FINANCING FOR THE CONTRA COSTA AND ALAMEDA COUNTY AREAS

Selecting a lender and choosing a mortgage plan are important steps in preparing to purchase your new home. You will need to choose which type of lender that is best for you. Once you have chosen your lender, your next choice will be the mortgage plan that best fits your financial situation.

Types of Lenders

Mortgage Companies/Brokers

• These lenders work with different investors who finance the loan.
• Choosing this type of lender may increase a buyer's chances of obtaining a mortgage.

Direct Lenders

• Credit Unions, Banks, and Savings and Loans are examples of direct lenders.
• Each of these lenders will have their own loan plans or programs. While these lenders may limit a buyer's selection, some buyer's prefer to deal with local lenders they are familiar with.

Mortgage Plans

Fixed Rate Loans

• These plans have a fixed interest rate that is good for the life of the loan.

ARM (Adjustable Rate Mortgage)

• The interest rates on this plan are variable. The initial interest rate may be low but may change periodically. The rate may go up or down, depending on financial indicators.

FHA or VA

• These government-backed loans have quidelines and limitations but usually have lower, or no, down payments. Borrowers should make sure they discuss any fees associated with this type of plan with the lender.

SOME THINGS TO CONSIDER

Your Financial Situation

• What amount can you afford to pay down?
• What amount monthly payment fits your budget?

Credit Report

• Do you know what your credit report shows?
• Is your credit report correct and up-to-date?
• Are there credit issues you need to resolve?

Applying For a Loan BEFORE you begin your search

• Once you have applied to a lender for a mortgage, the lender will access your financial circumstances and determine the amount you are qualified to borrow.

Bob Rose can refer you to a lender who will help you with the financial part of buying your new home!