First Time Home Buyer

What you need to know as First Time Home Buyer

The first step is to get a loan preapproval letter from the lender. The lender will need some required documents such as paystubs, W2, and bank statement to evaluate the maximum loan amount that the lender is willing to lend. After getting the loan preapproval letter and knowing the available amount for down payment, you can narrow down the location and home styles. This will assist you to find the homes.

About the monthly mortgage and other fees?

Most of the customers would like to ask the question of how much for the monthly mortgage or total monthly fees.

You may search online for basic mortgage calculation.

What is PITI?

PITI is for principal, interest, tax, interest.

What you should not do while applying for a mortgage?

Don’t use a credit card or get a new credit line while you have a mortgage during escrow. This may impact the mortgage application and lender funding.

Two Taxes you must know.

Property Tax (based on the property tax rate and the house purchasing price)

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

Resources about Property Tax in below four counties:
LA County – Pay Your Property Taxes
San Bernadino County – Tax Collector
Riverside County – How to Pay Your Taxes
Orange County – Treasurer -Tax Collector

Supplement Tax

A supplemental assessment is an adjustment in real property valuation resulting from upward changes in assessed value due to changes in ownership or completion of new construction. You can access the county’s website. For example: LA County – Supplemental Secured Property TAX Bill

Contact your lender for details. Not all the Mortgage Company will pay this bill.

How much for closing cost?

On average, you can base on 1%-1.2% for closing cost and the closing cost will be varied based on the transaction and requirement.

The closing cost is including Title Policy, Escrow Fee, Notary Fee, Endorsement, Processing/Funding Fee, Underwriting, Appraisal, Flood Certificates, Recording fees, Prepaid months of Insurance and Taxes and etc.

You may check Closing Costs Calculator or contact me for more information.

What are other fees?

If you purchase a home with the association, you may need to pay monthly homeowner association ownership fee.