For a First Time Homebuyer in San Diego and throughout Southern California, the purchase and home loan process can be very confusing and intimidating.
It is very important for First Time Homebuyers to be represented by a San Diego Mortgage Broker/ Mortgage Banker and Realtor who are willing to educate the buyer on the process.
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First Time Homebuyers should always have a face to face pre-purchase consultation with their Mortgage Broker in order to cover the following topics:
- Steps in the loan process,
- Loan programs available,
- Credit, interest rates, and
- Closing costs.
Each of these should be explained in detail to make sure the First Time Homebuyer fully understands.
The Realtor should make sure to explain the purchase contract, escrow time periods, earnest money deposit, and inspections.
A purchase is a big decision and financial responsibility for a First Time Homebuyer and they need to be as prepared as possible. It is also important to make sure that your Realtor and San Diego Mortgage Broker have the time and availability to answer any questions you may have as the process moves forward.
First Time Homebuyer Loan Programs in San Diego
Many First Time Homebuyers in San Diego and Southern California do not have a large down payment saved. In this case government programs like FHA loans, VA loans, or USDA loans may work best.
FHA loans only require 3.5% down payment and have several other benefits. These benefits include, higher debt to income ratios allowed, the entire down payment from a gift, lower credit scores allowed, and non-occupant co-borrowers.
To learn more about FHA loans, you can follow this link, www.sandiegomortgagenews.net/san-diego-fha-loans.
VA loans are for active or discharged veterans in the US military and allow 100% financing up to $649,750 loan amount in San Diego County. VA loans are also more flexible on credit scores and debt to income ratios.
To learn more about FHA loans, you can follow this link, www.sandiegomortgagenews.net/san-diego-va-loans.
The USDA program is a 100% financing loan for the purchase of rural properties. There may also be local city, county or non-profit organization grants/ loans for down payment or closing cost assistance.
These programs usually have limitations and income restrictions, but may work for certain clients. To learn more about USDA loans, you can follow this link, www.sandiegomortgagenews.net/usda-loans.