How to Choose a Home Loan

Yorba Linda, CA, Jul 7, 2015—After the trials of choosing your house—attending open houses, calling your agent at all hours, scouring the internet for new listings—you may think the hard part of becoming a homeowner is over. However, choosing the right home loan can easily be as arduous, if you don't know what to look for.

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“Your real estate agent has information on lender loan requirements and will be able to calculate a rough monthly figure you can afford based on the maximum monthly payment for the loan, taxes, insurance, and any type of maintenance fees,” says Scott Daniel, REALTOR® at CENTURY 21 Award . This pre-purchase evaluation can save you a lot of time spent looking at properties you cannot afford.

“Lenders also routinely calculate what you can afford and can pre-qualify you for a loan even before you begin your home search,” says Scott. This way, you know exactly how much you can afford to buy.

Lenders generally stipulate that you spend no more than 28 percent of your gross monthly income on a mortgage payment or 36 percent on total debts.

“A lot will depend on the length of time you plan to live in the home, other financial obligations, and potential savings gained from comparing the monthly costs of a home against the up-front costs and closing costs involved with a particular loan,” comments Scott.

Also, you will need to be comfortable with whatever choice you decide to make. Trust your instincts and do not be pressured into signing for a loan that will not really work for you.

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For more information on home improvement, please contact Scott Daniel at sdaniel@century21award.com, (714) 420-0292, or www.Century21Award.com/agents/ScottDaniel

For additional real estate information, please contact CENTURY 21 Award at info@century21award.com, (800) 293-1657, or CENTURY 21 Award.