Here in California, as in most states, the smart way to initiate the process is to get prequalifies first. California home loan providers have websites that have registration forms which you can fill out and instantly determine if you meet the requirements for a home loan or not. There are a lot of financial institutions which offer home loans here in California and they include:
· Credit unions
· Mortgage bankers
These monetary establishments have their own loan specialists who will assist you go through the application process, help you file the necessary documents, and go through the entire funding stage with you. Generally, if you have good credit scores (whether FICO, Experian, Transunion, or Equifax), getting approved for a home loan is amazingly easy. In fact, home loan providers offer lower interest rates to people who show impeccable credit ratings. Nevertheless, it is not the end of the world for you if you have marginal or bad credit scores. There are a lot of lending companies nowadays which offer special home loan rates for people with not so high credit ratings. It would be best to consult a lending specialist so that you would be able to understand the options that you can choose if you have adverse credit.
Some home lending providers require down payment and if you put out a sizable one, you may even be awarded with lower mortgage rates even if you have bad credit. Lest you are not aware, there are specific closing costs that you need to take care of whenever you are getting into a real estate transaction such as a California home loan and these are:
1. Escrow fees
2. Loan origination fees
3. County recorder fees
4. Fire and homeowners insurance
5. Title policy issuance fees
These are basic fees that require to be settled so check first if these fees are already incorporated in your down payment or you need to pay them separately. For those who have existing mortgages, check the latest California refinance rates before you sign up for a home loan program. Do not forget to also consult the California FHA loan limits and see if you are eligible for such a loan. The California Housing Finance Agency or CalFHA has amazing home loan and refinancing programs for low and moderate income property buyers.
The trick is to be prepared with all the necessary documents before you trek to the home loan stores. Make sure that you have your banking, income, and other assets paperwork ready.