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For home buyers, buying a home will probably rank as one of the biggest personal investments one can make. Being organized and in control will contribute significantly to getting the best home deal possible with the least amount of stress. It’s important to anticipate the steps required to successfully achieve your housing goal and to build a plan of action that gets you there.
Before you can build a plan of action, take the time to lay the groundwork for your decision making process.
First, ask yourself how much you can afford to pay for a home. If you’re not sure on the price range, find a lender and get pre-approved. Pre-approval will let you know how much you can afford, allowing you to look for homes in your price range. Getting pre-approved also helps you to alleviate some of the anxieties that come with home buying. You know exactly what you qualify for and at what rate, you know how large your monthly mortgage payments will be, and you know how much you will have for a down payment. Once you are pre-approved, you avoid the frustration of finding homes that you think are perfect, but are not in your price range.
convenience for all family members
proximity to work, school
crime rate of neighborhood
local transportation
types of homes in neighborhoods, for example, condos, townhomes, co-ops, newly constructed homes etc.
There are also some sellers that you should avoid. Not every seller is as genuinely motivated as they make themselves to be. Some possible hints:
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Finding the Right Seller
The best seller is one who is highly motivated. A highly motivated seller is more likely to sell at a price that is less than his or her house is actually worth. And it matters that you find out why. Learning the reason why can help you get the price you want and help the seller get what they want: a timely sale.
When given the opportunity to meet with sellers, ask them why they are selling. The reason could be anything, such as a job change to a new location or financial problems. If you can solve their problem, whether it is cash related or time-related, do so. For example, if the sellers are highly motivated because they need to move quickly, give them a fast sale – and a lower price. If you can make an offer, even a low one, that gives them cash in a short time, they are more likely to accept.
There are also some sellers that you should avoid. Not every seller is as genuinely motivated as they make themselves to be. Some possible hints:
they stall on having the home appraised or inspected
they are unable to clear up liens against their property
they do not own 100% of their property
they push back the move-out date
they do not have a replacement property or back up plan
etc.
There are also some sellers that you should avoid. Not every seller is as genuinely motivated as they make themselves to be. Some possible hints:
Loan Week Recap: Choose the Right Mortgage & Get Qualified in Today’s Market
Loan Week Recap: Choose the Right Mortgage & Get Qualified in Today’s Market
By Cari, Real Estate Success Coach — Burbank | Toluca Lake | San Fernando Valley
Introduction
If you’ve been watching, I hope you’ve seen the pattern: buying a home today isn’t just about finding the right house — it’s about choosing the right loan and making sure you qualify for it. In high‑cost markets like Burbank, Toluca Lake and across the San Fernando Valley, the loan you pick and how you prepare for it can dramatically impact your success.
This week, we tackled five critical loan topics:
The hype (and the caution) behind 50‑year mortgages
Adjustable Rate Mortgages (ARMs): when they make sense, when they don’t
The power of VA loans (and why so many eligible buyers aren’t using them)
FHA vs Conventional loans: the trade‑offs and what fits you
How to qualify (and optimize your profile) for a Conventional loan
Below you’ll find each of the five videos, each loan topic broken down with real‑world context, what it means for a buyer in our area, and free guides/tools you can download and use today.
🗓️Day 1: 50‑Year Mortgages — Lower Payment, but What’s the Trade‑Off?
Key points / analysis:
A 50‑year mortgage spreads your debt over a longer term, which reduces monthly payment.
That sounds good in theory — especially when home‑prices are high and monthly payments feel steep.
But here’s the catch: you’ll pay more interest overall, build equity much slower, and in many cases remain “mortgage‑in‑hand” far into your future (even retirement).
In the Burbank/Valley market: because home values tend to appreciate and competition is strong, building equity sooner and reducing risk makes a big difference.
Questions to ask your lender:
What will the monthly payment be now versus 15 or 20 years from now?
How fast will my equity grow (based on amortization schedule)?
If rates drop, will I have the ability/refinance flexibility?
Am I comfortable holding this loan for 30+ years?
When this might make sense:
If you have a short time‑horizon (e.g., you plan to sell in 5‑7 years) and need a lower payment now.
If you’re comfortable with risk, low equity growth, and understand the longer‑term trade‑offs.
