Finding the Best California Mortgage Companies

California is the richest state in the United States with Texas and New York coming at a distant second and third respectively. This means that the cost of living is much higher than the national average. Real estate properties also come at a premium due to the high demand and large number of high net worth individuals who would like to move to the state. California has two strong points when it comes to attracting capital and tourists. First, it has a great climate. Secondly, the state is located on the west coast of the United States in close proximity to the oriental giants. That said, the California mortgage market has thousands of lenders who are competing for a piece of the lucrative mortgage lending business in the state. After all, most property prices are in the tune of millions of dollars, or thereabouts. California mortgage companies offer a number of products, key among them being home loans and mortgage refinancing.

What to Look for in a California Mortgage Company

i) Experience

The best mortgage firms usually have a long history of lending in the state of California. Mortgages usually have a term of around 10 to 30 years, so any company which has been in business for this long should be given strong consideration especially if they have a great reputation in the industry. The types of loans, whether commercial or residential mortgages, offered by a lender is also a key factor of consideration. After all, a company which specializes in residential mortgages may not be familiar with the needs of commercial property owners.

ii) Transparency

The ideal mortgage firm should be transparent in their dealings. For instance, the mortgage contract and promotional materials should state clearly the APR charged by the company as well as the time it takes to approve a loan application. In a bid to attract new customers, many firms usually quote lower rates of interest and promise to approve the loan within a short period of time without the intention of keeping their word. You should find a company with a great deal of transparency. The interest rate they charge should be clearly stated and a detailed breakdown of the mortgage rate provided. The actual closing costs and any other additional charges must also be clearly indicated on the loan contract.

iii) Affordability

Obviously, you want a mortgage you can afford. Since interest rates usually differ from one lender to the next, it is important you compare quotes offered by different companies to identify the most affordable. Secondly, you should look for a lender with the lowest downpayment requirement. If you can only come up with a 10% downpayment, be sure to work with a lender who can accept that amount. Get detailed information by clicking here.

iv) Types of Loans

There are many types of loans out there. They include adjustable rate mortgages, VA loans, fixed rate mortgages and FHA loans among others. The ideal mortgage company should offer the widest range of loans and be able to inform clients beforehand about these options. They should not just let someone who qualifies for an FHA loan apply for one of their commercial loans because it's more profitable.