|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Questions?
Call (714) 724-4663
ask for Mairead
|
|
As the home buyer, you will be taking out a mortgage on your new Huntington Beach home. Even with good credit, qualifying for the loan you want - your terms, your amount - can be challenging. You may want to have your Real Estate agent introduce you to the loan broker or lender they use most often. It is likely that your representative from this funding source will give you good service because they rely upon your Real Estate agent for a continuous stream of new deals.
Follow these guidelines when applying for a loan:
- Know what you can afford.
- Most banking institutions will not grant a home loan if the mortgage payment exceeds 30% of your gross income. Take a realistic look at what earnings of yours can be substantiated - with pay stubs, bank balances and… financial statements if you are self employed. Compute the loan balance that 30% of your combined monthly family income will carry, at prevailing interest rates. Divide the loan balance (or mortgage amount) by 80% - 90%. The resulting figure will be approximately the sale price of the home you will buy with a 10% to 20% down payment. The difference between this figure and the loan balance equals the size of down payment you must come up with. Assuming you have the down payment - this is the price range for homes you should be looking at. If you don't have the down payment, see whether you qualify for an FHA or VA government loan.
- Be cautions about what you say to the selling real estate agent.
- Unless you specifically have a "buyer agency agreement" with a Real Estate agent, the agent is working for the seller. Whatever you say to the agent (when discussing offers, for instance) - that agent is obligated to pass along to the seller
- Be aware of your credit rating
- Check your credit rating for errors and "negatives" before applying. It takes time to correct reporting errors on your credit file and, where negative items exist ("dings"), you can often attach a letter of explanation with the loan package that will reduce the negative impact of the derogatory item on the outcome of the loan application.
- Keep your debt and monthly payments as low as possible prior to applying.
- In addition to your income and credit history, underwriters are going to evaluate the total debt load you must service. The higher your outstanding debt and greater your aggregate current monthly debt payments are, the less chance you have of receiving the loan you want.
- Remember the "cost of owning" a home when budgeting.
- Along with the mortgage payment, a home has taxes, several types of homeowners insurance, maintenance and repairs as part of the total cost equation. Plan these into your budget when considering a price range for your new home and new home loan.
- Save for repairs and upgrades.
- At some future point, it is likely that your home will be more valuable than when you purchased it. Rather than increasing the loan balance to pay for remodeling, set aside a small amount each month for future home upgrades. Use one of the calculators to see how much remodeling money you can accumulate in 5 years - just by setting aside $200 per month.
- Shop your loan before you make an offer.
- Find a loan agent or loan broker you feel comfortable with. Spend time with this agent explaining your financial situation and what kind of home and area you are hoping to own in. Your loan can be largely pre-approved, subject to certain conditions (LTV, personal income to debt ratio, etc.) before you make a formal offer to buy. Although it doesn't happen often, sometimes if the seller knows that you are pre-approved and the pre-approval amount is for a certain sum - this can be used as leverage to lower an impatient seller's price down into your targeted home price range.
|
|
listing?
buying?
call or...
e-mail
|
