You need to be careful in securing mortgage rates in California. With the ups and downs in the housing markets, lenders are skittish in providing mortgages in certain areas. Moreover, when they do provide lending, they may charge higher mortgage rates in California areas with an unstable housing market. It is important to contact as many lenders as possible when applying for home mortgage loans. You will see a wide range of interest rates from different California mortgage lenders for a single borrower on a particular house.
Common Mortgage Myths When Shopping for a Loan Online
Fallacy #1: The more lenders you contact the better your options will be. Contacting a dozen loan companies will not lower California mortgage rates.
Fallacy #2: Each California lender has its own criteria for determining the interest rate they charge a borrower on a particular house.
Home prices range widely from one end of the state to the other. For example, the median home price in Santa County in June 2011 was $511,750. If you live in Shasta County, on the other hand, the median home price for that month was $155,000. The choice of community within the same county can have a significant difference as well. In Los Angeles County, median home prices in Brentwood were $1,286,500. If you live near Compton, the median price was $185,000. Of course, the type of housing differs greatly. However, when shopping for California mortgage rates in you need to understand your purchase and mortgage refinance options.
With today’s real estate market, lenders are going to check you out carefully. In order to get the best California mortgage rates, they will expect you to have stellar income and very low debt to income rations. You will need a higher than average credit rating. To land those rates, your best option is to go shopping. Ask for quotes from several different lenders and see what they say. You may get the surprise of a wide range of rates from different lenders. Make sure you know about all the fees, discount points, and surcharges involved. An innocently low rate can hid extremely high fees.
Expect the California mortgage lenders to be extra careful before lending money. They will require income verification. That means bringing in pay stubs or business documents. Your employer may need to provide verification of employment. They will want to check your personal information thoroughly. All of this is in an effort to keep the lender’s risk at a minimum. In order to get the best home loan rates for borrowers in California, be open to what the lenders ask.
