Happy Fathers Day!

 

 

“Today we celebrate the fathers whose embrace is more than home. It’s the safest place we’ve ever known.”- Unknown

Wishing all the fathers a very Happy Fathers Day! Hope you know how special you are!

(916) 847-3090

margeate@workhomeloans.com

Renting vs. Buying a Home + Pros and Cons

Buying a home has long been part of the American dream, but homeownership isn’t for everyone. Sometimes, renting makes more sense and offers greater freedom. Have you been wondering about renting vs. buying? Choosing whether to invest in a home or pay rent is a big decision that depends on your finances, lifestyle, and personal goals. One isn’t inherently better than the other. Both require an income to afford housing payments unless you have enough money on hand for an all-cash purchase, but even then, you need to consider your overall financial picture. Renting and buying come with various degrees of maintenance responsibility and commitment. Whether renting or buying is right for you depends on your current situation and an honest look at where you think you’ll be years later.

Renting a Home 

Renting a home offers flexibility. There’ll typically be someone else to tend to maintenance issues. You’ll probably have predictable monthly expenses, so you can likely count on extra cash in your budget. However, many rentals require you to adhere to a list of community and individual unit rules (e.g., your landlord might not be flexible if you want to paint your bedroom bright pink).

When you rent, you’re not necessarily throwing money away (you have to pay to live somewhere, even if you buy), but you’re not building wealth either. Here are some pros and cons for renting a home;

Pros 

• Many people find immense benefits to renting. The following are reasons why you might want to rent your next house.
• Flexibility. You can probably move quickly if you need to (as long as you’re not in a lease or are willing to pay to break your lease)
• Predictable housing payment. Your housing costs (including utilities) may be consistent each month since you won’t have to factor in repairs and other expenses.
• Low maintenance. You’ll likely have a landlord or property manager who will handle major maintenance tasks (but be prepared to change your own lightbulbs or fix minor problems).
• No property taxes. The owner of your rental is responsible for paying taxes on the property.
• Less strict financial standards. Getting approved for a rental unit is often much easier than qualifying for a home mortgage.

Cons 

• Renting can seem like the best option if you don’t want to deal with surprise expenses or repairs, but there are some drawbacks.
• Rent increases. Landlords can raise your rent after your lease expires, especially in areas with high housing demand.
• Possibility of a property sale. The owner of your rental may decide to sell the property, especially during times of rising home values, leaving you looking for a new place to live.
• No tax benefits. You won’t get to claim homeowner deductions on your taxes.
• Limited personalization. When you rent, you usually can’t do what you want with the home (no building your dream kitchen or entertainer’s backyard, in most cases).

Owning a Home 

When you own your home, you get to make decisions about what to do with almost all aspects of your property (condos, townhouses, and other properties with homeowners associations may significantly limit your freedom). But you’re the one responsible when something goes wrong too. Purchasing your next house can provide pride of ownership—a place to truly call your own. However, picking up and leaving may be difficult if you change your mind, have a job transfer, or experience an emergency that uproots you.

Pros 

• Is owning a home right for you? There are benefits to purchasing, including the following.
• Sense of stability and community. Owning can offer more assurance that you’ll enjoy the fruits of a neighborhood for an extended period.
• Builds equity. Most real estate increases in value over time.
• It’s yours to improve. Decorate, renovate, and add on as your heart desires.
• Tax benefits. Homeowners can claim a mortgage interest deduction on their taxes.

Cons 

• Wondering what might not be in your best interest when it comes to owning a home? Here are some reasons you might want to give homeownership a second thought.
• Responsible for maintenance. As a homeowner, you’ll have to tend to all repairs (or hire someone) and bear the cost of all maintenance.
• Requires a sizeable financial commitment. You’ll have long-term expenses like property taxes and homeowners insurance, along with a hefty initial investment (including a down payment and loan closing costs).
• Property value may decrease. While most real estate increases in value, you might lose your equity in the property. Difficult to change your mind. It’s not easy to pick up and move if you change your mind about where you want to live or if life’s circumstances call you elsewhere. Still not sure if you should rent or buy? Ask yourself the following questions to help make the decision easier.
• How long do I plan to live in the area?
• What are my finances like?
• What is the state of the housing market?
• How does my job factor into this choice?
• What are the costs of renting vs. owning this particular property?

