Tips for your First Mortgage

Buying a first property is exciting and sometimes mystifying. We all dream of our “perfect home” from the time we’re children. It’ll be on the beach, or in the hills, two-story or with a pool, a large yard or near a great school… we all want the best for ourselves and for our children. Yet, we may end up having to make compromises for availability and cost, and those can be difficult. This is where a mortgage professional, like myself, comes in to lend a hand in helping you decide the right amount to borrow for the home of your dreams.

Do you want the two-bedroom Strand condo so you can jump out of bed on a Saturday morning and hit the surf? Or do you want that one-story house in Palos Verdes with a yard for the kids? Decisions, decisions! You’ll have a lot to choose from the South Bay. No matter what you choose, there are a few simple tenets that I will help you live by. First, your mortgage payment should not be more than 35% of your total income. In some cases, professionals feel that number should be closer to 25%. You’ll want, of course, to get the lowest interest rate you can. Even one percentage point can mean the difference between getting the home you want or the home you can afford. Your credit should be as good as possible to avoid having to have a higher rate.

Remember to read everything before signing! Most people skim through documents (there can be a lot of documents), but it’s important that you understand exactly what you’re getting into.