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(Qualifying) (Costs) (Types)  Click Here To Go To Free 1-Minute Quote Form A mortgage is the name typically given to a loan that is used to purchase a house or property. Mortgage rates are based on what you need to borrow and your
financial situation. Everyone has a credit score or a statistical
formula that translates personal information from your credit report.
Your credit score is an indicator of your credit rating. Lenders use
your credit score to determine if you are likely to pay your bills and
if you are a good candidate for
a loan. Here are some of the factors considered in determining your credit score: · Payment history: Whether or not you have made your credit card payments, loan payments and other payments on time. ·
Amount of debt: How much you owe compared to your
credit limits with various lenders. · Length of credit history: How long you have had credit accounts. · Status of new credit: How often you look for new credit and if recently opened account payments are made on time. · Credit type: The type of loans you have. For example, car loans, lines of credit, credit card balances. Click Here To Go To
Free 1-Minute Quote Form To qualify for a mortgage you must provide personal information including: · How much money you make. · Who you are employed with, for how long and in what capacity. You may be asked to go back a number of years in your employment record. · What your assets are, for example, property, cars, bank accounts and investments. · Who you owe money to, for example, other loans, credit card debt, and household expenses etc. The lender will also do a credit check on you and you may have to
supply additional information such as pay stubs, bank statements,
investment earnings reports, income tax statements, proof of insurance
and other forms of documentation. Once the credit lender is satisfied that your credit is good, an
appraisal on the property you want to buy is required to determine if
the property is worth the loan amount. Once approved, you can ask for pre-approval in writing. Then you can then shop for a home with peace of mind and a seller will know that you are qualified for the property you are looking at. Click Here To Go To
Free 1-Minute Quote Form Costs Associated with a Mortgage Loan Besides figuring out how much you can afford to pay for a house, you'll need to think about the closing costs too. Closing costs vary from lender to lender and include: ·
Points: Points are typically the largest cost
associated with getting a home mortgage. Each point represents one
percent of the mortgage balance. Points cannot be financed into your
payments and they have to be paid with cash on closing. The most common
type of points are discount points. These are fees you pay to reduce the
interest rate of the loan. The more points you pay upfront, the lower
your interest rate will be. Deciding whether or not to pay points
depends on many factors including the amount of cash you have available
after making the down payment, the amount of the discount and the length
of time you plan on owning the house. ·
Processing Fees: Processing fees cover the lender's
cost of processing the loan and doing the paper work. Some lenders
charge a flat fee, while others collect the fees as points. ·
Appraisal Fee: A professional appraisal is usually
necessary determine what the market value of the home is. ·
Title Search Fee:
A title search is required to make sure that the property belongs to the
seller and that he has the right sell it to you. · Other Fees: In addition to the fees above, you may also have to pay fees for signature notarization, government recording fees, transfer charges, property taxes and insurance fees. A reputable lender can give you a very close estimate as to what your closing costs will be before you start the loan process. Click Here To Go To
Free 1-Minute Quote Form There are several different types of mortgage loans. The most common
are the Fixed Rate Mortgage (FRM) and the Adjustable Rate Mortgage
(ARM). Fixed Rate -- 30 years: This is the most common mortgage sought by first time home
buyers. Monthly payments are lower than on a shorter (15 year FRM) term
loans. The interest rate is locked in mortgage and does not change over
the life of the loan.
Click Here To Go To
Free 1-Minute Quote Form This option is becoming more common. The loan is for 15 years and is
locked in for the life of the loan.
An adjustable rate mortgage has a fixed interest rate at the time
the loan is taken out. At the start of the loan, the payment amount is
also fixed. But neither the interest rate nor the payments are fixed for
the life of the mortgage. After
an initial fixed period, the interest rates and the monthly payments are
adjusted to the current market interest rates. The calculations to
determine the adjustment is at the discretion of the individual lender.
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