Are San Diego Home Loans Becoming More Accessible?

By Sheryl Landrum
Local Lender Columnist
Aug 1, 2008
A declining housing market translates to more affordable mortgage loans for buyers. What does the San Diego housing market have to offer? Living in one of the nation's most beautiful areas of course! And paradise is becoming more affordable for first time home buyers as well. Why?

Lower Sales Prices Equate to Lower Mortgage Loans for Home Buyers

Home prices continued their lower trend in San Diego County through June 2008, with the median reaching its lowest level-$380,000-since September 2003." This is a drop of 26.5% from San Diego's median home price of $517,500 in November 2005. While the home price drop means a loss of equity which makes it hard on those San Diegans refinancing their homes or trying to sell, it has opened up a great market for first time homebuyers here in this area. However, the housing market is cyclical and prices won't stay down forever. What can you do to take advantage of today's lower home prices?

Loan Companies Encourage Borrowers to Pre-Qualify for Mortgage Loans

Much has changed in the mortgage industry in the last year or so. Lenders have become much more conservative with underwriting guidelines and FHA and VA loans are making a comeback. With so many changes and so many options, it pays to talk to a loan company before setting out with a real estate agent. What can you expect to learn when you meet with a mortgage lender?

• How much mortgage can you afford? Your lender will help you analyze your income, assets, and debts to help you determine how much of a mortgage you can afford as well as what down payment and other criteria are needed to qualify for your loan.
• What are your home loan options? Will you qualify for a conventional mortgage loan, a VA, or FHA home loan? Will a 30 or 40 year fixed rate mortgage work better for you than an interest-only or ARM? These questions will also be determined by working with your loan officer.

Once you have worked through the pre-qualification process, you will have a good idea of what mortgage amount you can afford, what the costs of the mortgage will be, what type of home loan will work best for your needs, and what mortgage interest rate you can expect to pay. By pre-qualifying with a loan company, you will have the necessary knowledge you need to work with a real estate agent and make good decisions for your purchase. Talk to a lender today and discover your ability to live affordably in beautiful San Diego.

About the Author
Sheryl Landrum is a Loan Officer with General Mortgage in San Diego, California and a freelance writer specializing in mortgage issues.