Categories Loans

Useful tips for getting a home loan in California

So you want to buy a house in California, this way you no longer have to waste your money on renting an apartment that no matter how long you stay in it, the unit will never be yours. Well, in the said state, you have a lot of choices. Just look around you, and you will surely find “home for sale” signs. Some are huge, while the others are just right in size, perfect for a small family.

Sure thing, there are lots of houses for sale out there, but the question is, are you ready to buy your very first home? Do you know how to go about getting a home loan if you don’t have enough money to pay the house off up front?

Getting a home loan

homeSince this is your first time to purchase a home and get a loan, you are probably wondering what the process is and how long it would take you to get into the house that you intend to purchase. So, here are some useful tips that can help you make the process a lot faster:

Prepare all the requirements

Lenders are ready to provide you with the financial assistance that you need in order for you to get your own home. But before you can avail of the loan, it is important that you meet all the requirements, and the needed documents should be ready as well.

First, they will look into your credit history and credit score. If you have been a good payer, then that would be a plus. Secondly, the lending company or bank will also check your ability to pay the loan off. With this, they will check how much your income is. They will require you to provide them with a copy of your payslip as well as your employment details and recent tax returns.

Pay some of your outstanding debts

Companies in California that offers home loans also have access to your outstanding debts. Therefore, it would help a lot if you can settle some of them especially those that still have a huge outstanding balance. Doing so will increase your chances of getting approved for the home loan.

Prepare the down payment

homeAside from the required documents, see to it that you can also afford the down payment for the house that you want to buy. As long as you are sure that you have enough cash set aside for this, then you can push through with the home loan application.


Categories Loans

Features of a good mortgage

Looking for a mortgage is an important step for every person looking forward to buying a house. Making sure that you get a good mortgage is important. The kind of mortgage that you get will determine the ease of payment. When looking for a mortgage, you need to make sure that you get one that has flexible terms of payment and also friendly conditions. By hiring this company, you will get a good mortgage.  A broker will help you find the best lender and rates available in the market.

How to identify a good mortgage

Reasonable deposit

A good mortgage should be able to offer you a reasonable deposit. Raising a deposit is usually the biggest challenge for most of the home buyers. Sometimes raising the deposit of 20% can be challenging so you need to look for a mortgage that makes it possible to raise a reasonable interest. Some lenders will allow you to pay a deposit of 20% of the cost of the house. However, it is important to remember that once you pay a lower interest, you might need to compensate this by paying higher interest rate or monthly repayment.

home loan

Flexible repayment terms

For most of the mortgage loans, you will be required to stick to a strict repayment term. However, it is important to consider a mortgage that is quite flexible. Flexibility will give you an easy time when paying for your loan. For instance, there are mortgages that will allow you to pay more money for some months so that you can go for some months without paying. The flexibility is however limited because you can never get full control of the mortgage.

Reasonable interest rate

When it comes to mortgage, you need to make sure that you get one with a reasonable interest rate. The best way to get a mortgage with a reasonable interest rate is by comparing it with other mortgage lenders. It is always advisable to look for a mortgage that offers interest rate in the same range with the other lenders.

home loan

Customer service

Customer service is important when looking for a mortgage. You need to consider looking for a good lender that will give you personalized services. Most of the small lenders can give you a personalized customer service because they have few customers and they can handle all of them.