The Ultimate Home Financing Guide
Congratulations! You’re ready to buy a home. But before you start scouring the MLS & consumer sites, you need to secure a home loan. To ensure that the financial stage of your home buying goes smoothly, brush up on the ins and outs of the process.
The three most popular types of loans:
Fixed-Rate Mortgage
This is the most common type of loan, and for good reason. With a fixed-rate loan, the interest rate remains the same throughout the loan’s duration, which is typically 15 or 30 years.
Who should use this loan?
Those who are interested in consistent housing payments or don’t plan to move anytime soon.
Adjustable-Rate Mortgage
Also known as a variable-rate mortgage, this is a loan with an interest rate that changes based on the prime rate and index rate. While you may start with lower monthly payments, you must be prepared to pay more at any given time.
Who should use this loan?
Those who have poor credit or plan to sell their home before their fixed-rate period is up.
FHA Loan
In an effort to make buying a home more attainable for Americans, the Federal Housing Administration offers FHA loans which allows buyers to put a minimum down payment for as little as 3.5 percent.
Who should use this loan?
Those who don’t have enough savings for a down payment. However, with a FHA loan comes private mortgage insurance (PMI), which hovers around 1 percent of the cost of your loan.
There are so many more types of loans, and once we dig in and get to know you and your situation, we can help you find the perfect loan that fits your situation right now in your life.
At the end of the day, talking to us and then also a mortgage professional will help you decide which type of loan is best suited for you. Our lives changed often so let’s narrow it down for your current life situation.
Application documents checklist
To be able to predict your financial future, lenders need to take a hard look at your past and present financial situations. With this checklist, the task of gathering the necessary paperwork won’t seem as burdensome.
- Bank statements
- W2s from current and past employers
- Pay check stubs
- List of all debts
- List of all assets
- Credit report
- Residential address for the past two years
- Landlord names and addresses for the past two years
- Proof of timely rental payments
- Divorce decree (if applicable)
- Gift letter (if using gift funds)
- Bankruptcy paperwork (if applicable)
Ready to speak to a lender?
Finance your dream home in Southern California! Let us help you find your dream home and connect you with a lender to make it happen. Our team of local financing experts are ready to guide you through the home buying process. We are committed to fast, professional, courteous and personal service to help you understand and feel at ease throughout the home buying process. Our trained and certified loan originators specialize in financing homes in the current real estate market. We are prepared to find the right loan program with competitive rates and low down payments for you. Different counties like Riverside, San Diego, Orange County also have different types of loans so where you buy also can make a difference.
We have relationships with several loan originators and can connect you directly so you can go over your personal details with them. We choose to help with your overall general idea of which options you have in front of you. but when it comes to the details, you will keep that close to your vest between you and the lender only.
Let us help…Call (951)221-3446
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