For more information, contact me:
Joan Trossen, Realtor© / Broker
(909) 653 . 4341
joni@AskJoni.com

FIRST TIME BUYERS CORNER
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Definition of first-time buyer:
Generally, anyone who has not purchased within the last three years.


If you purchased and/or sold real property a number of years ago, rest assured there are many changes in the buying process. Not only are computers used in all facets of the business, but we have "tighter" credit guidelines.

I have included many credit articles within this website. All mention the importance of credit scores. The "gold standard" is the Fair, Isaac & Co. score, because of its wide use by lenders. It is California law that credit scores be made available to you, the consumer. A U.S. Senate bill has been presented to include all states.

Until such time as "they" make it simple and standard, Equifax and FICO have joined forces on the internet to supply your credit report to you, including the scores at their website MyFico (or ficos at a price).

Buyers may have been led to believe there is "no hope." During a telephone interview, buyers have called me stating "their broker or lender" told them they couldn't buy, but neglected to take the time to explain the reasons. I will help you evaluate your loan potential. A credit report must be available to determine just where you stand. First-time buyers have been guilty of omitting pertinent facts which immediately signify "Credit Risk." If you have not heard from a creditor for some time, don't make the mistake of believing they have forgotten. They haven't. A creditor knows they will get paid, eventually; it is on your credit report and must be reckoned with.

An excellent credit report allows you, as a first-time buyer to obtain the loans. When your credit needs repair, or your income is short-term or sporadic, your loan officer, perhaps your banker's representative, will know what kinds of mortgages are offered and can help you choose a program fitting your set of circumstances.
VA Financing
CalHFA
and the most popular today FHA, 3.5% down,
FHA 203k repair loan
as well as the ever-increasing HUD-owned homes.

The above information-gathering-interview is called "being pre-qualified for a loan." You will simply know how much you can afford to buy, and it will speed the process toward pre-approval and approval of your home loan.

Upon receipt of your credit report and your latest paystubs, I will prepare our Buyer's Tour.

Upon acceptance of an offer, (preferably before), the aforementioned Loan Pre-Approval is mandatory, as soon as possible.
  • All documentation substantiating your income for at least the last two years (only declared income stated on your most recent income tax forms can be used);
  • copies of your complete checking and savings account statements for the past six months;
  • social security numbers for both your and your spouse, (if spouse works or not and if both are applying for the loan);
  • evidence of any other assets like bonds, stocks, 401ks, child support, SSI letters, retirements;
  • two most recent paycheck stubs detailing your earnings and deductions;
  • complete divorce papers to support child support payments, etc., if requested;
  • landlord's/manager's name, address and phone number (for last two years).
The most frequent reason for a loan to be delayed is:
BUYER NEGLECT.

The loan officer is generally your main contact. However, when any lender assistant/underwriter/funder, etc. requests an item, no matter how small, it must be produced as soon as possible. Partial documentation is not satisfactory. Your inability to obtain even the smallest item should be immediately communicated to either the lender or me immediately. Several people will be working on your file/package. Sometimes copies are mislaid, especially when they are faxed.

THE MORTGAGE
Four parts of most loans consist of

  • Principal: the repayment of the amount you actually borrowed;
  • Interest: payment to the lender for the money you’ve borrowed;
  • Hazard insurance: a monthly amount to insure the property against loss from fire, smoke, theft, and other hazards required by most lenders; and
  • Property taxes: the annual city/county taxes assessed on your property, divided by the number of mortgage payments you make in a year.

    Most loans are for 30 years, although 15, even 10- year loans are available, too. During the life of the loan, you’ll pay far more in interest than you will in principal - sometimes two or three times more! Because of the way loans are structured, in the first years you’ll be paying mostly interest in your monthly payments. In the final years, you’ll be paying mostly principal.

Go to more info on First-time buyer stuff

Joan (joni) Trossen, [E-MAIL]
Not Your Ordinary So. CA - Riverside / San Bernardino County - Broker / Agent
40 years of service
I want to be your Southern California Realtor®
909 . 653 . 4341

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