Financial analysts warned us for years that as we approached a recession Newport Beach real estate prices and the price of homes throughout the United States would have to find a natural ceiling within a very short period. Put simply, people have less money to spend on housing as the cost of living has increased. Owning Newport Beach homes became less a priority for many families because of this which has helped decrease property values as the demand for Newport Beach homes decreased significantly.

This is, of course, bad news for any homeowners that need to sell Newport Beach homes. However, for those that have put off buying homes in Newport Beach due to the cost… wait no longer! Newport Beach condos, homes, and other property types have reached record lows this year making the dream of owning beach property a reality for many families in Orange County.

If you have always dreamed of owning homes in Newport Beach be sure to give us a call and we’d love to help you determine your buying power (the amount you are able to borrow for your home loan) and help you find a Newport Beach home that fits your specifications and family needs.

Paying points simply means making a lump sum payment up front, which will significantly lower the interest rate on your fixed rate mortgage in Newport Beach. Typically each point will cost 1% of the entire amount of the mortgage. The more points you buy, the lower your interest rate and the lower your repayments will be. So which would be best for you? Buy more points and pay a lower rate or buy fewer points and pay a higher rate?

When trying to decide consider whether you can afford to make a significant up-front payment to buy points now.  If you are able to make a significant payment up front this will save you money in the long run. Take into consideration the length of the mortgage; the longer the duration of your Newport Beach mortgage the more it will make sense to buy points now, because you will benefit from those points for a fairly long time.

You really should seek the advice of a professional Newport Beach Realtor and Morgage Broker who will be able to help you decide which is best for you. A wrong decision can leave you paying far more for your Newport Beach home than you should have. A Newport Beach Realtor with Harbor Realty will be able to advise you on mortgage types and how points work, they will also be able to help you with the mortgage application process and make the whole house purchase process much quicker and simpler.

Before you even begin your search for Newport Beach homes it is important to obtain a pre-qualification letter from your local bank or mortgage broker. Being able to provide this letter of approval when you are ready to make an offer will provide your offer with a solid foundation. When sellers know that you have been pre-qualified for a home loan matching their home value they are much more likely to accept your offer over someone who does not have pre-qualification. However, it is important to remember that a pre-qualification letter does NOT guarantee approval of a home loan once you have found the home of your dreams.

For example, Suzy Q goes to the bank to obtain a pre-qualification letter. At this time Suzy Q has little credit card debt and her car loan is almost paid off.  She obtains a pre-qualification letter for a specific amount and begins her search for Newport Beach homes. Over the next four months Suzy Q gets excited about the possibilities of owning her own Newport Beach home and begins a buying spree of new furniture to outfit her new home. Additionally, she feels that having a new car to match her new home is important. When Suzy goes to get approved on a home loan for the same amount she was previously approved for she is denied: her new found debt will not allow her to make the payments necessary on her new home with her existing salary.

After you obtain pre-approval from your bank be sure to curb your spending habits.  Now is not the time to make large credit card purchases or to buy a new car.  Depending on the amount spent you could either decrease the amount of the loan approval or lose it altogether. Keeping your spending habits to a minimum during your search for Newport Beach homes will enable you to buy a home in a higher price range.

Fixed Rate Mortgage – In this type of Newport Beach home loan, the interest rate remains the same across the life of the mortgage. This is generally the safest, most common, and in most cases, the smartest type of home loan to use when purchasing Newport Beach homes. Since the interest rate does not fluctuate over the course of your mortgage life you’re less likely to find yourself in a situation where you are unable to pay your monthly mortgage payment.

Adjustable Rate Mortgage – An adjustable rate mortgage has an interest rate that will vary over time which will change the monthly payment or alter the life of the mortgage. This can be an excellent option for homebuyers that do not plan to stay in their home for an extended period. For example, if you are in the military and move often or transfer locations regularly, an adjustable rate mortgage might be the right option for you when purchasing Newport Beach homes. Talk to a Newport Beach Realtor with Harbor Realty today to find out if an adjustable rate mortgage is the way to go.

