If you are thinking of buying a new home in Palm Desert, CA, be prepared to enjoy sunshine, blue skies, mountains, and desert environment. Many “snowbirds” have chosen to become residents after visiting this desert oasis which includes multiple resorts, golf courses, and spas.
Palm Desert has become the shopping destination and main center of business activity in Coachella Valley. Protecting the desert environment and promoting the natural landscape is a priority with both the residents and local government. With the expansion of Fred Waring Drive, slowing down of suburban sprawl but also encouraging new retail centers and commercial zones, Palm Desert is becoming one of the most sought after cities to live in.
What’s the First Step?
The first thing to do is to find someone to help you obtain a loan. This should be someone you feel comfortable with and who you can trust with your personal and financial information. He should be available to answer any questions that may arise. He should be an experienced and knowledgeable loan officer who will guide you through the loan process from beginning to end.
Questions You May Have
Lots of questions will arise during the process. Don’t hesitate to ask your loan officer when a question comes up. Common questions include:
What loan types are available? Common loan types include fixed rate, adjustable rate, balloon, and interest only.
● Fixed rate loans have the same interest rate for the duration of the loan. This means your monthly payment will never change.
● Adjustable rate loans allow the actual interest rate to change at specific intervals. This means your monthly payment can increase or decrease depending on the interest rate when these intervals occur.
● Balloon loans have a low interest rate but the duration of the loan is only 5 years. You will be expected to pay the loan in full at that time.
● Interest only loans allow you to make payments on the interest only for the first 10 years. The principal is added at that time and your payments will increase.
Your loan officer will be able to investigate these and other loan types and determine which will work best for you.
What interest rate will I get? Interest rates vary daily. The interest rate that you receive on your loan will be determined at the time your loan closes.
What documentation is needed? You will have to provide both personal and financial information to begin the loan process. Your employer will fill out a Verification of Employment form and a Verification of Deposit form will be sent to your banks. Along with the information obtained from these forms, you will also have to provide your pay stubs, tax records, housing costs, credit history and information about any other assets you have. Your loan officer will advise you on what information is needed, help to fill out the loan application, and get it done in a timely manner.
Existing Homeowner Options
Do you already own a home in Palm Desert, CA? If so, and you are in need of some extra cash, it might be time to get a refinance loan or even a home equity loan.
Refinancing your existing mortgage at a lower interest rate will make your monthly payments decrease. You can also use the equity you have earned in your home to get a home equity loan which can come in the form of either a lump sum or a line of credit. Either of these options will give you extra cash to pay for unexpected medical bills, college tuition, remodeling or repair of your home, or even a family vacation or a new car.
To qualify for a refinance loan or home equity loan you will have to go through the same steps listed above for obtaining a new mortgage.
Whatever lending needs you are considering, one of our knowledgeable loan officers is here to help. Contact us today to schedule an appointment.
