Much of Alameda, California is a low, marshy island, but the higher elevations, adjacent to downtown Oakland, were once home to one of the largest coastal oak forests in the world. Alameda is Spanish for “grove of poplar trees” and was chosen as the city’s name in 1853 by popular vote.
Today, Alameda is home to more that 73,000 residents, and includes a former Naval Air Station at the west end of Alameda Island. The south shore area, along the southern side of Alameda Island, is separated from the main part of Alameda Island by a lagoon; the north shore of the lagoon is located approximately where the original south shore of the island was. Alameda Point and South Shore are built on artificial fill. Located so close to both San Francisco and to the tech-centric Silicon Valley, homes in Alameda are not cheap and the median home price is about $690,000.
When looking for a Alameda home loan, you should be aware that mortgage loans are available from a number of sources. Loans are offered by banks, mortgage companies, and credit unions, and different lenders will quote you different fees and associated costs. You can also get a loan by talking to a mortgage broker, who can arrange a loan for you by working with a number of different lenders. As the broker represents a variety of loan sources, they can offer you a wider selection of loan packages, options and terms than any one loan source. Different brokers work with different lenders, and charge different fees, so you should speak to more than one broker when shopping for the best deal.
When contacting lenders and brokers about a home loan, you should already know how much of a down payment you can afford and what the costs will be in obtaining the loan. Knowing what your monthly payment will be is not enough information, however, because to adequately compare loans and lenders, you need to know whether the loan’s rate is fixed or adjustable, when (and how much) the loan payments may increase, the annual percentage rate (APR) and what the broker’s fees will be. Ask for information about the same loan amount, loan term, and type of loan so that you can compare the information.
The following information is important to get from each lender and broker:
There will be many fees associated with your loan, also called “points,” including underwriting fees, broker fees and closing costs. Every lender and broker you speak to can give you an estimate of these costs, and if they will not, then you should walk away. Many of these fees are negotiable, especially the points paid to the broker. Most, if not all, of the fees can be included in the amount borrowed, although this will, naturally, raise the amount you owe. No-cost loans are sometimes available, but be aware that they usually come at a much higher interest rate.
When buying your home in Alameda, remember to compare broker fees, interest rates and loan terms, and negotiate for the best deal that you can find. Require that the broker give you an explanation of all the costs associated with the loan and an estimate of how much they will run. You can then ask the lender or broker to reduce one of their fees, or agree to take fewer points if you choose them to handle your loan. One of the reasons for asking about all of the loan costs in advance is to make sure that they do not lower one fee for you while raising another. There should not be any embarrassment in asking a lender to give you better terms than they originally quote, especially if you let them know that you are comparing lenders to get the best deal.
If you are satisfied with the lender or broker’s terms for your Alameda home loan, then ask them to “lock in” the deal in writing. The lock-in will include the amount of the loan, the fees and the loan rate that you have agreed upon. The broker may charge you a fee for locking in the loan rate, but this will protect you from an increased rate should interest rates go up while your loan is being processed. Of course, if rates fall, you are still locked in to the agreed rate. The fee for a lock-in may be refundable at closing, so be sure to ask your broker.
Shopping for the best terms and fees applies to all loans, not just mortgages. Whether you are refinancing, looking for a home equity loan or borrowing to buy your first home, talk to more than one lender and find out what your options are. Virtually all brokers handle refinancing loans and home equity loans in addition to first-time mortgages.
Now that you know how to shop for a mortgage, let us help you find the right home loan. Just fell out the form below, and one of our loan experts will contact you with all the information you need to get started.
