Rumors about Amazon considering Irvine as the future home of its second headquarters office is fueling the local real estate market. Irvine is already one of the most attractive housing markets in Southern California. The added potential of becoming a major Amazon city is icing on the cake. If you’ve been looking at big houses for sale in Irvine and are thinking about purchasing one, you will want to approach the housing market wisely and with sufficient funds.
According to real estate analytics site Zillow, the median home price in Irvine stood at $788K in November 2017, which means bringing $80K to the closing table would be an ideal situation. You should strive for more than 10 percent of the purchase price to avoid a high interest rate. An even better situation would be to save up 20 percent to avoid having to pay private mortgage insurance. Whether you’re interested in buying a condo in Irvine or a single-family home in the area, here are some recommendations for saving up the money you’ll need.
Set Realistic Goals
Start out by figuring out how much home you can afford. Ask a real estate or mortgage professional to help you with these calculations, or else you can search for online home affordability calculators that take into consideration all housing expenses in relation to your household income and overall debt. This calculation will determine the maximum purchase amount and the mortgage payments you can realistically afford to make.
Once you figure out how much your monthly housing payments will be, set aside three months as a reserve. Your mortgage loan officer will ask for proof of cash reserves as part of the qualification process. The process of saving up 10 percent of the purchase price starts after you set aside reserves.
Figure out your current financial obligations and spending habits on a monthly basis. You will only be able to save by spending less than what you earn, and you need to visualize your expenses so you can decide on the ones that can be reduced. If possible, set up automatic bill payment for fixed payments that cannot be reduced.
Automate Your Savings
Once you have determined how much you can set aside from your paycheck, set up an electronic transfer through your bank or your payroll department so your savings always take priority. The account where your cash reserves and savings are being deposited should be isolated.
Earn Extra Income
Bringing in more income each month can help you achieve your savings goals faster, and there are two straightforward ways to do this: earning and investing. The options of working overtime or getting an additional part-time job should not be limited to you. Discuss this possibility with all members of your household who are interested in seeing their names on the property title.
The same guidelines apply if you’re interested in buying a townhome. Whether you want to move to Portola Springs or Laguna Altura, Irvine townhomes for sale will be much easier to afford if you’ve saved up a good amount of money for a down payment. Get in touch with the trusted agents at OC Residential when you’re ready to start your search for your dream home. Call 714-454-6304 to speak with one of our friendly and knowledgeable agents.