California Home Loan
A home loan is an important part of your real estate purchase, because most future home buyers don’t have enough cash in the bank to buy their future home outright. A California home loan differs from home loans in other states, because there are different interest rates, closing costs, and other related fees associated with a California home loan when compared to those of another state. Consider all options, and don’t work with a lender in California that doesn’t uphold certain standards at their brokerage, and make sure that your home loan works for you, not your agent.
Getting a CA Home Loan
There is certain documentation you need in order to secure a California home loan, and having this information handy will help speed up the process of getting your home loan application completed. There are basically five stages of the home loan process, and they are:
1. Organizing Your Related Documents
Get together the last few tax returns, bank statements, credit history documents, pay-check stubs, proof of employment, and any divorce or child support documents if they’re applicable to you. Determine if your lender will require any additional information to make certain that you’re going to be able to pay back your California home loan.
2. Qualifying
There are typically 2 types of loan qualifications, “pre-qualification” and “pre-approval”. When you first start looking at homes, most real estate agents will want you to get pre-qualified to make sure they’re showing you homes in your price range. When you’re ready to put in an offer on a home, often times having a pre-approval letter from your future lender can speed up the entire real estate transaction.
3. Finding A California Home Loan Program
Determine what your long term goals are before signing anything. Do you plan on retiring in this home? Depending on your real estate strategies and goals, you want to make sure you’re locking in suitable interest rates, or length of your loan matches your intent with your purchase. There are many California home loan programs out there, and it’s up to you to make sure you choose the correct one that suits your needs best.
4. Waiting For Approval
While you’re purchasing a home, you could hinder your chances for loan approval if you make large purchases. Don’t buy a new luxury car with a high monthly payment, don’t get too excited and start buying furniture… You should wait until after your home loan has gone through and you’ve gotten keys to your new home prior to your future big purchases.
5. Closing On The Loan Itself
Make sure that you bring a cashier’s check with you if you haven’t already paid your closing costs, this could prevent you from getting your keys in a timely manner. If you have any last questions, this is the time to ask, because your contact is almost finalized!
Working With A Reputable California Lender
There are many lenders who’d like your business, but you want to make sure you’re working with a reputable lender that won’t secretly add information to your contract without you knowing. One of the reasons that we’re in this real estate financial crisis currently is because many loan officers would knowingly put buyers into home loan programs that weren’t right for them. Be smart about this decision, it could haunt you for 30 years, or more!