Home Loan Resources

We know it is tempting to begin making your new house a home or to spend your new savings on fixing your existing home, but this is the time to keep your financial picture frozen in a stable position until you hear from us otherwise and until your loan closes. The key is to call us if you wish to make any changes to your financial picture; even the seemingly most logically beneficial moves can backfire and cost you thousands of dollars or even your ability to obtain financing at all.

The Do's

• If anything changes in your employment, income or assets, contact your loan officer.
• Remain in contact with your processor for items needed.
• Make sure you have signed and returned any necessary documentation requested as this can often hold up your process.
• Continue to pay your mortgage payment.
• Continue to pay your other obligations as normal.

The Don'ts

• Do not make any major purchases.
• Do not apply for new credit.
• Do not increase your usage of your revolving debt.
• Do not allow your credit to become delinquent with any of your creditors.
• Do not change status of your credit accounts without discussing with your loan officer. If there are items on your credit that are inaccurate, discuss resolution with your loan officer before disputing.
• Changes to your debts or payment habits may impact your credit score and qualification which can disqualify you or change the fees of your loans.  

The Do's and Don'ts While Your Loan is Processing

For more information, check out our interactive Mortgage Guide.

Appraisal appointment

An appraiser will contact you to set up an inspection appointment.  Please accept one of the soonest available dates, as appraiser’s calendars book fast.  Setting the appointment for a later time may impact your rate lock expiration.

Home improvements in progress

A property inspection is not advisable when completing home improvements or where there are unresolved safety issues.  In these cases, the appraiser will need to return for a second inspection to confirm the pending items were completed, resulting in an additional charge.  Examples of items that will result in a second inspection:

• Missing walls, flooring,  windows, cabinets, countertops, sink, toilet, shower, handrails
• Kitchen, bathrooms, appliances, electricity, running water, gas not in working order
• Fence significantly leaning
• Stucco falling off
• Cracked foundation
• Signs of water damage or infestation
• Holes in walls, or wall with exposed wiring or plumbing
• No heat source
• Bedroom windows with bars without quick releases
• Swimming pool  not filled or fill but without safety features
• Locked room that was not inspected by appraiser
• Clutter piled up such as boxes, preventing inspection of floor/walls/ceiling

Water heater

Except for tank-less, all water heaters deserve a special mention as they have several components that may result in a second inspection at an additional appraisal charge:

• Water heater needs to be visible.  Locked cabinets/room need to be opened
• If the water heater is not inside a cabinet, it needs to be secured by double strapping
• Gas water heaters inside a room (typically a garage) need to be ventilated (raised 2 feet from the ground)

Manufactured

The appraiser must be able to access and read the manufactured home documents and plates

• HUD documents, usually located in a storage area near washer/dryer/heater
• Plates are usually located outside

Appraisal Inspections Tips

Interest rates offered on 1st mortgages may change daily and are not guaranteed by California Coast Credit Union until locked. Initially, your interest rate will float (will not be guaranteed) until receipt of income documentation and the Closing Cost deposit. Once the loan is approved, your rate will be automatically locked.

Buying Down Locked Rates

A maximum of 1.5% Points may be paid by the applicant to buy down the interest rate.

Lock Expiration

If the interest rate should expire prior to the closing of your loan, it may result in a rate increase or lock extension fee. Loans may not be “re-locked” at new market rates. Instead, an option to extend your rate may be available. Requests for extensions will be reviewed on a case by case basis and price will be determined based on market conditions.

Price Adjustments

Initial Rates and Prices quoted are based on the information you provided. If the verified information changes from initially indicated, Rates and Prices are subject to change. Examples include, but are not limited to, FICO score below 740, Loan-To-Value increasing after verifying value with an appraisal verified property type as Condominium instead of Single Family Residence, and concurrent subordinate financial.

Purchase Pre-Approval

Rates will not be locked at Pre-Approval. A fully executed purchase agreement must be obtained and income documents supplied prior to rate lock. Until documents have been confirmed, all rates are considered floating.

