Buying a home in Los Angeles is not just a matter of putting down money for the down payment, getting a mortgage and then paying interest on that mortgage. There are other hidden costs which need to be considered: If you are getting a loan your lender will provide you with an estimate of these […]
Should I buy or should I rent a home in Los Angeles? The simple answer is if you can you should most definitely buy, but things are more complicated than that. I am the perfect example of someone who has rented all their life. I do have the excuse of not having stayed in one […]
Buying a home in Los Angeles is not just a matter of looking for one, you need to be ready to make the purchase. Without a formal confirmation from a lender that you qualify for a loan you will not be able to make an offer on a property. And in a sellers’ market you need to make yourself competitive.
When looking for a home to buy in Los Angeles you may be surfing the internet. Don’t assume the site on which you land is that of the listing agent. There is more about why you should not use the listing agent to represent you, but this post is to educate the consumer on what an Internet Data Exchange is (IDX).
When you have found the home you love, your real estate agent will help you decide how to structure your offer in a way that it will be accepted. Here are some points to consider:
The amount of earnest money. This is usually 3% of the purchase price.
The down payment and financing details. Putting anything less than 20% down will most probably result in you having to pay Private Mortgage Insurance, and also will make you less competitive in a sellers’ market.
The overall way that lenders decide how much loan you qualify for, and that is by considering your debt-to-income ratio. This is a comparison of your gross (pre-tax) income to housing and other expenses.
Other expenses include such long-term debts as car or student loan payments, alimony, or child support.