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How to Find a Lender
Today, lenders can be found through a variety of sources. In addition to calling on ads in the newspaper, you can also find and apply to lenders over the internet, and through referrals from your REALTOR. We would be happy to suggest lenders we have used successfully, who have proven themselves competitive and capable even with problem properties or poor credit.
Choosing the Right Lender
Interview several lenders to evaluate the following:
- Ability to explain things clearly and return your phone calls in a reasonable time period
- Competitiveness of interest rates, costs & fees.
- Availability of loan programs that suit your credit profile and desired property
- Access to local loan approval committee that understands the kind of property you are buying
Choosing the Right Kind of Loan
Today there are so many types of loans on the market that it is beyond the scope of this page to list or explain them all. Your lender is the best person to help you select a loan program to suit your needs. Below is a summary of the three most popular loan types we see in practice; for more detailed information click the link at the end of this page.
- Fixed loan: The fixed rate loan assures your monthly payments will stay the same over the life of the loan, which is typically between 15 and 30 years. Fixed rate loans may be best if you intend to hold the property for a long period of time, say over 7 years.
- ARMs (adjustable rate mortgages): ARM’s may be suitable if you plan to sell or refinance your home within the next few years. The starting interest rate is typically lower than a fixed rate loan, saving you money initially. However, it is important to understand the index, the readjustment interval, the capitalization rate and downside risks of an ARM before making a final decision to use this type of loan.
- Intermediate ARMs: Also called Hybrid Loans, these loans can offer fixed interest rates for the first 3, 5, 7 or 10 years after which the interest rate adjusts with the market every 6 months or year thereafter.
Financing guide FAQs – Los Angeles
Pre‑qualification is an informal estimate based on basic information you provide, while pre‑approval uses verified documents and a credit check to give you a stronger, written loan amount for LA offers.
You complete a loan application, provide income, asset, and debt documents, and authorize a credit check so the lender can underwrite your file and issue a pre‑approval letter.
Your rate is influenced by your credit score, loan type, down payment size, loan term, debt‑to‑income ratio, and overall market conditions at the time you lock, not just by the city.
Common options for LA buyers include conventional, FHA, VA, jumbo, and other specialized loans, each with different requirements for credit, down payment, and property type.
Closing costs are one‑time fees and prepaid items due at settlement, such as lender charges, escrow and title services, government recording fees, property taxes, and homeowners insurance.