Source

How To Find Open Houses Near You

Attending an open house is a great way to check out a potential home in person to see if it lives up to your expectations. While the way we shop around for houses online has made huge improvements in recent years, sometimes nothing beats examining a property yourself.

What is an open house?

An open house is a scheduled event where a home that is listed for sale is opened to the public for viewing. This differs from a private showing, which is essentially the same thing but is only available to serious potential buyers rather than open to anyone driving by. At an open house, the homeowner or their listing agent welcomes potential home buyers into the house to look around the property. A real estate agent or REALTOR® may take potential buyers on a tour of the home or just allow them to wander and explore the home’s features themselves. The purpose of an open house is usually to attract potential buyers who may be interested in the property after seeing it. An open house can also be a great way for the seller or their real estate agent to get feedback on the home to get a better idea of what potential buyers might want improved or fixed on the property.

How to find open houses in your area

Interested in checking out some of the homes in your area? There are plenty of different ways to track down homes for sale near you that may be opening their doors to the public. Let’s take a look at a few strategies;

1. Search the internet

The internet is a fantastic resource for finding open houses in your neighborhood. Many real estate listing websites will not only show you homes for sale in your area, but also when you can come take a look at them in person, if possible. Simply searching “open houses in my area” will often find you exactly what you’re looking for. Virtual open houses and showings are also an online option that has grown significantly in popularity since the beginning of COVID-19. Many listing websites now offer virtual tours, which use a video or 3D model of a home to give you a detailed look at a property’s interior without actually ever stepping foot there.

2. Set app alerts

Speaking of finding open houses online, you can also do the same through an app on your phone. There are plenty of real estate apps out there that can not only show you homes for sale in your area, but also other valuable information like real estate trends in your neighborhood. Some apps may even offer you the ability to set up app alerts to be notified when there’s going to be an open house near you or near an area you’re looking to move.

3. Take advantage of social media

Social media is a great way to reach a large audience quickly and easily, so many sellers and real estate agents use it to show off homes to potential buyers or promote upcoming open houses. You can follow real estate agents or REALTORs® on social media for updates or seek out open houses yourself by searching “open house” and the name of your city on platforms such as Instagram or Facebook.

4. Work with a real estate agent

If you’re working with a real estate agent or REALTOR® to find your dream home, they can often help you find open houses as well. Your real estate agent is likely very knowledgeable about the area you’re looking to buy a home in and can potentially point you toward upcoming open houses they know of. Real estate agents and REALTORs® also have access to a multiple listing service (MLS), which is a database of all homes for sale in a given area. With MLS access paired with their local knowledge and experience, your real estate agent can likely find you open houses that way.

5. Look for yard signs

Sometimes to find an open house, all you have to do is look around. If you’re looking to buy a home in a fairly populated area, drive around and see if you can find any yard signs indicating a home is for sale. Most for-sale signs will have a number you can contact with any inquiries about the property. Though it requires taking the time to drive around, this method works well for buyers looking to find a house in a specific neighborhood.

6. Contact local real estate offices

Even if you aren’t working with a buyer’s agent yet, you can contact local real estate offices to ask what open houses they might have coming up. This also gives you a chance to talk to agents in your area and potentially get an idea of who you may want to work with when starting your home buying journey.

Source

NMLS ID 394275 | DRE ID 01769353

What To Do After Your Home Offer Is Accepted

Having your offer accepted on a house can create a wonderful feeling, but that feeling can be all too fleeting. Once you’ve been notified your offer has been accepted, your thoughts may quickly shift to, “What do I need to do next?” A seller accepting your offer on a home doesn’t mean the home is yours or that the sale is official. In fact, there’s still lots left to do. 

