Financing Your Purchase
Although the conforming* 30-year mortgage is still the most popular choice for financing a home, it is far from the only option available. In fact, it might not even be your best choice in every circumstance.
Before you proceed with your purchase, you should be familiar with other mortgages that may offer better rates, graduated payments, tax advantages or even the opportunity to build the equity in your home at a faster rate. Just click the mortgage types link in the menu on the left for an explanation of some of the more popular options that are available and a comparison of their features.
The Mortgage Types link will lead you to explanations of the general mortgage process and the closing costs that may be involved. When you have finished, please try the mortgage calculator to get a preliminary idea of your buying capacity and then, please click the links to our preferred lenders for more information on their rates & programs.
For the more analytical buyer, there are also links to information about holding title, the tax benefits of a home purchase and about 1031 Exchanges for the investment buyer.
You should know that if you are really serious about purchasing a new home, your first step should be to meet with a lender that you trust and obtain either a Prequalification Form (PQF) or the more extensive Loan Status Update (LSU). These documents affirm that you qualify for a specific loan amount based on your representations.
Let me emphasize that this is not merely an educational exercise. The Northeast Valley is a very sophisticated market and, despite the fact that neither the PQF form nor the LSU must be submitted with an initial offer, sellers will rarely consider offers without assurance that the buyer can qualify to purchase their home.
In any event, if an offer is accepted, a buyer has just 5 days to submit a Loan Status Update from the lender that confirms their qualification and their intent to work with that specific lender.
If you are uncertain about your options, just click on Contact Me and let me help.
*In our local market, the term “conforming” refers to conventional mortgages of up to $417,000 which
conform to guidelines established by FNMA. Loans over that amount are provided by
private sources and are generally referred to as Jumbo loans.