San Jose Mortgage Brokers – A Review

The benefits of consulting a San Jose Mortgage Broker are many. They will give you valuable tips on everything related to getting mortgage easily. They will advise you on things that you should avoid prior to purchasing a home. A common mistake that a majority of first time home buyers make is to rush to purchase things for their new home no sooner the seller agrees to their offer of purchase and a financial institution pre-approves the loan as there are some major obstacles that have to overcome before the buyers get the keys to the new house. Here are a few things that a San Jose Mortgage Broker will ask you to steer clear of during the process of home buying so that you are assured of the transaction taking place smoothly.

Put The Credit Card Down

Do not buy anything expensive. This is something that a San Jose Mortgage Broker will stress on. You will be tempted to invest in a new sofa to keep in your new living room but it is always best to not make major purchases such as electronic equipment, cars, furniture, jewelry, vacations or appliances till the deal is not closed. If you pay for furniture with a credit card of your own or that of a store, your credit worthiness would be jeopardized just when it means a lot. Even if you pay for big items in cash, there could be a problem as several banks take a buyer’s cash reserve into consideration when approving a mortgage.

What Is Required To Get Approved For A Loan?

A San Jose Mortgage Broker would advise you not to change jobs while you are buying property as lenders prefer seeing a consistent history of jobs. Generally, jobs that are challenging do not affect the ability of a person to be eligible for a loan, more so if one is going to make more money. However, for some, changing jobs during the process of loan approval could raise concern and also affect their application. A San Jose Mortgage Broker will recommend you to not move your money around or switch banks when you are in the process of purchasing a home. When lenders review loan packages, they ask for latest bank statements for past two to three months on money market funds, savings accounts, checking accounts and other such liquid assets. Most loans need an accurate paper trail for documenting the source of funds. A lender might find it difficult to document funds if banks are changed or money is transferred to other accounts, even for consolidating funds.

A San Jose Mortgage Broker will ask you not to give a good faith deposit to a seller directly in FSBO purchase. The rule is that the good faith deposit does not belong to a seller till the deal is closed. An FSBO seller might be unaware of the fact that good faith funds of a buyer are to be applied to their expenses at the time the deal is being closed. It is best to get a neutral party or attorney to hold this deposit or keep it in some trust account till the deal is closed. It should be mentioned in the purchase contract as to who should get the funds in case the deal falls through. San Jose Mortgage Brokers will tell you not to disregard the requirements of the lenders. You might have got pre-approval for a loan but this does not mean that you now have nothing to do with your lender. For the loan to be processed, the buyer has to meet some requirements. Lenders will require copies of bank statements and W2s besides other paperwork. It is your duty to give all this to them as quickly as you can. If you fail to submit specific qualifying documents, you could lose the financing and loan that you require to purchase your dream house.

How Much Do You Qualify For And Can You Really Afford it?

A question that people want the answer to before they begin searching for a home is how much they can borrow. A San Jose Mortgage Broker will help you out with this as he/she will have access to several tools that will aid you in seeing how the monthly payment, down payment and amount that you borrow are interrelated. An experienced San Jose Mortgage Broker will have all the answers to the questions you might have on the process of mortgage. They will be of great help to get buyers pre-qualified for mortgage loans. A San Jose Mortgage Broker would also help home buyers who wish to know the size of the monthly payments that they can afford. According to a San Jose Mortgage Broker, buyers will have to consider all their monthly expenses while determining the size of monthly payment that they can afford. Tangible expenses like utility bills, day care and car payments all have to be taken in to consideration in determining the amount of monthly payment that a buyer can afford. They will also have to take into account lifestyle expenses and intangible expenses. Things like travel, dining out and buying another car will affect the amount that you could afford. It will help you to decide if you are willing to delay or curtail some such expenses to pay for a bigger monthly installment. A San Jose Mortgage Broker will inform you whether you could afford a San Jose home will be your own decision. There are many factors that play a role here like the amount that you can borrow, the sum that you can give as down payment and the size of monthly payments that you can afford.

A Little More Information Your Should Now

A San Jose Mortgage Broker will also be able to counsel you on the amount of down payment that you can make. Buyers usually see the money that they have ready as the sole source of down payment but this is not right. A way for funding or even partially funding a down payment is to use a gift. Grandparents, parents and other members of the family are usually keen on helping by giving gifts in the form of cash towards the acquisition of a house. There are assistance charities for down payments that could be of help to you. If a buyer is also selling a house, the equity they have built could also be applied to their down payment. Keep in mind that there are many other options besides these. Get in touch with a San Jose Mortgage Broker as they will help you in exploring all the options related to down payments like hundred percent mortgage financing or low payments, among a few, that could be ideal for you. They will also guide you on how to purchase a better rate. If you plan to keep your mortgage for some time it would be ideal to purchase a low rate of interest by paying a couple of “points”. You might not be sure of the length of time you want to keep the mortgage before you refinance or move, however, paying points to get a lower rate makes sense. For instance, you might have a job that pays you highly but you might get into another career after a few years. An expert San Jose Mortgage Broker will help you to sort this out and get you a loan that is perfect for your goals and means, so call one today!

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