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© 2019 by Justin Purpero | Articles

Home Loans Orange County CA

Navigating the process of choosing home loans and financing options can get tricky. There is a myriad of different types of mortgage programs out there, and selecting the best one can be daunting. If you need advice for obtaining home loans in Orange County, Ca, contact Justin Purpero.

How much money do you need to buy a house?

Purchasing a new home sounds like and is one of the biggest investment decisions you can make in your lifetime. So, a common misconception is that you need a considerable amount of money to buy a new home. People don’t often buy homes upfront; they usually take out a home loan and pay a down payment and monthly mortgage payments.

A down payment is simply the upfront money you need to have to buy a house, and it’s the first thing you need to sort out in the home-buying process. It is a percentage of the total value of the home that you goes directly to the seller, while you pay the rest using a mortgage program. In a mortgage program, you take out a loan for the remaining value of the home and spend it in monthly installments along with interest.

Lenders look at down payments to evaluate the risk of lending money to you. So, if you lay down a higher down payment, it is proof to the lender that you are committed to paying your monthly mortgage amount. This means lower risk, and hence means lower interest rates and smaller monthly repayment amounts.

How to choose lenders

Asking for recommendations from friends, family, and realtors is a great way to find lenders. You can also find a host of mortgage lenders online. If you need advice on choosing lenders and home loans in Orange County, Ca, call us!

You should find out about the kind of mortgage programs they have and how long it takes for approval. Great lenders can get mortgage approval by around 30-45 days after applying.

What other factors affect mortgage interest rates?

While your personal finances such as credit scores, mortgage duration, and down payments determine the interest rate on your mortgage, it also depends on external factors. Things like inflation, the state of the housing market, and economic growth all affect mortgage interest rates. Interest rate is the cost of borrowing money and depends on the risk of lending money to you.

Inflation depreciates the purchasing power of the dollar and makes money less valuable. So, if inflation increases, mortgage interest rates will also increase, so that lenders don’t lose money.

Economic growth also increases mortgage rates because people generally have higher incomes and more money to spend. However, lenders will have a limited supply of money to lend out. So, by the law of supply and demand, mortgage rates go up.

Are you looking for an advisor to counsel you on choosing mortgage plans and home loans in Orange County, Ca? After advising over 2,000 families and a billion dollars in home loans, Justin Purpero will navigate you through the tricky world of home financing.