Are you considering obtaining a housing loan in the state of California? If you are, North Coast Financial Inc. has compiled a list of five things you will definitely want to know about California before securing a loan.
1. California Real Estate is Expensive
California is famous for its beautiful beaches, its bevy of A-list celebrities, and diverse population. However, as most people know, it is also famous for its expensive real estate. In the San Francisco Bay area, home prices typically top $1,000,000, and in Southern California, you will need at least $600,000 to break into the market.
2. The Housing Market is Highly Competitive
The real estate market in California is extremely competitive. This means homebuyers will need to move quickly and avoid making long, drawn-out decisions. Before hunting for a new home plan, it may be wise to secure a loan from the bank first.
3. Californians Pay Some of the Lowest Property Taxes in the Country
Contrary to popular belief, property taxes aren’t too bad in California, especially when compared to states in the Northeastern part of the country. According to Proposition 13, a measure passed in the late 80s, property taxes cannot exceed more than one percent of the overall value of a property.
4. You Will Need Earthquake Insurance
California is also famous for its earthquakes. Located on the massive San Andreas fault line, the state will eventually be subject to a major earthquake. Before you can obtain a home loan in California, the bank or lending company may require you to purchase earthquake insurance.
5. Some Houses Are Really Old
Unlike some states, such as Nevada or Florida, where new construction is the norm, many homes in California are decades old. These homes may not have the amenities most homebuyers are looking for, and you may need to factor the cost of repairs into your home loan.
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Getting home loan on your own might be a tough task but taking help of some agency can make it really easy. They help you in getting your loans approved and make things really go easy for you so that you can plan your dream home without any trouble or worries. There are so many lenders these days who try to trap you when giving away loans and thus later on one faces too many problems. Thus, it is always a wise idea to research well and check out the reviews before taking a loan from any source or lender.
If you are careful when taking the loan then you can make it easy when paying it off and you can live a tension free life or else it will become one of the biggest trouble for you. So, take help of the agencies who are there to help you out in taking easy approved loans.