Friday, September 14, 2007

First Time Homebuyer

Are you a first time home-buyer here in the San Fernando Valley? If so, your options may be limited to purchasing a home. The first step you should take is to get pre-approved from a reputable mortgage broker. The mortgage broker will need to get an idea on your financial position, employment, and credit scores.

Most people start their home search even before they know what they can afford. This can be a problem if the buyer finds the perfect home, then finds out that they can’t afford it. That would hurt and believe me I have seen people get into that mess before. If you have a home to sell, be sure to list it first. Agents really don’t like a buyer with strings attached so be sure your home is in escrow before you start writing offers.

What most agents won’t tell you…
Before you write an offer on a home, I suggest you NOT remove your loan contingency. If the lender goes out-of-business before you close escrow, you might find yourself unable to get another loan and thus might lose your initial deposit (3% of the purchase price) and the home. It’s best to have your broker double-up on your loan.

You can read more about NOT removing your loan contingency here:http://estatesla.blogspot.com/2007/08/do-not-remove-your-loan-contingency.html

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