Is a Reverse Mortgage Right for You?

I wanted to talk about some programs that are helpful to empty nesters.

I'm joined today by Barry Krevoy from Finance of America to talk about some of these programs. One of the most popular financing option for some older homeowners that are not just refinancing, but buying, is a reverse mortgage. It's a good options for people making $2,000 or $3,000 a month on a pension or social security. A reverse mortgage also makes sense for those who are downsizing.

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Reverse mortgages don't work like they used to.

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It's important to understand, Barry says, that reverse mortgages don't work the same way they used to. They are FHA-insured loans, and when you make a payment, the interest gets tacked onto the loan. There is no qualifying financially other than showing that you can make payments on the property taxes and insurance. If the homeowner passes away, the people who the home is left to have six months to either sell the home or refinance.

Then, of course, you have the extra money you're bringing in on a monthly basis to do things like pay bills or travel. Go to Europe or take the kids to Disneyland; the possibilities are endless.

If you have questions for Barry, you can call him at 949-735-4009 or email him at barry.krevoy@financeofamerica.com.

As always, if you have questions about buying or selling a home, feel free to give me a call. Let's talk soon.

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What's the First Step to Buying a Home?

I'm joined today by Barry Krevoy from Finance of America to talk about working with a lender to get pre-approved to buy a house.

According to Barry, you should avoid diagnosing yourself when it comes to real estate. Many people do things in reverse order, in that they look for homes before they even know what they can afford. Sometimes buyers save more money than they need to save or pay off credit cards that they might not need to pay off. These things can actually work against you.

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Don't go house hunting before 
knowing what you can afford.

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Many people who think that they're not able to buy a home often find out that they are, thanks to down payment assistance programs, or by improving credit with the help of Barry’s preferred credit guy who he swears by. Barry recommends going to see a lender as soon as the thought of buying a home even enters your brain. It may take a year, or it might only take a couple months.

If someone wants to work with Barry or inquire about seeking a home loan, he usually starts off with a consultation to find out what kind of buyer they are. In a short 10-minute conversation, he can get an idea of what he needs, and then he can send a needs list back to you. This probably includes a copy of your taxes, W-2s, driver's license, and other items.

If you have questions for Barry, you can call him at 949-735-4009 or email him at barry.krevoy@financeofamerica.com.

As always, if you have questions about buying or selling a home, feel free to give me a call. Let's talk soon.

What You Need to Know About Home Warranties

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I get questions all of the time in regards to home warranties, and today I want to answer some of them for you.

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A home warranty is something 
I do suggest.

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• What is a home warranty? A home warranty is an insurance policy that covers the home after it is purchased.
• Do I need a home warranty? A home warranty is something that I do suggest. It will cover most of the major HVAC systems, the plumbing, and the electrical. It will keep the buyer and seller happy so that everyone knows it will be a safe transaction after the purchase.
• How much does it cost? The typical cost ranges anywhere from $250 to $600, depending on the type of coverage. Most of the standard coverage covers the high-cost items like the HVAC systems, plumbing, and electrical, but you can add on additional coverage for things like pool and spa equipment.
• Who pays for it? It varies from region to region, but most of the time the seller pays for the warranty. This ensures that the buyer is buying a home that will be covered after the term of the escrow. The coverage usually lasts 12 to 13 months.
• Who’s in charge of paying for the service? The buyer. Like any other insurance policy, there will  probably be a service charge included. In case anything goes wrong, you’ll call the home warranty company and they’ll charge the buyer to have a service person examine the equipment.

A couple of things you might want to look for in a good warranty company are 24-hour-a-day availability and whether they have a customer service line. If they do, that will ensure they’ll get your request as soon as possible and you won’t have to wait until after the weekend.

If you need further information or would like references for home warranty companies, feel free to reach out to by phone, text, or email. I’d be happy to help you.