📘 No download today (focus was education)
Local tip: In Burbank, where median home price is high, the temptation to stretch for “just a little less payment” is strong — but don’t let the payment mask the long‑term cost.
🗓️Day 2: ARMs — Risky or Strategic?
What we covered:
ARM = Adjustable Rate Mortgage. You have a fixed period (for example 5, 7 or 10 years) with a lower rate, then the rate adjusts periodically.
Pros: Lower starting rate → lower monthly payment initially. Can help buyers qualify sooner when rates are high.
Cons: After the fixed‑period, rates (and therefore payments) can increase — sometimes significantly. Payment shock risk.
What to evaluate:
Length of fixed‑rate period (e.g., 5, 7 years)
Adjustment intervals (how often rate changes thereafter)
Caps (maximum increase per adjustment and lifetime)
Do you plan to stay in this home longer than the fixed period?
When an ARM fits:
You’re planning to sell or refinance before the adjustment kicks in.
You expect your income to grow significantly in the short term.
You have a short‑term strategy and are comfortable with uncertainty.
When an ARM doesn’t fit:
You intend to stay 10+ years in the home.
Your budget can’t absorb a possible rate increase.
Local consideration: In our competitive SoCal market, staying power matters — if you’re getting in now to build long term, a fixed might offer more peace of mind.
📥 Download: [“ARM vs Fixed Comparison Guide”]
Local tip: Use the comparison worksheet to plug in scenario: “What if rate increases 2% in year 6?” “What is payment then?” — and judge your comfort.
🗓️Day 3: VA Loans — The Most Underrated Loan in the Game
Why this matters:
VA loans are available to eligible veterans, active duty and service members — offering major advantages: zero down payment in many cases, no PMI, competitive interest rates.
Many eligible buyers don’t use them (or don’t realize they qualify).
Key benefits:
$0 down payment (in many instances)
No private mortgage insurance (PMI)
Flexible credit and income qualifications (compared to some conventional loans)
Can be used more than once (subject to eligibility)
Qualification basics:
Certificate of Eligibility (COE) required
Primary residence requirement
Lenders will still look at credit, DTI, employment — but benefit is strong.
When it’s a perfect fit:
You’ve served, qualify, and want maximum buying power with minimal upfront cash.
You plan to live in the home, build equity early, and maximize benefit.
When you might consider alternatives:
If you don’t qualify (e.g., not eligible for VA)
If you prefer another loan’s term or have special real‑estate goals (multi‑unit, investment) where other loans might fit better.
Regional tip: In Burbank/Toluca Lake, where home prices are high, not having to bring down payment capital (via VA loan) can make a big difference in entry‑level and mid‑market homes.
📥 Download: [“VA Loan Quick Start Guide”]
Local tip: If you know someone who is eligible and hasn’t used their benefit — tag them, share this benefit.
🗓️Day 4: FHA vs. Conventional — Which Loan Fits You?
What we delved into:
FHA loans: backed by the Federal Housing Administration; lower down payment (as low as 3.5 %), more forgiving credit.
Conventional loans: offered by private lenders, stricter qualifications, but better long‑term cost and flexibility.
Major comparatives:
Down payment: FHA ~3.5% vs Conventional ~3–5% for certain programs
Credit thresholds: FHA more lenient; Conventional demands stronger credit
Mortgage insurance: FHA’s MIP may last the life of the loan (depending on down payment) vs Conventional’s PMI can often be removed at ~20% equity
Decision‑making:
If you’re early in your financial journey (smaller down payment, lower credit), FHA might get you into the door sooner.
If you’re prepared in credit/savings and plan for long‑term homeownership, Conventional may save you thousands more over time.
Regional context: In the high‑price SoCal market, entry is harder — so FHA may provide access, but the long‑term cost implications of MIP + high home‑prices mean you want to plan exit or refinance strategy.
Questions to ask:
How much will my monthly payment be (including insurance/PMI/MIP)?
How long will I pay mortgage insurance?
If I’m eligible for both, which loan gives me the lower cost over 5, 10, 20 years?
📥 Download: [“FHA vs Conventional Loan Comparison Guide”]
Local tip: Use the worksheet to plug your numbers (loan amount, down payment, credit score) and compare monthly cost + 5‑year projection.