No Down Payment – This type of mortgage does not require the borrower to hold an amount of money for use as a down payment. Interest rates are often higher with this type of mortgage. Of course, these days loans are rarely, if ever, offered with no down payment. If you are serious about purchasing Newport Beach real estate it is certainly in your best interest to begin saving for a down payment.

Jumbo Loans – This is a type of loan that is valued above the general conforming loan limits. As a non-conforming mortgage, interest rates can be somewhat higher than other types of Newport Beach home loans.

Interest Only Loans – With this type of mortgage, only the interest is actually paid, at the end of the mortgage term the borrower has the option of paying the principal sum in full, or possibly starting a fresh mortgage.

Talk to a professional Newport Beach Realtor as well as a Mortgage Broker to discern which type of mortgage is right for you and your family; a wrong choice can cause severe financial problems down the road. While a Fixed Rate Mortgage is the right choice for most people purchasing Newport Beach homes, there are certainly some that should consider other types of home loans.

Closing is a word that is used to define the final part of the entire chain of events that has lead to the successful sale of a property in Orange County. Closing will be scheduled for a specific day, and on this day your property will change hands.

Funds will be exchanged, contracts will be signed and keys will be handed over, this is the final process that sees you saying goodbye to your old home and taking hold of your new home in Orange County. Usually the funds will have been deposited into an escrow service, and your agent or Newport Beach Realtor would have taken care of the specifics.

On day of closing you will also need to physically move out of your home if you are the seller, this means arranging with a moving company to have your goods picked up and moved to your new house, or moved into storage if you have yet to complete closing on your new Orange County home.

In the past, closing day was a stressful time, when both parties carried concerns over the deal going bad at the last minute. These days there are very few problems with the closing of a sale; problems can be further reduced by employing the services of a Newport Beach Realtor to handle most aspects for you.

Unfortunately, escrow can fall through for a variety of reasons. The main reason escrow will fail is due to the purchaser not being able to acquire the required funding. Usually this means that their pre-approved mortgage loan has actually been turned down at the last stage, usually because of undisclosed financial situations resulting in their inability to purchase the property. In years past… many buyers were able to push through even with serious financial failings. In fact, as you likely already know… many buyers were able to secure funding without even proving their financial status. However, times have changed and lenders rules are much more stringent.

The second reason that escrow may fall through is because of property inspections. The home inspection may provide a negative indication such as termite infestation, termite damage, or mold. In such cases escrow does not always fall through but it can if both parties are unable to reach an agreement on the final purchase price.

To minimize the risk of your escrow transactions becoming a problem, you should employ an Orange County Realtor from Harbor Realty to ensure that all your i’s are dotted and t’s are crossed . Something as simple as a typing error on a title deed can cause escrow to fall through, employing somebody to take care of these minute details is a good idea.

• Newport Beach Condominiums – Condos in Orange County are generally one unit within a larger building. The ownership of common areas (such as the interior and exterior walls, roof, swimming pools, gardens, lobby, etc.) is shared by all owners of units within the building. Assessments are paid monthly in order to keep up with the maintenance of these areas. In Orange County you will generally find condos in Costa Mesa and many newer condos in Irvine. One thing to understand about Newport Beach condos, though, is that what is typically known as a condo elsewhere (within high rise buildings, for instance), is not always the case here. In fact, many people consider their home a condo with only one shared wall.
• Newport Beach Townhomes – This type of property will usually have shared walls with connecting dwellings, and be built in a row. They may share amenities such as a pool or gardens and will often share the cost of maintenance for things such as the roof, or driveways. You’ll find some lovely Corona del Mar townhomes on the market with lovely ocean and city lights views.
• Newport Beach Single Family Homes – This term is used to define a detached property, upon its own lot, which shares nothing with surrounding properties. Most often, the owner is responsible for all maintenance and upkeep of the property, and can potentially improve and extend the structure. Find single family homes in Newport Beach as well as throughout all other Orange County communities.

