Knowing all facts about home loans in Bonsall or anywhere in California is a must unless you like getting tricked or scammed.
Know that houses in this state are just too expensive, and this was something you had embraced for a long time.
And the last thing you want is to let thieves posing as realtors and lenders to take a bite at you.
Protect yourself, and become an expert when it comes to real estate laws that can make your buying process safer and smarter. Know the laws that can give you a disadvantage.
We may not be able to list all the things you need to know, but we’ll tell you the things you must learn about the mortgage industry in this state. Here are the mortgage facts you should know.
1. You don’t need a perfect credit score.
You must be worried about your credit score not being enough to get approved for a home loan. Well, don’t!
This is especially true if you’re applying for an FHA mortgage loan. Having a credit score of 620 is enough to be qualified.
2. You can take a break from your mortgage payments.
Most people don’t know this, but there are many ways where you can take a break from your mortgage payments.
Most lenders offer forbearance, which is a temporary postponement of your mortgage payment. They do that to avoid foreclosure.
You may be eligible for this option depending on the severity of your situation.
3. Close the deal by end-of-month.
It is better to close the deal by end-of-month instead of closing at start-of-month.
This is because you might end up paying more prepaid interest, which is due at closing.
So make sure to choose your closing date on or before the month ends.
4. Interest rates and fees vary between lenders.
Make sure to take the time to search for your new house before you decide on closing with a mortgage lender.
Each mortgage lender charges different closing costs and other fees, so it’s better to search for the best deal to save you a lot of money.
5. “No-cost closing” doesn’t exist.
No matter how a lender promotes a no-cost closing, don’t fall for it.
Lenders tend to include the closing cost into the loan without you knowing it. Otherwise, they may charge a higher interest rate — which costs you more than you anticipated.
Source: Spring Funding