If you are planning on buying a home in the next year, there are a few things you should do before you start looking: decide on the neighborhood that will provide you with good schools and a reasonable commute to work; get your credit reports and confirm all the information is accurate; and learn the difference between pre-qualified and pre-approved mortgage loans.

What Does Pre-qualified Mean?
The first thing you need to know is that being pre-qualified for a mortgage does not guarantee you will get one. When a lender sits down to talk to a prospective buyer, they will ask questions about the buyer’s credit, assets, and income. It’s important to note that no verification of income and assets takes place and no credit check is run. Pre-qualification is based solely on the information you provide to the lender, and it does not mean you will secure a loan.

What Does Pre-approval Mean?
When you are pre-approved by a lender, it means your credit check has been approved and your income and assets have been verified. The lender has made the decision to lend you a certain amount of money to purchase a home. The real estate agent and the seller know you can buy the house if you like it. A pre-approval letter from the lender defines how large a mortgage you are approved for. There is usually a time frame, such as 120 days, to use the pre-approval for the purchase of a home.

To Get Pre-approved You Will Need:

  • At least two years of W-2 forms, several weeks of current pay stubs that provide year-to-date income, two most recent tax returns, plus, proof of bonuses, alimony, and any other earned money.

  • Bank and investment account statements, which provide proof of assets that can cover the down payment and closing costs. If you receive money from family to use for your down payment, you will need a gift letter stating no loan is involved.

  • A credit score of 740 or higher to get the lowest interest rates. If your score is lower, you will have to pay more in interest or possibly make a larger down payment. FHA loans require a minimum of a 620 credit score.

  • A copy of your driver’s license and Social Security number. You will also have to sign a release form allowing the lender to pull your credit report. You may be asked to provide additional paperwork if you have any specific circumstances that can affect your loan.

A pre-approval letter is what you need to get before you go house shopping. Do your preparation work before approaching a lender. Be cooperative, answer all the questions you are asked, and provide requested documents promptly. Once you have your pre-approval, it’s time to find your new home.

1-626-252-0839 Sell While the Market is HOTT!  What’s Your Home Worth? Find out Now! 

If you’ve been thinking about selling your home, chances are that you’re excited about the possibility of moving and starting a new chapter of your life. Simply deciding to sell your home isn’t enough, though. The process of putting your home on the market can be overwhelming and time-consuming, so before you try to sell your property, you need to ask yourself a few questions. Being honest with yourself and with the people around you will help you have a more positive selling experience when you’re ready to move. 

What is Title Insurance and Why Do I Need It?

Most kinds of insurance are self-explanatory. Fire Insurance protects against losses from fire. Collision Insurance guards against the cost of a crunched car. Theft Insurance—well, you get the point. But Title Insurance? What does it mean to insure your title to real estate? And what are the risks that make title insurance important? I asked Pacific Coast Title Company these questions and here’s how they answer them.What is title insurance and why do i need it?

Real estate has always been considered man’s most valuable possession. It is so basic a form of wealth that many special laws have been enacted to protect ownership of land and the buildings which stand on the land. You should realize whenever you buy property that the owner who is selling it to you has extremely strong rights as do family and heirs. Also, there may be others—in addition to the owner—who have “rights” in the property you are going to buy. These may be governmental bodies or contractors or individuals who have perfectly proper unpaid claims against the property. Anyone who has such a claim is, in a sense, a part owner. The property may be sold—to you—without the party who has a claim knowing about the sale. And you may know nothing about such a claim at the time you buy. It doesn’t matter. Such claims may remain attached to the real estate you have purchased.

Will You Get A Clear Title?
It is of the greatest importance that you do. But this means that you must be informed about any of these claims
against your land so that you can make certain they are cleared up before you buy. And it means that you must be
protected against any undiscovered claims that may arise in the future to threaten your title and the possession of your property. Title Insurance provides this two-fold protection.
How Do You Learn What Claims Exist?
By a search of the public records. This is the first step Pacific Coast Title takes in order to insure your title. They keep track of recorded documents which might affect the title to every parcel of land. Some things a title search uncovers are any unpaid taxes or mortgages, judgements against previous owners, easements, court actions and many other recorded documents which can affect title to real estate. They find and report such defects in the title to the real estate you wish to buy, so that these matters can be cleared up. It is the first benefit you receive when title insurance is ordered.

What If There Is A Defect In The Title Search?
This can happen. We call them “hidden risks”—the undiscovered claims which may arise long after you have
bought your home. Protection against loss from claims on real estate which cannot be discovered by examination of
the public records is the second part of the two-fold benefit which title insurance provides. The title to the home which you have paid for—and to which you have received a deed—could be seriously threatened or completely lost by such circumstances as a forgery, confusion due to similar names, error in the records—to cite just a few hazards.
How Does A Title Insurance Policy Protect Against All These Dangers?
If a claim is made against your title as insured, Pacific Coast Title Company protects you by:

1) Defending your title, in court if necessary, completely at their expense

2) Bearing the cost of settling the claim if it proves valid, in order to protect your title and keep you in possession of your property.

By Now, You Know The Answer To Our Question – What Is Title Insurance?
It is assurance that possible clouds on the title to the land you are buying— which can be discovered from the public
records—have been called to your attention so that such defects can be corrected before you buy. And, it is insurance
that, if any undisclosed claim covered by your policy arises out of the past to threaten your ownership of real estate, it will be disposed of, or you will be reimbursed, exactly as your title insurance policy provides. What is title insurance and why do i need it?
Unlike other forms of insurance, the original premium is your only cost as long as you or your heirs own the property. There are no annual payments to keep your Owner’s Title Insurance Policy in force.

Its super important that when you are ready to buy or sell a home you select a Real Estate Broker that is knowledgeable about the entire process from start to finish and aligns themselves with a team of professionals that have your best interest in mind.The Ruvalcaba Group prides themselves in their commitment to educate their buyers and sellers through the home buying and home selling process to ensure that you are not wondering what is going to happen next. 

Call/email/text us with any questions you may have regarding buying, selling, and financing real estate! We’d love to guide you through the process! 

(626) 252-0839 Direct/Text