These three terms describe the three main forms of home ownership within the area of Newport Beach. Depending upon your lifestyle and financial situation, one may be more beneficial for you than the others, it is suggested you contact a professional Orange County REALTOR® for further information.

Property prices have continued to climb way above the national average for the last decade; the area has been steadily developed into an attractive and affluent part of the State of California. There are still bargain properties to be had, but those wishing to snap up their dream home at a low price, and thus secure a great investment would be wise to do so soon.

The local economy is still running very bullish, local businesses in almost every sector are reporting a  bumper year during 2008, and as such this makes Newport Beach a very attractive area for those wishing to not only relocate their home, but their work as well. The Newport Beach Chamber of Commerce has confirmed that employment statistics are looking extremely good, and job prospects look good for any family wishing to relocate to Newport Beach.

With the obvious buoyancy of this area, it needs to be said that anybody who is considering a move to Newport Beach needs to start moving now; within a very few years it is expected that housing demands will outstrip availability, and prices will begin to rise again. Get in now while you can, and grab a great property investment for the future.

Newport Beach Home Sellers

If you use the services of a professional within the real estate industry, such as a Newport Beach REALTOR®, you will be expected to pay for their services as a home seller. Your Newport Beach REALTOR® will receive a percentage of the commission received by the brokerage, typically 3%-4%.

Always try to remember that it is in the best interest of your Newport Beach REALTOR® to make sure your property deal is handled professionally and quickly. The cost of advertising your home during the search for a buyer is handled completely by your REALTOR®.

While some will still operate upon a flat fee the vast majority of Newport Beach REALTORS® work on a commission basis. REALTORS® paid a flat fee generally do not take care of all of the details of the selling process for you such as advertising. It is then your own responsibility to advertise your Newport Beach home for sale within your own advertising budget. This can be quite the headache for the inexperienced. What you save by using a flat fee Realtor is essentially used to advertise your home anyway. The services you receive from flat fee REALTORS® will vary from agent to agent. Whereas the services you receive from a REALTOR® paid by commission will not fluctuate. You’ll receive the full service of your REALTOR® from start to finish.
As a seller, it is generally in your best interest to utilize the services of a Newport Beach REALTOR® paid by commission because they will handle all the details of the home selling process for you.

Newport Beach Homebuyers

As a homebuyer it is always in your best interest to use the services of a REALTOR® to help you find homes in Orange County. However, it’s not a bad idea to start your search for that agent and home online. Becoming familiar with Orange County real estate markets such as Newport Beach will give you a good understanding of the current market conditions helping you find a neighborhood that is suitable for your family in price and amenities. As a buyer, the commission of your agent is paid by the home seller. This leaves no reason to not utilize the services of a professional Newport Beach REALTOR® who can properly guide you to the city and neighborhood that is most suitable for your family.

• Condominiums – Condos in Orange County are generally one unit within a larger building. The ownership of common areas (such as the interior and exterior walls, roof, swimming pools, gardens, lobby, etc.) is shared by all owners of units within the building. Assessments are paid monthly in order to keep up with the maintenance of the common areas.

• Townhomes – This type of property will usually have shared walls with connecting dwellings, and be built in a row. They may share amenities such as a pool or gardens and will often share the cost of maintenance for things such as the roof, or driveways. You’ll find some lovely Corona del Mar townhomes on the market with lovely ocean and city lights views.

• Single family homes – This term is used to define a detached property, upon its own lot, which shares nothing with surrounding properties. Most often, the owner is responsible for all maintenance and upkeep of the property, and can potentially improve and extend the structure. Find single family homes in Newport Beach as well as throughout all other Orange County communities.

These three terms describe the three main forms of property ownership within the area of Newport Beach. Depending upon your lifestyle and financial situation, one may be more beneficial for you than the others, it is suggested you contact a professional Orange County REALTOR® for further information.
With Halloween happening tomorrow, have a happy and safe day trick or treating with your family!