• Mortgage Info

    Find the Right Loan
    Obtaining a mortgage does not have to be stressful! The First Step is to be Pre-Qualified or Pre-approved with your choice of a lender, to make sure you are searching within your budget.
    Pre-Qualified: The lender estimates how much you can be eligible to borrow based on information you supply, including debt/income/assets.
    Pre-Approved: The lender can provide more specific loan details / amounts for you based on the information + documentation / proof you provide, with an application and a credit check.
    Determine the Type of Mortgage + Down Payment you prefer:
    Conventional: Possible minimum 3.0% down payment (cannot be multi-unit or over $417,000 and min. credit score 650) **With a Conventional Mortgage, putting 20% down removes the need for private mortgage insurance BUT 20% down is NOT necessary!
    FHA: 3.5% down payment (min. credit score 580)
    USDA: NO down payment (Fee added to loan at closing, min. credit score 620) aka Rural Housing Loan, since only certain areas qualify.
    VA: NO down payment; Available to members of the U.S. Military and surviving spouses.
    HomePath Mortgage: Specialty programs offered only on Fannie Mae-owned homes. These properties are foreclosed homes, homes taken back as deed-in-lieu of foreclosure (where the borrower deeds the property back to the investor — Fannie Mae — in return for a release of liability from the mortgage loan) or forfeiture. Minimum 5% down payment on owner-occupied properties (10% on second homes and investment properties). No private mortgage insurance (PMI) is required. No lender-ordered appraisal is required.
    Loan for Raw Land: Unimproved “raw” land is usually the hardest to finance or get with favorable terms. Lenders consider raw land as the least desirable collateral for all land uses. Most will require more money down (up to 50 percent) and charge a much higher interest rate.
    Loan for Lot Land: Lot loans are usually available from local lenders and some national lenders. A lot loan typically consists of one or more building sites for residential construction. These sites usually have been improved with the addition of sewer and water systems, streets and easy access to other utilities. Typically lot loans require 10-20 percent down, with amortization terms up to 20 years. These lots are also financed by home equity or cash out refinances on the borrower’s current home.
    Reverse Mortgage: A loan that allows qualified homeowners, age 62 or older, to take part of their home’s equity as cash, either as a line of credit, or monthly, or lump sum payment, or combo of a credit line and payments. It requires no repayment, until the borrower no longer occupies the residence. Borrowers with reverse mortgages are still required to pay the real estate taxes, homeowners insurance, flood insurance, and association dues.
    A Home Equity Loan: also known as a second mortgage, term loan or equity loan — is when a mortgage lender lets a homeowner borrow money against the equity in his or her home. A home equity loan or second mortgage is paid every month on top of the mortgage you already pay, hence the name “second mortgage.” A home equity loan or second mortgage can be a source of money to fund your major financial goals, such as paying for college education or medical bills, and can prevent building up credit card debt with high interest rates.
    Once you’ve chosen a home, you can complete your Loan Application! The Lender will then provide you a Conditional Approval – Mortgage Commitment, about two weeks prior to closing, that will list any additional information/documents needed.
    An Appraisal will be completed within a maximum of 30 days of your offer. The lender will require your payment ($450-550) at the time of ordering your appraisal. The appraiser determines the value of the property, which must be at least the amount of the sale price on your offer.