Mortgage Consultants Group - Mortgage Broker Rancho Cordova CA | Home Loans

A Beginner’s Guide to Homeownership

June 19, 2023 by Mortgage Consultants Group

First Time Home Buyer in Rancho Cordova CA

Mortgage loans are a popular way for individuals to purchase their dream homes without having to pay the entire cost upfront. However, not everyone can qualify for a traditional mortgage loan. And this is where guaranteed mortgage loans come in.

Guaranteed mortgage loans are a type of mortgage loan that is backed by the government, making it easier for individuals to qualify for a mortgage loan.

Understanding Guaranteed Mortgage Loans

Guaranteed mortgage loans are a type of mortgage loan that the government backs. This means that the government guarantees the loan, making it easier for lenders to offer these loans to individuals who may not qualify for a traditional mortgage loan. The most common types of guaranteed mortgage loans are VA loans, FHA loans, and USDA loans.

VA Loans. VA loans are guaranteed by the United States Department of Veterans Affairs. These loans are available to veterans, active-duty service members, and eligible surviving spouses. VA loans are designed to help individuals purchase homes without making a down payment. This makes purchasing a home easier for individuals who may have a limited amount of savings.
FHA Loans. FHA loans are guaranteed by the Federal Housing Administration. These loans are available to individuals who may not qualify for a traditional mortgage loan. They require a lower down payment than conventional mortgage loans, making it easier for individuals to purchase a home. FHA loans also have lower credit score requirements than traditional mortgage loans, making it easier for individuals with lower credit scores to qualify.
USDA Loans. USDA loans are guaranteed by the United States Department of Agriculture. These loans are available to individuals looking to purchase a home in a rural area. They require no down payment, making buying a home more accessible for individuals who may need more savings. USDA loans also have lower credit score requirements than traditional mortgage loans, so those with lower credit scores can be eligible.

Benefits of Guaranteed Mortgage Loans

There are many benefits to choosing a guaranteed mortgage loan over a traditional mortgage loan. The main advantage is that these loans are easier to qualify for. Individuals not approved for a traditional mortgage loan may be eligible for a guaranteed one.

Guaranteed mortgage loans also have lower down payment requirements and lower credit score requirements than traditional mortgage loans, making it easier for individuals to purchase a home.

Another benefit of guaranteed mortgage loans is that they often have lower interest rates than traditional ones. This can save individuals thousands of dollars over the life of the loan. These loans also have more flexible terms than traditional mortgage loans, making it easier for individuals to customize their finance to fit their needs.

Conclusion

Guaranteed mortgage loans are an excellent option for individuals who may not qualify for a traditional one because these are backed by the government. These loans offer many benefits, including lower down payment requirements, lower credit score requirements, and lower interest rates.

Contact Your Mortgage Expert in California Today!

If you are looking to purchase a home but need help qualifying for a traditional mortgage loan, a guaranteed mortgage loan may be the right option for you. Our home loan consultants and experts at Mortgage Consultants Group are more than happy to assist you. Contact us today at (916) 669-1682 and move into your dream home soon!

California’s Cost of Living in 2023

June 18, 2023 by Mortgage Consultants Group

California is known for its beautiful weather, beaches, and diverse culture. However, living in California comes with a high cost of living. With the rising cost of housing, transportation, and food, living in California can be a challenge for many. In this blog, we will discuss California’s cost of living in 2023, what to expect, and how to plan for it.

Housing Costs

Housing costs have always been a significant expense for Californians, and it is expected to continue in 2023. According to Zillow, the median home value in California is $728,134, and it is projected to increase by 3.6% in 2023. This means that the cost of buying a home will continue to rise, making it difficult for first-time buyers to enter the market. Renting is also expensive in California, with the average rent for a two-bedroom apartment being $2,100 per month. It is essential to plan for this expense and budget accordingly.

Transportation Costs

Transportation costs are also high in California, with gas prices being one of the highest in the country. In 2023, the cost of transportation is expected to continue to rise due to inflation and increased demand. According to AAA, the average cost of gas in California is $4.81 per gallon, and it is projected to increase by 3.8% in 2023. It’s essential to consider the cost of transportation when planning your budget, especially if you have a long commute or travel frequently.

Food Costs

Food costs are also high in California, with the cost of groceries being 12% higher than the national average. In addition, eating out can be expensive, with the average cost of a meal being $15-$20 in a mid-range restaurant. It is essential to plan your meals and budget accordingly. Cooking at home and buying groceries in bulk can help save money on food costs.

