Best California Mortgage Rates

Where to begin: Home loans in California

Are you considering purchasing a home in California? Before you even crack open the real estate listings, it pays to do your homework on the home financing process. The further you are in the mortgage shopping process, the less likely it is you’ll cast too wide a net in looking for your home -- and when you do find the perfect fit for you and your family, the more likely it is you’ll be able to achieve your goal of buying the home.

Preparing for mortgage qualification

The mortgage qualification process is really a mortgage lender’s way of comparing your loan balance with your financial situation, to reduce the chances that you won't be able to uphold your repayment obligation. A mortgage lender will check your credit history, get your gross income, and assess the amount of your existing debts, among other critical factors.

These factors, and others, will determine the amount you can borrow. The best California mortgage rates are typically offered to those with the highest credit scores; because a low mortgage rate means reduced monthly payments for the same loan amount, an excellent credit history can increase the amount you can borrow or lower the fees you pay on the home loan.

In much the same way, the higher your income and the lower your other debts, the more you may be able to borrow for your home. A quick mortgage calculator can help you ballpark a price range, or you can consult a mortgage professional for the numbers.

Selecting a mortgage

FHA, VA, USDA or conventional mortgage? Conforming or jumbo? There are many home loan options available, even if getting past qualifying is harder now than before. You may be surprised at the number of choices out there. Some of the major factors that determine the ideal choice for your financial circumstances are:

• your loan balance
• the amount you can put down as equity
• how long you plan to stay
• how strongly you feel about stability in monthly payments
• location of the property

For instance, if you only have a small chunk of the home’s value for a down payment -- or little home equity if you're refinancing -- and want to keep your resale options open, consider a home loan backed by the Federal Housing Administration (FHA), which requires as little as 3.5 percent down and are assumable. Then again, if you have a 20 percent down payment, great credit, and have plans to stay awhile, you could get a better deal by selecting a conventional mortgage and purchasing discount points for a loan term of 30 years.

Finding the best California mortgage rates and mortgage lenders

Whether you’re looking around for a home loan to purchase a home or refinance one, you should make it a priority to get the best California mortgage rates. Even a small difference in the mortgage rate can add up to thousands of dollars over the term of your home loan.

To find the best California mortgage rates, compare quotes from at least several mortgage lenders. A great mortgage loan professional can help you navigate different loan programs, run the numbers for various scenarios and explain them until you are comfortable, and advise on whether you should lock your mortgage rate.

Have mortgage lenders do the initial heavy lifting. All you have to do is take the first step. By entering some brief information in the form, you'll have started the process that lets lenders compete for your business. Then, consult several to locate a professional who is responsive to your needs and also offers the best California mortgage rates to reduce your monthly payments.

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