100% mortgage financing is easier to secure in California than in many other states, even with the average California home price at $467,000 as of October 2006.
Many lenders are willing to provide mortgages with no down payments based on a good credit score and solid savings. But even if you don’t have those, you can still get financing help through one of California’s many government programs.
Pick Your Mortgage Financing Plan
100% financing of your home loan can be achieved in several ways. You can apply for complete financing with one mortgage. The home loan lender may or may not require you to pay closing costs.
Another option is to take out two mortgages. The second mortgage can be with a different lender. For those with poor credit, this is the easiest way to secure a no down payment loan, since the risk of the loan is carried by more than one lender.
Look Into California Financing Programs
California’s state and local governments have come up with several programs to help people buy a home. Licensed California financing companies, which include many national and local companies, can help you apply for these programs.
California’s Extra Credit Teacher Program is one such program. The state will help teachers who are first-time home buyers by offering 30 fixed rate loans at an interest point below market rates and a 3% second mortgage. In effect, a California teacher can get 100% financing for their new home.
There are also 100% financing programs for high cost county residents, low income families, and first time homebuyers.
Compare Quoted Mortgage Rates And Fees
With 100% financing loans, mortgage lenders will quote you a wide range of rates with a variety of fees. These fees may be a hidden cost of the loan, wrapped into the principal amount. Or they be paid at closing, usually qualifying you for a lower rate.
In order to find the lowest costing loan, compare mortgage loan estimates. Then take a look at the APR, which includes both the rate and fees of the loan. Most lenders provide loan quotes online, so it takes only a few hours to get dozen of offers.
Many residents of California will definitely have so many choices for exploration in this place. However, any individual who cares for his or her future will surely prioritize the important decisions, like financing a home rather than just spending on trivial things.
As such, it will be very prudent to first take this decision rather than find yourself constantly moving from one rented place to another.
Living in California and Financing a Home
Most people will find living in California as their goal to achieve the lifestyle that can allow them to maximize their potential and enjoy a comfortable lifestyle. However, it will be possible to live a more comfortable life if you have your own home to invest on.
In California, financing a home is fairly a matter that you must take seriously. You have to evaluate the various considerations to know your financial capabilities. You also have to know your options in purchasing a home in California.
Your Options to Financing a Home
Whether you are in California or elsewhere, financing a home will have to entail consideration of certain choices available to you.
You will most probably find yourself in need of money to purchase a home. As such, the best financing option for you might be to search for a home loan.
1. Going to California Banks for Financing a Home
When it comes to making loans, the first thing people think is to go to a bank and explore the options there.
Banks will definitely have a scheme for home financing loans. It will be easier to get a loan here especially if you have been maintaining a savings or checking account here for some time. There are actually many banks California.
However, if you do not know it yet, banks do not offer the best interest rates that will favor your financial situation.
You may be acquainted with the officers in the bank, but you will never be able to negotiate any stipulated interest rate or amount. These financial institutions are bound by what is determined for them, as such the rates are rather inflexible.
Thus, you have to choose some other better options.
2. Seeking Mortgage Brokers for Financing a Home
Mortgage brokers may be a good option for your home financing. They have relatively lower interest rates compared to the banks. They can also provide assistance when you make your loan.
The brokers are in constant dealing with various lending sources. As such, it will be easier for them to find a favorable deal and interest rate for you.
You will also have an easier time looking for mortgage brokers in California. They often advertise their services on the market. You can even explore the options online.
3. Getting a Correspondent Lender
The third option for you is to get a correspondent lender. The correspondent lender will aid you in evaluating a decision for the home financing. At the same time, they are the ones who shall provide the fund for the loan.
This is like combining the broker and the banker in one deal. This person can let you pick on the various options and schemes. Once you decided on one, then the correspondent lender can proceed with the contract and lend you the money.
You can even negotiate with the lender for a better interest rate payment scheme or even to lower the figures. This is something that you can benefit from in the long run.
However, it is relatively more difficult to look for corporate lenders compared to the other two options. They usually operate on a regional basis. Thus, they tend to take form in smaller institution or firms. Thus, it really needs a good amount of effort on your part to find one.
It is also possible to check online and find out if they have a website and this could be a good start. If they do not have, then the yellow pages may be your next option.
Living in California will definitely have its perks and highlights. You can definitely make some good time in every minute that you spend here. However, if you choose to really reside in California, then financing a home is definitely the first step for you.