How to Plan for California’s Cost of Living in 2023

Budgeting: It is essential to create a budget and stick to it. Take into account your monthly expenses, such as housing, transportation, food, and healthcare, and allocate your income accordingly. It is important to prioritize your expenses and cut back on non-essential spending.
Saving: Saving money is crucial when living in California. It is recommended to have at least six months’ worth of living expenses saved in case of an emergency. Consider setting up automatic savings deposits to make saving easier.
Research: Do your research when it comes to housing, transportation, and healthcare. Shop around for the best deals and compare prices. Consider living in a less expensive area or using public transportation to save money on transportation costs.
Earn Extra Income: Consider earning extra income to supplement your budget. This can include freelance work, part-time jobs, or starting a side hustle. Selling items you no longer need can also be a way to earn extra income.

Conclusion

Living in California comes with a high cost of living, but it is possible to plan for it. By budgeting, saving, researching, and earning extra income, you can make living in California affordable. It is important to prioritize your expenses and cut back on non-essential spending. With planning and careful consideration, you can enjoy all that California has to offer without breaking the bank.

Get In Touch With Your Mortgage Specialist Today!

If you’re looking to buy a home in California or refinance your existing mortgage, Mortgage Consultants Group is here to help. Our experienced loan experts can guide you through the process and match you with the ideal home loan for your needs. With flexible financing options and over 29 years of experience, we make it easy to achieve your homeownership goals. Contact us today at (916) 669-1682 to learn more about our home loan services in California.

Here Are the Ins and Outs of Investment Property Loans

June 5, 2023 by Mortgage Consultants Group

Investing in real estate can be a lucrative venture. The potential for significant returns, appreciation of property value, and passive income make it an attractive option for many investors. However, the upfront costs of buying an investment property can be daunting, and that’s where investment property loans come in.

What Is an Investment Property Loan?

An investment property loan is a mortgage loan used to purchase a property not intended to be the borrower’s primary residence. These properties are instead used for investment purposes, such as rental properties, fix-and-flip projects, or to generate passive income through other means, such as Airbnb.

Investment property loans come in various forms, but they typically have higher interest rates and stricter eligibility requirements than traditional home loans. The loan amount and terms also vary depending on the type of property being purchased, the borrower’s credit score and income, and the lender’s requirements.

Types of Investment Property Loans

Conventional Loans. Conventional loans are the most common type of investment property loan. Banks, credit unions, and other lenders offer them and typically require a down payment of 20% or more. The interest rates on conventional loans are often lower than other investment property loans, but they may have stricter credit score requirements.
FHA Loans. FHA are government-backed loans designed to help low- to moderate-income borrowers purchase homes. They can also be used for investment properties, but the eligibility requirements are more stringent than conventional loans.
VA Loans. VA loans are available to active-duty military personnel, veterans, and spouses. They can be used to purchase investment properties, but the eligibility requirements are strict.
Hard Money Loans. Hard money loans are short-term loans that are typically used for fix-and-flip projects. Private lenders offer them and require a high down payment (often 30% or more) and high-interest rates.

How to Get an Investment Property Loan

Check Your Eligibility. The eligibility requirements for investment property loans vary depending on the type of loan you’re applying for. Conventional loans typically require a credit score of 620 or higher, a debt-to-income ratio of 43% or less, and a down payment of at least 20%. FHA loans have lower credit score requirements but require a down payment of at least 3.5%.
Shop Around for Lenders. Not all lenders offer investment property loans, so finding a lender that provides the type of loan you need is important. Look for lenders specializing in investment property loans or have experience working with real estate investors.
Prepare Your Documentation. To apply for an investment property loan, you must provide documentation of your income, assets, and credit history. This may include tax returns, bank statements, pay stubs, and credit reports.
Have a Strategy in Place. Before applying for an investment property loan, it’s important to have a strategy for how you plan to use the property and generate income. Lenders will want to see that you plan to make money from the investment property.

Conclusion

Understanding the types of loans available and the eligibility requirements is key to getting the right loan for your needs. By shopping around for lenders, preparing your documentation, and having a strategy, you can increase your chances of getting approved for an investment property loan and achieving your real estate investment goals.

Search For The Best Mortgage Specialist in California

Are you looking to invest in real estate? Look no further than Mortgage Consultants Group for your investment property loans. Our friendly loan experts can help you find the ideal investment property loan that fits your budget and investment strategy. Contact us today at (916) 669-1682 to get started!

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