SRAR and CAR Together for First Time Home Buyer

As a full board member of the Southland Regional Association of REALTORS (SRAR) you are included as a member of the California Association of REALTORS (CAR). Members of both SRAR and CAR are the recipients of many benefits.

Your membership with SRAR automatically includes educational programs that are intended to enhance your knowledge in a wide range of relevant and proven strategies for today's REALTOR^® . We offer ongoing educational programs that help you in technical areas of MLS system usage, regular events designed to allow you to network with other REALTORS^® and classes that are updated on a regular basis to provide better - more efficient ways of communicating with your client.

As a member of CAR you have the benefit of an association that can provide information on current legislative Real Estate issues. CAR offers a wide range of Professional Development and Educational programs, Winforms, free marketing tools, a legal hotline, discounts on insurance and other essential REALTOR^® business tools.

On April 12 and 13, CAR held its Southern California Home Buyer's Fair at the Los Angeles Convention Center. SRAR was proud to be a part of this highly informative event.

For over 30 years CAR, together with the California Housing Finance Agency (CalHFA) has supported the needs of first time home buyers. CalHFA's primary goal is to provide financing and programs that create affordable housing opportunities for individuals with specified income ranges. CalHFA's mission is to finance below market rate loans to create safe, decent and affordable rental housing and to assist first-time home buyers in achieving the dream of homeownership.

To help the first-time home buyer CalHFA has put together a list of Top Ten Tips your client should know BEFORE buying a home.

1. BEFORE you start looking for a home, get pre-qualified for a loan.

The lenders will take an application, process the loan documents, and see the loan through to the funding stage.

2. Marginal or Bad credit - consult your lender.

You may still be able to qualify for a loan depending on how long ago and why your credit was affected.

3. You may need a down payment.

CalHFA loans are all 100% financed.

Requirements do vary depending on the type of loan; however CalHFA offers MANY down payment assistance programs which could include loans or grants depending on the down payment required. Talk with a lender about programs available to you.

4. Funds for closing costs.

Closing costs are fess charged for services related to the closing of your Real Estate transaction. These fees could include, but are not limited to:

a. Escrow fees

b. Title policy insurance fees charged by the title insurance company

c. Mortgage insurance

d. Fire, flood and homeowners insurance

e. County recorder fees

f. Loan origination fees

Speak with a lender for an estimate of these costs.

5. Some loans have points and some do not.

Points are fees charged by a lender equivalent to 1% of the loan amount. Some lenders may charge points in exchange for a lower interest rate.

A CalHFA loan does NOT have points and limits the fees a lender can charge you.

6. Mortgage rates can be fixed or adjustable.

This choice can be made based on whether mortgage rates are high or low, and how long you plan on living in your home.

7. There are two main types of loan categories:

a. Conventional loan - Conventional mortgage loans are available with fixed OR adjustable rate loans.

b. Government loan - These loans include Federal Housing Administration, fixed and adjustable rate mortgage loans and Veterans Administration fixed rate mortgage loans.

8. Low and moderate income homebuyer.

There are special programs designed to help you. These loans are available through private lenders, as well as local and state housing agencies.

9. Mortgage insurance.

Mortgage insurance protects the lender from loss if you should default on your payment. Conventional loans usually require larger down payments and DO NOT require this insurance. Mortgage insurance is required on FHA mortgage loans.

10. First time homebuyer counseling.

These organizations provide classes for the first-time homebuyer. These classes will cover home selection, REALTOR^® services, lenders, loan programs, home ownership responsibility, saving for a down payment and other important information.