An Exclusive Guide to First Time HomeBuyers
Thank you for visiting my First Time Homebuyer page. If you are a First Time Homebuyer in San Diego or throughout Southern California, you know that buying your first home is a big decision and financial responsibility, especially since median home prices are so high in these areas. The purchase and home loan process can be very confusing and intimidating for first time homebuyers. There is a lot of information available and in many cases it can be bad information on how to select a Realtor or Mortgage Lender or Broker.
That is why, it is very important for first time homebuyers to be represented by a San Diego Mortgage Lender and Realtor who are willing to educate the buyer on the entire process.
To learn more about us click HERE.
First Time Homebuyers should always have a face to face pre-purchase consultation with their Mortgage Lender or Broker in order to cover the following topics:
- Steps in the loan process
- Why is a Pre-Approval important
- Best loan programs available
- How credit can affect your loan and rate
- How interest rates are determined
- What your closing costs and cash to close will be
Each of these should be explained in detail to make sure the First Time Homebuyer fully understands and can be confident in the home buying process.
Make sure the Realtor you select explains the purchase contract, escrow time periods, earnest money deposit, and inspections.
It is also important to make sure that your Realtor and San Diego Mortgage Lender have the time and availability to answer any questions you may have as the process moves forward.
The Importance of a Pre-Approval
The first thing that any buyer should do, but especially first time homebuyers, is to start the process of getting pre-approved for your home loan. This is the bare minimum needed to make sure you can obtain a loan and be able to submit a competitive offer. I have developed a program though that takes the pre-approval to the next level. My Ready to Move Pre-Approval Process will differentiate you from most other buyers in the market. This program is designed to allow you, as the buyer, to become approved by an actual underwriter prior to ever putting in an offer on a home. This will allow you to close escrow in 17 days or less and avoid much of the stress and anxiety that can come during the loan process. If you would like to learn more about this program please click HERE.
What are the Best Home Loan Programs in San Diego for First Time Homebuyers
Many First Time Homebuyers in San Diego and Southern California do not have a large down payment saved due to the high home prices and high rent. In this case, it is great to have options available that allow for lower down payments. In some cases government programs like FHA loans, VA loans, or USDA loans may work best, but there are also conforming loans that allow low down payments as well.
Conforming loan programs now have options for as little down as 3% for first time homebuyers. For buyers with strong income and credit score, these programs may be best for you.
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 $1,500,000 loan amount in San Diego County. VA loans are also more flexible on credit scores and debt-to-income ratios.
To learn more about VA loans, you can follow this link, www.sandiegomortgagenews.net/valoans/.
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.