Here are 11 important actions you’ll need to take before you’re handed the keys to your future house;

1. Deposit earnest money

Earnest money is a payment you’ll deposit with a third party, such as a law firm, real estate broker or title company. This money is held in escrow until closing, when it’s then applied to your down payment or closing costs. An earnest money deposit is refundable in certain situations, and the amount will be a very small fraction of the sales price (usually 1% – 3%) that you can typically pay with a check, money order or wire transfer. Combined with a preapproval letter from a lender, earnest money should instill confidence in the seller that you’re a serious buyer with the financial means to close the deal.

Although highly recommended, an earnest money deposit isn’t legally required. However, the terms of a purchase agreement often call for it.

Pay the seller a due diligence fee

Similar to an earnest money deposit but only applicable in some states is what’s known as a due diligence fee, which you’ll pay directly to the seller within a day or two of signing the purchase agreement if it’s negotiated as part of the offer on the home (like an earnest money deposit, a due diligence fee isn’t legally required).

Usually less than an earnest money deposit, the due diligence fee is a non-refundable, “good-faith” payment to the seller for taking their home off the market for the duration of the due diligence period. Over this stretch of 14 to 30 days, the house will usually be professionally inspected and appraised, and the buyer can do additional research on the home and request repairs based on the inspection’s findings.

If the home sale goes through, the due diligence fee will be applied to the purchase.

2. Secure a home loan

If your finances are in good enough standing that you can afford the home you wish to buy, you should be able to get a home loan. It can be a time-consuming process for your lender’s team to review your application documents, but much of the work is already done if you received loan preapproval before making your offer. Once you have an accepted offer and you’re later formally approved for a mortgage through a process known as underwriting, your lender will be able to generate documents using the property address that show you exactly what your monthly mortgage payment and interest rate will be.

3. Have the home inspected

Another to-do list item after having your offer accepted is to schedule a professional home inspection. Although an inspection isn’t mandatory with some loan programs, it’s a very good idea, and some real estate agents will recommend including language in your offer stating that the purchase is contingent on the house passing inspection.

Here’s how the home inspection process should play out:

• Find a home inspector. You can look for a home inspector yourself, but your real estate agent should also be able to recommend one based on their professional relationships.
• Pay the inspection cost. The buyer is responsible for paying the inspection fee. Inspection costs vary based on the location and square footage of the home but are generally in the $200 – $500 range.
• Review the inspection report. The inspector will provide you with a detailed report listing all of the home’s issues (or potential issues).

If necessary, negotiate repairs with the seller. Once you’ve reviewed the inspector’s report, you can negotiate with the seller based on the findings. For example, you could ask the seller to lower their asking price or fix certain issues before closing day.

4. Have the home appraised

Another hurdle to clear after your offer is accepted and before you can close is the home appraisal. A lender orders a home appraisal for their protection as well as yours. The appraiser will carefully assess the value of the house through an examination of the property and the sales prices of similar, recently sold homes nearby.

5. Review the title

A house title isn’t a physical document but an abstract legal concept that states who’s the rightful owner of the property. (The deed is the physical document proving who holds the home’s title.) The title will also reveal the prior owners and whether the property has any liens on it. The seller holds the title, but you’ll be able to have it inspected by a title company, which you’ll hire. The key fact you’ll need to establish here is that no other entities, such as the mortgage company of a previous owner, have a claim on the title.

6. Transfer the utilities

It’s important to set up utility services for your new home well ahead of moving day. First, identify the utility providers in your area. Depending on the home’s location and which utility or utilities you’re having set up, you may be able to choose from multiple companies. As soon as you know your move-in date, contact all of the utility companies you’ll be using and set up a start-of-service date since some companies schedule installations as far out as 2 or 3 weeks. Nobody wants to move into a house that’s too cold, too hot or without water service. Ideally, you’ll have all of your utilities up and running the day before you move in.

