With real estate prices reaching near bottom and interest at such low rates, many Apple Valley real estate buyers are thinking of purchasing a home (or two, in some cases).  Before purchasing High Desert real estate experts, The Crown Team, recommend that potential buyers do a little research prior to making such a move.

A little up front foot work can save a lot of grief on the back side.  Most financial institutions have tightened their lending guidelines and increased their down payment requirements.  No longer can someone purchase a home without a down payment or documented income, nor can owners refinance multiple times without sufficient equity in the home.  See your lender early, if you don’t have a lender let us know and we will refer you some of the best.  We work with lenders every day so we know who you want to know and who to stay away from.

One of the primary factors financial institutions consider in their decision to lend is a strong credit record.  Borrowers can increase their chances of being approved for a home loan by requesting their credit report and FICO score at least six months prior to applying for a loan.  This allows the consumer to dispute errors and/or pay any outstanding debt.

The first step in deciding whether or not to purchase a home is deciding how much a borrower can afford.  Recommendations for home buyers is to spend no more than 31 percent of their gross income on a home payment, including principal, interest, insurance, property taxes, and homeowners’ association dues.  When being pre-approved for a loan amount it’s important for you to know that you may be qualified as high as 40-42%.

Home buyers also should have a savings account with funds available to pay for home maintenance and unforeseen emergencies, such as a job loss. 

First-time buyers who are concerned about a potential job loss may apply for the CALIFORNIA ASSOCIATION OF REALTORS® Housing Affordability Fund, Mortgage Protection Program.  This Mortgage Protection Program provides qualified, first-time home buyers with up to $1,500 for up to six months to help make mortgage payments, if they are laid off.  Applications must be submitted by a California REALTOR®, among other qualifications.  For more information about MPP, please visit the Housing Affordability Fund Web site or contact the Crown Team.

Check with your lender, if you don't have a lender we would be happy to recommend some that we personally know are honest and will have your best interest at heart...we know who the best lenders are, we work with them every day.

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