Home Mortgage Loan Officer Tells You How You Can Live in Newport Beach
You can't choose a better place to live than Newport Beach, California. There are great schools, amazing nightlife, and low crime rates. The whole area is almost custom-designed for families, and you'll always have access to plenty of parks, bars, and restaurants. But if you're looking to buy a home, you may have noticed that the housing market is tough. Read on for a home mortgage loan officer's take on how you can live in Newport Beach.
If you feel pressure to buy right this instant, you won't be able to get the best deals. Time of year is an important consideration. Spring and summer are normally the biggest buying and selling months in the area, with the most houses for sale and the most property closings. if you're willing to wait until the "off-season," you may be able to find sellers willing to lower their prices to avoid waiting another cycle to sell.
Likewise, if you're determined to live on the water you should expect to pay a premium. If you're willing to go in a few streets, you'll get a lot more property for a better price.
Save Up a Down Payment
The bigger down payment you can make, the better your mortgage terms will be. While some people jump at mortgage loans that only require down payment percentages in the single digits, if you can put down a minimum of 20% you'll be in much better shape to get the best loan rates and avoid extra hidden costs. You'll also be able to pay down the whole loan that much faster.
Save Money on Rent
People are waking up to the fact that renting is nearly twice as expensive as owning a home: i.e., if you owned the place you're currently renting, your mortgage payments would be half your current rent.
In California in particular, the average renter is paying nearly 30% of their income in rent. So how can you save money? Consider your long-term goal. If it's to relax on your beachside property in your own home, are you willing to cut your expenses now to reach that goal? Consider renting some place cheaper, and put aside the difference every month towards your goal.
Build Wealth With Homeownership
Your ultimate goal may be to actually live in Newport Beach, but you don't have to buy there first to start making money. Whenever you buy a home anywhere, you are building equity as you pay down your loan. In fact, your mortgage and house are a bit like a forced savings plan.
By buying something you can afford now, elsewhere, you can increase your real wealth, build liquid cash savings, and keep moving towards your goal of owning your own home in Newport Beach.
Improve Your Credit Score
The better your credit, the more mortgage options will open up. Start by checking it carefully for errors. As many as one in five people have an unnoticed error on their report that's dragging their credit score down. When you find an error, notify the credit bureaus immediately.
The next way to get your credit score up is to pay off your debts. Say you have debt on three credit cards and a student loan, and you currently send each $100 a month. Instead, pay only the minimum balance due on three of those and send all the extra to whichever is the smallest debt until it's gone. Then turn to the next smallest debt and get rid of it. As you pay down debt, you'll build momentum, stay encouraged, and improve your credit score quickly.
Meet With a Home Mortgage Loan Officer
Living in Newport Beach can be within your reach! Contact Justin Purpero today and talk with a mortgage officer to find out how to get the home of your dreams.