5 Essential Steps that Some Home Buyers Don’t Realize are Needed for a Mortgage

There are a number of things a buyer needs to do to get a mortgage and the earlier these are done in the process the less stressful the process.  Knowing about your financing abilities eliminates many hurdles that may come up in the home buyer process in Redondo and the loan process for any Southern California home.  Here are 5 essential steps:

  1. Get pre-approved:  In a highly competitive housing market, it’s imperative to be pre-approved to give yourself the best chance of an offer being considered.  Most realtors and sellers won’t even consider an offer with financing if a preapproval letter isn’t included.
  2. Choose a realtor that can help mitigate appraisal problems.  A good realtor will meet the appraiser with the most current information in hand.  As a local real estate expert often knows more than the appraiser, the realtor may have insight and information not readily available to the appraiser.
  3. Know your credit score:    It’s not only important to have good credit and know your credit score, but equally important that your credit score stays the same throughout the escrow process.  No big purchases, no opening numerous new credit lines and no late or missed payments.
  4. Make it through underwriting:  Before you get loan clearance and final approval, your mortgage has to go through the underwriting process.  Be ready and supply the underwriters with all requested documents quickly to avoid the stress of needing to ask the seller for extra time.  Most loan contingency periods are 21 days or shorter so time is of the essence in the loan process.
  5. Review the closing disclosure forms or CD.  Due to regulations, lenders must provide you with a closing disclosure at least 3 days before closing in order to see fees, details, etc.

Booming South Bay real estate market: Mortgage loan tips for you

In order to chance upon a lucrative property in the South Bay are you must have two things with you, they are – huge cash reserves and unwavering good luck. Recently, local real estate experts have found a new trend in their housing market known as flash sales that refers to the closure of a property deal within 24 hours of it being listed for sale.

South Bay – Is it a real estate booming market?

Housing sector in the South Bay area is witnessing a never before boom since the start of the year 2013. This is because according to Glenn Kelman, CEO of web-based real estate brokerage firm, Redfin, at least 1000 homes were sold since the past six month in the South Bay area alone where the contract was signed within 24 hours of the property getting listed for sale. The trend is quite surprising since earlier any fast deal took at least 3 days to get closed but now that period has come down to just few hours.

So, if you are interested to own a property in this booming South Bay housing market, then you need to get your basics right and one of the most primary things to consider in this regard, is finances.

Mortgage loan tips for first-time home-buyers

If you are buying a home for the first time ever in your life, then it is very likely that you’ll have a lot of queries related to the same. For that reason, here are some mortgage information for people like you to help them buy a home of their choice without much effort:

  • Loan affordability – As per the home buying guidelines issued by the U.S. Department of Housing and Urban Development (HUD), being a first-time homebuyer, it is your duty to find out your mortgage loan affordability first. In other words, you should know how much of a loan you can afford to service based on your current financial condition and all personal liabilities.
  • Mortgage laws – In addition, you should be aware of the mortgage laws prevalent in your state of residence as well as the federal ones. Moreover, there are certain basic rights that you must be aware of as a home buyer. Having proper working knowledge on these issues will keep you in good stead and help you to defend your interest in case of a possible scam.
  • Real estate professionals – Try to work with a team of reliable real estate professionals. For instance, contact a loan officer in order to get pre-approved for a mortgage loan. Moreover, work with a local but competent real estate agent to search for the most suitable house in the locality you are planning to buy a house. However, before you ink the deal make sure you have thoroughly checked the structure of the property with the expert assistance of a home inspector.

However, you should rely on your gut instinct after weighing multiple deals that suits your budget as well as your specifications of a real estate property.