How Much down Payment Do You Need to Purchase a Home?

How much money do you really need for a down payment on a home? I’ll go over a few different options today.

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If you want to buy a home, how much money do you need for your down payment?

Most lenders would love to see you put the standard 20% down for a conventional loan. Why? First of all, you won’t have to pay mortgage insurance. Secondly, you will be less of a risk. You are more likely to make your mortgage payments because you have equity in your home. Finally, putting 20% down helps you qualify for a bigger purchase.

That said, there are a few things to consider.

Recently, the National Association of Realtors revealed statistics from April to June of 2017 that found that 73% of all first-time homebuyers put less than 20% down; 61% of those buyers put less than 6% down.

Here in Southern California, which includes Orange County, L.A., and the Coachella Valley, prices are appreciating and interest rates are low overall. The market is really taking off, although the desert is slowing down a little bit. Home prices have appreciated quite a bit over the past eight and a half years since the bottom of the market.

Buyers are tired of renting. They know that long-term investments mean long-term gains. Real estate is a great way to build your portfolio and start building your wealth. In fact, 95% of all people who become millionaires got there through homeownership.

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There are a few benefits to putting 20% down on a conventional home loan.

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A lot of people may say that renting is the way to go. Renting is fine if you are moving around a lot or have a transient job that requires you to go from location to location. If you have established a family or have a great career in the area, then why are you renting? Why are you spending $2,000 to $4,000 and not gaining anything from it?

You may have a great place to live, but the reality is you are not benefiting from any of the mortgage interest deductions or appreciation that homeowners do. If the landlord decides to sell your home because the market is improving, then you have to move again, which costs you time and money.

So, what are the loan limits? 

FHA loans allow you to put 3.5% down. If you are looking to buy a $500,000 home in Orange County, you would need $17,500 down. If you were looking at the same home but needed to put 20% down for a conventional loan, you would need $100,000 for your down payment.

You can also get a conventional loan with a 5%, 10%, or 15% down payment. If you qualify for a VA loan, you can purchase a home with no money down.

If you would like to talk more in depth about which options are available to you, give us a call or send us an email. You can also get pre-approved by our preferred lender on our website.

So, if you have any questions, give us a call or send us an email. We would be happy to help you!

Do You Really Need a Home Warranty?

What is a home warranty and should you get one at close of escrow? I’ll cover everything you need to know today.

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Buying a home? Search all homes for sale

What is a home warranty? Should you get one at the close of escrow?

First of all, keep in mind that a home warranty is not the same thing as home insurance. A home warranty is a one-year policy that covers many of the mechanical items on the property, such as pool equipment, the water heater, the furnace, A/C, or other appliances.

As a buyer, you should absolutely get a home warranty. After the close of escrow, you can move into the property knowing that if anything goes wrong, all you have to do is call the home warranty company. The company will then send out a technician to repair or replace the appliance.

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Should you get a home warranty?

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As a seller, the home warranty is a great way to offer buyers reassurance.

Who pays for the home warranty and what does it cost?

Depending on the market, either the buyer or the seller will pay for the home warranty. In a more competitive market with lower inventory that favors sellers, it is more likely that the buyer will have to pay for the home warranty. In a buyer’s market, where there is more inventory and buyers have the advantage, then the seller will foot the bill for the home warranty.

Home warranties tend to cost between $350 and $700, depending on the home and the number of items that the warranty covers.

Still, a home warranty is worth the investment. If you have any other questions about home warranties, give me a call or send me an email. I would be happy to help you!

What To Expect When Buying A Home

When purchasing a new home, I’ve found that most buyers tend to focus most of their attention on the initial down payment.

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Over the last 16 years, I’ve learned that most home buyers are so focused on the initial down payment that they fail to take less-apparent costs into consideration. No matter what percentage you’re putting down for your down payment, it’s important to understand that you should have extra money set aside for the additional costs.

These costs include: Escrow fees, lender fees, appraisal fees, title fees, and prepayment on property or HOA taxes.

All of these costs could potentially add up to about 1% to 2% of your total purchase price. Depending on the market, we may be able to negotiate for you and get the seller to offer some form of credit. When the market’s a little less competitive, sellers may be a bit more flexible and more willing to negotiate, but when the market is hot and there are multiple offers on properties, we see this less often.

After escrow, your next costs are going to come from the home inspection. Plan to set aside $350 to $700 for the general home inspection. This cost is based on square footage and the number of bedrooms and bathrooms in your home. After we find out what needs to be repaired, additional inspections—like a termite inspection or a roofing inspection—may require you to hire inspectors to come out and look at the property, which can cost anywhere from $500 to $1,500.

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Be sure you’re not pinching pennies upon closing.

