Purchase a home in California

Buying a home here is different

California home prices are among the highest in the country, and the market moves quickly. In Simi Valley, Thousand Oaks and the San Fernando Valley, a well-priced home can draw several offers in its first week. The buyers who win are rarely the ones with the biggest down payment. They are the ones whose financing looks certain to the seller and who can close on schedule.

That is where a direct lender that can also broker earns its keep. We review your credit, income and assets before you start touring, price your loan with us and against other lenders, and give you a pre-approval letter your agent can send with confidence. When you find the house, we are ready to move.

How the purchase process works

• Pre-approval. You share pay stubs, W-2s or tax returns, and bank statements. We pull credit and confirm what you can borrow and what the payment looks like.
• Shopping and the offer. Your agent writes the offer with our letter attached. We can update the letter to match the exact offer price so the seller sees a clean number.
• Escrow and appraisal. Once the offer is accepted, escrow opens, we order the appraisal and lock your rate when the timing is right.
• Underwriting. The lender verifies everything. Because your file was reviewed at pre-approval, there should be few surprises.
• Closing. You sign with escrow, the loan funds, the deed records with the county and the home is yours.

How much house you can afford

Lenders look at your debt-to-income ratio: your new housing payment plus your other monthly debts, divided by your gross monthly income. Most loans work best with a total ratio in the low-to-mid 40s, and some programs allow more. In California, property tax and homeowners insurance are a real part of that payment. A purchase is taxed on the new assessed value at a base rate of 1%, plus any local bonds and assessments, so budget a little over 1% of the price each year.

Our affordability calculator gives a quick range, and our rate page prices the actual loan for your county, credit and down payment.

Purchase loans we offer

• Conventional: 3% down for qualified first-time buyers, 5% for everyone else, and no mortgage insurance at 20% down.
• FHA: 3.5% down with more flexible credit standards.
• VA: zero down and no monthly mortgage insurance for eligible veterans and service members.
• Jumbo: financing above your county’s conforming limit for higher-priced homes.
• USDA: zero down in eligible rural areas.
• Non-QM and DSCR: for self-employed buyers and investors whose income does not fit standard guidelines.

Up-front costs to plan for

Beyond the down payment, set aside money for the earnest money deposit (usually due within a few days of acceptance and credited back at closing), the appraisal, a home inspection, and closing costs. Closing costs typically include lender fees, title insurance, escrow, recording, prepaid interest and reserves for property tax and insurance. A seller credit can cover part of them, and so can a slightly higher rate with a lender credit. We will show you both ways on the same screen.

Buying before you sell

Many of our move-up buyers already own a home with a lot of equity and a low first mortgage. Rather than selling first, they open a HELOC on the current home for the next down payment, buy without a sale contingency, then pay the line off when the old house closes. Lines start at 7.49% APR and go up to $800,000.

Why buy through a direct lender that can also broker

A bank offers only its own programs. We lend directly and can also place your loan with other wholesale lenders, comparing them for your exact scenario, which matters most on the loans that are hardest to place: high-balance conforming, jumbo, self-employed income and condos. You get one point of contact who knows the local agents, appraisers and escrow officers, and who answers the phone when your agent calls on a Saturday.