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27
Mar

Guide For First Time Home Buyers in Los Angeles

We at Casa Bella love assisting homeowners in selling their homes in Los Angeles and homebuyers in making their dreams come true by helping them discover ideal home designs by connecting them with our expert realtors.

We have prepared a small checklist for you to ensure your experience as a first time home buyer remains as smooth as possible.

With numerous real estate listings, there is no doubt that Casa Bella can help you find your ideal home.

Analyze all aspects

Although buying a home can be rewarding, it can also involve much work and be very expensive. Leaks, plumbing problems and other repairs imply expenses that accumulate. When determining if you are prepared to own a home, consider the cost of general maintenance tasks and unexpected expenses.

Check your credit

Analyze your credit report and your FICO score. They will affect the total cost of your loan. Once you obtain your free annual credit report, review it carefully for errors or unresolved issues, and contact the appropriate credit reporting office such as Experian, Equifax or TransUnion, to request a correction. 

Get pre-approved

Your mortgage loan agent can help you determine the loan amount for which you may be eligible through a pre-approval process. Being pre-approved before looking for a house is very useful because it helps you look for houses that are within your price limits. Our real estate agents also value buyers who send offers for a house with a preapproval letter.

Prepare a budget

While pre-approval allows you to calculate how much you may be able to borrow, being comfortable with what you have to pay per month is just as important. Before applying for a loan, especially a loan of the size of a mortgage, it is important to determine how much you can pay per month. Analyze all current monthly expenses, plus how much you save per month. In general, it is advisable to spend no more than 28 percent of your monthly income on housing expenses, including mortgage, taxes, and insurance. 

Do not forget taxes and insurance

Contact a local insurance agent to prepare a quote using a comparable property in the area in which you are looking to buy. To get a better idea of how much you will pay in taxes, check the tax assessor's website. Remember that the amount of taxes paid by a homeowner and what you may have to pay may differ depending on the exemptions granted under local tax legislation.

Make an initial payment

Most mortgage programs require an initial payment to buy a home in LA. The amount of the initial payment required varies according to the type of mortgage program

Start the housing search

Decide the place and think about the characteristics you want for your home. Look at local notices, compare prices for similar homes, and ask your real estate agent to help calculate the amount you will have to pay. If you have not yet consulted a real estate agent, contact Casa Bella here today!

Loan application process

In addition to deciding the type of mortgage you want to take out and calculating your interest rate, gathering the required documentation is a fundamental step that saves you time and frustrations along the way. To ensure a smooth loan application process, you probably need to gather the following:

  • Name and address of the employer (s) of the last two years.
  • Payment stubs for the last 30 days to account for your income for the year to date and current period, in addition to any additional income support documentation.
  • Statements of checking, savings, retirement, and investment account for the last two or three months.
  • Documentation of your credit cards, loans, and other debts.

Close the deal

Once you find the house of your dreams, there are certain steps related to closing the deal, such as negotiating the purchase price, requesting an appraisal and scheduling an inspection. Once you reach an agreement with the seller, you should consider the closing costs. It usually includes start, title, and settlement charges, taxes, and charges that are paid in advance such as owner insurance and neighborhood association fees. Our real estate specialist will calculate all costs related to the property on your behalf.

 

 

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