Will you be able to make your mortgage payment six months from now? Let's try six years? If you're married and planning on kids, will one of you want to stop working when you have children? If so, make sure you will be able to afford the home on one income.

4. Do you have the resources and time to maintain a home?
Homes require upkeep. You'll have a lawn to mow, windows to wash, furnace filters to replace, and you may need to tend to minor repairs from time to time and possibly even major ones, as well. Make sure you are prepared for all the responsibilities that come with owning.

If after examining your life plan and your financial scenario, you're still ready to start a home search, then go at it. Just make sure you are honest in your answers that way you know the time is right and that you're ready for the next step: Discovering your Price Range.


This blog post is Part One in a series - Steps to Home Ownership.

Give your home a Wow Factor from the curb. Five tips that won't break the bank

Improving your home's curb appeal is an instant way to boost its wow factor. Plus, it gives you that great first impression to enchant a home buyer and make them fell in love ... at first sight.

I know what you're thinking though - How much will it cost me? When selling your home, expenses can mount up - professional home and carpet cleaning, moving expenses, commissions, taxes, buying your next house, among others. Giving your house curb appeal doesn't have to be one of them though. There are a few things you can do that will go far to giving it instant appeal for very little money.

1. Glam the front door.
A fresh coat of paint and some new, larger numbers to highlight your home address is one of the easiest and most affordable home improvements you can do that goes a long way to making your home stand out from the street. Consider painting the front door with a pop of color. Seeing a deep red or dark green door really makes a home stand out. Make sure the paint color you choose goes with your home's exterior color palette. Deep red looks great with creams, whites and blacks while green looks good with greys and whites. For a fun read on front door paint colors, click here.

You can also add style and interest by updating your house's address hardware. Again make sure that the numbers you choose for the address keep in line with your house style. Oiled-bronze finishes work well with traditional homes. Brushed nickel looks great with more contemporary styles.

2. Tend your beds ... your flower beds.
Trim the shrubs and hedges, weed the flower beds and put in some color with some beautiful vibrant annuals or perennials. A beautiful flower bed will help to draw buyers in. Start with weeding your flower bed and cleaning up any debris. Grab some mulch from your local home improvement store. Mulch goes a long way to give it a fresh look without requiring much upkeep. Finally add some color to your existing plants with some flowers. Pansies, impatiens and petunias are all low-cost flowers that have long-lasting blooms.

3.  Manicure your lawn.
A beautiful, well-manicured lawn sets the mood. Grab the lawn mower and edger and with just a little bit of sweat and absolutely no dinero, you've got a beautiful yard that invites buyers to look inside. Tip though, make sure and edge after you mow, it goes a long way to making a look that compliments the house and improves its appearance without spending.

4. Make the windows sparkle; Clean up the exterior.
Get rid of the dirt that can make your home look dingy. Giving the windows a good clean will make them sparkle and giving the entire house a high-powered wash with your water hose will remove any dirt and give it that sparkle that will really resonate. Your garden hose should be able to do the job by turning it to its strongest, most powerful setting. Of course, renting a high-powered hose is an option but not necessary.

5. Tidy up your driveway and the entire front.
Weeds can sometimes find a way to peek out from cracks in the driveway. Some weed killer will help take care of unwanted greenery in the driveway and allow you to get them out of there for good. Plus, consider concealing your trash and recycling containers behind the fence or on the side of the house where they won't be seen from the street. Don't park your car in the driveway while your home is on the market. It might give potential buyers the wrong impression about the storage space in the garage. Park in the garage or down the street for that added zing. Also, if there are any toys, bikes or other items in your front lawn or patio, stow them in the garage. Tidying and getting rid of any clutter in the front makes a big impact.

Improving your curb appeal doesn't have to break the bank and first impressions are everything when it comes to buyers. Good luck selling! I would love to hear from you. Post a comment or shoot me an email.

Home buying on the radar? Top 5 crucial tips to buying without remorse

If you've been thinking about taking the plunge and buying a home, it might just be the right time to do it. Rates on loans are still low, plus the market seems to be leveling off, but who knows for how long. Once the Summer arrives home prices could begin to rise again as we saw late last year, although I expect it will go up at a steady rate.

Below are the Top 5 tips for home buyers to consider as they start their home search.

