California is a state known to have a volatile real estate market. Before the economic downturn, house prices were high in some cases ridiculously high! With the extremely high demand in a seller's market and the ability for buyers to get the mortgages that they wanted pretty easily, the sky was the limit!
Source: Bakersfield Homes
It is a different story post economic downturn, buyers are finding it relatively harder to qualify for a loan (especially as compared to pre economic downturn era!), and it is no longer an absolute seller's market! Although the trend shows that the real estate market is getting better, it has a long way to go to reach the heights that it had been at!
There are tips that can help in successfully obtaining a California Mortgage Home Loan:
- Ability to repay the loan! This is a major criteria that Lenders look at in evaluating the loan application. Typically the Lender will look at:
- your current employment - where you work, how much you earn and whether the employment is stable and long term.
- your history of paying previous loans - they will take special note of late payments and delinquencies and also your FICO score.
- Property. Where is the property located, is it in a known declining market or an appreciating market - they will correlate their risk to the amount of down-payment that you will be making.
There are many things that a Lender may accept if you come up short on their basic list of criteria, but in order to be prepared and to successfully negotiate the loan it is advised that you work with an experienced loan broker that provides services for California Mortgage Home Loans!
