THE LOAN DOC: TIPS TO AFFORD YOUR DREAM HOME

April 1, 2009 — Reality....Buying your first home can be intense, but still can be FUN with the right people. There are many professionals out there that are willing and able to help you with this process. But the more that you understand this process, the easier and more comforting this experience will be remembered with pleasant memories.

You first need to align yourself with a good loan officer and have him refer you to a real estate agent so as not to get led down the wrong path. I am not here to scare you, but I am not here to paint a pretty picture and just tell you to trust anyone that says "I promise" or "don't worry". These are commonly used terms in the mortgage and real estate industry.

Over the coming weeks, I am going to give you advice, my opinions, and my expertise as a loan officer with 20 years of experience just in the mortgage industry.

One piece of advice is that this can sometimes take time. It's not like shopping for clothes, furniture, or even picking out a car for that matter of fact. Sure, I could get you approved for a mortgage in 1 day. You shouldn't be waiting last minute to do that though. My concern is do not buy a house just because you need to be out of someplace by a certain date. And DON'T wait with 2 months left before your rent lease is up. I am starting to see this as a problem as of lately. Just because there are a lot of homes on the market, it doesn't mean that you have a better chance of finding your dream home. Talk to a realtor that knows the area well. Don't forget, there are other buyers out there also, looking for the same. Meaning..... more people will bid on the better homes out there, with multiple offers. That is why getting not only pre-qualified for a mortgage is important, but possibly Pre-Approved (knowing the difference).

On a more serious note, especially now, rates can move on you at any given time as quickly as a hot air balloon can go up. You need to be working with a professional loan officer that understands the market, rates, and regards to rising rates and why. Getting good advice to when you should lock in your interest rate can go a long way. If dealing with an application taker, it could cost you thousands of dollars.

Watching the market is especially important if you already have contracts on a home. I locked in a few of my clients last week because I do keep an eye on the bond market daily. But if you are still shopping for a home, that lender won't be able to lock you into a rate until you actually find a home. You want a trusted loan officer that is on top of this and giving you updates and not waiting until the last minute. And keep in mind when shopping for a mortgage, don't always focus on Rate. Payment is just as crucial.

Lastly, even if you are just starting out, start saving a little here and a little there. Sure, there are a couple of mortgage financing options out there with even 100% financing programs like the USDA rural housing program or VA loans. But each program is different. Word of advice, speak to someone qualified and not just fatherly advise even though he may mean well. Or those that just bought a home, your neighbors, or even co-workers. As mentioned above, rates and programs can change daily.

Jim Copeland is a senior loan officer with Windsor Capital Mortgage. Over the last 20 years, Jim has assisted homeowners in making educated and informed decisions regarding real estate finance.

Get quick, accurate and honest answers from Jim for all your residential lending questions.

Contact Jim @ 858.414.4592 or e-mail loandoc@eastcountymagazine.org