One of the most life-defining decisions you’ll ever make is purchasing your first home. If you do it correctly, it can boost your wealth, and if not, it will result in losses. Justin Purpero can offer you the best home financing advice for those looking for home loan education in Orange County, Ca.

How do I go about getting a mortgage?

Not everyone starts off with a load of money to buy a house, and often have to take out home loans to finance their real estate. A mortgage payment is simply the cost of borrowing (interest) plus the monthly loan repayment. So, the first things you need to sort out are a mortgage lender and the correct type of mortgage.

The type of mortgage you choose will depend on what your future investment plans are and your current financial background. You should also do in-depth research on different types of lenders and what options they can offer you. You can search online for a list of mortgage lenders in your area, or ask for recommendations from friends, family, mortgage coach, or a realtor.

The mortgage market is a confusing world, and full of terminology that’s difficult to understand. This is not ideal because tiny errors can snowball into tremendous consequences. So, you must possess a thorough understanding of how home financing works, using online learning resources, or a coach to help you.

How to choose the correct lenders


You should compile a list of potential mortgage lenders, using either the internet or personal recommendations. To narrow down your list, you should think about asking them relevant questions such as the types of mortgages they offer and how long it takes for mortgage approval. You should inquire about all the costs related to borrowing money from them and ask about the loan processing or underwriting.

We offer home loan education in Orange County, Ca, where we advise clients on different kinds of lenders and how to choose them. So, if you still feel overwhelmed after researching online, we highly recommend using mortgage coaching services such as ours.

How do mortgages differ?


Mortgages differ based on the kind of interest rates (if it’s fixed or variable) and the repayment time. There are also mortgage types for certain demographics like senior citizens (reverse mortgages) and government loans such as FHA or USDA loans. Americans commonly get fixed-rate mortgages (FRMs), because they have a fixed interest rate, and hence, there is less uncertainty about their monthly payments.

You can break down FRMs further into 30-year, 20-year, and 15-year mortgages. Among the most popular options in the US is the 30-year, fixed-rate mortgage. With longer mortgages, the monthly repayment amount is lower (as it’s spread out over a longer time). However, the interest rates are higher because a longer repayment time presents a higher risk for the lender.


Do you want to make the most informed decision regarding your home financing? Justin Purpero offers home loan education in Orange County, Ca, to help you.

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© 2019 by Justin Purpero | Articles