🗓️Day 5: How to Qualify for a Conventional Loan — Secrets You Need to Know
What we covered:
Many buyers assume they need 20% down — that’s a myth. Conventional loans can start with ~3–5% down.
But you will need stronger credit, lower debt, more financial readiness.
Key qualification criteria:
Credit score: Many lenders require ~620+; best terms at 700+.
Debt‑to‑Income (DTI): Typically around 36% or less; some go up to 43–45% with strong compensating factors.
Employment/income history: Stable employment or self‑employment documentation.
Assets/reserves: Funds for down payment, closing costs + sometimes reserves post‑closing.
Strategy:
Focus on cleaning high‑interest debt (car payments, credit cards)
Build savings for down payment + closing
Maintain or improve your credit score (pay on time, reduce utilization)
Get pre‑approved early — know your numbers before house‑hunting
Why this matters in our market: With competition in SoCal, buyers with strong loan‑readiness profiles stand out — they can make stronger offers, move faster, and avoid delays.
Checklist:
I know my credit score & what I need to improve
I know my down payment + closing cost budget
I’ve reduced my debt and calculated my DTI
I’ve talked to at least one lender and understand loan terms I qualify for
📥 Download: [“Conventional Loan Qualification Checklist”]
Local tip: In Burbank market, even small improvements in credit or pre‑approval can mean the difference between a successful offer vs losing out in bidding.
Pulling It All Together
Buying a home isn’t just about the house. It’s about the loan, the strategy, and you.
Whether you pick an ARM, opt for a VA loan, go FHA or Conventional — the best choice is the one that fits your budget, your goals, your timeframe.
In the high‑cost Burbank / Toluca Lake / San Fernando Valley market, this means you need clarity, preparation, and the right tools.
📥 If you missed anything this week — all five videos + all the downloads are compiled in one place:
[Click here to access the full Loan Toolkit]
📩 Want a personalized strategy? DM me the word “LOAN” on Facebook or Instagram and I’ll send you a one‑on‑one planning session we’ll review your numbers, your goals, and chart your best path.
Final Words
You’re not just looking to buy a home you’re looking to make a smart investment in your life.
Let’s make sure your mortgage supports your future, not limits it.
Thank you for spending the week deepening your understanding.
Now, let’s move toward your home‑buying goal with confidence.
STAY CONNECTED
Thank you for reading! Follow me on social media and YouTube for more tips, updates, and behind-the-scenes moments. Let’s stay in touch!
Facebook: For live Q&A sessions, in-depth videos, and weekly updates
YouTube: For longer form dives into strategy, market updates, and buyer stories
📍 youtube.com/@SanFernandoValleyHomes
Instagram & TikTok: For short‑form tips, reels, and behind‑the‑scenes of real buyer journeys
📍 tiktok.com/@cari4homes.yourrealtor
Thinking about moving to Burbank? Visit my website
📍 Burbank Neighborhoods: https://burbankneighborhoods.com/
Subscribe, comment, or send me a message. I’d love to hear from you!
Getting a Legitimate Lender and Getting Pre-Approved
It used to be that buyers could go house shopping and when they have found their dream home, then they go to get pre-approved. However, in today’s market, that has proven to be one of the least effective methods of landing the dream home.
Most lenders can pre-qualify you for a mortgage over the phone. Based on general questions about your income, debt, assets, and credit history, lenders can estimate how much mortgage you qualify for. However, being pre-qualified and pre-approved are different things. Pre-approval means that you have applied for a mortgage; you have filled out the mortgage application, received your credit report, and verified your employment, assets, etc. When you are pre-approved, you know exactly what the maximum loan amount will be.
A pre-qualified letter is not verified and in essence, does not count for much if you are competing with other buyers who are pre-approved. When you are pre-approved, you and the seller know exactly how much house you can afford. It gives you credibility as an interested buyer and lets the seller know immediately that you will qualify for a loan to buy their property.
In addition to being pre-approved, it’s important to be pre-approved with a legitimate lender. Legitimate lenders include banks, mortgage bankers, credit unions, savings and loan associations, mortgage brokers, and online lenders.
