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 and protect you through the process of securing a mortgage is incredibly important and valuable. At Imperial Mortgage & Real Estate Services, we are not just in the business of buying and selling real estate, but 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:
It is important to have a realistic idea of what you can afford before you set out looking at homes. Nothing is worse than finding “the house of your dreams” and learning the sticker prices is considerably out of your range. Your monthly home costs need to factor in, not only the monthly mortgage payment, but also 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 such as car payments and credit card balances, as any lender will factor this information in to your financial assessment.
Your credit score is another measure of what you can afford as it 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), 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.
There are MANY types of mortgage available today, but not all mortgages are available to all prospective home buyers. Some of the most common mortgage types include:
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.
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.