Financing and Insurance
Although a newcomer to the Los Angeles metropolis, you may not be new to the home-buying process. Even so, it’s helpful to review all the steps involved in the process along with information on LA–area resources and conditions. Since LA has a relatively healthy real estate market, finding the right type of mortgage for your home is made simple by the abundance of property choices. With proper research and the help of a reliable real estate professional, purchasing your LA home should be a rewarding experience.

NAVIGATING THE FINANCING PROCESS
As you prepare to purchase a home and seek financing, it is best to first have a realistic view of the all the steps involved. The financing process can take anywhere from 15 to 45 days, but typically takes about 30 days. Your agent should be involved throughout the process to help it run smoothly. Following is a basic timeline for what will happen along the way. Each step is covered more thoroughly in this chapter.
  • You submit a completed Uniform Residential Loan Application Form 1003 and any required supporting documentation to your lender.
  • The lender orders an appraisal of the property, runs your credit report and begins verifying your employment history and assets.
  • The lender provides a “good faith” estimate of closing and related costs, plus initial Truth-in-Lending disclosures, which, by federal law, must be provided by your lender within three days of first running your credit report.
  • The lender evaluates your application and supporting documents, approves the loan and issues a letter of commitment.
  • You sign the closing loan documents, and the loan is funded.
  • The lender sends its funds to escrow.
  • All appropriate documents are recorded at the local county recorder’s office, the seller is paid, and the title to the home is yours.

HOW IS YOUR CREDIT?

Before you even begin applying for a mortgage loan, you’ll need to evaluate the state of your credit. There are three major credit-reporting agencies in the United States that maintain records of your credit usage: Equifax®, Experian® and TransUnion®.

These records are called credit reports, and lenders will check your credit report when you apply for credit. Generally, lenders also will want to know your credit score. A credit score is a number that summarizes your credit risk, based on a snapshot of your credit at a particular point in time. A credit score helps lenders evaluate your credit and estimate the risk of lending to you. By reviewing this report beforehand, you can identify any issues that due to fraudulent activity and work toward correcting them.

NATIONAL CREDIT-REPORTING AGENCIES
Equifax: (800) 685-1111,
www.equifax.com
Experian: (888) 397-3742,
www.experian.com
TransUnion: (800) 916-8800,
www.transunion.com

To request a free copy of your credit report once a year, call (877) 322-8228 or visit
www.annualcreditreport.com. For more information on credit reporting, visit the Federal Trade Commission Web site at www.FTC.gov.

FICO SCORES
The most widely used credit scores are FICO® scores, created by Fair Isaac Corporation. Lenders can buy FICO scores from all three major credit-reporting agencies. Lenders use FICO scores to help them make billions of credit decisions every year. Fair Isaac Corporation develops FICO scores based solely on information in consumer credit reports maintained at the credit-reporting agencies.

Your credit score influences the credit that is available to you and the terms (e.g., amount, interest rate) that lenders offer you. Understanding your FICO score is a vital part of helping you manage your credit health. By knowing how your credit risk is evaluated, you can take actions that may lower your credit risk, and thus raise your credit score, over time.

1
2
3
4
5
 
Chapters
As one of the largest metropolis areas in ...
Now that you’re relocating to the Los Angeles ...
One of the highest priorities for relocating families ...
Staying healthy is the key to enjoying life. ...
In this chapter, you’ll find information on different ...
The Los Angeles-Long Beach-Santa Ana Metropolitan Statistical Area ...
QUALITY OF LIFE Called the City of Angels and ...
While just the thought of relocating can be ...
Los Angeles is the largest city in California ...
STAYING ORGANIZED BEFORE THE MOVE You’ve just received exciting ...
Buying a House and Making it a Home ...
Purchasing a house is a big decision to ...
Many people relocate to Los Angeles each year ...
HIGH-RISES, MID-RISE, LOFTS AND TOWNHOUSES ABOUND IN THE ...