For some individuals, the experience of being a homeowner is incomparable. Although you may have already made the most important payments, keep in mind that there are other expenses such as property taxes, home insurance, and the Homeowners’ Association fees for those who reside in gated communities.

Property Taxes. This tax is based on the total value and location of the property. In Los Angeles, the annual property tax is approximately 1.25% of the total value of the property. For example, if you purchase a home that is worth $400,000, you will pay approximately $5,000 each year in property taxes. You can pay this tax in monthly installments or in a two-year payment plan; in either case, these payments are tax-deductible.

Before deciding if it’s the right time to buy your first home, you must be informed about certain aspects of mortgage. Keep in mind that when you request a loan you will sign a legal document that has the legitimate power to sell the house in case you don’t comply with the monthly payments.

The payment normally includes a principal payment and an interest rate. Property taxes and home insurance can be included in the payment. However, you can pay these directly to the insurance company and the County.

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.