Entering the real estate market for the first time, to purchase your own home, can be a taxing endeavor but for those that get the right help, the experience can be a rewarding one. Finding the right home is just as important as having the right loan officer helping out through the whole process. And the best option will be to contact Dawn Palestini of Palestini Home Loans. Dawn has been assisting clients with their mortgages for over 30 years and will be your best option for the right information and the support you need to make your home-owning dreams come true.
Having your own place is where another level of adult life is unlocked, you gain more responsibility but also many liberties that you will not have had if you were renting.
Why should I become a homeowner?
Most people start out in their independent life from renting but soon realize that renting is great for the moment but in the long run and bigger picture, it requires investing your finances in a place to live that you could be asked to leave any day, should the owner want to sell the property.
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Another thing to realize is that if you can make monthly payments to keep a roof over your head then why not make those payments towards a property that is your own home. Understanding these facts of life are generally the main reason most people start a new journey in life towards becoming first-time homeowners.
How can I prepare for the mortgage application?
Taking out a mortgage is the ideal way to go about becoming a first-time homeowner but it does require some advance preparation and research. The preparation however is only to make the process easier for you and the research will give you a very clear idea about how the whole process works. To get started you will need to do the following:
- Start collecting documents for the process. You should save up and prepare files for your utility bills, tax returns, and paystubs, etc.
- Having your credit report in hand will help you get an idea about your attractiveness to lenders. You can obtain your credit report from AnnualCreditReport.com, which is run by Equifax, Experian, and TransUnion. These are the three main companies that provide credit reports and hence very trusted sources.
- Keep a track of your monthly debts like bills and credit card payments. Do not take on additional loans if you are planning to apply for a mortgage.
Finding your dream home
There are millions of properties on sale out there, picking one that suits you and meets your needs can be challenging but there are things you can look into which will help you filter out what works for you best.
How to identify a property that suits you?
There are three main things you can look at to help you narrow down the ideal home:
The Neighborhood – Different parts of the country host different priorities and the same can be said about neighborhoods. Each area has its own history that comes with it and culture can be different depending on where you are. Look into the backgrounds of neighborhoods to understand the community values and you will be able to figure out if the location is a fit for you.
Commuting – Traveling to and from work is a major part of everyday life. By choosing a property that makes traveling convenient for you, you will be able to free up time that could be utilized more productively. When looking for a home consider the travel time to and from work.
Schools – Schools can tell you a lot about the kind of area you are considering for a home. If you are planning to have kids or already have kids then it is best to consider schools that match the values and needs of your family. If you don’t have kids nor plan to have any then you should consider the reputation of schools in the area to see how they impact the real estate prices in the area.
Checking out the house
Once you have selected a neighborhood the next thing you should do is look for real estate agents that can help introduce you to properties in the area that are available for sale. The real estate agents will be the ones that arrange house viewings where you can walk around the house while the agent is with you to help answer any questions that you might have about the property. This is a great opportunity to inquire about the amenities available with the property and neighborhood. You should also use this chance to ask about any repairs or renovations that might have been performed on the house.
By checking out the appliances and quality of utilities in the house you can gauge ideas about any possible changes you might want to make or any possible repairs that will be liable to you once you move in.
The Mortgage Process
Mortgages are very straightforward but if it is your first time applying then you might feel a little overwhelmed by all the jargon associated with mortgage plans. You don’t have anything to worry about though, because everything you need to know is covered below.
What are the basics of a mortgage plan?
The following is a breakdown of important terms you will come across when dealing with mortgages:
Principal – This is your payable loan amount once you have taken out the mortgage.
Interest – This is the annual service fee of the lender, it will be charged as part of your monthly payments.
Property Taxes – All property owners are required to pay annual taxes on their properties.
Homeowner’s Insurance – Lenders will require you to take out a homeowner’s insurance policy. This insurance (depending on the provider) will cover the property in case of damages.
Private Mortgage Insurance (PMI) – In certain cases, you will be required to take out PMI, however, this is not a general requirement and depends on various conditions.
How does the mortgage process work?
The mortgage process can be simplified into 6 steps.
Step 1) Consultation
During this step, you will book a consultation with a loan officer who will discuss your requirements and help you understand the mortgage process and set expectations.
Step 2) Pre-Qualification or Pre-Approval
Based on your financial situation, which is understood based on your financial records, the loan officer will assess how much money you will be able to get approved for.
Step 3) Appraisal
Once you have chosen a property to purchase, your documents will be submitted for an appraisal. The inspector will examine the property and a report will be generated and shared with you.
Step 4) Underwriting
All documentation will be reviewed as a double check to make sure everything is in order and it will be made sure that you meet the requirements of the concerned mortgage plan.
Step 5) Approval
Once all the documentation work is completed, your file will be submitted for approval on the mortgage.
Step 6) Closing
During the final step, once your mortgage is approved, you have to make the closing payments for relevant fees and sign some final documents. After this, you will be handed over the keys.
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NMLS ID #361616
CA Lic. #CA-DBO361616
490 Chadbourne Rd #A172
Fairfield, CA 94534
We've been helping customers afford the home of their dreams for many years and we love what we do.
Xpert Home Lending, Inc. is a Real Estate Broker Licensed by the California Department of Real Estate DRE #02166758 NMLS: 2179191
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