We are excited to help you find your new home. We have access to homes all over Southern California.
Ice Castle Group Inc.
The parent company of Albania & Associates Realty which handles the mortgage division.
How Much Can I Afford?
Before you go out looking for a home, you can get an idea of what you can afford by using our Finance Tools. This handy tool will help you estimate how much mortgage you can handle.
Another thing to consider is your down payment amount. Think you can’t buy a house without a 10% or 20% down payment? Thanks to more lenient government guidelines and new mortgage products, many people can now get into a house for as little as 3% down-or less. There are even some special programs for first-time buyers that help with closing costs.
The Benefits of Equity
Equity is the principal part of your monthly payment that you can use as a down payment on a new home, or collateral for a home equity loan. You can use a home equity loan to finance home improvements, a child’s college tuition, or a new car.
Real estate is also a great way to keep a hedge against inflation. While some homes do appreciate in value more quickly than others, real estate usually keeps pace with inflation. In fact, homes in general have been appreciating at a steady 3% a year. (Your REALTOR can provide you with the housing appreciation rates in the areas in which you’re interested in buying.)
That Wonderful Thing Called A Tax Break
As a homeowner, when filing your taxes you can deduct the interest portion of your monthly payment-and that can mean big savings. You can deduct your property taxes, too. So look at what your monthly mortgage payment will actually be, taking your tax breaks into consideration. You may find out it’s about the same as-or sometimes even less-than a rent payment!
The deductions and exclusions available to homeowners are worth more to taxpayers in higher tax brackets than to those in lower brackets. For example, deducting $2,000 for property taxes paid saves a taxpayer in the 39.6 percent top tax bracket $792, but saves a taxpayer in the 15 percent bracket only $300. Additionally, even though they only represent about 20 percent of all tax units, those with more than $100,000 in income receive over 85 percent of the mortgage interest deduction tax benefits. That difference results largely from three factors: compared with lower-income homeowners, those with higher incomes face higher marginal tax rates, typically pay more mortgage interest and property tax, and are more likely to itemize deductions on their tax returns.
Pre-Qualification vs. Pre-Approval
Pre-qualification is just a guesstimate of how much you could afford. But with a pre-approval, it’s just that: getting your mortgage approved prior to going out and looking for a new home.
Your loan officer will show you which items you should bring to apply so neither of you will need to wait for various written income, asset and liability information. So you could get a loan decision in just days. And when you apply online, you can get your approval quickly!
To assist you in the process, Albania & Associates has everything you need – from a basic step-by-step overview to a property comparison checklist. So whether you’re a first-time homebuyer or need a brief real estate buying refresher, let us help you through it all.