Best California Mortgage Lenders for 2024

If you're looking to buy a home in California, you're probably pretty excited. Unless you're planning to pay cash, the first step is to decide which mortgage lender is right for you. Here, we introduce six of our favorite lenders in The Golden State and offer insight into what it takes to score a California mortgage.

PNC Mortgage has been providing exceptional home financing solutions for countless individuals and families for over 170 years. Dedicated to delivering innovation, quality, and unparalleled customer service, PNC Mortgage makes the mortgage process simple and seamless. With a wide range of mortgage options and competitive rates, first-time home buyers or seasoned homeowners will benefit from PNC's resources and support.

In today's fast-paced world, where time is money, purchasing a home can be a long and complicated process. However, with Rocket Mortgage, homeownership has become more convenient. With just a few clicks, you can get pre-approved for a mortgage, manage your documents, and even close on your home right from your smartphone.

New American Funding stands out with its personalized approach and commitment to excellence. As one of the largest privately-owned direct mortgage lenders, it offers a variety of loan options and has a team of experts that guide you through the entire process. From first-time home buyers to those looking to refinance, New American Funding strives to make the experience seamless and hassle-free. It has been recognized for outstanding customer satisfaction ratings and transparent communication throughout the loan process.

It would be tough to beat the robust online digital experience provided by Guaranteed Rate. From educational materials for first-time home buyers to a wide variety of loan products, it's easy to see why Guaranteed Rate ranks so well with customers. Whether they're buying a new home or refinancing, customers rave about the service and consider it one of the best California mortgage lenders.

READ MORE: The Truth About Refinancing Your Mortgage

Veterans United offers VA loans and much more. Founded 20 years ago, the mortgage lender provides customer advocates from every branch of the military to make sure its customers are treated fairly. With low down payments and a minimum credit score of 620, the lender makes it easier for military members to land a great mortgage.

It's with good reason that PennyMac is one of the largest mortgage lenders in the U.S. Also based in California, the lender offers quick rate quotes without a credit check and a wide array of mortgage types.

READ MORE: How to Get a Mortgage

The right mortgage lender does not tend to fall into your lap. Finding it takes effort on your part. The good news is the best California mortgage lenders can save you thousands of dollars over the life of your loan.

• Look at your situation. For example, if you have a less-than-ideal credit score or you're self-employed, look for a lender that welcomes those types of applications.
• Apply with several lenders. Yes, your credit score will be dinged a bit when they begin running credit checks, but here's the great news: As long as you get them all done in around two weeks, it will show up as a single credit check rather than a bunch of credit checks. There's no way to know which lender is offering you the best deal without checking around.
• Compare offers side by side. Look at everything, from interest rate to loan costs. Pay special attention to annual percentage rate (APR) rather than the interest rate, as it's the APR that offers the "true cost" of the loan.
• Read reviews. Getting to know as much as you can about a lender can help you decide how comfortable you'd be working with the company.

READ MORE: APR vs. Interest Rate: What's the Difference?

You may feel as though a lender is asking you for an excessive amount of documentation, but rest assured that it's all part of the process. Here's what you'll need to do to get approved for a mortgage loan:

READ MORE: What Documents Are Required for a Home Loan Application?

• Be prepared to provide a lender with your Social Security number (to check your credit history), proof of income, and a list of all debts.
• If your credit score is too low to qualify for a good interest rate, consider taking the time to boost your score. It may be frustrating, but increasing your credit score can save you money over the long term.
• Provide any requested documentation in a timely manner. The faster you get supporting documents to a lender, the faster it can process your mortgage.

READ MORE: How to Increase Your Credit Score

The higher your credit score, the better. While some lenders will approve a mortgage with a score as low as 580, it's important to know that the mortgage rate you pay on that loan will be higher (sometimes, much higher) than it would be with a high score. Again, if you can take the time to build your score up, you'll save money over the life of the loan.

The amount you'll pay for a down payment depends on the type of loan you're taking out. For example, you can get a VA loan with 0% down and an FHA loan with 3.5% down. Remember that old rule about needing to put at least 20% down on a mortgage? It's not necessarily true today, but putting 20% or more down means you won't have to pay for monthly mortgage insurance -- saving you money each month.

READ MORE: Down Payments: What They Are, How They Work & How Much to Put Down

While some home-buyer programs are state-wide, others are offered by specific counties. Here's a sample of the types of programs available in 2024:

• First-Time Home Buyer Program
• MyHome Assistance Program
• Good Neighbor Next Door Program
• CalPLUS Conventional and FHA Loan Program
• CalFHA Zero Interest Program
• FHA Down Payment Assistance Grants

California has hundreds of small, diverse communities scattered throughout. How much you'll pay for a home in California depends on where it's located. If possible, look for a home in an area you'll enjoy and choose the lender that best fits your needs.

If none of these lenders feel right to you or you're not finding mortgage rates you're happy with, don't be afraid to branch out. A credit union or other online lender may be a better fit. The idea is to find a mortgage you can happily live with for decades after closing on a home.

Before you do anything else, though, run the numbers to learn how much you can afford. Ideally, you can buy a home while still saving for the future.

READ MORE: California mortgage calculator

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