Getting a Loan Through a California Mortgage Company

2007-03-08 10:33:40

( Financial )



You have found the home of your dreams right in California, but you definitely need to borrow money to buy it. Or you might want to apply for a California mortgage refinancing package to get better interest rates and terms than what you are currently enjoying.

Getting a loan through a California mortgage company involves a few steps.

Getting Qualified

The first thing you need to know is whether you will qualify. You can get a pre-qualification by just providing personal information over the phone or online, which takes only a few minutes. You can find out your credit or loan limits and the specific type of loan you can apply for.

Different Types of Mortgages

Fixed rate mortgages are most common, and loan periods are typically in 15-year increments. Your interest and principal payments do not change over the entire duration of the loan. This type of loan is ideal if you are on a tight budget and intend to keep the loan for more than ten years.

The adjustable rate mortgage or ARM has rates which change every year, but have rates that can be higher or lower than fixed ones. Because of the unpredictability of ARM interest rates, this type of mortgage is recommended for shorter loan terms.

A shorter-term ARM is ideal for California mortgage refinancing purposes.

Applying for a Loan

Now that you have a basic idea of your qualifications, you can shop around for a California mortgage company to apply for the loan. You need to provide highly confidential information and documentations such as your payslips, income reports, tax returns, bank statements, retirement account statements, stock certificates, divorce decree (if any), proofs of US citizenship or residency, and a letter explaining your reason for the application.

The California mortgage company will also verify your past credit history, employment history, and valuation of your personal assets.

Then it approves your loan package, based on your qualifications and the amount of the mortgage you applied for. It gives details about the interest rate, points or prepaid interest based on a percentage of your loan amount, and the monthly amortization.

It is recommended that you shop around and apply at different mortgage companies to get the right package, and that you get the loan pre-approved before you negotiate with the home seller.

Closing the Loan

After the California mortgage company approves your loan, you will need to sign the final documents. You also need to bring a cashier's check to pay the closing costs and the downpayment. Be careful to read the fine print of all the loan terms and conditions prior to signing the documents.


All rights Reserved © Tradenet Services srl
Do not duplicate or redistribute in any form.