Your Checklist for California Real Estate Loans
So, you’re looking into California real estate loans? Well you’ve come to the right place. If you have questions, look no further because they are all about to be explained. What you will find here is a checklist, or guidelines of sorts, to help prepare yourself to apply for a loan and, hopefully, receive it.
1. Gather Information for the Mortgage Loan
First things first: You need to know your credit score, so request a copy and make sure the information is accurate. Bad score means no loan or a much harder time getting a loan. One of the most important things when applying for a California real estate loan is being relatively debt free. Obviously banks only want to give loans to people who will pay them back. If you pretty much have this under control, then keep reading. If not then you might want to look into ways to reduce debt before taking on more. Maybe you are currently more interested in California Equity Loans.
2. Talk to Your Lender about Specific Requirements
This moves us right along to mortgaging, since you’ll obviously need to apply for a mortgage. Which, with a good score and the right info, should be no problem. Contact your lender and make sure you have everything necessary from step 1 before applying. You should have a budget prepared so you know what your spending limits are. Your particular bank may want certain other things as well, which is why you should call beforehand. Especially when working with FHA mortgage loans, there can be strict guidelines as to what’s required.
3. Decide Which Type of Loan you’re Interested in
What kind of California real estate loan do you want/need? You’ve got a little more work to do now… research. There are all kinds of loans out there (like a Jumbo Home Loan, for example), each with different requirements. It would be a shame if you spent all your time getting things ready for the wrong kind, so be sure and do your homework.
There are two main groups of loans: conventional and government. Then there are three types of interest payments: fixed, adjustable, or a combination of the two. Be sure and look into what is best for you. For instance, have you or your spouse served in the military? Then you’ll want to be sure and check out California VA loans.
4. Get Pre-approved
Once you have your credit score and debt under control, have a mortgage ready to set up, and know what kind of California real estate loan you’re want, now you can go about getting pre-approved. Sellers, and lenders, love this! If they can have confidence that you can pay your bills then you will immediately become a more attractive buyer. Being pre-approved not only helps the seller it helps you.
5. Determine What Size of House You Want
Once you know your spending limits you can choose your next step: what size of home are you looking for? And more importantly, can you afford it? This will help lighten your workload when it comes to looking at real estate. Why waste your time one things you don’t want or can’t afford? Sit down with you realtor and work out a list of what you want. Now it is time for the final step…
6. Work Out Your Total Loan Costs
Now that you have your grand California real estate loan plan, you have to remember that money makes the world go round. So, what is all of this going to do to your pocket book? Start with your loan – how much money are you getting? Next, what is the interest rate (and when does it start accumulating)? What is your payment plan? Now, how much is the house going to be? How much is your down payment? How much is your realtor fee? Read more about Real Estate Closing Costs.
Don’t forget that everything costs money. Be sure and look at all of the fine print in your loan contract to be sure your interest won’t skyrocket or your payments increase after a certain amount of time. Do your research, talk with your realtor, and know what you want and you’ll be fine.