Transfer of Servicing

At our discretion, a certain percentage of funded loans will be sold to other financial institutions.

Rate Lock Disclosure

When it comes to something as important as purchasing a home, you can save yourself valuable time by deciding what you want and what you can afford.

What Does Your Dream House Look Like?

First things first! Start by creating a list of features you want your home to have. How many bedrooms and bathrooms? Do you want the maintenance of a yard or a swimming pool? Determining what your dream house consists of will help you in your search. Remember however that everything costs and maintenance and routine repairs can be costly. Depending on the amount of money you qualify for in a mortgage will determine what features of your house you may have to do without.

Secondly, you need to determine where you want to live. If you have children, or are planning on having a family someday, then a home in a good school district may be a necessity for you. Are you just starting out, or looking to downsize from your current home, then a condominium or town home may be the best choice for you.

How Much House Can You Afford?

Now that you have narrowed down your choices, the next step is to see what you can afford. You can get a rough estimate of how much house you can afford by using our mortgage calculator. It helps to know how much you will most likely qualify for by getting pre-qualified for a mortgage.

Pre-Qualify vs. Pre-Approved

Being pre-qualified is different from being pre-approved and it's important to know the difference. A loan pre-qualification means that your income and expenses have been reviewed and plugged into a debt-to-income ratio formula. It typically does not include an in-depth analysis of your credit report or look at your true ability to afford to buy a home.

Getting pre-approved for a mortgage indicates how much house you can afford, what your interest rate will be, and it lets the seller know that you are serious and you can afford to purchase their house. When you are a pre-approved buyer you are basically already approved for a mortgage and just subject to a property appraisal. Your pre-approval status can act like a bargaining chip for you when you begin the negotiating process with the seller.

Going...Going...Gone!

Once you are pre-approved and find the home you want, you are ready to make an offer! This can be the most tedious part of the process because you as the buyer want to get the best deal, and the seller wants to get the best price. A third party or a real estate professional can really help you to negotiate an offer that is reasonable to both parties.

Once your offer is accepted, now starts the actual home sale process which includes an appraisal of the property. A home inspection is no longer required by the lenders but highly recommended to have one done for your protection. Your real estate agent can recommend a licensed inspector.

Purchasing a home whether it's your first or you're down-sizing can be a very time-consuming tedious process. The knowledgeable and friendly home loan representatives at California Coast Credit Union are available to take the hassle out of your home buying process. Please call us at (877) 495-1600 and one of our Member Service Representatives will be happy to assist you. At California Coast Credit Union we have your best interest and are committed to help you through the process.

There are certain milestones that mark important times in our lives. Sitting in car for the first time all alone with our new driver’s license, walking across the stage at graduation, completing college or beginning our first full-time job. These all make us take a pause and feel a huge sense of gratification. 

Part of the American dream is to become a homeowner. We dream of a place that we can call our own. A place that is comfortable and safe. A place we are proud of. A place where we can plant the roots for our future. To some however, the process seems so overwhelming and the concern of whether or not you are “doing it right” deters some from achieving the goal. 

So how do you know if you are ready to become a homeowner? Here are six areas you will want to consider that will make your decision to buy a home the right one.

1. Are you ready to settle down? 

Not to say that you will never move again, but take a look at your current life-stage. 

Do you have a steady income? Are you looking to be in your current job for a while? Are you ready to start a family? Are you ready for the responsibilities of home ownership? Are you ready to use some of your skills, or maybe the skills of a family member or friend and make a property your home? If you feel you are ready, it’s time to make a list of the things you must have in a home. How many bedrooms? How many square feet? How many bathrooms? Ranch or split level? 1,2 or 3 car garage? How much yard? Town or country? How far from work? School district? 

All are very valuable first questions that you need to evaluate. Homes can serve as one of the first investments in young people’s lives. With a little work and TLC, making a house your home is a goal many young people have. It’s a big responsibility, but if you know you are emotionally ready and are willing to do the preparation work to make sure you are financially ready, this will be a great move for you. 

