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What Is The Mortgage Process Like In California?

A young family moves into their new home that purchased after going through the mortgage process in California.

When homebuyers in California are considering taking out a mortgage or refinancing their house, they can feel overwhelmed by the seemingly complicated loan process. The mortgage process can be easy to navigate if homebuyers understand these five key steps.

STEP 1 OF THE CALIFORNIA MORTGAGE PROCESS: IDENTIFY NEEDS

Before homebuyers can secure financing, they need to determine what their situation is. Homebuyers should ask these practical questions to guide them to the right starting point in the mortgage process: 

  • Is the current source of income stable?
  • Is employment stable for the foreseeable future?
  • How much reserve funds are currently saved?
  • How much funds are available for a down payment?
  • What is the estimated timeline for staying in the new home?

STEP 2 OF CALIFORNIA MORTGAGE PROCESS: SHOP FOR LOAN

While it might seem backward to shop for a loan before looking for a house, homebuyers will want to get a sense of what they will be able to pay monthly and the funds they will be able to borrow.

Related: Types of Mortgage Loans

At this stage, most homebuyers seek advice from a reputable mortgage lender, like JVM Lending. A mortgage analyst will be able to advise homebuyers and help them find the best loan product for their situation. Mortgage analysts will determine if a 15 or 30-year term loan is better or if a fixed-rate or adjustable-rate mortgage will work better with their financial situation. 

STEP 3 OF CALIFORNIA MORTGAGE PROCESS: HOUSE HUNT

Homebuyers will likely have an idea of what style of home they are interested in or what neighborhoods they would like to purchase property in. Most people choose to enlist a reliable real estate agent since their expertise and knowledge of the area is useful when looking for a home. Once homebuyers have found a home that satisfies their standards, it’s time to make an offer.

STEP 4 OF CALIFORNIA MORTGAGE PROCESS: OFFER ACCEPTED

Homebuyers will work closely with their mortgage lender to determine a closing date, sign all of their documents for Underwriting and Escrow. If everything is in order, they will begin transferring their down payment funds to escrow and finalize their mortgage application paperwork. 

STEP 5 OF CALIFORNIA MORTGAGE PROCESS: CLOSING DATE

The last step for homebuyers is their closing date and recording of the title! The last checks from the bank will be exchanged, and homeowners will officially own a new property in California!  

This blog is a very simplified guide to the mortgage process. Each homebuyer’s financial situation is unique; speaking with a Mortgage Analyst is the best way to determine which home loan will work best. The JVM Team is available 7-days a week by phone at (855) 855-4491 or by email at jvmteam@jvmlending.com. 

Jay Voorhees
Founder/Broker | JVM Lending
(855) 855-4491 | DRE# 1197176, NMLS# 310167