Newport Beach Homes – Harbor Realty

If you are considering a move the Newport Beach area, you are probably also considering your mortgage options. Choosing the right mortgage can be a complicated process at times. However, with the help of a professional Newport Beach Realtor and mortgage broker you’ll be able to determine the home loan most suitable to your needs.

Before you even begin your search for Newport Beach homes it is important to obtain a pre-qualification letter from your local bank or mortgage broker. Being able to provide this letter of approval when you are ready to make an offer will provide your offer with a solid foundation. When sellers know that you have been pre-qualified for a home loan matching their home value they are much more likely to accept your offer over someone who does not have pre-qualification. However, it is important to remember that a pre-qualification letter does NOT guarantee approval of a home loan once you have found the home of your dreams.

For example, Suzy Q goes to the bank to obtain a pre-qualification letter. At this time Suzy Q has little credit card debt and her car loan is almost paid off.  She obtains a pre-qualification letter for a specific amount and begins her search for Newport Beach homes. Over the next four months Suzy Q gets excited about the possibilities of owning her own Newport Beach home and begins a buying spree of new furniture to outfit her new home. Additionally, she feels that having a new car to match her new home is important. When Suzy goes to get approved on a home loan for the same amount she was previously approved for she is denied: her new found debt will not allow her to make the payments necessary on her new home with her existing salary.

After you obtain pre-approval from your bank be sure to curb your spending habits.  Now is not the time to make large credit card purchases or to buy a new car.  Depending on the amount spent you could either decrease the amount of the loan approval or lose it altogether. Keeping your spending habits to a minimum during your search for Newport Beach homes will enable you to buy a home in a higher price range.

In the recent past, mortgage companies were extremely flexible. While it has always been preferred that the borrower provide a fair percentage of the Newport Beach property value as a down payment it was not always a requirement. However, with the economy and credit crunch very real in our lives today Orange County Mortgage Brokers have again changed their standards for Newport Beach home loan approval.

If you dream of owning Newport Beach homes it will be important that you save at least 20% of the purchase price of your Newport Beach home. For example, if you are considering purchasing a Newport Beach condo for approx. $400,000 you should have at least $80,000 ready to use as a down payment. If you are looking at a Newport Beach home from $700,000 you should have at least $140,000 ready to use as the down payment.  And if you are looking at a one-million dollar property in Newport Beach have $200,000 saved specifically for use as a down payment.

The larger the down payment you make, the less you will need to borrow and less interest will be accrued, this means that you will pay significantly less over the long term.

The best advice is to speak to a professional Newport Beach Realtor at Harbor Realty who will be able to help you determine the right amount for your family to pay for the down payment of your Newport Beach home.