When you apply for a conventional mortgage, it could be second nature to simply ask for the 30-year fixed mortgage, but there are other options. It pays to know the differences between the three options, aside from the obvious difference in time that each loan offers. Many borrowers opt for the 30-year because of its predictability and ease of affordability, but some borrowers can benefit from a shorter time period, making it easier to own the home free and clear much sooner than the 30-year program would allow. The Amortization Period The biggest factor to look at is how the…
Author: Tech Admin
Everyone knows that income and credit play a role in the mortgage application, but do you know exactly what role they play? Just having a large amount of income or an exceptionally high credit score is not enough to get you approved for a loan. Even people with a 700+ credit score have been turned down before. The key is understanding the role of each factor so that you can optimize your mortgage application and ensure that you get the loan you want for your home purchase. Income Versus Debts The largest role your income plays in the mortgage application…
There are many choices out there today when you are in the market for a home loan. A government loan, such as those from the FHA or VA offer flexible terms, attractive rates, and a guarantee for the lender should you default in the future. A conventional loan from a private lender does not offer the same guarantee, but sometimes has more attractive rates and terms depending on the risk level of your loan file. So how do you decide between the two options? Here are some questions to ask yourself. Do you want a Commercial or Private Lender? The…
USDA loans are loans provided by the United States Depart of Agriculture, and more specifically, their Rural Housing Service. This service enables potential homebuyers to purchase a home despite their low income or less than favorable qualification factors. This loan offers great terms, easy to qualify for requirements, and easy to afford payments. The most important factor regarding financing method is the need for the home to be located in a rural area. The USDA offers this program in order to give certain areas of the United States the economic stimulation it needs by providing lucrative financing in only these…
The FHA Streamline 203K loan is the perfect way to purchase/refinance a home and make changes to it without having multiple loans. The streamline process makes it a quick and easy loan to obtain. You do not need to use a loan consultant or have any blueprints. As long as your contractor is approved, you meet the minimum credit and income requirements, and you work with the lender and contractor closely, you can have the home you desire and only one loan to pay off. The loan provides you with money to purchase/refinance a home as well as make changes…