1. Aim for a home you can really afford.
The rule of thumb is that you can buy a house that runs about 2 1/2 times your annual salary. There are tons of helpful tools and mortgage calculators online to make sure you get the best handle on how your income, debts, and expenses affect what you can afford.

2. Before house hunting, get pre-approved.
In the line with the information above, the financial side of things is key to getting the house you want. Getting pre-approved will save yourself the grief of looking at houses you can't afford and put you in a better position to make a serious offer when you do find that perfect house. Sellers are much more likely to accept your offer if you already have a pre-approval letter. Not to be confused with pre-qualification, which is based on a cursory review of your finances, pre-approval from a lender is based on your actual income, debt and credit history. We, at J&M Real Estate, have preferred lenders that we know, trust and have worked with in the past that would be happy to help.

3. Get professional help.
An agent is essential to this process. Even though the Internet gives buyers unprecedented access to home listings, most new buyers are better off using a professional. Find one that will make your needs their own and has your best interest at heart. Plus, it doesn't hurt to really like the person because they will become your right arm as you go through this process.

4. Hire a home inspector.
Sure, your lender will require a home appraisal anyway. But that's just the bank's way of determining whether the house is worth the price you've agreed to pay. Separately, you should hire your own home inspector, preferably an engineer with experience in doing home surveys in the area where you are buying. His or her job will be to point out potential problems that could require costly repairs down the road.

5. Research. Research. Research.
I can't emphasize this enough. Research everything. Research the area, do drive-bys and make sure that the shopping - grocery stores and otherwise meets your needs, visit at night and at rush hour. You want to do everything you can to make sure you are going to not just like where you live, but love the house and the neighborhood. If you don't love it, don't buy it. Buyer's remorse is real and you don't want to be a victim. Also, research home buying, negotiating and schools. You can never be too educated.

I wish you the best of luck on your home search. I would love to hear from you. Leave a comment or shoot me an email for any advice or assistance. Happy hunting.

Selling your home? 5 tips to get it sold ... Quick

It's never an easy task to sell your house, a place where memories were created and a place you cherish and love, but once the decision is made, many sellers just want it over and done with ... and fast.

That's where real estate agents come in. They can get the job done and can do so quickly but only if you follow their advice. Below are a few key tips for sellers to turn their home into money faster than you can say Ready... Set... Sold!

1. Hire the right agent for you.
I know... I know you're thinking blatant self-promotion, right? Well, no, not exactly. OK, maybe a little, but in all reality, this is the No. 1 tip because it makes a seller's life easier and if you listen to their advice, it sells your home quickly. First of all, find an agent who you can talk to, I mean really talk to. This person will become your confidant during this time period and you will talk to them more often than you speak to your spouse or your mom, so make sure you like them and most importantly, TRUST them. Secondly, heed their advice.

2. Don't overprice. Price is everything.
The market will correct a lower price, but nothing good can come of overpricing your home. Most people assume that if they overprice their home, they can go to the table with more negotiating power, but doing so can keep that house languishing on the market for weeks; if not months and that means lost revenue for you. If you price your home right if not a tad bit low, you will get more buyers walking through and making competitive offers - offers above your asking price and it won't stay on the market long. Plus, if you overprice your home, buyers who like it might pass on it because of that high price and will find something else before you drop your asking price to a level they'd consider. Overpricing is one way to say bye, bye, bye to buyers.

3. Clear the clutter.
Your home might have potential but buyers often times can't see past the clutter and will only focus on the clutter instead of on the stunning cabinets behind the multitude of small appliances on the counter. So clear the clutter. Consider removing furniture to make the rooms appear larger and putting away family photos and personal items. Let the buyer be able to envision themselves in the home, rather than only seeing the massive amounts of photos showcasing your smiling youngsters.

4. Curb appeal is everything.
Curb appeal is the first impression. I remember going to see a house and the moment we pulled up, it was over. The buyer drove off and said 'Never mind.' They had no idea what was on the inside and they never would because the curb appeal just wasn't there. Try to make certain that the exterior has a fresh coat of paint and that the bushes and lawn are well kept. Appearances mean a lot.

5. Half-empty closets & clean windows.
Buyers want space and even if you don't have it, making a few minor adjustments can give the appearance of it. Make those windows sparkle, pull up the blinds and take down your curtains. Doing so will bring in the light making your rooms appear brighter and bigger. Also, make sure half your closets are empty. It gives the appearance of more storage space and hey, who doesn't need more of that?

