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Mortgage Lenders

The Real Estate Process

Mortgage Lenders

The Sellers

Inspectors​

Escrow and Title Agencies

Real Estate Agents

Basic Understanding of Mortgages

Get Qualified With Our Preferred Lender

What you need to know: 

  • A mortgage is a loan

  • It helps you buy a home/asset 

  • Real estate, depending on the market and timing, can increase in value over time

  • Mortgages will be paid out by you in monthly fractions either with a 15 or 30 year loan

How to qualify for a mortgage: 

  • Good Credit -  Bare minimum 500 but preferably above 650

  • Save up - 10-20% is very ideal but certain mortgage programs approve as low as 3.5% and is very common. 

  • At least over 2 years of verifiable income with W-2s and Tax Returns.

  • Shop around or Contact us to refer you to a local partner

Types of Mortgages

FHA

What is it?

A mortgage insured by the Federal Housing Administration.

Requirements:

  • Minimum 3.5% down payment

  • Credit score of 580 or higher 

  • FHA loans are popular among first-time home buyers who have little savings or flawed credit.

 

Click for more details at: Nerd Wallet

Conventional Loans

A conventional mortgage or conventional loan is any type of home buyer’s loan that is not offered or secured by a government entity, but instead is available through or guaranteed by a private lender (banks, credit unions, mortgage companies) or the two government-sponsored enterprises, the Federal National Mortgage Association (Fannie Mae) and the Federal Home Loan Mortgage Corporation (Freddie Mac).

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For more details: Investopedia Conventional Loans

VA

A VA loan is issued by a private lender and guaranteed by the Department of Veterans Affairs. It’s a valuable benefit — offering a mortgage with a lower-than-most interest rate that usually requires no down payment — for qualified U.S. veterans, active-duty military personnel and certain surviving spouses. While the VA has only a few requirements for things like debt and sufficient income, VA lenders may add their own "overlays," or additional requirements.

For more details: VA Home Loans 

USDA

The U.S. Department of Agriculture(USDA) loans are zero-down-payment mortgages for rural and suburban home buyers. They’re mainly for borrowers who aren't wealthy and can’t get a traditional mortgage. No you don't have to live near a farm.

3 Types of USDA:

Loan guarantees: The USDA guarantees a mortgage issued by a participating local lenders, similar to an FHA loan and VA-backed loans, this will allow you to get low mortgage interest rates, even without a down payment. If you put little or no money down, you will have to pay a mortgage insurance premium.

Direct loans: Issued by the USDA, these mortgages are for low- and very low-income applicants. Income thresholds vary by region. With subsidies, interest rates can be as low as 1%.

Home improvement loans and grants: These loans or outright financial awards permit homeowners to repair or upgrade their homes. Packages can also combine a loan and a grant, providing up to $27,500 in assistance.

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For more details: USDA Loans

15 Year Mortgage vs. 30 Year Mortgage

15 Year Mortgage

Pros:

  • Lower interest Rate

  • Pay off home in 15 years

  • Build up equity fast

Cons:

  • Payments are higher

  • Less cash-flow

  • Afford Less Payment

30 Year Mortgage

Pros:

  • Required payment is lower 

  • Can be paid off anytime

  • More Flexibility

  • Less money tied up on equity

  • Qualify for larger loan

Cons:

  • Higher interest rate

  • Slowly build equity

  • longer to pay off

You don't need to know everything. Mortgage lenders will determine your qualification.

We can help prepare you to make sure you qualify.

See Which Preferred Lenders Work For You
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