We are the ideal partner for California homebuyers.
Low rates, fast closings, and exceptional service. With our streamlined mortgage approval process, we can close your purchase transaction in as little as 3-4 weeks.
We cover all of California from San Diego to the northern border with Oregon.
In addition to our low rates, fast closings, and great service we offer various down payment options (as little as 3% down) as well as a wide variety of loan programs for those with less than perfect credit.
Whether it’s a primary home, a secondary home, or a one to four-unit rental property, we have the ability to match your needs with a great mortgage.
Learning About The Mortgage Process
It’s important that California homebuyers have a good understanding of the mortgage process before they make an offer on a home. Review our step-by-step mortgage process guide for a better understanding of what the process is like.
First Step: Getting Pre-Approved
Once you’ve decided on a mortgage company to work with you’ll then want to get pre-approved.
The reason why it’s important to get pre-approved for a new mortgage is because you’ll need a pre-approval letter to present with your offer. The process of getting pre-approved should only take a day or two (from when you complete the application and turn in your documentation).
Here is a list of documents you’ll need to get pre-approved.
The pre-approval letter you receive will usually list your name, current address, and the amount you are approved for. Additional information may include your credit score and the size of your down payment.
Second Step: The Accepted Offer!
So once you have your accepted offer it’s time to move fast. You’ll need to get your inspections done, an appraisal done and the loan underwritten.
Once the offer is accepted the lender will send out the initial disclosures. It’s a good idea to review these disclosures and discuss any questions you may have.
When it comes to buying a home it’s somewhat common to see generic numbers in the initial Loan Estimate The reason is that the title and escrow company typically don’t have their initial fees established before the disclosures go out.
So in cases like that the lender will use the fee schedule from an escrow and title company they have access to. Later in the process, the fees will be updated after the escrow and title company turn in their fees.
Also, be sure to turn in additional documentation your Loan Officer requests.
Third Step: Your Conditional Loan Approval
After the disclosures are signed/dated, the file moves on to underwriting. If you have to do an appraisal then that process has started as well. Usually, within 2-5 days of submitting a file to underwriting you’ll receive your conditional approval.
Conditional in the sense that it’s not ready to close and the underwriter has issued the conditions that need to be cleared before closing.
Once the Loan Officer has the conditional approval he/she will contact you to review the conditions that need to be cleared.
Some additional disclosures will go out including the Closing Disclosure.
Fourth Step: Closing The Mortgage
Once everything has been signed off and all conditions are cleared then the file is ready for closing. Generally it takes about 3-4 days for a lender to issue loan documents to escrow (and escrow sets up a time to sign them).
The reason it takes a few days (usually) is that the lender needs to do a compliance check and also verify your employment. They also coordinate with escrow the exact amount being charged.
Once that is completed the lender issues loan documents to escrow and then escrow will contact you to arrange for a closing time.
You’ll then sign loan documents with a notary and wire your closing funds to escrow. And then your loan can close and you take ownership of the property.
It’s our job to make sure that you not only obtain a low mortgage rate and have smooth closing but also making sure you understand the mortgage process.
We’re here to help!
If you’re purchasing a primary residence, a secondary home, or even an investment property we have the loan options, the knowledge, and the experience to make sure you have a quick and smooth transaction.
Here are the four main loan programs for California homebuyers.
- Conforming loan programs: The most popular and most well known mortgage loan program is the conforming loan. These loans “conform” to the loan limits and underwriting guidelines of Fannie Mae and Freddie Mac.
- Jumbo loans: If your loan amount is above the conforming loan limit than that is considered a jumbo home loan. It’s important to remember that jumbo home loans generally come with higher rates and more restrictions than loans that conform to Fannie Mae and Freddie Loan limits and guidelines.
- FHA home loan: The FHA home loan program is great for first time home buyers and/or those with less than perfect credit. Also if you have a small down payment than this loan program might be a perfect match.
- VA home loan: If you were in the military than you’ll want to consider the VA home loan program. This program offers zero down, great rates and flexible loan limits.
We suggest you explore all your options before deciding on which loan program is best for you.
If you are a First-Time Homebuyer we have one of the best online resources. Here is what you’ll learn:
The Main Loan Programs For First-Time Homebuyers: We go into detail about the most popular first-time homebuyer loan program options. We cover the basic requirements and qualifications for each loan program option.
The Loan Process: We provide an overview of the mortgage loan process and how to stay on top of your first mortgage transaction. From getting pre-qualified to the documentation you’ll need to what happens after you have an accepted offer. We cover it all so that you’re better informed to make better decisions.
Important Mortgage Terms: Understanding the basics is an important part of getting the best possible mortgage terms. Throughout the article, we’ll introduce you to specific terms each first-time home buyer should know. This way you can sound like a seasoned professional when contacting mortgage companies for quotes.
Getting Pre-Qualified: The process of getting pre-qualified and the steps that follow. The pre-qualification process doesn’t have to be complicated and we show you the steps to ensure you have a smooth and efficient process.
