What we do

Buying real estate can be exhilarating! But it can also be daunting. Let us minimize and take the stress out of your next real estate decision. We're experts at crafting strategic plan that fits seamlessly with your real estate and lifestyle needs. You can focus on the fun part of choosing a property while we navigate the process from sourcing relevant properties and lending options to negotiations, escrow and the final closing.

Home Buying Process

Plan

It’s essential to consider a number of factors before you begin the search for your home – from knowing how much you can afford to determining what type of loan is right for you. Before finding your home, ask yourself: 

How long do I plan on living in this home? Is this a starter home or do you see yourself here for a few decades? 

Am I expecting significant changes in my personal or professional life? Are you hoping to get married or have children? Do you want to start working from home? Are you likely to relocate for work? 

What matters most to me about location? How long do you want to spend commuting? Do you want to be in a particular school system? 

What’s my risk tolerance? How would an increasing interest rate impact your finances? How would you react if your property value decreased over the next five years? 

How much can I afford? How much have you saved for a down payment? What are you currently paying in rent? Do you have other major expenses on the horizon?

Qualify

If you’re financing your purchase, there are a wide variety of loan products available for single family homes, condominiums, multi–unit buildings, investment property, rehab properties and mixed–used properties. Here are some common loan types, of course there are many variations such as ARM (adjustable rate mortgages), indexed loans, asset dissipation loans, stated income, interest-only, VA loans, physician loans, ondeposit foreign national loans among others. 

ALL CASH (100 percent down) As the name implies, this is when you simply pay the entire purchase price in cash. Naked cash offers without contingencies for appraisals, inspections or otherwise are stronger while cash offers with short close periods (e.g., 7, 10, or 14 days) are the strongest in most cases — otherwise impact may be diluted if other buyers strong and highly qualified. Best to offer all-cash in competitive situations or when competing against folks needing financing where property may not appraise at contract price as appraisals tend to lag by a few months. 

CONFORMING CONVENTIONAL (20 percent down) For loan amounts of $424,000 and under fall into the conforming conventional loan category; in Los Angeles it’s $636,150 (as of June 2017). Typically, these are fixed rate, 30–year (or 15) with no pre–payment penalties and a minimum of a 20 percent down payment. Borrower’s debt–to–income ratio requirement usually must be 38 or 40 percent (i.e., no more than 38 or 40 percent of your monthly gross income can be spent on the mortgage payment).  

80 - 10 - 10 (10 percent down) Mortgage insurance is required for borrowers who put down less than 20 percent toward a property’s purchase price for buyers using one mortgage. But for well qualified buyers it may be possible to put down 10 percent and borrow the other 10 percent as a second mortgage or a home equity-based line of credit which eliminates the insurance premium. In exchange, the second mortgage’s interest rate is higher, additional closing costs are incurred and tax deductibility is reduced. Strong credit required. 

FHA LOANS (3.5 percent down) For these loans, down payment can be as low as 3.5 percent of the purchase price, and most of your closing costs and fees can be included in the loan. Loans are fixed rate, long–term, larger allowance for borrower’s debt–to–income ratio requirement (up to 51 percent in some cases). Available on 1 – 4–unit properties ($729,750 – $1,403,400). But, additional Mortgage Insurance Premium is required for the life of the loan with the goal of the borrower reaching 20 percent + 1 month payment equity (the owner’s share vs. the bank’s share) so that borrowers will refinance into a conventional loan. 

JUMBO LOANS (20 percent down) For amounts larger than FHA, Freddie or Fannie loan limits ($424,000 nationally; $636,150 locally) these loans are available. Note that other fees may apply and these loans may have higher interest rates. 

VA LOANS (3.5 percent down) Government loans for active service members and qualified veterans will allow borrowers to put as little as 3.5 percent down to purchase a property and have no mortgage insurance payments for the life of the loan. These loans can take longer to process as there’s more paperwork involved but can be affordable options for borrowers.

Search

View Homes And Select ‘THE ONE’

Simply put, key to the home search process is knowing what you’re looking for. Among other things, that means distinguishing between “must-haves” and “like-to-haves.” That said, here are a few recent facts about the search process that might put your experience in perspective:

Almost 90% of buyers use the Internet to search for homes. We have compiled a list of our preferred search apps and sites here: travisdina.com/buyer-connect

The typical buyer searches for 12 weeks and views 12 homes

Remember your priorities and respect the seller’s – don’t let small things get in the way of your better judgment

If necessary, defer until later – if small issues do get in the way in the midst of big ones, focus on and consolidate your agreement on the big issues and come back to the small ones later

At the end of the day, if there are disagreements about relative small expenses, split the difference and smile