Mortgage rates recently hit 7.23%, which represents the highest they have been since 2001. When shopping for a home during a time with high mortgage rates, you need to work extra hard to find affordable rates. Below are some recommendations that can help.

1. Choose the right interest rate format. A good thing to ask yourself before you choose a mortgage is, “Do I want a fixed rate or an adjustable rate?
   • With an adjustable rate, you start out with a low introductory mortgage rate. After several years with that rate fixed, the rate then is determined by market rates going forward.
   • With a fixed rate, you lock in a rate that is permanent for the lifetime of the loan.
     
     The advantage of choosing an adjustable rate mortgage in this scenario is pretty clear. A fixed rate mortgage can work out too though; just plan on refinancing it later.
     
2. Learn about the different mortgage types. When you are choosing a mortgage, make sure you look into all of your options—especially those that may help you to qualify for affordable interest rates. In particular, government-backed loan programs like FHA, VA and USDA are great for keeping rates low even without perfect credit. During your consultation, our loan experts can help you explore these different loan programs and figure out what you qualify for.
3. Enhance your borrower profile. Now is the time to do what you can to make your borrower profile as competitive as possible in order to qualify for the most affordable rates. That means increasing your credit score, and doing the same with your income if you have that option. Try paying off debts to improve your debt-to-income (DTI) ratio if you have the means. And make sure you have properly documented all of your assets. These steps will all be a big help no matter what type of home loan you are applying for.
4. Increase your down payment size. Are you familiar with the concept of loan-to-value (LTV)? The LTV is the percentage of the home’s value that your lender is loaning you to purchase the property. The rest of the value is what you are paying upfront with your down payment. By raising your down payment amount, you reduce your LTV. When the LTV is lower, so is the risk for the lender. As a result, they may be willing to offer you lower mortgage rates.
5. Buy your dream home. This might sound like an unexpected bit of advice, but if rates are high, now is the time to really focus your search for your dream home. You may be competing against fewer homebuyers, who could be staying out of the market right now because of the rates. That also means that more properties could be for sale. So, you can shop a wider home selection, and your chances of making a successful offer may have increased.
6. Work with a mortgage company that goes above and beyond. Another way to handle shopping for a home when mortgage rates are high is to choose an experienced mortgage company that will spare no efforts to bring you affordable rates.

Contact Your Local Mortgage Broker Today!

At Mortgage Consultants Group, we have over 29 years of experience helping homebuyers move affordably into new homes regardless of economic factors. Whether you are shopping for a home in Rancho Cordova or anywhere in California, we can connect you with a flexible mortgage featuring affordable rates. To schedule your consultation now, please give us a call today at (916) 669-1682.

Buying a home can be stress-inducing, but it can be smoother with proper guidance and wisdom. If you seek to own a house in California through a home loan, here are three simplified steps to help you through the process:

3 Key Steps When Buying a Home in California

1. Set Your Budget and Get Pre-Approved. The cost of buying a house is steeper in California than in many other states, so consider this when determining your budget. To determine your budget, you must consider your income, expenses, and debt. You can visit an online mortgage calculator to ballpark how much you can afford to borrow. You should also factor in other expenses like property taxes, homeowners insurance, and maintenance costs. Then, get mortgage pre-approval. This involves submitting your financial information to a lender who will determine how much you can borrow and at what interest rate. Pre-approval helps determine what you can afford and make you a more appealing client to sellers.
2. Find a Real Estate Agent and Search for Homes. A real estate agent can shortlist properties that meet your criteria and guide you through buying. You can find a trusted one by requesting referrals from friends or family who have bought or sold a house. When you’ve found a real estate agent, discuss your budget and criteria for your desired house. This will help the agent narrow the search to homes that meet your needs and budget. It would help if you also started searching for homes online. Many websites, such as Zillow, Redfin, and Realtor.com, list homes for sale in California. You can use these websites to understand what is available in your price range and preferred location.
3. Make an Offer and Close the Deal. Talk to your real estate agent to secure an offer when you’ve got your eye on a house you want to own. The amount must be based on the market value of the house, your budget, and the house’s condition. Your real estate agent can help negotiate with the seller and ensure a fair offer. If the seller accepts, you must go through the closing process. This involves getting a home inspection, securing financing, and transferring the property title. You must also hire a home inspector to examine the house for any issues affecting its value or safety. Collaborate with your lender to secure financing for the home loan and ensure you have enough for the down payment and closing. Lastly, you must transfer the title of the property. This involves signing legal documents and paying any fees associated with the transfer.

