Financing Your New Home in North County San Diego
Whether you’re looking for pre-approval information to finance your first home in North County San Diego, or a current homeowner seeking to refinance your existing property, The Lund Team can help.
What to Expect in the Financing Process
You don’t have to go through the financing process blind. With the following information, you can educate yourself so that you have the absolute best chances of getting your dream home in Southern California or successfully refinancing the one you already own. Here are some of the steps you will go through on your path to your new front door.
1. The Credit Check
Your lender will pull your credit score in the beginning of the financing process. This helps them determine if you are a qualified borrower according to their underwriting process. This first credit check also enables them to pull together one or more loan offers to present to you. Be aware that your lender may decide to pull another credit report just before your closing.
Make sure you are prepared for the credit check process. Well in advance, check your own credit score to see where you stand. You can get one free credit report, annually. If improvement is needed, take action, such as paying off credit card debt and resolving incorrect information. Your debt-to-income ratio is a major determinant in your FICO score.
Avoid making any big changes or purchases in the months leading up to your seeking home financing. These can lower your credit score and cause you to lose out on premium loan rates.
2. The Loan Options
There are several loan options available, depending on the amount you are borrowing, the length of time, your credit score, the percentage you put down as a deposit, and much more. Your lender is likely to present more than one loan option. Here are examples of some you might expect to see.
Conventional loans are available up to $580,750 in San Diego County. These are attractive to some because the borrower can put as little as 5% toward the purchase price, or 3%, if the loan is $417,000 or less.
VA loans are available to qualified veterans with up to 100% financing. To qualify, veterans must have adequate income, suitable credit and be able to obtain a Certificate of Eligibility from the U.S. Department of Veteran’s Affairs.
FHA loans in San Diego County are available to homebuyers for just 3.5% down on loans up to $580,750. Approved applicants will have a minimum of a 580 credit score.
Adjustable Rate Mortgages offer lower interest rates that adjust over time. They offer borrowers to get into the real estate in North County San Diego for less monthly payments.
To learn more about refinancing your home, or to get pre-qualified, please contact one of our experienced agents today!