The Right Lender Can Make Your Purchase Smoother for Home Loans
Home loans help you to finance the purchase of a house, condo, townhome, or income property. And, yes, they can take time.
That’s why I say get pre-approved first.
Finding Southern California homes on the Internet is easy. But be careful when it comes to mortgage companies and banks for financing your purchase.
Spotify Podcast on Home Loans
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Beware: Low Interest Rates from Online Lenders May Come with Hidden Costs
One of our clients decided to shop online instead of going to one recommended lenders…and went to several websites for financing. One said, “When lenders compete for your loan, you win”.
The problem with Philosophy was that her credit was run 70 times, and the FICO score dropped so much that she was unable to get a loan.
The problem with Philosophy was that her credit was run 70 times and the FICO score dropped so much that she was unable to get a loan.
- She is now working with a mortgage loan consultant who is helping her recover her credit score.
- Please be careful when using an online lender to obtain financing for a home loan. The rates online lenders quote you online may sound great but you need a local lender to go the extra mile for you. Someone you can call and ask questions.
Case Study #1 on Home Loans
My clients have had great success when they select the right mortgage professional who is working for you, the client.
For example, Ms. Mary Shuck of Movement Mortgage spoke to my clients, Josh & Chelsea. She took the time to understand their financial goals. They applied for financing, and she had her underwriters look at the documents to get them to underwrite loan approval.
When they made an offer on a home with me as their buyer’s agent, she took the extra step to call the listing agent. When Ms. Shuck called, her focus was to sell the listing agent on my client’s financial strength as a buyer.
It worked, and they bought a beautiful home in the Bixby Knolls area of Long Beach. You can call Mary at 562-388-4197.
Case Study #2 on Home Loans
My clients were retiring and buying a home in Lake Elsinore. I had them talk to Natalie Fernandez of Innovative Mortgage. She listened to their concerns about financing and answered their questions.
They, like the previous buyers in the story above, provide all of the documents necessary to get underwritten pre-approval.
Then, Natalie called the listing agent after I wrote up an offer on the buyer’s behalf to purchase a home. She was able to sell the listing agent on their loan…and bam. They got their dream house in Lake Elsinore in 2020, and it closed successfully.
4 Lenders for Home Loans
Just so we are clear, lenders and other vendors in the real industry, like escrow companies, home warranty companies, insurance companies, and so on, do not pay me a referral fee. I look for the best vendors and suggest that you use them.
You are welcome to select any vendor that you want to do business with.
- Mary Shuck of Movement Mortgage, 562-388-4197
- Jenny Christenot, Encompass Lending 760-272-0101
- Joel Gagarin of US Bank at 714-651-3708
- Brian Shigekium, Chase Bank, 714-336-5248
I don’t guarantee performance or experience with any lender or vendor. I search for the best ones that communicate well and get the job done. The list of lenders above can assist you.
Best Rates and Terms
Your interest rate is based on your income, credit score, and debt-to-income ratio.
Successful Offers Require You to Have Your Financial Ducks in a Row
A pre-approval letter in hand is almost as good as making a cash offer. I like underwritten approval, which has helped many of my clients be the winning offer in bidding war.
Sellers weigh offers based on the strength of the buyer’s financial capacity to complete the transaction.
If you are pre-approved or underwritten approval, you have a better chance of getting your offer accepted.
Talk to the Lender Before Viewing Homes or Condos in Person
This is the most important item when it comes to buying a home. I only work with buyers who are pre-approved or underwritten approval, or if investing with all cash, can provide proof of funds.
We are requiring all buyers to meet with us before viewing homes in person. We want to explain the new rules for buying a home so you know what to expect.
- Call Jay Valento, your Happy Realtor, at 562-413-7655 to schedule a free consultation.
This is the most important item when it comes to buying a home. I only work with buyers who are pre-approved or underwritten approval, or if investing with all cash, can provide proof of funds.
What are the Benefits of being prepared ahead of time for home loans?
- You will know in advance what your payments will be
- You will know what your limits are on an offer price
- You won’t waste time looking at properties that you cannot afford
- Your mortgage professional can shop for the best rates and terms, which gives you peace of mind when investing in a property.
- Sellers will find your offer to purchase more favorable when your offer is accompanied by a lender’s pre-approval or underwritten approval documents, versus being just “pre-qualified”
Lender Contact Form
Simply fill out this form, and I will have ONE lender contact you. Or you can call one of the lenders on the list above or your own researched lender. The choice is yours.
Whoever you select as your lender, when we meet for a buyer consultation, please bring their name and number with you.
Then, I can call them and get to know them. Lenders like Realtors play a critical role in the home buying and selling of real estate.
Frequently Asked Questions
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What is a jumbo loan, and when do I need one?
A jumbo loan is a mortgage that exceeds the “conforming loan limits” set by the Federal Housing Finance Agency (FHFA). Since California has some of the most expensive real estate markets in the country, many homes require a jumbo loan. The conforming loan limit varies by county, with higher limits in high-cost areas like Los Angeles and the Bay Area. If your loan amount (not the home’s purchase price) is above the limit for your county, you’ll need a jumbo loan. Jumbo loans often have stricter qualification requirements, including higher credit scores and larger down payments.
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What are the general qualifications for home loans in California?
Lenders in California, like elsewhere, evaluate a borrower’s financial health based on a few key factors:
Credit Score: While there’s no single cutoff, most lenders prefer a credit score of 600 or higher. A higher score generally leads to better interest rates.
Debt-to-Income (DTI) Ratio: This ratio compares your monthly debt payments (including the new mortgage) to your gross monthly income. Lenders typically prefer a DTI ratio below 43%, though some may allow for higher ratios depending on other factors.
Income and Employment History: Lenders want to see a stable and reliable income. They will typically require two years of consistent employment history.
Down Payment and Reserves: You’ll need enough money for the down payment and closing costs. Lenders also often look for cash reserves, which can be funds to cover a certain number of mortgage payments after closing.
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Are there special programs for first-time homebuyers in California?
Yes, the California Housing Finance Agency (CalHFA) offers a variety of loan and assistance programs specifically for first-time homebuyers. These programs often provide below-market interest rates and down payment assistance. A key requirement for many of these programs is that you must be a first-time homebuyer, which CalHFA defines as someone who has not owned and occupied a home in the last three years.
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What is the difference between an interest rate and an APR?
The interest rate is the percentage a lender charges you for borrowing money. The Annual Percentage Rate (APR) is the total yearly cost of the loan, which includes the interest rate plus other fees and charges like origination fees and mortgage insurance. The APR provides a more comprehensive picture of the true cost of the loan.
When you have questions, call me, Jay Valento, at 562-413-7655. Thank you for submitting your information. We will be in contact with you by phone or email