What is the right Mortgage for you?

There are three basic mortgage loan products available to you, FHA, VA and Conventional. The latter can be offered by any licensed lender and requires the highest down payment. VA financing can cover up to 100% of the purchase price and is limited to both active military and honorably discharged military. FHA is government insured lending and has both lending amount limits and lender requirements, so not all lenders may be able to offer this option. It is advisable to define your loan product and down payment planned before you begin to look at property.

There is much competition among lenders, and smart borrowers shop carefully to find the financing that best suits their circumstances and needs. We can supply you with a list of potential lending institutions: Mortgage Lenders, Mortgage Loan Brokers, Financial Institutions, Private Lenders, Credit Unions, and, Finance Companies.

Below is the information most lenders will need:

How much money you wish to borrow and for how long.
Your current address and any other addresses covering the past 2 years.
Your social security number.
Your current employer’s name, address and phone number and the same information for any other employers in the previous 24 months.
Your gross monthly income including documentation: most recent pay stub, final pay stub for any job you may have left in the current year and previous year’s W-2 form(s).
Complete account statements (all pages) for all bank, credit union, retirement, or brokerage accounts.
Your assets (real estate, personal property, stocks and bonds, life insurance with cash value, etc.).
A complete list of your debts including account numbers, balances and minimum payments.
An account, in writing, of any problems concerning your application and any documentation of the circumstances of those problems.
A copy of the sales contract.

With this information the lender will process your standard mortgage application, verify the facts, get a credit report, make a property appraisal, review your application, and decide whether or not to make the loan.

Here are a few questions to ask a lender:

Are both fixed-rate and adjustable mortgage loans available?
What is the interest rate?
How long can I "lock-in" the financing at the current interest rate?
What other fees may a lender charge me for my loan?
Are funds for a second mortgage available?

On adjustable loans:
- How often will the interest rate be adjusted?
- Is there a maximum limit on each rate change?
- How often will the monthly payment be adjusted?
- Is there a ceiling on payment adjustments?
- Can the term of the loan be extended?

Is there a pre-payment penalty clause? This involves extra charges for paying off the loan before maturity. About 80 percent of all loans in the United States are paid off early.
What is the “grace” period? How late can a monthly payment be made before a late charge is assessed? What will happen if a payment is missed?
If you sell your house, will the new buyer be able to assume your mortgage at the same interest rate?
Do I have to pay “points” to get a mortgage? A “point” is 1% of the loan.
Will the lender require mortgage insurance?

Knowing what to ask is critical, so you should Contact us now to help you work with a Realtor and have you meet with a lender best suited for your needs.