San Angelo Real Estate
Steps to Homeownership
Buying a house can be a daunting task, but with my help, we can take each step together and build a solid financial future to get you to homeownership. San Angelo Real Estate can be an overwhelming landscape to navigate, so let's connect and get you started on the right path!
Getting Ready To Buy
Finances & Credit
01
Credit Reporting & Cleanup
Understanding where your credit stands before buying a home is very important to getting started in the process of applying for a home loan. There are many resources to use online that allow you to look at your reports thru all 3 reporting agencies and correct any discrepancies. The 3 major reporting agencies are Experian, Equifax & Transunion
03
Pre-Approved
Once your mortgage officer assesses your credit and financial details, they may offer you pre-approval for the requested loan amount. Typically, this pre-approved status comes with an official letter that you'll provide to your real estate agent, expediting the home purchase process. Securing pre-approval is a crucial step in home buying, underscoring the importance of reaching out to your top local loan company for guidance.
02
Pre-Qualified
Pre-qualification refers to the initial inquiry stage of obtaining a home loan, without guaranteeing approval. Lenders conduct a basic assessment of your financial situation to determine potential eligibility for an official home loan. However, it's crucial to note that pre-qualification doesn't equate to loan approval. Once pre-qualification is completed and you're ready, a licensed loan officer can proceed to review legal documents and personal information for the pre-approval process.
04
Loan Commitment
Loan Commitment is often mistaken for pre-approval due to their similar definitions. However, it stands as the pivotal step in obtaining a home loan, as it solidifies the lender's commitment with precise terms and interest rates up to the pre-approved loan amount. Essentially, it offers a detailed breakdown of what your pre-approval entails. It's crucial to grasp these terms thoroughly before finalizing the loan offered by your chosen mortgage company.
Types of Mortgage Loans
Conventional Loan
Conventional home loans are applicable for single-person applications, regardless of marital status, offering the advantage of keeping your partner's finances separate, particularly beneficial if they have poor credit. However, these loans typically demand a higher credit score for approval. While a 20 percent down payment is advised, some scenarios permit down payments as low as 5 percent.
FHA Loan
Considering an FHA loan? These loans offer the advantage of purchasing a home with a lower down payment compared to standard home loans, but it's crucial to gather comprehensive information about FHA loans in your area and assess if your debt-to-income ratio qualifies you for one.
VA Loan
VA Loans are ideal for military households, catering to both active duty personnel and veterans. If you've served in the United States Armed Forces, especially in areas like San Angelo with a significant military population,
USDA Loans
USDA Loans provide significant advantages for those relocating to rural areas with homes approved through the USDA eligible location program, offering grant assistance through programs like the Satellite Grant Program upon application and approval. Eligibility criteria include meeting household income standards and selecting a property within USDA-designated rural areas qualified for the loan, with further details available through our recommended lenders.
Learning the Lingo
Buyer/Seller Costs are often times not understood fully and can be unexpected expenses to consider when buying or selling a property. Here is a little guide to understanding these common real estate terms.
1
Appraisal
An appraisal is the estimation of a home’s market value by a licensed appraiser based on comparable recent sales of homes in the neighborhood.
2
Closing Costs
Expenses incurred by buyers and sellers when transferring ownership of property. Closing costs normally include an origination fee, attorney’s fee, taxes, escrow payments, title insurance and sometimes discount points.
3
Discount Point
A type of mortgage loan fee that enables a borrower to lower monthly interest rate payments by paying more upfront.
4
Earnest Money
This “good faith deposit” shows the seller you have the intention of completing the deal. It is typically 1% of the sales price.
5
Escrow
An account in which a neutral third party (Title Company) holds the documents and money in a real estate transaction until all conditions of a sale are met.
6
Closing
​An account in which a neutral third party (Title Company) holds the documents and money in a real estate transaction until all conditions of a sale are met.
Not all buyers are looking for Single Family Hones, sometimes the search is for Investment Properties, Short Term Rentals, Commercial Real Estate, Land Developments, Multi-Family Homes and Condomimiums. While some buyers are investing in homes to flip and sell.
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Katherine Martinez values investment opportunities by consulting and partnering with investors looking for profitable opportunities in the market. Call today to analyze your investment dreams here in San Angelo completely FREE of obligation.
