Hello, friends. Here’s my monthly update on the outlook for current rates in general, but first — information about loans for first-time home buyers. Skip to Current Rates here.

Loans for First Time Buyers

With rates falling again and a lack of inventory in many regions in California, especially the Bay Area, the home buying season is going to be a hectic one again in 2020. Loans for first time buyers will be a challenge as they feel the pinch with many multiple offers to compete with. I will include a series of information for first time buyers over the next few months that may be of use to you or someone in your sphere of influence.

How to Get a Mortgage as a First Time Home Buyer

“Mortgage 101”

I start with an informational meeting I call “Mortgage 101.”

This is my free consultation with you that usually involves one big data dump to introduce you to the mortgage industry. Then I continue your education throughout the home buying process to arm you with information.

Analyze Your Buying Situation

I look at your personal, unique, financial scenario, educate you regarding what you need to know about the mortgage process, and lay out your options based on what loan products you can qualify for, whether or not you have the funds for a down payment, and your monthly payment requirements.

I analyze your individual situation and help you understand what you can purchase and what price range fits within your budget. At that point, if you are ready, I will collect your information and we can start the preapproval process.

  • If you have great credit, and easy access to a down payment for 20% or more of your desired home price, that’s fantastic!
  • If not, I will work with you to explain your options, including giving you concrete steps for raising your credit score, and different types of financing and insurance that will make your dream possible!

Shop Our Database of Lenders

Next, we will shop our database of over 100 lenders for you to find the loan you need at a great rate, that gives you the most bang for your hard-earned ratings and bucks.

First Time Home Buyer Programs

There are different types of first-time home buyer programs. Variations are impacted by your credit scores/credit history, type of job, income level, available funds, and property location.

The short answer is:

No matter where you are in your life, your credit history, or accumulated savings, talk to us. If you have:

  • limited credit (shorter length of time)
  • limited breadth (lacking multiple types of credit)
  • a lower credit score
  • less money for a down payment, or
  • any combination of these…

we have access to programs that will provide you with the funds to purchase your first home.

Current Rates

February Rate Environment Was Hot!

Rates fell slightly on 1/31/2020, back to the lowest levels last seen on 10/4/2019.

As of halfway through the month of February, rates are still in that zone and this is longest amount of time it has been here since rates started dropping on 6/5/2019.

Refinance Madness

I don’t know how long this will last but we are back in the thick of refinance madness and it may go for a while, maybe through 2020. All lenders are getting backed up, including me! With this increased volume, I am not able to be proactive and alert you about this opportunity. So if you think your rate is high enough that you should check with me for a free consultation, please reach out.

— As always, your loan guy
Viral “Vic” Joshi

P.S. Check out my top producer awards for 2019 & 2020!


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