First Time Home Buyer

Mainly divided into five categories

1. Monthly loan fees for buying a house
2. Need to get the loan pre-approval letter (pre-approval)
3. Pay attention to the property taxes
4. Closing costs 
5. And other related costs

1.Monthly loan fees for buying a house

Most customers will ask what is included in the monthly housing expenses after buying a house. What is PITI? PITI means Principal, Interest, Taxes, and Insurance

Basic mortgage calculation

As a reminder: When buying a house, if you have applied for a loan, please do not use a credit card or apply for a new credit line. This may affect your application for a home loan.

2.Need to get the loan pre-approval letter (pre-approval)

If you need a loan, the first step is to get a loan pre-approval letter. You will need to provide some documents, such as: pay slips, W2, and bank statements, etc. It is very important to get the loan pre-approval letter and know the amount of down payment. And then through a comprehensive discussion and evaluation, we can help you find suitable housing.

3.Pay attention to the property taxes

You must know property tax and supplemental tax

• Property tax (is calculated based on the housing tax rate and purchase price)

Calculation example: If the property tax rate is 1.2%, the purchase price of the house is $1,000,000. The property tax is $12,000.

• Supplemental tax

Supplement tax is an adjustment to the valuation of real property due to a change in ownership of the home or new construction. You can go to the county’s website for more information.

Links to property taxes in four counties are provided below:

LA County – Pay Your Property Taxes
San Bernadino County – Tax Collector
Riverside County – How to Pay Your Taxes
Orange County – Treasurer -Tax Coll 

4.What are the Closing Costs required to buy a home?

On average, the closing costs of buying a house is about 1-1.2% if it is a cash purchase. If it is a loan, the required fees will be higher. The closing cost required to buy a house will vary depending on the content or conditions of the transaction.

If it is a loan, the closing costs required will be higher.

Closing costs include title policy, escrow, notary, loan, home inspection, flood certificate, city registration, prepaid insurance and taxes, etc.

You can view the online closing cost calculator or contact me for more information

5.Other related costs

Each house will have different fees, the most familiar one is HOA.

If you purchase a property with HOA community management, you may be required to pay a monthly community management fee.

The above are the money-related things you should pay attention to when buying a house for the first time

If you have any questions or demand about selling or purchasing homes, please contact me.