7. Obtain homeowners insurance

You’ll need to show your mortgage lender proof of homeowners insurance before your home purchase can be finalized. Sign up for a homeowners insurance policy online or by contacting an insurance provider. Basic coverage includes home repairs or replacement of your home in the event of damage by fire, vandalism, accidents or natural disaster. Policies often exclude flood and earthquake damages, which can be covered by purchasing supplemental insurance specific to these disasters.

8. Schedule home repairs

If the home inspection brought to light issues that required negotiations with the seller, those negotiations are presumably settled. Now it’s time to schedule repairs that are necessary before you move in – such as replacing the furnace or fixing a dangerous wiring issue. If your agreement was for the seller to address these issues, the repairs should be done before you close on the house. If you and the seller agreed for you to handle the repairs but with financial compensation from the seller, you can schedule the work to take place after closing but before you move in.

9. Complete a final walk-through

The final walk-through is your last chance to see the house before completing the home purchase. The walk-through can be as simple as a brief once-over look around the premises to give you peace of mind that everything that was in satisfactory condition when you first saw the home is in the same condition you remember it being in.That said, if the seller agreed to make some repairs after the inspection, the final walk-through is also the time for the buyer to ensure those repairs were actually made.

10. Schedule your closing

Once you’ve gone through the steps above and the seller has accepted your offer and earnest money, you still need to schedule your closing. The various parties involved in the transaction will settle on a closing date that’s agreeable to everyone. Usually, the closing date will be 30 – 60 days after the seller accepts the offer.

11. Close on your new home

Several people typically attend the closing. Among those who may join the buyer on closing day are the buyer’s agent, the sellers, the listing agent and title company representatives. Some states require that an attorney also be present. You’ll be signing a number of documents to finalize the sale. You’ll also bring a certified or cashier’s check for the down payment and closing costs, or you might be able to send this money via wire from your bank to the closing attorney’s office. Once you’ve signed all the papers, you should get the keys to your new home. Source

Mortgage Rate Buydown Strategy: How $10K Could Save You $164/Month

You’ve found the home you love. The list price? $400,000. You’re ready to make an offer, and naturally, you’re wondering if you should come in a little under asking — maybe $390K — to save some cash.

It feels like the smart move, right? But what if I told you there’s a strategy that could save you way more than just $10K off the purchase price — not just once, but every single month? Yep. Let’s talk about the $10K trick most buyers don’t even know exists.

The Smarter Play: Offer Full Price, Ask for a Concession

Instead of offering $390K on that $400K home, what if you offered full price — but negotiated a $10,000 seller concession?

Here’s what that could look like:

You offer the full $400,000…But ask the seller to give you back $10,000 to cover mortgage points.

What are mortgage points? Mortgage points (aka discount points) are upfront fees you pay at closing to reduce your interest rate. One point typically costs 1% of your loan amount and knocks off about 0.25% from your rate.

So let’s break it down with real numbers.

Real Life Example: Why This Trick Works

Let’s say you’re putting 5% down on a $400,000 home. That gives you a loan amount of $380,000.

Now imagine this:

•  You spend $10,000 on points (about 2.5 points)
•  Your interest rate drops from 7% ➝ 6.38%
• Your monthly mortgage payment goes from $2,661 ➝ $2,497

That’s $164/month saved — every month — for as long as you have the loan. Over just 5 years, that adds up to $9,840. Over 10 years? Nearly $20,000.

So instead of saving $10K upfront by offering a lower price, you’re creating thousands more in long-term savings — simply by shifting how the money is used.

But Why Would a Seller Agree?

Here’s the thing: a seller is usually more focused on the sales price than the net proceeds — especially if they want to keep the comps strong in the neighborhood. An offer at $400K with a $10K concession can be more appealing to a seller than an offer at $390K — because it still shows as a $400K sale on paper.

And for you? That $10K turns into serious savings over time.

Win-win.

When This Trick Works Best

This strategy isn’t one-size-fits-all, but it’s golden in a few key scenarios:

• You’re buying in a balanced or buyer-friendly market
•  The home’s been sitting for a few weeks and the seller is motivated
•  You want a lower monthly payment without waiting for rates to drop
•  You’ve got a little wiggle room in your loan approval for concessions

It’s also perfect if you’re planning to stay in the home for several years and want to maximize long-term savings.

