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Local Lenders
What is a lender? |
In states following the "title theory," the lender holds the title to your house until the debt is completely paid off, and the lender will sell your house in order to get the money back if you can't make your mortgage payments.
In states following the "lien theory," the mortgagee holds a lien on your property and can foreclose and sell your property in the event you default your mortgage.
| Your down payment. |
Your down payment is the lump sum you pay up front. This reduces the amount of money you have to finance. You can put as much money down as you want, or you can sometimes pay as little as 3 to 5 percent of the purchase price. (Check with your local lender on the current percentage you can give on a purchase price) The more money you put down, the less you have to finance and the lower your monthly payment can be.
| Qualifying for a loan. |
In order to qualify for a mortgage, most lenders require that you have a debt-to-income ration of 28/36 (this will depend on the down payment & the type of loan you are getting). This means that no more than 28% of your total monthly income (all sources & before taxes) can go toward housing and no more than 36% of your monthly income can go toward your total monthly debt (this includes your mortgage payment). The debt they look at includes any long terms loans like car loans, student loans, credit cards, or any other loans that will take a while to pay off.
The lender will tell you what you can afford based on the lower number in the debt-to-income ratio; this is not including your regular expenses (like food) into account.
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Contact your local bank for more information on lending or click on one of the links below.
Bank of America
| Citi Bank
| Union Bank of California
| Bay Cities National Bank
| South Bay Credit Union
| Wells Fargo
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Ron Werner ABR CRS e-PRO
Licensed Real Estate Broker-Realtor®
DRE Lic# 00822412 & 00705989
310.614.4027 direct
werner@gr8homes.com
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