Best Mortgage Lenders in Los Angeles

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If you are thinking of buying a home in Los Angeles, the good news is that you are about to be right in the middle of the sun and the good vibes of Southern California. These good vibes come at a cost, though: The median selling price of a property in the LA metro area was nearly $ 920,000 in August 2021, according to real estate broker Redfin, making it one of the most popular places. more expensive to feel at home in the country.

Whether you are considering planting roots in a new home or looking to refinance at a lower interest rate, it is important to compare the options of several. mortgage lenders in Los Angeles. Here are some of the best to consider.


Methodology

To determine the best mortgage lenders by city, Bankrate evaluated lenders based on several criteria, including affordability (APR and fees); timeliness (approval and closing times); and experience (including customer service). In general, the best mortgage lenders have a high Bankrate Score and high ratings from borrowers.


The best mortgage lenders in Los Angeles

Better.com

  • Good if: You prefer a fully online experience

Better.com is not located in Los Angeles; it’s right on your screen, and that online-only operation translates into significant savings. The mortgage lender does not charge any fees and offers some of the lowest rates among all the lenders reviewed by Bankrate. Plus, the experience is quick: you can get pre-approved in three minutes, and closings only take 21 days.

Advantages

  • No commissions or lender fees
  • 24/7 customer support

The inconvenients

  • No VA or USDA loans
  • Requires at least a credit score of 620 (even for FHA loans)

GO Mortgage

  • Good if: You want to build a new property

If you can’t find the home you want in Los Angeles, you might consider building one instead. GO Mortgage is one of the best lenders to choose from if you are considering going this route. The lender specializes in single close construction loans, so rather than paying for the closing of multiple loans, you will only pay one, which can save you thousands of dollars. The product is also available to FHA borrowers with a minimum credit score of 640.

Advantages

  • Specializes in single fence construction loans
  • Transparent on borrower requirements

The inconvenients

  • Does not advertise rates on its website; need to provide contact information first

Allied bank

  • Good if: You need a jumbo loan

With the high house prices in Los Angeles, you might have to borrow a large sum of money to get into the place you really want to call home. Ally Bank is a choice for these borrowing needs. With a credit score of 700, you can save 20% on a jumbo loan and get some of the most competitive interest rates. The other good news: Ally doesn’t charge any fees, and you can also save on closing costs if you have other banking products with the company, like a checking account.

Advantages

  • Closures that exceed industry averages for up to 10 days
  • No lender fees
  • Ideal for more expensive real estate needs

The inconvenients

  • No FHA, VA or USDA loans
  • No Home Equity Lines of Credit (HELOCs) or Home Equity Loans
  • No branch

Costco Mortgage Program

  • Good if: You are a Costco member and want to save on your mortgage

You may have joined Costco to save on wholesale groceries that you bring home, but that membership can also translate into savings on your actual home. To be clear, Costco doesn’t actually lend you a mortgage or take out the loan. Instead, it acts as a broker and an online marketplace where you can compare multiple deals, and you’ll save money on lender fees based on your membership status. Costco executive members can save almost $ 10,000 over the typical term of a loan. You can also use the Costco mortgage program if you are not a member, but you will not get the additional discount.

Advantages

  • Excellent customer service ratings on Trustpilot
  • Closures in 30 days for new purchases

The inconvenients

  • No HELOCs or home equity loans
  • Discounts only available to Costco members

Los Angeles Local Mortgage Lenders

If you want to meet with a loan officer in person to understand the ins and outs of getting a mortgage in Los Angeles, consider these three options.

Network capital

  • Good if: Looking to refinance and have less than perfect credit

Based in Irvine and with an office in Century City, Network Capital can be a great choice if you want to refinance but haven’t been able to build much equity in your home. Learn about the lender’s RefiNow program, which allows you to refinance with a 97% loan-to-value ratio (LTV) and 65% debt-to-income ratio (DTI). Former customers also rave about their experience with this lender.

West Bank

  • Good if: You want to get your mortgage in the same place as your banking

Bank of the West has operations throughout the LA metro area, and the bank offers a wide range of mortgage programs, including jumbo loans up to $ 4 million and home equity loans. In addition, if you are a bank customer, you may be eligible for additional discounts on your mortgage.

Wells fargo

While Wells Fargo recently received negative press, the bank has its perks, including options for those who want to buy a home but don’t have a credit history. To help you qualify for a mortgage, the bank may consider other data – rent payments and utility bills, for example. You may also be able to take advantage of the “Dream. Plan. Home. “Program designed to help low- and moderate-income borrowers become homeowners.

What you need to know to get a home loan in Los Angeles

In addition to comparing different lenders when finding a mortgage in Los Angeles, compare different neighborhoods in your search for a dream home. If you’re willing to step further from the ocean, you can save some money: the median downtown selling price – an area that continues to add new restaurants and other reasons to leave. range – was $ 590,000 in August 2021., Redfin data shows.

If this is your first mortgage, you may also be able to get help. California First-Time Home Buyers Programs include offers like down payment assistance, which can help you borrow money for the down payment and closing costs with a deferred payment plan (you will pay the money back when you sell the house or refinance your mortgage). You will likely need to attend a home buyers education course to qualify, but those duties are well worth the potential savings and the ability to start building home equity.

Also explore additional options at the local level. The Los Angeles Department of Housing, for example, offers down payment loans of up to $ 90,000 to eligible low-income borrowers.

Once you get pre-approved for a mortgage, know that you might have some extra muscle as a buyer. A recent survey by the University of Southern California found that 10 percent of Los Angeles County residents plan to leave the county in the coming year. This exodus could mean that buyers may be able to trade harder than buyers in other markets.

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