My New Blog

According to O.C Realtor Magazine" in Third-quarter figures released by the California Association of REALTORS (C.A.R)show that 33 percent of Orange County households have the minimum income of $109,590 needed to make the monthly mortgage payments of $2,740 on a median-priced home costing $520,310. Statewide, 52 percent of California households had the $61,530 minimum income necessary to buy a median-priced house costing $292,120, and 62 percent could afford a median-priced condo."

That is a great news for Real Estate Professionals who are working in Orange County. The only issues that we are facing with New Home Buyers is ''Down Payment" and "Closing cost" fund. The majority of the homebuyers currently in market and  eager to buy their first home, does not have the down payment or sufficient savings for closing cost. The income is sufficient, debt to income ratios are mostly in place, but we are still not a nation with saving or budgeting habits . I think any homebuyer must have some downpayment and at least a six months worth of mortgage payment in savings upon closing for his/her rainy days.

Although lenders or mortgage brokers are offering 1% down or even zero downpayment with government assistant programs etc..., but if the home buyers does not have the discipline of saving while they are renting or living with parents for lower monthly payment, they would not be able to save after they move into a larger mortgage payment.

That and that matter only can lead to default in mortgages. We don't want another mortgage crisis for at least another fifty years!