The median price for all So. Cal homes combined last month was $250,000- This is down 10.1% from $278,000 in December- and down a whopping 39.8% from January 2008 when the median price was $415,000. All total Southern California is down 50.5% from it's peak of $505,000. (DataQuick)
As you can see we are nearing a realistic price range for thousands of homebuyers. Affordability is at an all time high, which is absolutely necessary now with the super strict underwriting guidelines for home mortgages. The lenders have gone ultra paranoid and over corrected their lending standards; giving a loan to anything that could fog a mirror with breath was ultra stupid- and now everyone is paying for the lender's bad judgement on past loans. Prepare to wage a battle and prove your worthiness again and again and again and with patience you may qualify to purchase a home at these record low prices and interest rates. Know that you must have superior credit for the best rates; over 740 gets the best interest rates and lowest fees- if you are ranked below a 620 then consult with us or someone who can put you on a mission to improving your credit scores. Income must be proven and preferrably no more than 40% of your income should be spent on your house (including taxes and insurance). If you have other payments such as credit cards or car payments then you limit the amount available for a house payment and thus qualify for a smaller mortgage. Typically 45% is the maximum debt to income ratio allowed; so if you gross $5000 per month then all your bills and house payment (PITI) cannot be more than $2250 per month. So if you are trying to position yourself to purchase a home in this bargain basement atmosphere then DO NOT purchase ANYTHING until after you have got your keys to the house and are moved in- because the lender will check your credit again right before they fund your mortgage loan.
If you are looking to be a buyer in this amazing market please get on our buyer's list. Visit www.SaveMyHomeSanDiego.com and go to the buyer tab and enter your information. We get some amazing deals with short sales and foreclosures and can help you to get the house of your dreams before it goes out to the masses on the Multiple Listing System. If we have your pre-requested criteria then we can set up a search to find your house sometimes before the seller even knows they are going to sell it! If you are going to take advantage of this historic home buying opportunity then you need to start setting yourself up now- Credit, loan options, cash reserves etc. We can guide you through the system and set you up to become a homeowner in 2009!