Santa Monica, California, better known by its nickname, Dogtown, U.S.A., is one of the fastest growing areas in the Los Angeles area. Because of its agreeable weather, Santa Monica has a booming tourism economy. And because of the relatively recent revitalization of the downtown area, job growth and increased tourism have made Santa Monica the ending point for many new homebuyers. And you’re next.
So, now that you’re sold on Santa Monica, you need a place to live. What step do you take first? Do you go and find your dream home, put in a bid, and discover you’re not approved? No – your best course of action is to first get pre-approved. Why waste time looking at your potential homestead only to find out later that you can’t get financing?
Pre-approval is usually the way to go for two reasons:
1) It lets you know what you can afford.
2) It lets everyone else involved in the process know that you truly want to buy this house. Sellers are more likely to choose a buyer who has financing already in place because there’s a higher probability that the home will actually sell.
Before you can talk with a lender about getting pre-approved for a loan, you need to know what kind of loan is best for you. Here are a few types to become familiar with:
But what if you already live in Santa Monica and you are just looking for a better interest rate? Back when you bought your house, interest rates were at an all time high and you want to lower that rate, and thus your monthly payment. Then a mortgage refinance loan is what you are looking for. A mortgage refinance loan is very simply, a brand new loan on your existing house. You’ll have to choose a new loan, a new rate, and a new term (10-year note, 15-year note, 30-year note, etc…). You’ll also have to decide whether you want to cash out the existing equity you’ve built up in the house. You may need this cash at your new closing. But if you don’t, keep the equity in your home, it’s safer there.
There’s yet another option if need some extra money, a home equity loan. You have the ability to take out a loan using the equity you’ve built in your home as collateral. Best of all, you can use that money for anything you want. A lot of home owners use this money to pay existing bills credit card debt or a new car. But you can use it for anything you like. Hawaii anyone? Keep in mind that with home equity, you also have the option of a line of credit, which allows you to borrow, repay, and borrow again.
Whether you’re looking for a Santa Monica mortgage, refinance, or home equity loan, we can help. Take a moment to fill out the form below, and a qualified lender will contact you right away.
