Loan Assistance: Even if you have little to no money to put down for a loan, it's worth checking to see how much you may qualify for. We work with professional credit restoration personnel and mortgage lenders to help you secure a home loan.
Down Payment: There are many types of home loans
(even no money down programs). We work with lenders
that can help match a home loan to your needs.
A conventional loan typically requires a down payment.
It is not uncommon for buyers to place a down payment
of 10 to 20 percent of the purchase price. For example, on a $100,000 home, a down payment of $10,000 to $20,000 in cash may be warranted. Government-backed loans require 5 percent or less as a down payment. Loans insured by the Federal Housing Administration (FHA) and the Veterans Administration (VA) are particularly useful to first-time buyers.
Type of Loans:
Fixed rate versus adjustable rate: On a fixed rate mortgage, the interest rate stays the same over the life of the loan, usually 15 or 30 years. That means your payment will not change except for adjustments for taxes and insurance. Adjustable rate mortgages go by a variety of names, but basically these loans have interest rates or monthly payments that can go up or down over time. These mortgages typically start out with a lower interest rate, lower monthly payments, and lower fees and points than fixed rate mortgages. They often appeal to first-time home buyers, younger couples who expect their incomes to grow in the coming years, and people who might not have much cash for down payment and closing costs.
Private versus government loans: Most mortgage loans are made by savings institutions, banks and mortgage companies. On government (FHA and VA) loans, the government does not actually loan the money but rather guarantees (or insures) to repay the lender if you default for some reason. Generally, a lender will require you to buy mortgage insurance, particularly if you make a low down payment. This insurance may be paid at closing or added to the loan amount. VA loans require no mortgage insurance, but only qualified veterans may apply for them. Mortgage insurance protects the lender, to a degree, in the event of default. Government loans have important advantages - they generally require a lower down payment than conventional loans and often have a lower interest rate or points. One the down side, government loans limit the amount you can borrow, often take longer to process, and sometimes have higher closing costs.
Loan Approval Process: When you apply for a loan, the lender will ask about your finances. You likely already have most of the facts and figures compiled. Verifications of employment, deposits, and other matters must be obtained. The lender may require an appraisal to verify that the home is worth the loan as well as a physical survey to discover any encroachments on the property. Repairs may be required. Insurance must be purchased. Loan documentation and conveyance instruments must be drawn and approved.