Documenting your budget and using free online mortgage qualifier tools is a good way to get you to start thinking about how much loan, and which kind, may be best for you. Before you start the process of applying for a home loan, you need to gather up all your important financial records. You need to show all your income sources and liquid assets. Know your credit rating – you can get a free credit report from one of the 3 credit reporting agencies (Experian, Trans Union, or Equifax). Make sure you don’t make any major purchases, move around any substantial amounts of money, or make any drastic employment changes before you apply for a home loan, as these are all things that will be looked into by mortgage lenders.

You need to educate yourself about the many different types of mortgages and interest rates that are available, and which fit you best. Before the subprime mortgage crisis, many first time buyers used Freddie Mac or Fannie Mae to help secure their home loans, but now there is a growing trend among first time home buyers in seeking the benefits of Federal Housing Administration (FHA) Loans. Refinancing and second mortgages are popular with those who already own homes. Anyone looking into a California home loan to purchase Central Coast California real estate for sale needs to know the differences between fixed-rate mortgages and all the other types.

For starters, don’t think of your home as a financial investment, but rather a lifestyle investment. Think about what you want to accomplish most in life and how your home will fit in that picture for, at least, the next five or ten years. Being sure of what you value most in life will guide you in picking your perfect home. If the laid-back country and beach lifestyle of the Central Coast speaks to your heart, as it does to mine, you’re going to love the real estate in Central Coast California!

Of course, you’ll need to be sure you’re financially ready to own a home and figure out how much mortgage you can afford. You need to know your credit rating and make a working budget of all your income and obligations. For most loans, your total monthly debt should not exceed about 37% of your gross monthly income, and your monthly housing costs (including taxes and insurance) should not exceed about 28%. You’ll be at a great advantage if you can get pre-approved for a home loan. Consider using budgeting software, doing plenty of online research, and talking to a financial planner or housing counselor, as well as experienced family and friends.

To me, real estate has always been about a lot more than just real estate, and much more than just home values and property investments. If you think about it, real estate, at it’s core, is really about people and relationships; about personal values and lifestyle investments. I believe if more people could commit to this simple truth of the heart not only would we be more fulfilled in our real estate transactions, but we’d probably be more fulfilled in many other areas of our lives, as well! Not to mention, we would also be more prepared to avoid big mistakes like the ones that happened in the recent home loan industry meltdown and other potential real estate pitfalls.

Some say what we value most in life is where in our hearts we want to spend most of our time, talents and treasure. I say where we do spend most of our time, talents, and treasure is what we value most in life. Do you understand the distinction in what I just said? What do you value most in life and where do you spend most of your time, talents, and treasure?

Here at Central Coast California Real Estate we hope to inspire you to keep in touch with what matters most in your heart, and we’ll continue…”Keeping You In Touch With Realty!”