Are you looking for a Los Angeles home loan?
Home loan lenders are a dime a dozen but not all are equal and there are a few things you should know before you choose one.
Los Angeles is a massive city and home to many varieties of financial institutions. If you are feeling a bit of overwhelmed trying to choose the right mortgage lender, you’re not alone. Whether you’re looking to live near the beach in Santa Monica or purchasing a condo in Echo Park, we will help you get started in learning how to acquire a Los Angeles home.
Before we jump into the actual companies located in Los Angeles CA let us review what kind of lenders there are:
- Los Angeles Mortgage brokers: these are independent professionals who are licensed and manage the relationship between lenders and borrowers. Mortgage brokers will usually be compensated by the borrower or lender and a small percentage of the loan usually 1 to 2% will be rewarded for their services.
- Los Angeles Direct Lenders: these would include credit unions banks online entities and other groups that lend directly to customers.
- Los Angeles Correspondent lenders: these are lenders who produce and fund their own loans and market them to larger lending institutions.
- Los Angeles Wholesale lenders: these are lenders who never interact with borrowers. They usually work directly with mortgage brokers.
- Los Angeles Hard Money Lenders: these include private investors or even individuals and groups, who give short term loans that are secured by real estate. Most lenders look closely at your ability to repay mortgage; however, hard money lenders are more interested with the property’s value to protect their investment. These lenders will usually require repayment in a short timeframe, typically one to five years. They are not ideal for most Los Angeles home buyers due to higher closing costs and interest rates.
How to Find the Best Los Angeles Home Loan
The best way to find a Los Angeles home loan company is the same way you find the best product in any category. This requires shopping around. Search for Los Angeles home loan companies and ask each about their rates, down payment requirements, loan terms, closing costs and fees of all kinds and then compare these to each other. Also, check out online reviews of companies on Google and Yelp. Here’s that information again in list form so you can easily copy and paste it for future use:
- Down Payment Requirements
- Loan Terms
- Closing Costs
- Read online reviews
Remember, the only way you will truly know the best is to shop around and have a conversation with each lender.
We are biased, of course, but we also challenge you to do the work and reach out to multiple mortgage companies in the Los Angeles area. We dare you to find a better home loan company that will get you the best rate closing costs while at the same time making your experience fun and simple. Give us a call today because we would love to show you how enjoyable securing a home loan can be.