Own a Home in Rancho Cordova, CA

Buying a house in California can be complex, but it can be simplified through these three steps. You can successfully buy a house in California by determining your budget, finding a real estate agent, and making an offer.

For over 29 years, we have provided flexible financing solutions to homebuyers and homeowners in Rancho Cordova, Gold River, and throughout Sacramento, El Dorado, Placer, San Joaquin, and Stanislaus Counties. Our mortgage company is dedicated to helping you achieve your dreams of homeownership by offering various home loan options. Our friendly experts will find the perfect mortgage for your unique needs. With our expertise and guidance, you can easily and quickly secure the ideal home loan and turn your homeownership dreams into a reality. Apply for a home loan in California by calling (916) 669-1682!

Choosing a home that meets your family’s needs is a critical decision that needs careful consideration. The process can be challenging, especially for first-time homebuyers or those curious about the real estate market. However, with the right tips and guidance, you can find and buy a home that is perfect home accommodating your family’s needs.

Tips to Help you Choose a Home that Meets your Family’s Needs.

1. Determine Your Budget. Determining your budget is the initial step in choosing a home that meets your family’s needs. You must know how much you can comfortably afford to spend on a house without risking your financial future. Consider your monthly income, expenses, and savings, and decide on a budget to pay your mortgage, taxes, and other home-related costs without strain.
2. Consider Your Family’s SizeThe size of your family is a crucial factor to consider when you plan to buy a home. You must ensure the house has enough space to accommodate all family members comfortably. If you have children, you may want a home with multiple bedrooms and bathrooms, a spacious living room, and a backyard for outdoor activities.
3. Location. The location of your home is also essential. You must consider proximity to schools, hospitals, shopping centers, and your workplace. A home located in a convenient location can save you time and money on commuting and provide easy access to essential amenities.
4. Safety. Your family’s safety should be a top priority when choosing a home. You must ensure the neighborhood is safe and secure, with low crime rates and a friendly community. You can research the crime rates in different areas, check the local police department website, or consult a real estate agent for guidance.
5. Home Maintenance. Home maintenance is another critical factor to consider when choosing a home for your family. You must ensure the house is in good condition and withstand wear and tear over time. You can hire a professional home inspector to evaluate the property’s condition and identify potential issues before purchasing.
6. Future Growth. Your family’s future growth should also be considered when choosing a home. You need to ensure that the house has enough space to accommodate any future additions to your family. If you plan to have more children or host frequent guests, consider a home with extra bedrooms or a finished basement.
7. Outdoor Space. Outdoor space is an essential factor to consider, especially if you have children or pets. A home with a backyard or a spacious front yard can provide ample space for outdoor activities and create a relaxing environment for your family.
8. Resale Value. Lastly, you need to consider the resale value of the home. You may not plan to sell the house anytime soon, but choosing a property with a good resale value is essential if you decide to sell it in the future. Location, condition, and amenities can affect the property’s resale value.

Choosing a Home in Rancho Cordova

Choosing a home that meets your family’s needs requires careful consideration and research. Following these eight tips, you can find the perfect home that accommodates your family’s size, location, safety, maintenance, future growth, outdoor space, and resale value. Remember to partner with a reputable real estate agent who can assist you through the process and help you make an informed decision. Mortgage Consultants Group has been a reliable and trusted mortgage company for over 29 years in Rancho Cordova, Gold River, and throughout Sacramento, El Dorado, Placer, San Joaquin, and Stanislaus Counties. Our commitment to providing flexible financing options for homebuyers and homeowners has helped us realize their dreams. Contact us today and let us help as you plan to buy a home in California.