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FIRST TIME HOME BUYER PROGRAMS Whether you plan to get a Northridge homes for sale, or buy a house in Granada Hills, or anywhere in the San Fernando Valley area, FTHBs can avail of the programs available to low and moderate-income families, teachers, veterans, police, firefighters, first responders among others. Should you need assistance, clarification or if you have questions about how you can avail of FTHB programs that include downpayment, closing costs assistance, and Mortgage Credit Certificate Program (MCC), please do not hesitate to contact Jocip Sarmiento directly @ 818.925.0169. As a first-time home buyer (FTHB), it is important to be well-versed with some basic facts and information to give you an idea of buying your first home. Here is a summarized home buying basic information guide that covers most of what you need to know in your journey towards home ownership. Loan Pre-Approval: You must get pre-qualified for a loan before you even start looking for a home. You can get home loans from credit unions, banks, and mortgage bankers or brokers. These lenders will process the loan documents after taking an application, and they will take care of the loan all throughout the funding stage. Lenders will charge you origination fees to cover their cost of providing you their services. This fee varies by institution and is one of the first questions you should ask your lender. Loan Programs: You can consult your lender for programs that best suits your particular scenario. Some borrowers have outstanding credit with enough income and down payment that will qualify them for more home loan products, and there are loan programs for individuals with low and moderate income and even for those with marginal or bad credit. In the case of the later, you can still qualify for a loan depending on the reason(s) for your bad credit. An example of this is if you filed for bankruptcy there are loan programs that will still get you qualified for a home loan but is often with stricter bank conditions


and higher interest rates. Don’t despair, consult your mortgage loan officer (MLO) and ask them for what your best options are. Down Payment: The traditional down payment requirement is 20% of the home purchase value. Having at least 20% down payment again gives you more loan products made available to you. Most loan programs with lower than 20% down payments in the market will require you to pay an additional fee called Mortgage Insurance which is added to your monthly mortgage payments. So you can still get a home loan even without that 20% down payment. Mortgage Insurance: Most loan programs with down payment less than the 20% down payment are charged an additional monthly fee added to their mortgage payments that represent payment for Mortgage Insurance (MI). This insurance instrument lowers the risks of lenders in case the borrower falls behind on their monthly mortgage obligations or defaults on the loan. To lower your monthly payments, the borrower must pay down the difference between the actual down payment and the 20% required down payment. This can be done by monitoring the property’s equity relative to the loan. As soon as your home value has appreciated or you have paid enough to reach an equity value of 20% it is advisable to have the loan reviewed and refinanced to take out the MI from the monthly payments to save you a sizable amount of money. Closing Costs: In addition to the down payment, home buyers are required to pay for closing costs which vary from 2%-5% of the property value. Closing costs are the charges for the services related to your real estate transaction. These include and are not limited to the Escrow fees, Mortgage Insurance, Title issuance recording fees, appraisal fees, title insurance company, County Recorder fees for recording your deed, and Loan origination fees. Your MLO should be providing you with an itemized list of expenses related to your home purchase in the Loan Estimate and Closing Disclosure Form. Adjustable or Fixed Rate Loans: During your consultation with your lender’s representative or MLO, you will be asked what your loan goals are. Based on this conversation your loan officer will present to you adjustable and fixed rate products that you will qualify for. Fixed rate loans are financing products that


will not fluctuate or change throughout the life of the loan. Fixed rate loan periods are 30, 15, and 10-year indebtedness instruments and the lower the amortization period the higher the payments will be. Adjustable or variable rate loans are home financing products that have a tendency to change (go up or down) over the life of the loan. An example is if you get an adjustable mortgage today with 4.0% interest and the market interest rates increase your interest rates will follow thereby resulting in a higher monthly mortgage payment. That is the negative scenario for an adjustable loan, what happens if the market interest rate drops? Then your monthly payment becomes lower as well. It is always advisable to ask your MLO if an adjustable or fixed rate loan is best for your specific situation. First-Time Home buyer Requirement

A first-time homebuyer is a person(s) who has not owned and occupied their own home in the last three years unless you are buying a home in an IRS Designated Targeted Area Census Tract. If you have owned a home and sold the home more than three years ago, you are considered a first-time home buyer.

FINANCING YOUR LA HOME Now let’s go to the essence of this guide and start you off with getting as much information on different private initiatives and government home loan programs for FTHBs, sources of down payment, and closing cost assistance that is available to Los Angeles County home buyers. We can assist in getting you into low or moderate-income loan programs that allows government and private funding towards your home buying expenses. Call, text or email us to get more information and to find out if you qualify for the many programs available to LA County home buyers. Get a no obligation, free consultation by calling Jocip @ 818.925.0169. Get more real estate and mortgage loan insights, information, and the latest news by visiting his website – JocipSarmiento.com or connect with him on social networks @JocipSarmiento. Jocip Sarmiento is licensed in the State of California both as a Mortgage Loan Officer (NMLS 1587755) and a Realtor (CalBRE 01916370) who has successfully helped clients since 2003.


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Buy & Sale | CA Real Estate & Homes for Sale | Granada Hills Homes for Sale  

Looking for Granada Hills Homes for Sale, here you can instantly search and view photos of all homes for sale in Granada Hills, Los Angeles,...

Buy & Sale | CA Real Estate & Homes for Sale | Granada Hills Homes for Sale  

Looking for Granada Hills Homes for Sale, here you can instantly search and view photos of all homes for sale in Granada Hills, Los Angeles,...

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