• Your first step is to home-ownership is to  contact a loan officer who is referred to you by someone you trust.  Buying a home is a big step and a big responsibility, so make sure you are dealing with people you can rely on to look after your best interests.

• Be prepared for your first meeting or phone conversation with your loan officer by having your most recent pay stubs, most recent bank statements, and W2s and tax returns from the last two years handy.   Having these items ready will help your loan officer to qualify you for the right purchase price and monthly payment.

• It is also very important to review your average monthly income and outgoing expenses.  Knowing how much money is currently coming in and going out will help you to determine what monthly payment you will be comfortable paying.  You want to be confident that you won’t be overextending yourself when it comes time to pay your monthly bills at your new home.  TIP—print out your last three bank statements and add up the amount of money that comes in and goes out of your accounts each month.  Look carefully at what items you may need to cut out in order to afford a new house.

NO surprises when your first payment comes in the mail.

• Be sure to ask your loan officer these important questions:  How long is the interest rate fixed for?  What are the terms of the loan you are offering me?  How much will my down payment be?  How much are your loan fees?  What will my total closing costs and out of pocket costs be?  What is the interest rate?  What will my total monthly payment be?  You need to be sure you clearly understand how much your total payment will be including your mortgage payment, property taxes, home owner’s insurance, and any HOA dues, mortgage insurance, or special property tax assessments.

Tania Shanahan

Loan Officer Prospect Mtg

Cell: (858) 248-3529

PS. Home prices in San Diego are affordable, and interest rates are still near historical lows.  Right now is a great time to buy a home.  As long as you are smart about your purchase and your mortgage, you will reap the benefits of home-ownership for years to come!!!