Thousands of people are drawn to San Diego every year, and for good reason. Great beaches and California culture in general have helped it earn the moniker “America’s Finest City.” If you’re buying a house in San Diego, though, you need to make sure you can finance it first. Here are 4 tips that will get you the loan you need to move into your dream house:
1) Pay Your Debts. For any agency that supplies home loans, debt and unpaid credit card bills are a major red flag. Pay off all your debts and outstanding bills before applying for a home loan, otherwise your application won’t be considered. If you’re still paying off college or graduate school, that’s okay – as long as you can supply records that prove you’ve been making your payments on time.
2) Get Pre-Approved. Many home loan agencies subject you to a month-long approval process before they’ll extend you an offer. This can make shopping around for the best loans a major pain. Visit a financial officer before filing a loan application to get their seal of approval first. With their go-ahead, you can bypass many of the background checks and financial investigations associated with a home loan.
3) Explore Your Options. Banks aren’t the only places to look for home loans. Credit unions, lending agencies, stock brokerages and even the California state government all offer financing to potential homeowners. Don’t be afraid to shop around to find the lowest interest rate you can.
4) Avoid Adjustable-Rate Loans. Many lenders lure in unwary home buyers by offering astoundingly low interest on adjustable-rate loans. While the numbers you see might be enticing, don’t be fooled. Adjustable rates mean that the bank can hike up the interest you have to pay as high as they want, whenever they want.
Getting a home loan in San Diego doesn’t have to be a painful process. Make sure your credit checks out, then shop around. Deal only with trusted lenders. You’ll be able to move into the San Diego home you’ve always wanted in no time.