Mortgage Pro-Tips: We cover ways that you as a first-time homebuyer can save money on your first purchase. These tips might save you thousands of dollars in interest payments.
Ten Tips To Get A Better Mortgage Rate: Here we give you some solid tips on how to get a better mortgage rate. A better mortgage rate means you’ll pay less in interest during the loan.
Steps To A Low Mortgage Rate
Here are seven simple ways to help California homebuyers obtain the lowest possible mortgage rate.
Review Your Credit
Pull your credit reports and see if you need to fix anything. Look for:
- Late payments
- Credit cards with over 30% of the credit line outstanding
Bring all late payments current, pay your balances down, work out collections with the collection agency, and dispute errors with the credit bureau.
The higher your credit score is, the lower the interest rate lenders can give you. Your credit score shows how risky (or not risky) you are.
Save Money For A Down Payment
The more money you have invested in your home, the lower the risk the lender takes. Lenders like it when you have ‘skin in the game’ or your own money invested. You’re more likely to make your payments on time or find ways to do so if you’re at risk of losing your own money.
You don’t need a 20 percent down payment, but anything you can afford to put down will help.
Choose a Shorter Term
If you can afford a term shorter than 30 years, do it. The less time you borrow the money, the less risk the lender takes. 15-year loans have the lowest rates, but any term shorter than 30 years will save you money.
Make sure you can afford the higher payment since you must pay more principal to cover the shorter term, but your bottom line will be much lower with the lower interest rate.
Lock-In Your Mortgage Rate
Don’t leave it to chance. Once you have a sales contract and a loan pre-approval, you can lock in your interest rate. A basic rate lock is for 30 days. It’s the cheapest way to lock your rate.
If you’re 30-days or less away from closing, lock your rate when they hit your target rate. Since rates change often (sometimes multiple times a day), you could lose your target rate if you don’t lock it.
Consider Pay Discount Points
If interest rates aren’t low enough when you need to lock your rate, consider buying the rate down. One point usually cuts your interest rate down 0.25%, but it varies by lender.
One point is one percent of your loan amount. For every $100,000 you borrow, one point is $1,000. For example, to lower your rate by 0.5%, you’d pay 2 points or $2,000 per $100,000 borrowed.
Discount points are like prepaid interest. You pay the interest upfront and then enjoy the lower interest rate for the life of the loan.
Stabilize Your Qualifying Factors
Lenders look at more than your credit score (although it’s one of the most important factors). If you have a high debt-to-income ratio or unstable employment, for example, lenders may charge you higher interest rates.
Before you apply for a mortgage, stabilize all aspects of your loan. Lower your debt-to-income ratio (pay down your debts), make sure your employment and income are stable, and of course, maximize your credit score.
Pay Your Closing Costs
Some lenders offer a zero closing cost loan. You bring no money to the table and the lender covers your closing costs. In exchange, you pay a higher interest rate. If you’re trying to keep your rate low, pay the closing costs and take the interest savings. You could save as much as 0.5% on the rate.
What If You Can’t Get a Low Mortgage Rate?
If you don’t qualify for the best mortgage rates that’s okay. Take the higher rate for now (assuming you qualify) and think about refinancing when your situation improves.
For example, if you’re able to improve your credit over the next couple of years, you may qualify for a better interest rate in a few years. The same is true if you have a high debt-to-income ratio right now. If you work on paying your debts down, you may qualify for better rates in the future.
Loans today don’t have prepayment penalties. Even if you take a 30-year term, you don’t have to keep the mortgage for 30 years. You may refinance as much as you want (and qualify for).
Review at the APR
Don’t mistakenly focus on the interest rate and forget about the APR.
The APR shows the cost of the loan annually based on all costs, not just the interest rate. You could get a loan with a low-interest rate but excessive closing costs. This could cost you more in the end. That being said, there is one big problem for those that just look at the APR.
During the quote process, the Loan Officer may not calculate the APR correctly so it’s important to keep that in mind and avoid solely depending on the APR to make an informed decision.
Think about what you want out of your loan and determine how long you’ll keep it. If this is your ‘forever home’ you’ll want the lowest mortgage rate possible. This will save you the most money over the term.
If you will move in a few years, the interest rate doesn’t play as important of a role. Yes, you still want to pay the least amount of interest possible, but you won’t carry the loan for the next 30 years. Your bottom line won’t be as different if you have a rate that’s 0.5% higher like you would if you kept the loan for the entire term.
Look at the big picture and determine what you need to make your loan work for you. Interest rates are constantly changing and lenders charge different rates for different situations. Perfect your qualifying factors and make the most out of your mortgage loan.
California Homebuyer Resources
Below are some additional resources for California homebuyers.
Conforming Loan Limits
If you are more likely to get a Conforming loan be sure to check out our California Conforming Loan Limits page; we cover every county in the state. We also offer additional resources for homebuyers.
