Central Coast Lending Loan Center

We strive to educate the community, our clients, and all potential borrowers about the real estate market and the mortgage process. We’ve packed this page with the most up-to-date and relevant information to help your mortgage process …  easy?

 

Research to your hearts content, but remember that we are just a phone call (805.543.5626) or an email (click here) away and happy to answer any questions!

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Mortgage Resources

Compare your mortgage options with easy to use tools and resources. Start planning today and find the right solution for your needs.

Loan Programs

What are the different types of mortgage loans available to home buyers

Loan Process

Get detailed information about the loan process.

How Do I Qualify?

Credit Standards for Home Loan Qualification.

Down Payment Guide

Buyers can pay as little as 0% down to purchase a home.

Credit Repair

A step-by-step guide for improving your credit score.

Document Checklist

What Paperwork will you need for your loan file.

Mortgage Gift Guide

Giving (and receiving) cash for down payments & closing costs

Cost of a Mortgage

Fees, closing costs, and out-of-pocket expenses for home loans.

Your Guide to Qualification

This Guide to Qualification informs you about Cost of a Mortgage, Documentation Checklists, Do’s and Don’ts, The Home Appraisal, Loan Funding, plus many more topics that are important to know!

Choose the Right Type of Loan for Your Needs

Choosing the right loan and knowing your options can put you in the drivers seat. Central Coast Lending wants to put you in the best position to succeed in the competitive California real estate market.

30 Year Fixed

These are mortgages where interest and mortgage payments remain the same for 30 years, at which time you will have paid back the entire loan.

Who is this good for?

Those who prefer the security of fixed-monthly payments like fixed-monthly mortgages. Often, these mortgages are more expensive than their adjustable-rate counterparts, but they are easier to understand and provide the greatest payment stability. If you can afford this loan and plan to be live in your home for 10 or more years, this may be the best option for you.


15 Year Fixed

These are mortgages where interest and mortgage payments remain the same for 15 years, at which time you will have paid back the entire loan. These loans offer the lowest fixed rates but have the highest monthly payments because you are paying off the loan in a shorter timeframe.

Who is this good for?

Those who prefer the security of fixed-monthly payments and can afford the higher monthly payments of a 15-year term like this mortgage. You will build equity quickly, but the high monthly payments may restrict the overall price of the home you can afford.


ARMs

Adjustable-rate mortgages (ARMs) are mortgages where the interest rate you pay adjusts at a specified time and frequency. There are many different ARM products, but generally they offer a lower initial rate than a 30-year fixed and they adjust with market trends. Therefore, when your initial rate period ends and your ARM is ready to adjust you may be paying more (with higher current market trends) or less (with lower current market trends) than your initial rate. Generally, ARMs follow this pattern: the shorter the initial term, the lower the initial rate.

How do adjustments work?

Adjustments vary on the type of ARM, but you can identify the initial rate period by the first number and the adjustment frequency by the second number. A 3/1 ARM means the same initial rate for 3 years and an adjustment once every year after that. The following table will help you understand how adjustments work:

7/1 ARM Same initial rate and payment for 7 years, then on the 8th year the rate and payment adjusts once and continues to adjust once each year for the remainder of the loan.
1/1 ARM The rate changes once each year for the entire term of the loan.
3/3 ARM Same initial rate and payment for 3 years, then on the 4th year the rate and payment adjusts and continues to adjust once every 3 years for the remainder of the loan.

Who is this good for?

If you are planning on selling your home in a given time frame an ARM might make sense. Let’s say you are planning on moving in 5 years, a 5/1 ARM could work well because it provides a lower rate and monthly payment, and when it is ready to adjust after 5 years, you won’t experience a payment change if you sell your home.

Savvy investors like ARMs (or really any mortgage that puts more cash at their disposal each month) because instead of paying higher monthly mortgage payments, they can use that extra money to make higher-yielding investments.


Interest Only

These are fixed or adjustable rate mortgages where you the option of paying interest only for a specified term, usually five to ten years. After the initial term the mortgage switches to a fully-amortizing mortgage for the remainder of the loan. Let’s say you had an interest-only option for the first 7 years of a 30-year fixed loan. At the beginning of the 8th year, you would have to pay interest and principal for the full amount in the remaining 23 years. Often, at the end of the initial interest-only period, you would refinance instead of paying the high monthly mortgage payments.