How to Run the Numbers (The Easy Way)

You can Google a “mortgage points calculator” and plug in your scenario to see what the potential savings look like. Or… you can reach out to your mortgage pro (👋 that’s me!) and we’ll do it together.

I’ll help you compare both scenarios side by side — and show you if this strategy makes sense for your specific situation. Home buying is all about the strategy. And sometimes the best financial move isn’t the most obvious one.

So before you try to save a few thousand off the purchase price, ask yourself: Could I make my money work harder by using it to buy down my rate instead? Because while $10K might sound like a small shift… that $164/month in savings could be the difference between stress and stability.

How to Find Cash-Flowing Rental Properties Online: 4 Game-Changing Tool

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Let me take you back to when I bought my very first rental property...

I was excited, motivated… and completely overwhelmed. Zillow felt like a black hole. Facebook Marketplace was giving sketchy Craigslist vibes.

And every time I thought I found a good deal, I wasn’t even sure what “good” meant.

• I didn’t know which numbers to trust.
• I didn’t know if I was running the math correctly.
• I didn’t know where to look for real deals — let alone ones that actually cash flowed.

But after lots of trial, error, and late-night Googling, I found some tools that changed everything. If you’re thinking about investing in a rental property — especially your first one — these are the platforms I wish I had from day one. They make the process so much easier, and more importantly, they help you make smarter, more confident decisions.

1. Roofstock — For Buying Rental Properties… Without Leaving Your Couch

If the idea of buying a rental sounds intimidating — especially if it’s out of state — Roofstock is a dream come true. It’s a marketplace that lets you buy fully leased, single-family homes that are often already generating cash flow. Yep, that means rental income from day one.

What makes Roofstock awesome:

•  Properties are vetted and inspected
•  You can shop and buy entirely online
•  You can filter properties by price, cash flow, cap rate, location, and more

Whether you’re looking to invest locally or buy your first out-of-state rental, Roofstock makes it super beginner-friendly.

2. Rentometer — For Making Sure Your Rent Estimates Are Legit

Let’s be real: one of the trickiest parts of analyzing a rental property is estimating rent. You don’t want to guess. You want to know what similar units are renting for — and that’s where Rentometer shines.

Here’s what you can do:

• Plug in any address and get instant rent comps
•  See what other similar homes are renting for nearby
•  Get insights into rent trends in specific neighborhoods

This tool is clutch before making an offer. It helps you price competitively and back your numbers with data instead of vibes.

3. DealCheck — For Running the Numbers Like a Pro

You don’t have to be a spreadsheet wizard to analyze a deal. With DealCheck, you can quickly run all the numbers that matter — like ROI, cap rate, cash flow, and break-even point. You can even plug in renovation costs, financing terms, and see how it affects your profit.

Highlights:

• Analyze deals in minutes
• See long-term projections based on appreciation and rent growth
• Save and compare multiple properties

This is the tool that takes you from “this feels like a good deal” to “I know this is a smart move.”

4. Propstream — For Finding Off-Market & Distressed Properties

Want to go beyond what’s listed on Zillow and the MLS? Propstream is your secret weapon. It gives you access to a nationwide database of properties — including ones that are off-market, in pre-foreclosure, or owned by people who might be motivated to sell.

What makes it powerful:

• Search by location, equity, ownership type, and more
• Identify leads no one else is looking at
•  Reach out directly to property owners

This is a great tool if you’re looking for hidden gems and don’t want to compete with 30 other investors for the same listing. Buying your first rental doesn’t have to be overwhelming. With the right tools, you can skip the stress, stop second-guessing yourself, and start investing with confidence.

These four platforms — Roofstock, Rentometer, DealCheck, and Propstream — take the guesswork out of the process and put the power in your hands. So if you’ve been dreaming about getting into real estate investing… maybe this weekend is the time to finally take action.