Mortgage Law in California
In Walnut Creek, California, a mortgage is a loan given to purchase a certain piece of property - usually a house - with the property being purchased with the loan serving as collateral for that same loan.
Getting a mortgage is a big decision. Nonetheless, if you have decided to buy a house, and determined that you can afford it, a mortgage is probably your best bet. Real estate is very, very expensive. So costly, in fact, that it would be impossible for almost anyone to buy a home if they had to pay the full price up front. A mortgage allows the seller to get paid quickly (from the bank), with the buyer paying the bank back with interest, over a period of many years, in reasonable installments.
Buying something on credit creates further costs. Because lenders make their money by charging interest on loans, borrowers end up paying far more than the purchase price when they buy a house (or anything else) on credit.
Nonetheless, many people who buy their homes with a mortgage find this extra long-term cost to be worth it, since a mortgage might be their only way to buy a home.
Getting a Mortgage in Walnut Creek, California
When attempting to get a mortgage in Walnut Creek, California, it's critical to have a long track record of good credit. In lending such a large amount of money, banks take a significant risk. However, if you mitigate that risk somewhat with proof that you always pay your debts, you are a far less risky prospect, as far as the bank is concerned, making them far more likely to approve a loan.
The majority of lenders require a down payment on any mortgage. This is normally represented as some percentage of the total purchase price. Lenders require this to show that the borrower is financially solvent, indicating that they are typically responsible with their money. You should ensure that you have more money than the required down payment saved up, so that making this payment doesn't hurt your financial situation.
Another critical factor is having a good understanding of your own finances. This is less common than you might think. You should make sure that the purchase price of the home, and the resulting mortgage payments (along with property taxes, fees, and inevitable repair costs) are well within your budget. If they aren't, you should opt for a cheaper house, or wait until you have a higher income.
Once this is in order, it will be time to finish the credit agreement. When this happens, there is no going back. Therefore, make sure you are perfectly clear about each and every term of the mortgage agreement, knowing your rights and obligations.
Can a Walnut Creek, California Real Estate Attorney help?
Because of the gravity of the decision to buy a house, and the complexity of some of the issues incorporated, it is never a bad idea to seek the help of a Walnut Creek, California real estate attorney if you have any questions whatsoever.