2. Is your credit history good?

Though it is a good idea to always stay on top of your current credit situation, if you are interested in homeownership, it is a great excuse to do it now. If you have blemished credit or the inability to make down payment it might get in the way of your plans. That's why it pays to look at your creditworthiness early in the home-buying process. Get your free annual credit report at www.annualcreditreport.com, and comb through it for errors and unresolved issues. It is also a great way to have an opportunity to do some credit “clean-up” if there is anything in your credit score or rating that might be holding you back. If you find mistakes, contact the credit reporting bureau to make sure they are corrected. 

3. Do you have all your documents ready?

Collect pay stubs, bank account statements, W-2s, tax returns for the past 2 years, statements from current loans and credit lines, and names and addresses of your landlords for the past 2 years. Have them ready to share with a potential lender such as your local credit union. This may seem like a lot, but in this age of tight credit, don't be surprised if your lender needs a lot in the way of documentation.

4. Find lenders and get pre-approved.

Getting pre-approved for a mortgage helps you bargain from a position of strength when you are house hunting. The institution where you bank or local credit union are good places to start your search. Being organized with all your documentation will put you in a position where lenders can offer the best rates in your area. Click here to get a free Cal Coast rate quote.

Applying to multiple lenders in the same month helps increase your chances of getting a loan approved at the best rate possible without dinging your credit score too much. So set up a meeting with a loan agent and lay out your financials with them. They will help you work within the recommended 28% of your gross income that you can typically get approved for. They will help you see where you are financially and determine what would be the best price range or you to consider. 

This will also allow you to limit your house hunting to the appropriate price range. Having this pre-approval not only saves you time in your house hunting process, but it will also make you a “preferred buyer” in the eyes of a seller since you already have your financing locked in. Real estate agents appreciate the efforts to get this done as well and makes their job of helping you locate properties much easier as well. 

5. Have you looked at the houses that are available?

Talk to reputable realtors in your area about the real estate climate. They will have insight into the current market in the area you are interested in. They will know what’s available and often times can have insights on properties that are not yet officially on the market. Of course there are commissions that realtors earn and you can seek online resources to find potential homes. Realtors, however, can help with the all the paperwork from offers to counter offers to the closing. Their insight can be a huge advantage.

Keep in mind that if this is your first home purchase, your “dream home” may not be out there because of your current financial status. Finding something in your price range that may need a little work is probable. Always remember, paint and some new flooring can go a long way in making it more comfortable. 

Your efforts to make the house a home will give it that feel you are looking for. At the same time always remember to look at the big picture. While buying a house is a great way to build wealth, maintaining your investment can be labor-intensive and expensive if you let it be. When unexpected costs for new appliances, roof repairs and plumbing problems crop up, there's no landlord to turn to, and these costs can quickly drain your bank account.

6. Do you know how a mortgage will impact your budget?

You could use a mortgage calculator from your local credit union to get an idea of what your monthly mortgage payments would be if you bought at a certain price. Find out what your total monthly housing cost would be, including taxes and homeowners’ insurance. Click here to use Cal Coast's mortgage calculator.

Another area that can surprise new home buyers is how much you'll likely pay in closing costs. The upfront cost of settling on your home shouldn't be overlooked. Closing costs include origination fees charged by the lender, title and settlement fees, taxes and prepaid items like homeowners’ insurance or homeowners' association fees. Any information that would make this purchase fit your wallet, bank account and future better is recommended. It will be a major purchase, but if done correctly and within your budget, it will be one of the best financial decisions you can make.

Home ownership is a huge step. If you are ready to make the commitment and have the financial means to do so, congratulations. This part of the American dream is possible with the right planning, preparation and maybe some old fashioned hard work. Stay on top of your financial well-being and always remember the value of your local credit union in making this a reality. When you pull into your driveway after the closing with your house keys in your hand, take a moment to take in what you accomplished. 

Here are some important check lists for your home loan or home equity line of credit.

• Home Loan Purchase Checklist
• Home Loan Refinance Checklist
• Home Equity Checklist
• Termbuster Home Loan Checklist