Fresno Mortgage Lenders

Local Economic Considerations

Fresno, like most of California, encountered dramatic increases in the cost of housing over the past decade. In 2000, the median cost of a house was $104,090. By 2005, the median cost more than doubled, to $251,000. Although no one can accurately predict what direction housing costs will go in the future, your Fresno mortgage lender can help you decide how to factor this into your decisions about the type and amount of mortgage that are right for you.

In 2005, the median property tax for a home with a mortgage was $1,439, or 0.5 percent of the total value. The majority of residents drive to work, so you will likely need to own a car, another expense to consider. Obviously, you must take more than just the mortgage payment into consideration.

In April, 2007, the Silicon Valley/San Jose Business Journal reported that California mortgage loan defaults were at an all-time high, due to stagnant home value appreciation, decline in the number of home sales, and mortgages changing from very low introductory rates to rates at or above market rates.

Affordable Housing Mortgage Assistance

The California Housing Finance Agency has various programs to help first time home buyers, teachers and school administrators, purchasers of new construction, persons with disabilities, and those living in revitalizing areas. Assistance includes loans below market interest rates, government guaranteed loans, and assistance with down payments. You can review the eligibility requirements and the list of programs to see which best suit your needs.

Finding a Lender

Word of mouth is a good resource when you are searching for a mortgage lender. If somebody you trust has found a Fresno mortgage lender that they trust, definitely check their rates and the types of mortgages they offer. Check with your current financial institution as well; credit unions and banks often have better rates for current account holders.

You should check to make sure that your Fresno mortgage lender has a valid license and has not had any disciplinary action taken against them. The California Department of Real Estate lets you search online. You can also check other related licenses (real estate appraisers, financial institutions, etc.) online. It's always a good idea to check with the Better Business Bureau as well.

You might consider checking to see if your lender is a member of the California Mortgage Association. Members are required to adhere to the organization's code of ethics. While it's not a guarantee that they follow ethical practices, and entry qualifications are not as strict as those in other states, membership suggests one form of professional engagement.

Fresno Mortgage Lender Regulations

Fresno mortgage lenders are required to adhere to all California and federal mortgage regulations. One regulalation which is specific to California is the Mortgage Loan Disclosure Statement that replaces the federal Good Faith Estimate. This form details the estimate of your total costs for the mortgage and is a better overview of your full costs and mortgage payments than the mortgage rate quote alone.

While many of these items are estimates - particularly the interest rate - this form has very important information on it that can make a huge difference in how much your loan costs you. Remember that the form is not binding, so when you sign the final papers, be sure that nothing has changed without your knowledge. The paperwork can be very intimidating, especially if this is your first home mortgage.

You can file complaints through the Department of Consumer Affairs, either by writing or online. They may forward your complaint to another government department.

If you believe that you have been discriminated against by a Fresno mortgage lender, contact the Federal Trade Commission.