Shopping for a home is an emotional experience that can be heartbreaking if you haven't done your homework.

It is vital that you connect with a mortgage professional before you go house hunting.

Click here to read the "pitfalls and no-no's" which is listed on the main menu.  It is vital information to read prior to selecting a Loan Consultant.

There is plenty of information on my website to help you navigate your way to achieving your dream of owning your home.  Take your time and read through as much material as possible on my site, write down some questions and give me a call and we can go over things, and I can prequalify you over the phone.

Before buying there are some questions you have to ask yourself:

* How long am I going to live in my first home?

 Is it a "starter" home?  In other words, am I going to live here no more than 3-5 years and than upgrade? This has a direct bearing on what type of loan is best for you as well.

Keep in mind, plans do change so your "starter" home may end up being a long term stay too.  Keep this in mind when house hunting.

*How much of a downpayment do I need?

  I have a section on 100% financing on my website.  Please click here for "100% financing" or go to the main menu, it will give you a background on what to expect. 

*How much do I need for closing costs?

I have another section on "closing costs".  Please click here on "closing costs" or go to the main menu. It goes hand in hand with 100% financing.

*How much are my Realtor Fees?

In California it is custom that the seller of the home you are buying, pays for your Realtor.  One exception to this rule is if you have a "buyers Realtor".  In this case you have to pay for your Realtor out of your pocket.

I also have an affliation of experienced, customer focused Realtors you can contact.  Just click here for the "Realtors" button or go to the main menu of my website.

*Can I Afford the Monthly Payment?

Sounds simple, but quite a few buyers enter into escrow to purchase a home, without knowing what their monthly payments  are going to be!  That's where the emotional part comes in.  Get prequalified first, than shop. 

Click here  to go to my "loan calculators" or go to the main menu on my website, and you will see a variety of options to help you.

Remember, factor in county property taxes.  Take your purchase price x 1.25% /12 months and add this figure to your monthly principle and interest (or just interest only depending on what type of loan your looking to obtain).  Also add an additional $75/month for homeowners insurance.  This figure will vary, but it's a good rule of thumb. 

If you need help figuring payments don't hesitate to give me a call!

*Should I Get Prequalified For a Loan Before I Shop For a Home?

Yes! Absolutely!  Don't put the cart before the horse.  You don't want to get attached to a home and than realize that you can't obtain financing.  Remember, you can have a prequalified loan without having a property.

*Should I Wait to Buy?

Timing can be everything.  During the loan prequalification process for example, maybe your credit score is a bit low, which means higher rates.  It may be beneficial to do some credit cleanup to ensure that you can obtain optimum interest rates. 

For a small fee I am able to run your credit report and give you "what if" scenarios.  For example, let's say we need to bring your score up by 15 points to get preferred financing.  A credit simulator is available where I can make some hypothetical changes to your credit report, to see what you need to do to get your credit score raised 15 points. Maybe you need to payoff a credit card balance, or make a large lump sum payment toward an installment loan or payoff a collection account.  This may take some time to make these changes. But once they are made, I can re-run your credit report to see if your score goes moves up 15 points.  This can save you money monthly since you can obtain a better interest rate with a higher credit score.

  Some buyers try to time the real estate market.  The interest rate market is highly volatile and trying to time your purchase to obtain lower rates is very difficult.  Timing the interest rate environment is like timing the stock market.  No one knows when the high or low points are going to be, if we did, we all would be rich! Just because your friend obtained a 6% 30 year fixed rate loan, doesn't mean you are going to get the same rate......even if your credit is better!  The interest rate environment is very complex, and is volatile.  Waiting for a desired interest rate could take months or even years! The point to where you can lock your interest rate is different with many lenders as well.   Alot of of it is timing and luck.  You can always pay additional fees to buy down to your desired interest rate.  However,waiting for rates to come down shouldn't be an option.

Real Estate values are also cyclical.  History has shown some borrowers wait too long and get priced right out of the market.  Payments become too expensive, so people wait to buy.  This also can be a big mistake.  Take a look at your prospective payments and see if this is something you really can handle and want to do.

May opinion is that as long as you are comfortable with the prospective payment, and you understand the responsibility of homeownership, it is always better to own than to rent.  You own something that is solely yours and the interest you pay on the loan gets subtracted from your taxable income, which comes in handy at income tax time.

*Where do I start?

Call me! Or you can surf my site for valuable information and play with my loan calculators.

I will help you navigate through the loan process and give you choices.  Use my 15 years of experience to your advantage.  I'm looking out for your best interest and want to be your real estate loan professional for years to come.

Kevin Walton

Cell: 805-276-1942

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Catalyst Lending Inc. - 226 Sandberg St - Thousand Oaks, CA 91360
Office Phone: (805) 276-1942 Fax: 800-506-0632 Cell Phone: 805-276-1942

Catalyst Lending Inc. 

 

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