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The third cost to consider is moving costs. You’ll probably have to hire a moving company to come help you pack your things up and make sure they get to the next property safely. This can range anywhere from $800 to $2,500, or even up to $5,000 if you have the company come pack everything up as well.

Finally, be sure to have some money set aside to personalize your home. You may want to paint, make some upgrades, or buy some new furniture, so you’ll want to make sure you’re not pinching pennies when it comes time to close on your property.

If you have any questions about moving or about real estate in general, please give me a call or send me an email. I look forward to talking with you soon!

Three Starting Points for Southern California Buyers

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There are three easy ways jump start the home buying process. If you’re thinking about buying a home in Southern California, I want to share the first steps to take with you.

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Know exactly where you want to live.

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• Know what you can spend. Meet with a lender to understand your budget exactly. They’ll review your financial information, including your debt-to-income ratio, to determine your affordability. Consider how much you’re willing to spend, including moving costs, supplemental taxes, and association dues. Additionally, think about how much remodeling, if at all, your future home needs to move in.
• Know your loan programs. A lender can give you the scoop here, too. I have a great list of preferred local lenders I’d be happy to share with you. It’s crucial to speak with a lender, whether you want to know more about loan options or even if you’ve purchased a home within the past decade. You need to find out which one best suits your monetary needs.
• Know exactly where you want to live. Location is often overlooked by buyers. If you have children, you need to research school districts. If you’re retiring or don’t have kids, consider an eclectic area to live. Walk around during the night and ask yourself if it’s a place you’re comfortable with.

If you’re thinking about buying or selling a home in the surrounding area, give me a call or send me an email. I’d be happy to serve your local real estate needs and answer any questions you might have!

Are Home Inspections Necessary in SoCal?

There are many great Orange County and Coachella Valley area homes for sale. Click here to perform full home search, or if you're thinking of selling your home, click here for a FREE Home Price Evaluation so you know what buyers will pay for your home in today's market. You may also call me at (949) 441-0701 for a FREE home buying or selling consultation to answer any of your real estate questions.

Welcome back, everybody. Today we are talking about home inspections, and whether you should get one on your next home purchase or not. 

I recently spoke with a few buyers, one who was purchasing a new construction home and one buying a resale home. They both asked me the same question, which was, "Should I have a home inspection done before I buy?"

My first bit of advice is YES! Get a home inspection on any home you plan on purchasing, regardless of whether it's a resale or a newly built home. With an inspection, you will have an independent professional who is going to check every corner of your home for any imperfections it may have. The inspection itself takes just a few hours, but it could save you so much more in the long run. 

Ten years ago, I purchased a new construction property. As I walked through the property with the builder's representative, who is there to protect the builder's interest, I noticed about 25-30 items that needed to be addressed. Once I ordered a home inspection, they found about 25-30 more problems that I completely missed. 

Once we are armed with that list of items, it puts us in a better position to negotiate and get the things fixed that would have cost a lot more. 

On a resale property, we usually make a request for repairs. However, with older homes, things are going to come up, and you're not going to be able to have everything fixed as a buyer. The problem here is every buyer wants everything done on a home inspection, while sellers don't want to do anything. The trick is finding a happy medium, such as fixing all of the health and safety concerns and not as many of the cosmetic issues. 

If you are buying or selling, we recommend you get a home inspection. If you get one as a seller, it's a great incentive to offer buyers in a difficult market. 

So, get a home inspection and protect yourself. And if you have any questions, feel free to give me a call or send me an email. We look forward to hearing from you!

Should You Offer a Home Warranty?

There are many great Orange County and Coachella Valley area homes for sale. Click here to perform full home search, or if you're thinking of selling your home, click here for a FREE Home Price Evaluation so you know what buyers will pay for your home in today's market. You may also call me at (949) 441-0701 for a FREE home buying or selling consultation to answer any of your real estate questions.

Hey everyone, today we are discussing home warranties, and whether you should get one as a buyer and whether you should offer one as a seller. 

The first question we're going to answer is, "What is a home warranty?" Basically, it's something the seller pays for at the close of escrow to insure the appliances, A/C, and pool equipment. Most buyers will ask for the sellers to offer a home warranty, since the buyer hasn't lived in the home before. 

By paying for a home warranty, you are ensuring that this property is being sold in good condition and if something goes wrong, the buyer would pay a service call to the home warranty company to replace it. In 99% of offers, the buyers will request a home warranty. The only two cases where you will have to provide a home warranty as a buyer are in the case of a short sale or foreclosure. 

The home warranty generally costs between $400 and $700, depending on the size of your property. By providing a home warranty, you are extending in good faith that the home is in good condition and everything is in proper working order.

If you have any questions about home warranties, or anything else real estate related, don't hesitate to give us a call. We would love to help you out!

