Manufactured Housing News

Buying a home in California is one of the biggest financial commitments you’ll ever make. Whether you’re purchasing a manufactured house or refinancing a mortgage, the terms of your loan could have a major impact on your financial health. That’s why it’s important to have a candid conversation with your mortgage lender before you sign anything. Asking the right questions helps you avoid surprises and makes sure that you fully understand the process.

What Type of Loan Is Best for Me?

Mortgage lenders offer different loan products—conventional loans, FHA loans, VA loans, and jumbo loans, among others. Each option has its own requirements for credit score, down payment, and insurance. It’s important to ask your lender which loan type suits your financial situation best, and why they recommend it. For instance, if you’re looking into buying a manufactured home in California, Triad offers loans that are built specifically for this. Not all loans apply to every type of property, and once you know what kind of home you’re moving into, you can narrow down your options.

What Interest Rate Should I Expect?

Your interest rate will determine the total cost of your mortgage over time. While rates are influenced by your credit score and market conditions, lenders might also offer different rates depending on the loan structure. Ask whether the rate being quoted is fixed or adjustable. A fixed-rate mortgage keeps payments stable, while an adjustable-rate mortgage (ARM) may start lower but could also increase after the intro period. Clarify how your rate compares to the current market average and see if you can “lock in” a rate to protect against fluctuations before closing.

What Are the Closing Costs?

A lot of buyers focus on the down payment but overlook the variety of closing costs that come with a mortgage. These can include appraisal fees, title insurance, origination fees, and other charges. In California, closing costs can range from 2% to 5% of the loan amount, which can add up quickly. Ask your lender for a loan estimate that outlines all anticipated fees so you’re not caught off guard on signing day.

Will I Need Private Mortgage Insurance (PMI)?

If you put less than 20% down on a home, some lenders may require private mortgage insurance. PMI can increase your monthly payment by hundreds of dollars. Ask your lender how PMI works, how much it will cost, and when you can have it removed from your mortgage. Some lenders offer options to avoid PMI altogether, such as lender-paid mortgage insurance, though these programs may affect your interest rate. And if you’re looking into buying a manufactured home, the loan products Triad offers do not require PMI, making manufactured homes an exceptional option in the modern homebuyers’ market.

Can You Explain the Loan Terms in Detail?

Before you sign, make sure you understand every aspect of your mortgage agreement. How long is the loan term? What happens if you make extra payments or want to pay off the loan early? Are there any prepayment penalties? Have your lender walk you through the terms to make sure there are no surprises down the road.

Choosing a mortgage is just as important as choosing the right home. By asking detailed questions about loan options, interest rates, closing costs, and insurance requirements, you’ll gain the clarity you need to make a confident decision. The best mortgage lenders in California are those willing to take the time to answer your questions and explain the fine print. And in certain situations, such as financing a manufactured home, you’ll want trusted and knowledgeable experts like the ones at Triad on your side.