Who is this good for?

Interest-only mortgages make sense for people who expect their financial situation to change in the near future. Young professionals like doctors and lawyers may also prefer this mortgage since they believe they will be making significantly more money in the future than they do now. Or parents who have children graduating from college soon might like this loan since they expect to have fewer expenses in the near future.

Those who prefer to use the extra cash for investments rather than mortgage payments also like this mortgage


Payment Option “flex pay”

These are mortgages where you have the option of paying different amounts each month. Usually, the monthly payment options include a low payment option, an interest-only option and an interest plus principal option. The low payment option creates negative amortization and usually adjusts yearly with a maximum rate cap.

Who is this good for?

People that do not have steady incomes may like this loan. It provides the most flexibility from month to month. For example, a salesperson that gets commissions quarterly can pay interest only for 3 months and then, when they receive their commission, pay both interest and principal for the entire quarter. This allows the salesperson to pay their mortgage down in a way that meets their specific income schedule.

Those who prefer to use the extra cash for investments rather than mortgage payments also like this mortgage. The payment options provide flexibility, but you should be certain that you have financial discipline before taking on this loan.


Balloon

These are fixed short-term mortgages that follow an amortization schedule like traditional long-term fixed mortgages. Balloon terms are commonly 3, 5 or 7 years during which you are paying both interest and mortgage. At the end of the term you’d have to pay off the resulting balance, usually by refinancing. However, some balloon loans also allow you to convert to a long-term fixed at the end of the initial term.

Who is this good for?

Balloon mortgages work for people that like the stability of fixed payments but can’t afford a long-term mortgage. Also, if you are planning selling your home in a given time frame a balloon mortgage might make sense. You can compare the rates between balloons and ARMs to see which can give you the best interest rates. Since you’ll be moving at the end of the term anyway, you won’t need to worry about paying off the balance – providing of course you can sell your home for more than the balance.

Savvy investors also like balloons (or really any mortgage that puts more cash at their disposal each month) because instead of paying higher monthly mortgage payments, they can use that extra money to make higher-yielding investments.


Ready to Get Started. Get Pre-Approved.

How Does Pre-Approval Work?

Getting pre-approved is as easy as 1-2-3!

1. Create an Account

Creating an account is fast, easy, secure and FREE! Your account enables you to easily modify your loan application and view the status of your loan anytime day or night.

2. Submit Information

When you register for a Loan Center account, you can submit a loan application online and the sensitive information that you provide will be transmitted securely.

3. Get Pre-Approved

Pre approval can be done in as little as an hour if you have thoroughly completed the loan application and have all the needed paperwork to support the information on the application.

Why Do I Need To Get Pre-Approved?

Getting pre-approved for a mortgage can help you stand out from the sea of other home buyers in a competitive housing market. That means a lender has guaranteed to give you a loan before you’ve even made an offer—or even before you’ve seen a home you like! Granted, this may seem like a whole lot of prep work, but here’s why mortgage pre-approval matters, and how it can give you an edge when shopping for a home.

Still Have Questions

Through all of our actions, we hope to help every buyer make the best decision possible for their own finances, and one of their largest assets: their home.

Your Families Future

To navigate the real estate market, buyers must carefully build their proposal to give themselves the best chance of winning their bid.

The first thing we tell potential buyers is this: attain pre approval (not to be confused with pre qualification) so that you can waive the financing contingency (Read More). This trick can help your purchase proposal find its way to the top of the pile.

Our Loan Officers Care

As a banker and a broker, we have uniquely positioned ourselves to custom fit a loan for every client. The simple fact is this: different banks treat different factors differently.

Don’t disqualify yourself from the couch and come to the conclusion that you are “unlendable” without talking to a loan officer. This is a free service from a financial professional, and you may be surprised to learn just how much is possible.

Have a Question?
We’re just a click away!

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Ready to see what you qualify for? Try Our Secure Online Application

Our Offices are Conveniently Located to Serve You

Atascadero Office

7075 Morro Road, Atascadero, CA

Merced Office

450 N. 21st St, Merced, CA

Morro Bay Office

601 Morro Bay Blvd, Morro Bay, CA

Paso Robles Office

513 13th St, Paso Robles, CA

SLO Office

1319 Marsh St #101, San Luis Obispo, CA

Ventura Office

2021 Sperry Ave, Ventura, CA