A quick look at Mello-Roos Property Taxes

There are many great Orange County and Coachella Valley area homes for sale. Click here to perform a full home search, or if you're thinking of selling your home, click here for a FREE Home Price Evaluation so you know what buyers will pay for your home in today's market. You may also call me at (949) 441-0701 for a FREE home buying or selling consultation to answer any of your real estate questions.

 A quick look at Mello-Roos Property Taxes

The term "Mello-Roos Tax" is one you may or may not have heard before. Mello-Roos taxes are additional taxes that are added on to properties to repay a bond that has been taken out for infrastructure. 

What does this mean? Well, basically it means that the government wants you to pay a little more money in taxes in order to pay for schools, parks, roadways, streets, etc. This tax can not exceed 40 years from the time the home is built, and you won't see it on a home built earlier than 1994. 

In Orange County, you will see Mello-Roos taxes in a lot of newly constructed homes in areas such as Mission Viejo, Irvine, Rancho San Margarita, and other southern pockets of Orange County. In the desert market, you won't see Mello-Roos taxes much, except in a few small areas with new homes.


Hopefully this answered some questions for you about Mello-Roos taxes, what they are, and how they work. If you have any further questions or are curious if a home you are looking at has a Mello-Roos tax, give us a call. We can get that information for you right away. 

A Better Way to Home Search Online

There are many great Orange County and Desert Cities area homes for sale. Click here to perform a full home search, or if you're thinking of selling your home, click here for a FREE Home Price Evaluation so you know what buyers will pay for your home in today's market. You may also call me at (949) 441-0701 for a FREE home buying or selling consultation to answer any of your real estate questions.

 A Better Way to Home Search Online

A hot story that came out over the last week and a half is internet home search site Zillow's acquisition of their biggest competitor, Trulia, for $3.5 billion. 98% of people begin their home search online, and these are by far the two most popular sites that are used for home searches. It's really important to know more about these sites because they may affect your search without you even knowing it.

One of the biggest gripes we get from users is that these websites are inaccurate. They use advanced algorithms to determine home values, but don't take into account everything that an actual real estate agent would to determine the right price. They are great for starting your search, and researching schools and neighborhoods, but the inaccuracies in their criteria may not necessarily give you factual information. 

We have launched a new website where you can feel free to use for all your home search needs. This site is fed directly from the local MLS and is updated often, eliminating a lot of the inaccuracies you would see with a Trulia or a Zillow. 

Thanks again for taking the time to check out our blog and thank you so much for the great referrals we have been getting, keep them coming! If you have any questions about this topic or anything else real estate related, please let us know. We would love to help you out!

How to Hire the Best Real Estate Team in Southern California

There are many great Orange County and Desert Cities area homes for sale. Click here to perform a full home search, or if you're thinking of selling your home, click here for a FREE Home Price Evaluation so you know what buyers will pay for your home in today's market. You may also call me at (949) 441-0701 for a FREE home buying or selling consultation to answer any of your real estate questions.

How to Hire the Best Real Estate Team in Southern California

Throughout the country and throughout Southern California, real estate agents are a dime a dozen. With so many options, deciding which agent to hire can be a real pain. It doesn't have to be, though. I want to talk to you  about what separates Torey Severino & Associates from the rest of the competition

If you hire Torey Severino & Associates, the number one difference you will notice between us and another agency is passion. We want to help you accomplish your goals with the highest level of service. We have a full team including myself, a full-time assistant, and 2 full-time buyers agents whose job is designed to help you get what you want. I want to spend all of my time marketing your home to the public. Whatever it takes to get your home exposed to thousands of buyers, we won't stop until it's done. We work 6 days a week to help you get what you want in the time you want it.


If you are considering hiring an agent with a fresh and effective approach, work with a professional that has been in the business for over 14 years and has helped hundreds of sellers just like you. We can be reached by phone or e-mail directly if you have any questions about selling your home or what separates us from the rest of the competition. 

Thanks for watching and have a great day!

The Pitfalls of Shopping for Homes Online

There are many great Orange County and Desert Cities area homes for sale. Click here to perform a full home search, or if you're thinking of selling your home, click here for a FREE Home Price Evaluation so you know what buyers will pay for your home in today's market. You may also call me at (949) 441-0701 for a FREE home buying or selling consultation to answer any of your real estate questions.