Some lenders to avoid: those who lose a form or misplace a file, those who gather information from you in an unorganized manner, those who are not informed about interest rates, points or costs, and those who cannot provide you with the right information.
Hot, Normal, and Cold Markets
Hot Market
This is an extremely competitive market and is advantageous to the seller. Sometimes, homes will sell as soon as they are listed or even before homes are listed. Typically, during a hot market, multiple offers will be made on each home and more often than not, homes will sell for more than the asking price. It is even more crucial to be prepared and to be ready as a buyer when the market is hot. It can be easy to get caught up in the bid for a home, but if you are prepared (preapproved, solid in price range, realistic about your needs), it is easier to remain focused on your housing needs and price range.
Normal Market
In a normal market, there is a fairly large number of homes available and an average number of buyers. This market does not necessarily favor the buyer or the seller. A seller may not have as many offers on their home, but he or she may not be desperate to sell either. Again, it is the buyer’s responsibility to be prepared. During a normal market, the chances to negotiate are higher than in a hot market. As a buyer, you can expect to make offers at lower than the asking price and negotiate a price at least somewhat less than what the sellers are asking.
Cold Market
In a cold market, houses may be listed for more than a year and the prices of houses listed may drop considerably. This market is advantageous to the buyer. As a buyer, you have the
Importance of Inspection
As a buyer, you are entitled to know exactly what you are getting. Don’t take anything for granted, not even what you see or what the seller or listing broker tells you. A professional home inspection is something you MUST do, whether you are buying an existing home or a new one.
An inspection is an opportunity to have an expert look closely at the property you are considering purchasing and get both an oral and written opinion as to its condition.
Beforehand, make sure the report will be done by a professional organization, such as a local trade organization or a national trade organization such as ASHI (American Society of Home Inspection). Not only should you never skip an inspection, but also you should be present with the inspector during the inspection. This gives you a chance to ask questions about the property and get answers that are not biased. In addition, the oral comments are typically more revealing and detailed than what you will find on the written report. Once the inspection is complete, review the inspection report carefully.
time to make an offer that works in your best interest. It is not uncommon to low-ball and to find that sellers are accommodating to meet your needs. Keep in mind that even though this market is a great time for buyers, you do not want to lose your dream home by being unrealistic. Your goal is to get your dream home at the best possible price.
Importance of Inspection
As a buyer, you are entitled to know exactly what you are getting. Don’t take anything for granted, not even what you see or what the seller or listing broker tells you. A professional home inspection is something you MUST do, whether you are buying an existing home or a new one.
An inspection is an opportunity to have an expert look closely at the property you are considering purchasing and getting both an oral and written opinion as to its condition.
Beforehand, make sure the report will be done by a professional organization, such as a local trade organization or a national trade organization such as ASHI (American Society of Home Inspection). Not only should you never skip an inspection, but also you should be present with the inspector during the inspection. This gives you a chance to ask questions about the property and get answers that are not biased. In addition, the oral comments are typically more revealing and detailed than what you will find on the written report. Once the inspection is complete, review the inspection report carefully.
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Buyer Video Guide
Use a Buyer’s Broker
It’s important that you choose an experienced broker who is there for you. Your broker should be actively finding you potential homes, keeping you informed of the entire process, negotiating furiously on your behalf, and answering all of your questions with competence and speed.
First, find a broker who represents you and not the seller. This is beneficial during the negotiation process. If you are working with a buyer’s broker, he or she is required not to tell the seller of your top choice. In addition, he or she is also focused on getting you the lowest asking price.
Also, when you use a buyer’s broker, you will see more properties. Not only are they plugged into their Multiple Listing Service, but they are also actively finding homes that are listed as FSBO, or homes that sellers are thinking about listing.
Why You Should Not Make Any Major Credit Purchases
Don’t go on a spending spree using credit if you are thinking about buying a home, or in the process of buying a new home. Your mortgage pre-approval is subject to a final evaluation of your financial situation.
Every $100 you pay per month on a credit payment could cost you about $10,000 in home eligibility. For example, a car payment of $300/month could mean that you qualify for $30,000 less in a mortgage.
Even if you have accumulated enough savings, you should consider not making any large purchases until after closing. The last thing you want is to know that you could have purchased a new home had you curbed the urge to spend.
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