San Diego Home Loans
What an exciting time to be buying a home! Property values are lower than they have
been in years, and this means that as a buyer there is wonderful opportunity to
move into a new home at a great price.
Whether you are a wanting to move into a bigger home, relocate to a different area, or
you are a first time home buyer, we can help! Would you like to learn more
about much you can afford to borrow? If so, contact us today! We will help make
sense of your BUYING POWER!
Our goal for helping you to finance your purchase is to make a seemingly
complex process simpler. In order for us to do that, let us give you some great
information regarding the steps taken when you are borrowing money to buy a
home with a purchase loan.
The Process
Here is a summary of what you can expect:
1. Work with ScottWay to get pre-qualified for your desired loan amount.
2. Contact Realtor and start shopping for your next home! (While having the Confidence of knowing how much you can afford)
3. By using your pre-qualification, submit an offer with a real estate professional on the home that you have chosen.
4. Once your offer is accepted by seller, escrow will be opened.
5. The details of your application and property will be submitted to your choice of lenders.
6. The lender will review your application and issue a conditional approval
7. Requested conditions from lender will be submitted and reviewed.
8. Loan docs are issued and signed
9. Loan is funded, recorded with the county, keys to the house are delivered, and you are now a new home owner!
Qualifying
Pre-qualification Letter – noun
This is a letter that is written by a mortgage professional upon reviewing the
credit, income and assets of an individual/s to assess the potential likelihood
for loan approval, and identify possible terms.
Many people ask, “Why should I get pre-qualified before I start looking at houses.”
And the answer is, in the current 2008 California market, the purchase transaction
depends often times on what lenders are willing to loan to you. With a current
restriction on capital, certain programs that were available 6 months ago are
no longer available today.
As a mortgage broker we are currently working with different lenders and borrowers.
This gives us a deep knowledge of what’s available. As a consumer, looking to
buy a house, wouldn’t it be nice to know exactly what you are able to borrow
and what it will cost you? Sure it would…this knowledge gives you confidence! Instead
of speculating how about how much you can afford, you will have precise
knowledge about your purchase loan possibilities.
Costs – What will it cost?
Break Down of Expenses
• You Contribute: 1/2 Hour of Your Time
• We Contribute: 1 Hour of Our Time
• Additional Up Front Costs: None
Total Cost: $0.00 – NO BRAINER!
In addition to confidence and peace of mind, most realtors request that you get
pre-qualified prior to looking at a house. In some cases the seller will not
accept your offer with out a pre-qualification letter.
It makes sense! If you are looking to purchase a large item, you need to know how
much you can afford. Especially in this market there are so many variables that
could limit you from buying a home. As a result, Pre-qualifying is the first
step in home ownership!
Are you curious about what it takes to become pre-qualified?
Items You’ll Need to get Pre-Qualified
• Income Documentation
• 2 months Bank Statements
• Application (We provide)
• Credit Report (We provide)
With this information we are able to evaluate key variables that different lenders
consider. When obtaining a loan, a bank will look at your monthly debt expense
in comparison to your monthly income, you overall cash on deposit, and your
credit profile expressed as a number called your FICO score. These are just
some of the variables used when making a lending decision.
With the information that you provide we are able to determine the following:
• How much money you need to put down
• What type of loan terms and rates are available
• How much out of pocket you’ll need to spend, if any
• How much you are able to borrow
Life after Pre-Qualifying
Now that you have been pre-qualified you are able to go shopping! Once you have
found your house the next 30-45 days will be very exciting. After you have
selected a house and escrow has been opened we will be working hard for you!
We gather all the information that you have submitted to us and we work hard on
funding your purchase loan! This will typically take 30 days from the time that
we submit your application. However we will be in close contact with your
escrow officer and realtor for the exact deadline. Most information will be
gathered in the very beginning, but on occasion a specific lender may want to
see some additional info. Once docs have been signed the loan will usually fund
shortly after.
Loan Programs
There are many loan programs to consider when purchasing a home. That is a great
thing for you! This means that you have options and flexibility when applying
for a loan. Because we are a mortgage broker we have available many different
programs. Below we will talk about some of the most popular kinds.
Consider the following…
30 Year Fixed – This is a good loan for an individual who would like the comfort of a
long fixed period. This makes sense for a person who knows that they will be
staying in their property for an extended period of time. This is typically
offered as a principal and interest payment. That means that both the original
loan balance and the interest are being paid back each month.
Although most people don’t have their loan for more than10 years on average, the
security of 30 years appeals to many.
5,7,10 Year ARMs – Do you want the lowest payments? Then this is the type of loan you
are looking for. It offers the lowest payment in either, a principal and
interest payment or an interest only payment. The interest only payment is the
lowest possible payment available because the rates are typically much lower
than a 30 year fixed, and during the fixed term there is no payment to the
original loan balance.
This type of loan is fixed for a specific period and then the fixed rate becomes an
adjustable rate. Hence the name, Adjustable Rate Mortgage (ARMs). Clearly this
is for someone who is looking for a shorter term loan, and that is expecting to
move or refinance after the fixed period is over.