Preparing for Your Home Loan
For most families, a home loan is the largest single financial transaction you will undertake. It can be a daunting experience, especially for the first-time home buyer. Therefore, having an advocate in your corner to guide you through the process of securing a mortgage is incredibly important-! At Imperial Mortgage & Real Estate Services, we are not just in the business of buying and selling real estate. We are a specialist in the home loan and mortgage industry as well.
Here are a few items to prepare as you journey toward that new home purchase:
How much can you afford?
It is important to have a realistic idea of what you can afford prior to looking at homes. Nothing is worse than finding “the house of your dreams” and learning the sticker prices is out of your range. Your monthly home costs need to factor in not just the monthly mortgage payment but many other things. Keep in mind homeowner’s insurance, property taxes, home maintenance, utilities, and PMI if your down payment is less than 20%.
In addition, you must consider other debt you are carrying. This includes car payments and credit card balances, as any lender will factor this information in to your financial assessment for your home loan.
Your Credit Score and Your Home Loan
A credit score is another measure of what you can afford. Your FICO tells your mortgage broker and lenders about your potential reliability in repaying the home loan. The majority of lending decisions are determined by your FICO score (Fair Isaac Corporation). FICO scores are a three-digit number that ranges from 300 to 850 where 300 is poor and 850 is excellent. The better your credit score, the less you’ll pay in interest. You are entitled to a free report and Imperial Mortgage can help you get a copy of your FICO score as well as help you interpret the results.
What type of mortgage do you qualify for?
There are MANY types of mortgage available today. That being said, not all mortgages are available to all prospective home buyers. Some of the most common mortgage types include:
- Conventional Mortgage
- FHA Loan
- VA Home Loan
- 30-year Mortgage
- 15-year Mortgage
- Fix Rate Mortgages
- Adjustable Rate Mortgages (ARM)
- Rural Housing Loans
- 203k Rehab Loan
- Reverse Mortgage
There are lots of great programs out there depending on your personal situation. Don’t attempt to be your own expert. Talk with someone who will educate, advise, and support your decision on the right mortgage for you and your family.
Not only will Imperial Mortgage help you understand all the types of mortgages that you qualify for, we will also help you with current mortgage rates for each applicable program. Mortgage rates fluctuate and knowing when to lock your rate and how to balance your mortgage points with your interest rate is a key decision.
10 Steps: Buying and Loan Process
1. Select a Buyer’s Agent (Imperial) to guide you through the process.
2. Get Pre-Approved for a home loan by working with Imperial.
3. Separate search parameters into “wants” and “needs”.
4. Start the home search in an organized fashion and preview the homes with Imperial that are good fits.
5. Choose a home and put together a contract offer with Imperials support to purchase the home.
6. Conduct inspections on the home being purchased.
7. Apply for the home loan and authorize appraisal to be completed.
8. Do a Final walk-through prior to closing to ensure everything is in order.
9. Closing documents signed and get your keys to the home.
10. Move into your new home!
Picking the right Mortgage is as important as picking the right house! There are many options out there to work with. From FHA or VA to USDA Rural, Conventional or Private Money. Your circumstances are unique, but with Keith’s expertise, he can find the one that’s best for you.
Let us be your trusted expert in “all things real estate”.
Imperial Mortgage & Real Estate – Service and Local Market Expertise. Serving Placer, Sacramento, and Nevada counties for 30+ years.
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