:: Newport Lending Corp. ::

We are your local home buying specialists and will find you the best loan at the best rate for your home financing needs and goals, every time.

Pre-Qualification is Critical

In today’s mortgage market obtaining a Pre-Approval is of utmost importance before you start your home shopping process. Most Realtors require a Pre-Approval letter from a mortgage broker or lender before they will schedule any viewing appointments.

Obtaining a Pre-Approval and Pre-Approval letter is a fairly easy process. We recommend to first gather all the necessary requirements for our lenders and/or banks to render an accurate decision. But if you would like to know today, if you qualify for a loan, call us now to conduct a short interview with our licensed Broker at 949-378-6550.

What will the Bank need for Each Borrower to Qualify?

Loan Application 3 months worth of Asset Statements (Checking, Savings, 401K)
Two Years of W2’s 2 Years of Tax Returns (If Self Employed)
30 Days of Pay Stubs Authorization to run your Credit Report

How long will this process take and what is the qualifying process?

We only need 10 minutes, to conduct the loan interview with the applicant to complete the Loan Application. If granted permission, we will run a credit report, free of charge and provide a free copy of the credit report to the applicant. Next step, we run the loan application through Fannie Mae’s Desktop Originator, an online underwriting engine. If granted an Approve/Eligible from the findings… Congratulations you are ready to begin shopping for a house! We will email the Credit Report, the Loan Findings and your Pre-Approval Letter to you!
We will complete all of this for you, free of charge and within the same day of your initial call to our office at 949-378-6550.

The Loan Shopping Process

Once you have been Pre-Approved for a purchase-mortgage-loan, you’re ready to begin! Some say the home shopping process is the most fun, but also the most frustrating part. We recommend taking your time. Find exactly what you desire! This is a very exciting and big decision buying a home! Don’t rush it! Make sure you’re completely informed of all the potential monthly property and loan expenses such as, Property Taxes, Hazard Insurance, Mortgage Insurance and Mello-Roos and HOA (Home Owner Association) Dues if Any. You will most definitely be viewing many properties, so don’t get frustrated, if you don’t initially see what you like. Remember, you are also becoming an expert of the local market by seeing everything available and will have a good sense of purchase value. 949-378-6550

Purchase Strategies

It’s easy to get overwhelmed when deciding how to buy a home with everything you hear in the media about the market. Everywhere you turn there are new market reports, statistics, rates, foreclosures, short sales, auctions and announcements, which makes shopping for a home a confusing time. We believe the best way to begin is to consult a licensed Department of Real Estate professional, but most importantly, find a professional you can trust! Once you find someone you can trust, they will help clarify all of your questions with professional guidance. We would be happy to schedule a time to discuss the market and our purchase strategies at your convenience! 949-378-6550

FHA “First Time Home Buyer”

FHA’s “First Time Home Buyer” Program is a fantastic loan program for desiring, potential homeowners with little money for a down payment. This program allows borrowers to achieve the American dream, of homeownership, with requiring a low down payment of only 3.5% of the total purchase price. FHA classifies a “First Time Home Buyer”, as someone who has not owned a home in three years or more. You will have to document your income and expenses and have a credit score of at least 620. Call us today to see what you qualify for! 949-378-6550

The home buying process can seem complicated, but if you take things step-by-step, you will soon be holding the keys to your own home!

Nine steps to buying a home

Step 1: Figure out how much you can afford

What you can afford depends on your income, credit rating, current monthly expenses, down payment and the interest rate.
Need help with your down payment and/or closing costs?
A housing counselor can help you figure out how to manage and pay off your debt, and start saving for that down payment!

Step 2: Know your rights

Step 3: Shop for a loan

Save money by doing your homework. Talk to several lenders, compare costs and interest rates, negotiate to get a better deal. Consider getting pre-approved for a loan.

Step 4: Learn about home buying programs

FHA loan programs offer lower down payments and are a good option for first-time homebuyers.

Step 5: Shop for a home

If you choose a home in a neighborhood with a Home Owners Association (HOA), be sure to request a copy of the HOA packet, so you can review before closing.

Step 6: Make an offer

Discuss the process with your real estate agent. If the seller counters your offer, you may need to negotiate until you both agree to the terms of the sale.

Step 7: Get a home inspection

Make your offer contingent on a home inspection. An inspection will tell you about the condition of the home, and can help you avoid buying a home that needs major repairs.

Step 8: Shop for homeowners insurance

Step 9: Sign papers

You're finally ready to go to "settlement" or "closing." Be sure to read everything before you sign!
Home Buying 101 written by…


U.S. Department of Housing and Urban Development 451 7th Street, S.W., Washington, DC 20410 Telephone: (202) 708-1112 Find the address of a HUD office near you

Short Sales vs. Bank Foreclosures
A short sale is defined as an over encumbered property whereby the homeowner is usually is serious default and bank has the decision to either foreclose against the homeowner or settle for less than what is owed. When coming across a property that is listed as a “Short Sale”, this means that the homeowner has decided to list the property for sale and hopes that the bank will settle for less than what is owed, before the bank forecloses. Typical time frame for a bank to foreclose is 90-120 days after filing a Notice of Default. Many banks are delaying the standard foreclosure process to provide an opportunity for delinquent homeowners to get current or make other arrangements such as a short sale. Short Sales typically take slightly longer to close than a listed bank owned foreclosure or otherwise known as an REO (Real Estate Owned).

