Website design By BotEap.comFor most people, the fun part of looking for your next home is seeing what different houses and neighborhoods are like. The streets of Highland Park do not remotely resemble the neighborhoods of Atwater Village. Nice as it is, however, it still requires a bit of effort.

Website design By BotEap.comBut the real work, and what has the biggest financial impact toward your goal of buying a home in Northeast Los Angeles, is getting the right financing. It helps to at least be pre-qualified for a loan before you make an offer, and better yet, before you even look.

• Reasons for Prior Approval – If you are looking for a home in Mt. Washington, Garvanza or Eagle Rock and find something that is priced well, you know that the competition can be high for your offer to be accepted over other bidders. So it’s to your advantage if your agent can say, “buyer is pre-approved.” If the seller is motivated (i.e., wary of waiting a few weeks to find out that the highest bidder can’t qualify for a loan), he might go with a lower offer from a buyer who appears to be more solid.
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• What the skeptics say – A pre-approval is not a certainty that you will get the mortgage, let alone at a particular rate and set of favorable terms. The process of getting pre-approved involves minimal paperwork just to get you started, so you know you’re “in the ballpark.” It identifies a price range that is appropriate for your income level and probably a credit check that would identify “red flag” issues. But because home documentation requirements have gotten much stricter in the last decade (after the 2008 financial crisis), it will be necessary to provide prior years’ tax returns and answer questions about sources of income (eg. eg, “What was the source of this $30,000 deposit last month?”).
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• How to do it – Gone are the “no documentation” loans that existed before 2008. That’s probably a good thing, since most homebuyers want to be able to keep their homes, enjoy their time there, and build asset value over the long term. of years to come The documentation you will need is: Proof of income (W-2 statements, most recent pay stubs, and proof of any other sources of income, such as alimony, pay bonds, royalties, or residuals); employment verification (with a phone call to your employer and possibly the most recent previous employer); proof of assets (investment account statements, savings of any kind, appraisals of property you already own, and if you are receiving down payment assistance from a family member or friend, a letter stating it is a gift and not a loan) .

Website design By BotEap.comLenders generally give the best interest rates to people with a credit score above 740; that’s true whether you’re shopping in Hermon, Glassell Park, or Highland Park, as well as anywhere else in Northeast Los Angeles. But if it falls below that, it doesn’t mean you can’t get a loan. It just means that you may have to settle for less favorable terms.

Website design By BotEap.comPlease note that with the self-employed, the requirements for income documentation are significantly higher. People considering going out on their own are strongly encouraged to get a mortgage and buy a new home that they think they will be able to afford before taking that step.

Website design By BotEap.comA NELA real estate agent with experience in home transactions and the lending process can provide referrals to mortgage lenders and brokers, and show you homes that may be of interest to you.