In our Consumer Protection section, we cover the mortgage process and key disclosures you should know before you apply for a mortgage.
How Your Credit Score Impacts Your Mortgage Rate
Your credit score has a big impact on the mortgage rate you are quoted. Review the credit score ranges lenders have and how these ranges can impact your mortgage rate.
30-year vs 15-year Fixed – Which Is Better?
If you need some assistance with determining which loan term is best for you please be sure to check out our guide to deciding on a 30-year or 15-year fixed mortgage rate.
An FHA Home Loan Guide For California Homebuyers
At JB Mortgage Capital, Inc. we offer a wide variety of FHA home loan programs to purchase a home. We’ve put together one of the best FHA home loan guides on the internet.
Key Mortgage Terms
Understanding the key mortgage terms could save you thousands of dollars. Take five minutes to learn everyday mortgage terms to help you better understand the mortgage process.
If you are self-employed and are looking to purchase a home you’ll definitely want to review our guide to getting a mortgage when you’re self-employed.
California Homebuyer Mortgage Tips
Here are three tips that can save you thousands of dollars.
- Homebuyer Tip #1: As a homebuyer in California you should only work with top-rated companies; ones that have at least an A- rating (or higher) with the Better Business Bureau. Also, take a few minutes to do some research on the Loan Officers as well. We suggest working with someone who has at least 5 years of experience (preferably 10).
- Homebuyer Tip #2: Mortgage rates can change daily; in fact, they can change multiple times in a day if the market is volatile. When you lock in your rate/terms be sure to get that in writing. Some mortgage companies (not us) will only lock in terms when you’re ready to close. That’s super risky on a purchase transaction.
- Homebuyer Tip #3: When looking to buy your next home be sure to set your short, medium and long term goals ahead of time. Trying to figure this out on “the fly” will only result in poor decisions. Making sure you secure a great mortgage is essential to your financial future. Planning ahead can only make that job much easier.
And don’t hesitate to talk with your Loan Officer and ask for any suggestions on how to best structure your new home loan.
Tracking Mortgage Rates In California
At JB Mortgage Capital, Inc. we make it simple for our clients to stay on top of current mortgage rates. Since we understand the importance of locking in a low rate mortgage we follow the market where mortgage rates originate – the Mortgage-Backed Securities market (MBS).
And if you have any questions about the current market we encourage our clients to call or email for updates. Or you can visit us online to get daily/weekly updates.
We want to make sure each client knows where interest rates are at and how best to proceed with locking in terms. We will work with you to ensure we locate the best possible mortgage that meets your needs.
How Do We Do It?
We utilize the latest technology to ensure our costs are low, and you’ll work directly with a loan officer from beginning to end to ensure a quick, smooth and efficient transaction.
Unlike many other mortgage companies, we do not pass you from one department to the next. From application to closing you’ll work directly with your loan officer; it’s more efficient and it provides for a better experience for the client.
Need a pre-approval letter? We can have you pre-approved and a letter out in 24-48hrs. If you need it done asap we can usually accommodate a rush and have it done the same day.
These are some of the reasons why we have an A+ rating with the Better Business Bureau and we’re AAA rated with the Business Consumers Alliance.
Our clients include:
- First time home buyers
- Experienced homeowners
- Seasoned investors purchasing rental properties
From Conventional loans to FHA home loans we have a wide variety of home loan products to meet the needs of every homebuyer in California. With low mortgage rates, industry-leading customer service, a top rating with the Better Business Bureau – we are the ideal mortgage company to work with on our next purchase.
JB Mortgage Capital, Inc. is 100% focused on the customer experience. From loan application to closing you’ll work directly with one person the entire time. This ensures for a better experience for the customer and a more efficient loan process.
Low Mortgage Rates
Making sure we provide industry low mortgage rates is a focal point at JB Mortgage Capital, Inc. We understand the importance of saving money. From fixed-rate mortgages to adjustable-rate mortgages we offer low rates at great terms.
Mortgage rates change daily and having a mortgage consultant who knows what they are doing is important. Having several home loan options provides you the ability to find the best mortgage loan for your needs when you purchase your new home. My team and I are committed to your satisfaction and we will do everything we can to find you the best home loan out there.
Long-Lasting Benefits of Homeownership
Owning your own home provides several long-lasting benefits. In addition to the satisfaction of being a homeowner;
- You can build equity
- Enjoy certain tax deductions that renters don’t have access to
- Say “goodbye” to your landlord
- Take control of your living environment for you and your family.
Some of the wealthiest American’s in the country made their wealth by owning property. The long-lasting benefits of homeownership is clear and it can dramatically change the financial outlook for you and your family.
Finding the best mortgage rates and terms is vital for each client we help.
Whether you are a first-time homebuyer or a seasoned investor, koloans.com has an assortment of tools and home loan programs to meet your individual financing needs. Use our easy-to-navigate site, or contact us by phone at 1-800-550-5538.