Bank owned foreclosure properties are not necessarily a better deal than a short sale and visa versa. The main difference is speed of closing and negotiating skills. In a short sale, the buyer is waiting for the lender to agree to accept the deal. A short sale is usually a better deal for the lender to accept than waiting for the foreclosure process to carry out. If the lender decides to proceed with the foreclosure process, the lender will have additional interest due, legal and attorneys costs while adhering to the lengthy judicial requirements of foreclosing on a homeowner. There are also benefits for the homeowner to short sale a house vs. letting the property go to foreclosure if they ever want to be a homeowner again. For instance, a homeowner who short sells their house only has to wait 2 years to purchase a home again vs. a homeowner who recently had a foreclosure, has to wait 5 years to purchase again via Fannie Mae guidelines May 31st, 2009.

Both bank owned foreclosures and short sales will have multiple offers and these listings go quick, as these are the properties that are in the highest demand right now. We believe a short sale is worth the wait for the buyer so the deal can be negotiated with possibly some special bonuses, such as, less competition, possibly a credit for buyers closing costs or discounts for repairs. A bank owned property most likely will be in a distressed condition. The home may have immediate serious repairs for a new buyer to attend to from the former homeowner’s financial and emotional distressed condition. The bank sets the sale price with the Listing Agents recommendation for a quick sale and there is little room for negotiation with multiple offers, so the property sells quickly. Both short sales and bank owned foreclosures enable buyers to acquire properties at a substantial discount. Buyers need to understand how they are acquiring the property and fully inspect the condition of the property with a professional home inspector. Call us anytime at 949-378-6550 to discuss further.

Finding a Realtor
Finding a Realtor is an important task before the embarking on the home buying adventure. Look for someone that is…

Licensed by the Department of Real Estate.
Look them up on the California Department of Real Estate’s web site for any complaints. www.dre.ca.gov
Ask how long they have been practicing as a Realtor.
Look for a Realtor that acknowledges they won’t get frustrated with driving to multiple viewings and writing multiple offers.
Ask for references of past clients.
Meet with the Realtor and see if your personalities match.
Find a Realtor you feel you can trust.
Make sure the potential candidate responds quickly to your calls, emails and messages.
Make sure they have a great grasp on the market and the area that you are interested in purchasing a home.
Pick someone you ultimately like, because you are confident that this particular Realtor will work hard to get you a fantastic deal on a property!

***Note- A Realtor’s commission is paid by the Seller. Call us today for our top Realtor picks in Orange County. 949-378-6550.

How do I Shop for a Home?
Once you get Pre-Approved for a loan and find your Realtor, you are ready to begin shopping for a home! Choose a few different areas and cities to start searching in. Your Realtor can set you up to receive emailed listings on a daily basis. Based on your search parameters, you will first receive everything already listed and then you will receive all the new listings that come out daily that meet your criteria. You should work with a Realtor that can take you to view a listing the moment it is launched on MLS (Multiple Listing Service). See Home Buying 101 for further home buying steps. Remember these distressed properties are moving fast! Call us today to get the process started! 949-378-6550

First-Time Homebuyer Credit Tax Credit

Overview

First-time homebuyers may be able to take advantage of a tax credit for homes purchased in 2008 or 2009. The credit:

Applies to purchases that close after April 8, 2008, and before Dec. 1, 2009.
Applies only to homes used as a taxpayer's principal residence.
Reduces a taxpayer's tax bill or increases his or her refund, dollar for dollar.
Is fully refundable, meaning the credit will be paid out to eligible taxpayers, even if they owe no tax or the credit is more than the tax owed.

The credit is claimed using Form 5405.

For 2008 Home Purchases

The Housing and Economic Recovery Act of 2008 established a tax credit for first-time homebuyers that can be worth up to $7,500. For homes purchased in 2008, the credit is similar to a no-interest loan and must be repaid in 15 equal, annual installments beginning with the 2010 income tax year.

For 2009 Home Purchases

The American Recovery and Reinvestment Act of 2009 expanded the first-time homebuyer credit by increasing the credit amount to $8,000 for purchases made in 2009 before Dec. 1.
For home purchased in 2009, the credit does not have to be paid back unless the home ceases to be the taxpayer's main residence within a three-year period following the purchase.
First-time homebuyers who purchase a home in 2009 can claim the credit on either a 2008 tax return, due April 15, 2009, or a 2009 tax return, due April 15, 2010. The credit may not be claimed before the closing date. But, if the closing occurs after April 15, 2009, a taxpayer can still claim it on a 2008 tax return by requesting an extension of time to file or by filing an amended return. News release 2009-27 has more information on these options.
Call us for further information about this credit and down payment options.
949-378-6550