Rancho Cordova

3 Simplified Steps to Buying Your California House

July 12, 2023 by Mortgage Consultants Group

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

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.
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.
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!

Refinancing Your Home for Renovation

July 11, 2023 by Mortgage Consultants Group

Home renovation is a significant undertaking that can cost a lot of money. There are many ways to get the home of your dreams, from new countertops to a home addition. However, paying for the renovation upfront can be challenging, especially if you don’t have enough savings. Refinancing your home is an excellent strategy to get the money you need for home renovations. In this article, we will guide you through the process of refinancing for home improvements.

What Is Refinancing?

Refinancing refers to paying off your existing mortgage with a new one. It is an excellent strategy to get a better interest rate, lower your monthly payments, or change the terms of your mortgage. When you refinance your home, you essentially replace your old mortgage with a new one. Refinancing can help you save money in the long run, especially if you get a lower interest rate.

Types of Refinancing

There are two main types of refinancing: rate-and-term and cash-out.

Rate-and-term refinancing is when you refinance your mortgage to get a better interest rate or change the terms of your mortgage. This type of refinancing is ideal for homeowners who want to save money on their monthly mortgage payments or pay off their mortgage faster.

Cash-out refinancing is when you refinance your mortgage and take out some of the equity in your home in cash. This type of refinancing is ideal for homeowners who want to use home equity for home improvements, debt consolidation, or other expenses.

Steps to Refinance for Home Improvements

Determine Your Home’s Equity. The first step to refinancing for home improvements is determining how much equity you have in your home. Equity is the difference between the current value of your home and the amount you owe on your mortgage. To calculate your home’s equity, subtract your mortgage balance from your home’s current value.
Check Your Credit Score. Your credit score is an essential factor in refinancing your home. Lenders use your credit score to determine your eligibility for a new mortgage and the interest rate you will receive. Make sure you have a good credit score before you apply for refinancing.
Shop for Lenders. Once you have determined your home’s equity and checked your credit score, it is time to shop for lenders. Look for lenders who specialize in refinancing for home improvements. Compare interest rates, fees, and terms to find the best deal.
Apply for Refinancing. After you have found a lender, it is time to apply for refinancing. The lender will ask for documentation, such as your income, employment history, and credit score. Make sure you have all the necessary documentation before you apply.
Get an Appraisal. The lender will require an appraisal of your home to determine its current value. The appraisal will help the lender determine how much equity you have in your home and the amount you can borrow for home improvements.
Close the Loan. After the lender has approved your refinancing application, it is time to close the loan. You will sign the new mortgage documents and pay any closing costs associated with the loan.

Get Started on Your Home Renovation Project Today

Home renovation can be an exciting adventure, but it can also be expensive. If you want to make your dream home a reality but don’t have enough savings, refinancing your home can be an excellent option. With the right approach and a reputable mortgage company, you can confidently refinance your home and get the money you need for your home renovation project.

Mortgage Consultants Group is your mortgage company in Rancho Cordova, Gold River, and throughout Sacramento, El Dorado, Placer, San Joaquin, and Stanislaus Counties. For over 29 years, we have made homebuyers’ and homeowners’ dreams come true with flexible financing for every need. Whether you are shopping for a new home or want to refinance your mortgage, you will find the ideal home loan quickly and easily with the help of our friendly loan experts. Get your home loan refinance in California by getting in touch with us today at (916) 669-1682 to get started.

3 Questions about Jumbo Loans in California Answered

July 10, 2023 by Mortgage Consultants Group

Jumbo loans are mortgages above the limits confirmed by the Federal Housing Finance Agency (FHFA). California’s conforming loan limit is $1,089,300 for a single-family home in 2023, meaning any mortgage above this amount is considered a jumbo loan. If you are considering buying a high-priced property in California, it’s essential to understand how they work and what you need to qualify. Here are three frequently asked questions about jumbo loans in California answered.

What Are the Requirements?

To qualify for a jumbo loan in California, you must meet stricter requirements than a conventional loan. The lender will examine several factors, including your credit score, debt-to-income ratio, employment history, and cash reserves. Typically, jumbo lenders prefer borrowers with a credit rating of 700 or higher, a debt-to-income (DTI) ratio of 43 percent or below, and cash reserves of at least six months of mortgage payments.

In addition to these requirements, jumbo lenders may require a larger down payment, usually around 20 percent of the purchase price or more. This is because jumbo loans are considered riskier than conventional loans, and the lender wants to mitigate that risk by ensuring that you have more equity in the property.

Remember that every lender has underwriting guidelines for jumbo loans, so looking around and comparing different lenders for the best terms and rates is essential.

What Are the Interest Rates for Jumbo Loans in California?

Jumbo loans have slightly higher interest than regular loans, usually by 0.25 to 1.5 percent, because they are riskier for lenders. However, the interest rates in California can vary widely depending on several factors, including the loan amount, credit score, down payment, and the lender’s underwriting guidelines.

If the average interest rate for a 30-year fixed conventional loan is 3 percent, a jumbo loan’s interest rate may be 3.25 to 4.5 percent. But these are subject to change and may differ depending on your situation.

For the best interest rate, compare offers of several lending institutions. You can also improve your chances by working on your credit score, saving for a larger down payment, and reducing your debt-to-income ratio.

What Are the Benefits of Getting a Jumbo Loan in California?

There are several benefits to getting a jumbo loan in California, including:

Buying a high-priced property: Jumbo loans allow you to buy a property that exceeds the conforming loan limits in California, which can be beneficial if you’re looking at a luxury property in a high-cost area.
Flexible terms and options: Jumbo loans offer more flexible terms and options than conventional loans, such as adjustable-rate mortgages (ARMs), interest-only loans, and cash-out refinancing.
Tax benefits: If you use the jumbo loan to get a primary residence, you may be eligible for tax benefits, such as deducting the mortgage interest on your federal income taxes.

However, weighing the benefits against the risks and costs of getting a jumbo loan is essential. Jumbo loans are riskier for lenders, which means they have stricter requirements and higher interest rates than conventional loans. It would be best to have significant cash reserves to qualify for a jumbo loan, which can be challenging for some borrowers.

Get a Quote from Us Now

Jumbo loans are a type of mortgage loan that can get you a high-priced property in California. However, it’s important to understand the requirements, interest rates, and benefits of getting a jumbo loan before you apply. Working with a knowledgeable lender who can assist you throughout the process.

For over 29 years, our mortgage company has been serving homebuyers and homeowners in Rancho Cordova, Gold River, and various counties in California, including Sacramento, El Dorado, Placer, San Joaquin, and Stanislaus. We specialize in providing flexible financing options to meet the diverse needs of our clients. Our friendly loan experts will guide you to find the perfect home loan that suits your requirements quickly and effortlessly. We’ll help you achieve your homeownership dreams. Call (916) 669-1682 to learn more about a jumbo loan in California!