First Time Home Buyer In California

Are you a first time home buyer looking to buy a home in California? Great news and congratulations on moving forward with your first home purchase. First time home buyers in California have lots of options when it comes to choosing the right home and with lots of options comes lots of questions! Single Family or Condominium? Which neighborhood do you want to be in? How are the schools? I could go on but I think you get the picture. I will leave Home Buyersthose questions to work out with your Realtor; and I’ll focus on another set of questions – what mortgage terms are best for first time home buyers in California?

I wish there was a simple answer that applied to all but that is not the case when it comes to getting a mortgage; especially if you are a first time home buyer in California. But let’s get to the basics so that you can have a good foundation to start the process of getting a low rate mortgage that meets your needs.

Down payment: This is one of the most important questions you need to answer before you move forward. Your Down payment can come from savings, relatives and/or local down payment assistance programs. There are lots of options and for most loan programs you’ll need 3.50% down. So if the purchase price is 400k; you’ll need $14,000 down with most loan programs.

Closing costs: This is the amount you’ll need to cover, in addition to the down payment, when you’ll close the loan. Sometimes the buyer pays all of their closing costs and sometimes the seller chips in to help cover the closing costs. To be safe factor in 2.00% of the purchase price as far as closing costs or plan on having the seller kick in to help lower that.

FHA or Conforming: If you have a low down payment, and/or a low credit score than a FHA mortgage might be best.  If you have 10-20% down and good – excellent credit than a conforming loan might be best.

Fixed or Adjustable Rate: This is a tough question to answer for some; and for others it’s not because they only want to consider a fixed rate. If there is a good chance you will be moving or refinancing the mortgage in 5 years you may want to consider a adjustable rate mortgage; other than that most people generally go with a fixed rate mortgage.

Pre-Approval: This is a must! Contact a loan officer, you can reach us at 1-800-550-5538, to get pre-approved. Usually it doesn’t take very long (24-48 hours after the loan officer has everything he/she needs).

Getting a mortgage in California doesn’t have to be hard.  We have worked with lots of first time home buyers so If you would like a no cost/no obligation quote from a top rated company; please contact us today at 1-800-550-5538. We offer a wide variety of loan programs including both fixed rate mortgages and adjustable rates mortgages. We have a top rating the Better Business Bureau which means we provide a high level of customer service.