New Home Loan - Understand The Various Types Of Mortgage LendersWritten by Carrie Reeder
So, you’ve decided to buy a house, and you’re ready for that all important next step—applying for a mortgage loan. But where should you go? After all, mortgage business is complex, and you’ve realized quickly that your choices for lenders are immense. Here’s a quick guide to help you understand all of your choices for lenders.
By using a mortgage banker, you will deal with same person from beginning to end of loan process. The mortgage banker makes his money from fees that you will pay for loan, such as points and closing fees. After you’ve closed on loan, you may continue your relationship with same company, or they may sell your loan to a secondary person.
If you don’t have time to loan shop on your own, or have a not-so-perfect credit history, a mortgage broker may be way to go for you. A mortgage broker acts as a middleman between a borrower and a mortgage banker, and generally knows where best deals are, or which mortgage bankers are more apt to grant loans to riskier borrowers.
No Money Down Home LoanWritten by Carrie Reeder
Are you in market to purchase a home but are concerned about not having enough money for down payment? No down payment home loans or 100% financing for your mortgage loan used to be only advertised during late night infomercials and in obscure real estate publications. The good news is that if you want to buy a house but have little or no money available for down payment, there are mortgage lenders who are offering no money down home loans in your area. Currently, less than half of all homebuyers put down standard twenty percent. Among first time homebuyers, less than half put ten percent down, and nearly thirty percent of homebuyers financed total purchase price of their new home.
Generally speaking, better your credit better your chances of getting a zero down payment home loan. Fortunately, mortgage lenders are now offering no money down home loans to homebuyers who have less than perfect credit. You may pay a slightly higher interest rate than those who put down ten percent or more, but you can still get a great interest rate and easy payments when you apply for a no money down home loan. You can expect to pay private mortgage insurance if your pay little or no money down on your new home, but cost is relatively low and you will be able to drop private mortgage insurance after you have built a certain amount of equity on your home.