california house mortgage guide for buyers and homeowners

What makes California different

Buying in California often means higher prices, larger loans, and stricter documentation. Many counties have elevated conforming limits, yet homes still spill into jumbo territory, where rates, reserves, and underwriting can be tougher. Expect notable closing costs, wildfire insurance considerations, and property taxes shaped by Prop 13. Lenders weigh income stability, assets, and your DTI alongside credit.

Loan options and rates

Common choices include 30-year fixed, 15-year fixed, and ARMs-useful when you plan to move or refinance. First-time buyers may pair FHA or VA with local assistance; seasoned owners might use piggyback seconds to avoid mortgage insurance. Compare the note rate, points, and total APR, and ask about rate locks, float-downs, and seller credits.

How to qualify smoothly

Aim for a 740+ score, a DTI near or below 43%, and two to six months of reserves. Self-employed borrowers should prepare two years of returns and year-to-date statements. Keep funds seasoned, avoid new debt, and document gifts clearly.

• Get a strong preapproval before touring.
• Explore CalHFA and local down payment aid.
• Plan appraisal and loan contingencies wisely.
• Shop three lenders and compare disclosures.
• Revisit refinancing if rates drop.