The Real Estate market consists of many entities that provide mortgage loans. They are divided into the following:

*Private, Includes financial agencies (banks and credit unions) and mortgage companies.
*Government, Provides federal, state, county, and city loans. The Department of Housing and Urban Development (HUD*) provides mortgage loans that are insured by the Federal Housing Administration, which means that the government assures the payment for this type of loan.

Both public and private loan agencies focus on the same market. Those who don’t qualify for a loan through a private financial organization can qualify through a government entity. Ask your Real Estate agent about your options.

Which private loan agency should I go to?
Before deciding, analyze all the options offered in the market.

-Credit Unions non-profit organizations that provide loans to individuals within the organization. Since the agency’s total earnings are divided among all of its members and the organization does not pay any dividends, its interest rates are usually lower than the bank’s rates. In addition, an individual must be a member of the organization in order to obtain a loan, which is why members expect to receive a more personal treatment.

-Banks are lucrative organizations that do not require membership to obtain a loan. Though interest rates are higher than a credit union’s, individuals benefit from experience, stability and security provided by prestigious companies.

-Mortgage Companies have access to a great variety of loans in the market, which is why they offer the best interest rates. Individuals who request a loan through a mortgage company save time and avoid the hassle of searching for the “better deal.” Though service is more personal, some individuals might prefer a bank or a reputable credit union.

1. Verify that your Real Estate agent has an active license through the webpage http://www2.dre.ca.gov/PublicASP/pplinfo.asp. You will need his/her name, the name of the office, or license number.
2. Visit different loan entities and compare options before choosing one.
3. Interview different Real Estate professionals and ask friends or relatives who have previous home buying experience for any recommendations.
4. Don’t allow anyone to push you to borrow more money than you can pay back.
5. Never sign a blank document or a document with blank spaces. If someone adds in information after you sign, you will be equally responsible for the document’s content.
6. Read every document carefully. Never sign any document with information you don’t understand. Seek help from a lawyer, Real Estate professional, or an approved HUD (*) agency.
7. Consult your agent for payment methods and be aware of possible hidden fees.

The Real Estate market offers numerous options to those who wish to buy a home. Get informed and compare so you can put yourself in good hands. Remember that your home is an asset that your offspring can inherit.

*HUD or Department of Housing and Urban Development of the United States is dedicated to increasing the number of homeowners and helping low-income families have access to homes. www.hud.gov Office in Los Angeles (213) 894-8000. Office in Santa Ana (714) 796-5577.
**FHA or Federal Housing Administration is a government agency dedicated to the improvement of homes and provides a financial system to insure mortgages and stabilize the Real Estate market. www.fha.gov