Your Home Sold Guaranteed Realty - Rudy Lira Kusuma Real Estate Team

Rudy L. Kusuma
Rudy L. Kusuma
DRE# 01820322

Are the Cheapest Houses For Sale Located in Pasadena?

Are you looking for an inexpensive home for sale located in Pasadena but are coming up short? Unless you have an experienced realtor by your side, finding a cheap home can be extremely difficult. When you work with an expert realtor, they can get you the best interest rates and identify great deals on your next home. However, there are actionable steps you can take to minimize the costs associated with a new home.

Location is extremely important in real estate. As such, some locations are more desirable – and thus more expensive – than others. In Pasadena, the temperate climate, proximity to beaches and attractions, make it a highly desirable location. Unfortunately, that means demand is high and home prices can be much higher than other parts of the U.S.

All is not lost, however. Follow along as we guide you through what you can do now to ensure that your home purchase in Pasadena is as low as possible.

Affordable Homes for Sale Located in Pasadena

Currently, Pasadena is a seller’s market. What does that mean for you? In a seller’s market, the demand is high and the supply is low. This means that there are more homebuyers than homes available for sale, which drives up the price of the few available homes. Most homes sell within 38 days for a median price of $1,066,096, up 1.5% from this time last year. The homes are 42.3% homeowner-owned with 53.4% having a bachelor’s degree or higher. 

These statistics show that Pasadena is a great place to live if you want an area that is a developed area with close proximity to attractions surrounded by educated long-time neighbors.

Improve Your Credit Score

Your credit score is hugely important when determining your interest rate on a mortgage. The higher the score, the more money you will save. There are 5 factors that impact your credit score:

  • Payment history
  • Amounts owed
  • Length of credit history
  • New credit
  • Credit mix

Each factor can impact your credit score significantly, so it is important to have a well-rounded credit score.

The minimum credit score for FHA loans, for example, is 580. However, having merely the minimum credit score can make your interest rate too high for you to afford. But there are ways to increase your credit score:

  • Check your free annual credit report
  • Address negative credit issues

These simple steps can make a real difference in your credit score. 

Pay Down Your Debts

Another influencing factor on your interest rate is your debt-to-income ratio. Basically, the lender will take your total debt and divide it by your income. It’s a simple formula with potentially dramatic effects on your mortgage loan because lenders generally don’t want to give loans to high-risk individuals with lots of debts. It is important to pay down your debts (or raise your income) in order to have a better debt-to-income ratio which will result in a better interest rate.

Save for a Down Payment and Closing Costs

The age-old understanding about down payments is that you have to put 20% down on a new home in order to actually buy that house. This is not true. You can put that much down and it will eliminate the monthly private mortgage insurance (PMI) fee, but it is not absolutely necessary. 

There are many programs for mortgage loans which do not require an excessive down payment. The most common down payment percentage for a single family home is about 3.5%, but you can also find programs (like the USDA loan) which require 0% down! It is important to discuss these options with your lender to find out what you might be eligible for. 

You should also be aware that there will be closing costs that you need to pay for at the conclusion of the home buying process. Many people are not prepared for these costs and are surprised by them. Financial surprises are usually not welcome, so be sure to ask your lender exactly what closing costs you will need to pay and how much they will be in total.

Research Mortgage Brokers

Working with the right mortgage broker is just as important as choosing the best realtor to guide you through the process. You need a knowledgeable, experienced, and reliable broker you can work with throughout the process and will feel confident that the individual will get you to the closing table. One of the best ways to find the right broker is to ask your realtor. 

It is especially important to find a great mortgage broker if this is your first time buying a home or have little experience with the process. Your broker will be essential to your success.

Apply for Mortgage Pre-Approval

Once you have found a broker you want to work with, you can then apply for mortgage pre-approval. This is an important step because it will tell you what your interest rate will probably end up being and how much you will be able to afford. After getting this approval, you can find a home that is within your budget, and remember, you do not have to spend the entire amount. 

Mortgage pre-approval is also a great way to give you an advantage over the competition because your financing is in order and home sellers will not have to worry about any delays caused by your financing.

Choose a Specific Geographical Area That Meets Your Budgets

Whether you are very familiar with the area in which you are moving or have never been there, it is a good idea to do some research on the region and find out what parts of the city are within your budget. 

If you want to live by the beach, you should be prepared for fairly high prices. Other parts of the city further from the beach may be less expensive. Finding the cheapest houses for sale located in Pasadena will take some time and patience. Working with a knowledgeable realtor can be very helpful in this endeavor.

Makes Two Lists: Needs and Wants

Another great way to reduce the prices of the homes you are looking at is to know what your absolute must-haves are and what your wants are. We recommend you make two lists: needs and wants. 

Needs, obviously, are things that are absolutely essential to your survival in the house. Wants, on the other hand, are things that would be great to have but you can live without. For instance, you need a bedroom but you may want a bedroom with a walk-in closet and en suite bathroom. One is necessary for daily life while the other is simply convenient. 

Work with an Experienced Realtor

When it comes to buying a home – a major financial investment – it is vital to work with an experienced and skilled real estate expert. Unless you have been through the process many times, it is advisable to have a professional to assist you and guide you through it. There are many factors to consider and things to keep in mind before the final closing day. 

Many things can go wrong if you are not careful and diligent. Buying a home essentially becomes a full-time job until the sale is complete. You need someone whose time and expertise are dedicated to this endeavor so that you do not have to stress out about it. When you are looking for a cheap home for sale located in Pasadena, our team at Your Home Sold Guaranteed Realty - Rudy Lira Kusuma Real Estate Team can help you with your search and ensure that you find real estate success.

Our Realtors Can Help You Buy a Cheap Home For Sale Located in Pasadena

Have you and your family decided to buy a home but are hoping to find an inexpensive house for sale located in Pasadena? Be sure you are working with the best realtors in the area – Your Home Sold Guaranteed Realty - Rudy Lira Kusuma Real Estate Team. We have the experience, skills, and knowledge of the local real estate market to help you find that house and successfully make your investment. 

At Your Home Sold Guaranteed Realty - Rudy Lira Kusuma Real Estate Team, our team is 100% committed to making your home buying experience as positive and easy as possible. We are happy to offer you the information, resources, tools, and guidance you need to navigate the process and make your investment. 

To get started on your journey to buying an inexpensive home for sale located in Pasadena, give us a call at 626-789-0159 or fill out the form below with the requested information. One of our dedicated realtors will send you a detailed response as soon as possible. We look forward to hearing from you and helping you begin your home buying experience.