Los Angeles is a competitive housing market. Finding a good deal on a home can be a challenge, as can finding a mortgage with affordable interest rates and favorable terms.
If you are still in search of the lowest Los Angeles mortgage rates, the tips below can help you out.
1. Do your research.
The first mortgage rates you are quoted during your search probably will not be the most competitive ones. While it is possible to get lucky on your first try, the only way that you can verify that has happened is by doing your research.
So, hunt around and see what kind of rates different lenders are offering. It may take some effort to track down the most competitive rates, but the willingness to do that work may help you to save thousands of dollars over the years ahead.
2. See if you qualify for any special loan programs.
Another way you can potentially get access to lower interest rates is by applying for a loan program which is government-insured. A couple of examples are FHA loans, which are insured by the Federal Housing Administration, and VA loans, which are insured by the Department of Veterans Affairs.
What is really exciting about these special loan programs is that they are available even to customers whose credit scores are not perfect. So even if you do not qualify for excellent interest rates on a conventional loan, you may be eligible for fantastic rates on a FHA or VA loan.
3. Consider a higher down payment.
Another way you can potentially reduce your interest rates in Los Angeles is to put more money down on a home to begin with. When you make a higher down payment, the lender does not need to loan you as much money, which reduces the risk profile of the situation.
This in turn means interest rates tend to be lower. And since you have paid off more of your loan in advance, the monthly amount that you need to pay going forward should also be reduced.
One great thing about the previously mentioned FHA and VA loan programs is that they combine flexible credit qualification with low or zero down payment.
That means that even if you cannot afford to make a high down payment in order to reduce your interest rates, you may still qualify for low rates. Credit which is less than perfect will also not stand in your way.
4. Do what you can to improve your risk profile.
Finally, one more thing you can do to find the best interest rates in Los Angeles is to look into your own financial situation in more detail before you go out shopping for a home loan.
Could your credit score be higher? What about your debt-to-income ratio? Could that be improved? Would you qualify for better rates if you waited a while to build up a longer and steadier employment history?
So long as you’re not on a strict timetable for completing the home purchase process, you may be able to make some improvements in your financial life. This will make you a more attractive perspective customer, and lenders may be willing to offer you lower interest rates as a result.
We Can Help You Apply for an Affordable Los Angeles Mortgage
If you have been having a hard time finding competitive mortgage rates in Los Angeles, Pacshores Mortgage Inc. can help. Please call us today at (310) 478-5005, and we will schedule you for a consultation to discuss your needs.