There are many other things you can do to make your home ready for market, but these are just a few crucial tips to make sure it goes fast. Happy Selling.

Location, Location, Location! What San Diego area is right for you?

A question I hear over and over again from folks beginning their home search is 'Where should I live in San Diego?', 'What's the best neighborhood?'

Certainly, not an easy question to answer because there's isn't a right answer. My advice - There isn't a wrong decision because it all depends on you, your wants, your personality, your family, your commute, your children's school choices. It's all up to the individual.

After receiving this question for the upteenth billionth time this past weekend at an Open House, I decided to do some digging so that at least I could direct my clients to something that could help them figure out the perfect answer to their mega big and mega important question.

In the San Diego area, there are so many options - neighborhoods within the city, suburbs, outlying cities, inland, coastal, mountain and they go on and on.

So for your researching pleasure, here are a few Web sites that will help you to narrow down your search to the right neighborhoods and/or cities for you and your family.

My suggestion, start with these sites, narrow it down to a few select locations and then do some exploring. Visit the area, check out the restaurants, entertainment and shopping options (grocery and otherwise), make sure you dig the vibe. Most importantly, you need to ensure that your needs will be met and then let your real estate agent know that you've narrowed down your search criteria so that you can find your dream home in your perfect area.

Top Rated Family-Friendly San Diego Neighborhoods
Our City San Diego magazine conducted a survey recently that rated family-friendly San Diego neighborhoods over a series of criteria. Both the criteria and their review can be found here.

North to South; Coast to Desert
Each area of San Diego, from the north to the south, the coast to the desert, has its own uniqueness. Click here to see an overview of those areas http://www.sandiego.org/discover.aspx.

Research it up: Schools, Demographics, Safety, Entertainment & More
Many folks want information about schools, demographics, safety and entertainment. You can find an abundance of sites that offer this information, but a personal favorite is Trulia's Localized page. One-stop shopping for an easy-to-read site with multiple menu options that allow the reader to explore by city, neighborhood, address or zip code. 

So.... Where should you live? What your perfect 'hood?

I would love to hear all about your findings. Leave a comment, send me an email and let me help you find your perfect place.

Let me Introduce Myself....

The first post in my first blog is somewhat of a nerve-wrecking writing experience. You want to make a good impression, you want to give sound real estate advice, but where to begin?

I'll make it simple and begin with me.

My name is Katy Schuster, real estate agent, mom, wife, hiker, biker and the list goes on and on. Like most of us who live and work in breath-taking Southern California, I'm a transplant but from the moment I arrived I was in love with this beautiful area and all that it offered. My husband and I call Escondido home along with our two beautiful kids, who I'm sure I'll talk about often. Zoe who is 2 years old came first and soon after, we were blessed with Zane, 14 months.

They are my life and everything I do I do for them. They are one of the reasons I got into real estate. A job I believe is flexible enough to allow me to be a present mom and one where I can still bring home the bacon and give them more than what I had growing up. Not that I had it bad, but I think all of us parents feel that way. We want our kids to have the best.

I started working in real estate in November 2013, but it was obvious from the first moment I began considering the profession that real estate would be my passion. Helping others to realize their dreams is more than I could ever ask for in a job.

Before working in real estate, my chosen career path was in communications. As a print reporter in Corpus Christi, I broke the international story of Dick Cheney shooting his friend and fellow hunter at a South Texas ranch. That story propelled me to a career in broadcasting where I worked as an on-air reporter in Phoenix, Arizona for KNXV TV (ABC15).

I returned to my hometown and began a new profession in public relations working with the tourism bureau in Corpus Christi, Tex. All my adventures were marvelous and helped me to gain unparalleled skills that contribute marvelously to real estate success.

It is in real estate that my heart lies and I know that together with my clients, I can help them find their dream home or get the best offer for their property. As an agent I will commit myself to the needs and wants of my client. I will assist them in understanding each step of the buying or selling process and be there every step of the way, at any hour.

Whenever you need me, I'll be there. Honesty, trustworthiness and real estate expertise. I will make your goals mine and help make your dream a reality. Take the first step today. Your dream is waiting.