california mortgage loansLenders of California Mortgage Loans must compete for your business. That means California mortgage loans are negotiable. Don’t assume that the lender’s published interest rates are final. Compare information on interest rates and mortgage features from several lenders in your area.

Start by looking for a mortgage at the bank where you have your checking or savings account. A wide variety of institutions make home mortgage loans, including savings and loan associations, commercial banks, mutual savings banks, and mortgage companies. The mortgages these institutions offer will have varying features.

One way to find the creditor with the most attractively priced loan is to look in your local newspaper. Check to see if it publishes a shoppers guide to mortgage credit. These shoppers guides are available in many localities and can be used to identify the lenders with low rates.

Lenders over the last couple of years have become increasingly willing to finance as much as 95% or even 97% of a home. The reason: They can now unload the risk of such loans onto somebody else. To limit their exposure, many lenders regularly sell their loans to the Federal National Mortgage Association (Fannie Mae), which then bundles them into securities which are eventually sold to investors.

It used to be that Fannie Mae only would buy loans for 80% financing. But it recently standardized the lending criteria for 97% financing and will now buy these loans, making lenders much more willing to provide them to you. It’s now common for first-time buyers to put down only 5%, or $7,500 on a $150,000 loan.

Financial contracts can be very confusing. Before signing yourself to major long term California mortgage loans have an attorney, familiar with financing and taxes, examine and explain the details (where the Devil is). A good tax finance attorney can save you many times his fee over the years, not to mention possible legal problems.

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