Understanding the mortgage process is crucial for homebuyers. A mortgage is a secured loan from a lender to purchase a home, with various types available, including conventional and government-backed loans like FHA, VA, and USDA loans. Key factors in qualifying for a mortgage include credit score and debt-to-income ratio. Preparation involves assessing financial health, saving for a down payment, and comparing lenders. The application process requires documentation and culminates in closing, where final costs are confirmed. Homeownership entails ongoing costs, so budgeting is essential.

A smoky haze envelops Altadena as the Eaton fire smolders. Legislation, Assembly Bill 238, aims to provide one year of mortgage relief for victims of Los Angeles County fires, allowing borrowers to pause payments for up to 180 days without fees, penalties, or interest by simply attesting to financial hardship. The bill also prevents foreclosure actions. This follows agreements between Gov. Newsom and major banks for 90 days of relief. The bill is set to be expedited despite typical committee procedures.

Prospective homebuyers are likely to face 30-year conventional mortgage rates above 7%, though experts predict a drop to around 6.40% by the end of 2024. Strategies to secure better rates include increasing down payments and comparing loan options. Inflation and Federal Reserve policies are key influencers, with a further drop to around 6% expected by year-end. Understanding mortgage options, improving financial profiles, and refinancing existing mortgages can also help secure better rates.

"Buy now, pay later" plans are popular for their convenience and lack of interest or credit checks. However, they are considered installment loans and must follow credit card regulations. To use them wisely, ensure purchases are affordable, avoid relying on them for necessities, and stay organized with due dates. Multiple plans can lead to financial strain and impact credit negatively. Carefully review terms, choose payment methods wisely, and be aware of potential fees to avoid surprises.