The Pitfalls of Shopping for Homes Online

With the emergence of online real estate searches, I have come across numerous issues with the information these websites provide. Here are three major issues I have come encountered:

1. They are just plain wrong. I have had countless clients contact me about homes they have found on Zillow, Trulia, or Realtor.com. After a quick search on the MLS, I find that those listings are completely incorrect. Also, I have found that listings posted by those sites are incorrect. This is because these home search engines only pull samples of information – even from listings I’ve sold years ago! It is becoming increasingly important for you to understand that real estate agents cannot control how this information is used on these websites – they have their own algorithms and their own format.
2. Your identity is up for sale. These websites also sell your information to other real estate agents who are advertising on the website. Agents who don’t generate a high volume of business pay to be on those websites and will contact you once your information has been entered.
3. Inaccurate pricing information. As a seller, this can be misleading when you want to obtain a price evaluation for your home. These websites don’t take the local market conditions, your home’s upgrades, or added square footage into consideration when pricing your home. They only pull information from tax rolls! This proves that these websites are unable to give you a clear depiction of your home’s value.

If you would like any information regarding your home, or would like to view another, please don’t hesitate to reach out to me. My team can service any of your real estate needs!

Your Real Estate Purchase is in the Hands of the Best!

There are many great Orange County and Palm Desert area homes for sale. Click here to perform a full home search, or if you're thinking of selling your home, click here for a FREE Home Price Evaluation so you know what buyers will pay for your home in today's market. You may also call me at (949) 441-0701 for a FREE home buying or selling consultation to answer any of your real estate questions.

Your Real Estate Purchase is in the Hands of the Best!

I want to take this time to introduce you to two key members of my real estate team – they help you accomplish your real estate goals! On my left are Breanna Goyette and Gia Busch. It is their priority to find you that ideal property.

If you are looking to buy or invest in Orange County real estate, reach out to Gia Busch at (949) 412-0507. If you are located in the Desert Cities, contact Breanne Goyette at (310) 717-8840 and she will be happy to assist you!

As always, if there is anything I can assist you with, please reach out to me by phone or email. Remember, everything we touch turns to SOLD!

New Homebuyers: Take Care of These Five Things After Moving Into Your New Home!

There are many great Orange County and Palm Desert area homes for sale. Click here to perform a full home search, or if you're thinking of selling your home, click here for a FREE Home Price Evaluation so you know what buyers will pay for your home in today's market. You may also call me at (949) 441-0701 for a FREE home buying or selling consultation to answer any of your real estate questions.

When you move into a new home, there are five things you must do:

1.    Change the locks. This may seem obvious, but it’s the most important. For safety reasons, change all locks including side doors and gates. You never know who had previous access to the house!

2.    Reset all garage door openers and keypads. These codes are typically given out to many people and again for safety reasons, change the keypad codes and garage door openers.

3.    Replace all AC and furnace filters. This is especially important in Southern California with all the dust and allergens that can travel through the air.

4.    Make sure your home is insured. If you have a loan on the property, the lender will require insurance. However, I have had countless cash buyers that don’t even think about insuring their home! This will help avoid any future predicament that will require an insured property.

5.    Make sure the utilities are transferred to your name prior to the close of escrow. This may give the opportunity to avoid some setup fees and extra expense that you weren’t anticipating or to make sure the utilities are on if you’re in a hurry!

If you have any questions, don’t hesitate to reach out to me. Thanks and have a great day!

Attention Investors: 5 Tips for a Successful Real Estate Investment!

There are many great Orange County and Palm Desert area homes for sale. Click here to perform a full home search, or if you're thinking of selling your home, click here for a FREE Home Price Evaluation so you know what buyers will pay for your home in today's market. You may also call me at (949) 441-0701 for a FREE home buying or selling consultation to answer any of your real estate questions.

 Is Now a Good Time to Invest in Real Estate

Today I wanted to discuss if today’s market is okay to invest in. This really depends on your location and where you are in the market. Is this your first time investing or are you a professional? I want my clients to know their options or what type of property they want to buy. This could be a single home, commercial property, multi-units or land. When that is determined, we will establish what the best strategy is to obtain that property.

Also, be sure to partner with a seasoned professional. I have been able to help hundreds of homeowners and investors just like you. I not only help invest, but I will be a part of the transaction. I have invested in numerous homes and know the pitfalls, obstacles, things we’re looking for and things we’re not. You really need to understand the pros and cons of investing.

Third, you need to look at the right location. Your immediate area may not suit you; don’t be afraid to find an area that is in close proximity to you. If you do decide to invest locally, are you near a busy neighborhood where there is street noise and traffic? Renters have a tendency to rent in a safe area where there are kids playing and reputable school districts. The old theory, “Location, location, location” is always a must!

Fourth, have reserves and capital lined up. Be prepared for home maintenance issues and times when you may have a tenant. If you have a mortgage, are you prepared to make a payment?  Finally, build a strong supporting cast. Do you have a reliable contractor, handy man, insurance broker, CPA and attorney? It is always good to have someone besides myself to seek advice from.

If I can help you or someone you know about investing here or in the desert, don’t hesitate to reach out to me. Thanks and have a great day!