How to Get a California Mortgage Loan
The California housing market can be a great experience. Expect it to be a journey that is super competitive and pricey in coastal areas and neighborhoods with high demand. However, California mortgage rates are pretty stable in comparison. They go up and down through the years, but you hardly ever see the kind of movements that sellers or buyers have with the homes on the market.
With that being said, there's so many options in California home loans and the interest rates and associated terms. Many types of borrowers will realize that specific home loans are the perfect choice for them and their situation, and they'll have different rates. For example:
- A first-time homebuyer in Sacramento
- A professional couple buying a duplex in Long Beach
- A homeowner seeking to refinance their loan in Orange County
- A successful business owner buying a luxury home in Newport Beach
- A self-employed homebuyer in the San Fernando Valley
- A military veteran purchasing a home in Corona
- A long-time resident seeking a home equity loan in Los Angeles
California Home Loan Options
All of these borrowers and their unique situation may demand a special type of loan, with varying rates of interest. For example, California borrowers may decide one of these solutions below:
The professional couple may choose a conventional loan. For borrowers with credit scores over 700, these usually offer the best interest rates and lowest fees in California.
A person who is self-employed may have large tax write-offs reducing their qualifying income may find a California bank statement mortgage the ideal financing solution.
A first-time homebuyer with middle credit scores between 620-660 and minimal funds for down payment and closing costs may decide an FHA loan is the best choice.
A homeowner who's refinancing may opt to go with a 20 year or 15 year fixed mortgage, enabling them to build equity faster and pay the loan balance off quicker.
Someone purchasing a luxury home in South Orange County well over a million dollars will likely need a jumbo mortgage with down payment options of 5, 10 and 15 percent down.
The great features of VA loans, which allows 100-percent financing up to a certain amount, are what eligible veterans and those presently serving in the military will enjoy. VA mortgage rates throughout the country provide borrowers with the best rates.
California home equity loans or HELOCs, (home equity lines of credit), are a second lien against the home and commonly used to improve or upgrade a room(s) or part of the property to enhance its value.
Locating the best mortgage lenders and rates in California
Just because a mortgage lender offers the same rates as the first company you inquired with, you need to compare the fees and APR too. If fees are important, ask them for a Loan Estimate or to send over all fees via email connected to the loan. Sometimes the difference is minimal and sometimes not. In addition, you want to work with an experienced loan originator so the mortgage process flows smoothly and doesn't become a stressful horror story.
To learn what mortgage interest rates California lenders will give you, contact a handful of lenders and ask what interest rate they would offer with your credit score, loan amount, and type of loan you're considering. They can then quote you a rate according to today's mortgage rates.
Many times lenders and loan officers are very busy so you can also inquire for a rate quote using their online form to request a individualized quote from several lenders. It's free, there's no commitment, so why not give it a try!