Home Purchase

San Diego Mortgage - HomeSan Diego Mortgage | Buying a Home

#1. Looking at homes online is a bad idea.
Many Realtors in San Diego are listing homes for MUCH less than what the homes final Sale Price will be… For example, the a home is worth $450,000, but they list it For Sale at $379,000.  The Goal is to get multiple offers and start bidding wars to achieve the highest possible Sale Price for their Client, the Seller. However, if You’re looking online at homes for sale, and see this one, You will have a drastically distorted sense of the Market.  You will not be prepared when You start looking at Homes with Your Realtor.  I know it takes more work, but the only way to get a Real “Feel” for the San Diego Real Estate Market is to get out and look at houses with someone who will shoot-you-straight about what is likely to be the Sale Price of each Home You visit.

#2. Looking at homes without being Pre-Approved for a San Diego Mortgage.
This is a disaster waiting to happen.  I’m not talking about getting “Pre-Qualifed”, which is where a Loan person just pulls Your Credit Score asks Your monthly wages and says “You’re good to go”…  You need to have the Loan Application FULLY Underwritten, all financial aspects examined, and then Approved by whomever is ultimately going to OK the wire of the money to purchase Your new Home.  Not doing this properly could not only cause You to waste time, but could also damage the lives of the Home Sellers if Your transaction doesn’t go through.

#3. Shopping for a Loan based on Rate and Payment expectations will cost You a lot of money.  You might think it’s easy to find the best San Diego Mortgage… Just look at the rate and payment and see which one is lower.  This is a very uneducated way to search for the best home loan.
– What if the person preparing Your “quote” estimated too low for the escrow disbursements?  You select this loan because the Payment is the lowest of the ones You have been quoted. Without knowing it, You innocently selected the most costly mortgage of them ALL.
– Suppose someone quoted You a payment without Mortgage Insurance? If You just looked at the payment and chose this loan because it was lowest, then You’d have a very unpleasant surprise at some point in the process and You would be working with someone who didn’t know what they were doing!
– Many times a payment quote will not included HOA fees, Mello-Roos, or another fee that should be.  Make sure You are comparing Apples to Apples.

If You want to be Smart about comparing loan options, make sure You get each offer in-writing, in the form of a Truth-in-Lending statement (TIL).  If any service provider does not provide You with a TIL, do not take them seriously.  Also, every offer needs to have the same payment amounts estimated for Real Estate Taxes, Home-Owners Insurance, Mortgage Insurance, HOA dues, and Mello-Roos when applicable.  To find the best San Diego Mortgage, give weight of Your judgment based on two things.

– #1, the Annual Percentage Rate (APR) for the different loans.
This is designed by the Government, so it’s obviously confusing, but the idea is to give You a way to look at the interest rate on the loan inclusive of any fees being charged by the lender.  Use this figure ONLY to rule out Your worst offers.  Don’t give TOO much weight to this figure, as it has some flaws.  So, if one offer is a 4.679% APR and another is 4.715% APR, do NOT just assume the lower one is a better deal.  It could be, but not necessarily.  With this step, You just want to throw out the offers that aren’t even close.  If they are all close, then this step may not filter any of the offers.

– #2, Look VERY closely at the total cost of the loan.
This is where the Bank cannot hide anything.  The total Cost-of-Ownership.  How much You pay, after making every payment, to own this property.  What do those numbers look like?  For example, if it costs You $15,000 down to start, then Your payment is $2500/month for 30 years, then Your Total Cost will be $15,000 + $2500 x 360 = $915,000!  Comparing the total cost figures will allow You to be sure the right decision has been made about which San Diego Mortgage is best for You!

The ideal Purchase-Loan-Process:
1. Get PRE-APPROVED for a Mortgage.
2. Select a Realtor that specializes in Your search area.
3. Look for homes within Your payment comfort-zone.
4. Upon finding “the one”, make Your BEST offer first.
5. Upon offer acceptance, deliver any requested documents to Your loan professional with haste.
6. Be prepared to quickly pull Certified Funds for the down payment.
7. When signing the Loan documentation, take Your time, read it all. This is a huge Commitment.

You are now a Homeowner!  Congratulations!  You are also a San Diego Mortgage owner, so we need to work on some strategies to pay it off quickly and save You a tremendous amount of money.  If You continue reading, You will see what I mean.

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