This is a phenomenal time to be shopping for a home in Los Angeles. During the first week of September 2019, we saw mortgage rates take the steepest drop they have since 2002.
But how can you make sure that you get access to the best mortgage rates in LA? Here are some tips.
1. First, look to your own borrower profile.
The mortgage rates you qualify for depend on how risky lenders deem you to be based on your financial metrics.
To qualify for the most competitive interest rates, your profile should include:
- A high credit score.
- A low debt-to-income (DTI) ratio.
- A steady flow of income.
- A sound financial history.
If you could be brushing up in any of these areas, you should do so before you send out your mortgage applications. Even a small improvement in your credit score or DTI ratio could result in a significant improvement to your interest rate.
2. Choose a mortgage company that will work aggressively to bring you affordable rates.
Your next most important step is to choose your mortgage company with care. A local, dedicated mortgage expert will probably work harder to bring you affordable rates and help you overcome obstacles than a big-box lender. Plus, you can benefit from deeper local knowledge and more personal customer service.
3. Apply for loan programs which feature lower rates.
One good option for applying for lower interest rates even without ideal credit is to consider a government-insured loan program such as FHA, VA or USDA.
Each of these three types of mortgages has a government agency backing it up, essentially picking up the slack in your risk profile. That can qualify you for better rates (not to mention a number of other fantastic benefits like a low-down payment or even no down payment).
4. Keep an eye on what is going on in the economic world.
One more thing you can do is keep a close watch on interest rates and on the various economic factors which can drive them up or down. This can help you to plan the timing of your loan application.
I write about this in my US Housing Market Weekly newsletter. Most recently, I ran through a detailed analysis of factors which could keep interest rates at their current low or push them back up.
If you would like to subscribe, or if you have questions to ask about Los Angeles mortgage rates, please email me at firstname.lastname@example.org or give me a call at (818) 601-2231. I will work hard to bring you the most affordable rates on your Los Angeles home loan!