Among the most Frequently Asked Questions about Mortgages, this one is common. The answer is always changing. It’s not just based on the California housing market and specific Bay Area location. Your unique situation will also influence your decision and ability to buy a home. Ask yourself these questions:   

• Do you have money for a down payment?
• Are you a veteran or are you eligible for other assistance?
• Is your credit score high enough and do you have a stable income?
• Are you ready for the responsibilities of California home ownership?

Another common Frequently Asked Questions about Mortgages had to do with the need for a 20% down payment. Banks will often require a significant down payment, but there are other types of loans and government programs that can reduce the amount you need. Some may even be $0 down. First time home buyers can also qualify for financing with a low – to no – down payment. However, if you do have the money to make a 20% down payment, you’ll get good terms for your mortgage loan. An independent mortgage lender can work with you on this process to buy your home in the Bay Area.  

There are several mortgage loan products available for California home buyers. An independent mortgage lender like GoPrime Mortgage, Inc. can help you learn about your options.  

When deciding between loans, ask yourself these questions:  

• How muchare youborrowing?  
• How longdo you have torepay the loan?  
• How much interestwill youpay?  
• Is itfixed or adjustable?  
• Do you have to pay for discount points? 
• How much and when do you have to pay closing costs? 

This frequently asked question is based on very outdated information that really doesn’t apply to homebuyers today. At one time, it was standard procedures but things have changed. Lenders do need to verify stable employment, but there are other factors to review as well such as debt-to-income ratio. Compare requirements from banks and independent mortgage lenders to learn more about the income requirements. 

You can use our Mortgage Calculator to get a quick estimate. Just enter the cost of the house, an interest rate, and the life of the loan. However, we understand that this may be a guess, so there are better ways to determine your actual figures. For a more in-depth look at your mortgage options, contact Zachery Adam of GoPrime Mortgage, Inc.  You can be pre-qualified or pre-approved for a loan before you start looking for your California dream home. 

So many homebuyers overlook the additional costs of buying a new home in the Bay Area. All Mortgage lenders require that you carry the right homeowner’s insurance policy. You will also be paying property taxes on the home. There are other costs as well, such as maintenance, that you may want to consider in your budget.  

APR stands for the Annual Percentage Rate which refers to the total yearly cost. It encompasses the interest and fees you pay over the life of the loan. The interest rate is only the interest percentage on the principal you are borrowing. While the interest rate may seem enticing, the APR is what you actually pay and it will be more.  

Pre-qualification is a nonbinding estimate of the amount you can borrow. Pre-approval determines the amount that the lender will be willing to loan you to buy your California home. You can learn more about this process on our Get Prequalified page.  

The most common mortgages on the markets have a set duration, such as 30 years, and a fixed rate that stays the same for the life of the loan. But those aren’t the only options available for California home buyers. When you talk with an independent mortgage lender, like Zachery Adam, you’ll learn about all your options. The right mortgage loan for you can depend on a lot of factors. An adjustable rate mortgage, or ARM, can save money for some homebuyers. No loan is one-size-fits-all. Zachery, with GoPrime Mortgage, Inc.  can work with you to find the right match to buy a home in the Bay Area.  

There are a number of documents needed to apply for your California mortgage. You will have to show your income, debts and past payment history. The specific paperwork varies depending on your situation. You can see our full list on the Document Checklist page. Talk to an independent mortgage lender about what documents you’ll need to apply for your specific loan.