When it comes to mortgage loans there are so many options that it's easy to feel overwhelmed.
For this reason, we encourage everyone to start by speaking with a Residential Mortgage Loan Originator / Loans for Leaders Specialist. They can answer any questions you may have and assist you through each step of the process. Call today, experienced mortgage professionals are standing by to assist you:
HOW TO PREPARE FOR YOUR MORTGAGE LOAN APPLICATION
You can prepare for your mortgage application process by asking yourself these six questions:
Your answers to these questions will not only help your RMLO show you additional loan options, but they will also help them advise you on the best possible choices for your unique financial situation.
WHAT TYPES OF MORTGAGE LOANS ARE THERE?
There are a wide variety of loan options to choose from, which is why its best to let your loan originator know what's important to you and your family. This way they can advise you on the best possible choices for your unique financial situation. Below are some mortgage dynamics to consider:
Understanding the various mortgage types will be very useful when purchasing a new home. Ultimately, there are three basic types of mortgage loans to consider:
Loans are also classified as either government or conventional loans and conventional loans are further broken down into conforming and non-conforming categories.
To qualify for a conforming loan (or an "A Paper" loan), it must fall under the guidelines established by Fannie Mae and Freddie Mac, corporations who have established industry standards and guidelines that govern credit requirements, down payment amounts and maximum loan amounts.
Once you have decided on a mortgage type, you'll look over the individual features with your loan officer to determine which best meet your needs.
WHAT ARE CREDIT SCORES AND HOW ARE THEY IMPORTANT TO HOME BUYING?
A credit score or FICO score is a system of points earned based on your credit history. Excellent credit can be very rewarding when applying for a mortgage and poor credit will limit your available options. This three-digit number (from 300 to 900) is influenced by such factors, among others, as:
There are three major credit bureaus (Experian, Equifax and TransUnion) that produce comparable credit scores using a version of FICO, the industry standard developed originally by Fair Isaac and Company.
Since this credit score or FICO score is used by most lenders to determine your qualifications for a loan, you may want to see what you can do to increase it before applying for a mortgage.
Your Residential Mortgage Loan Originator will explain all options and costs based on your credit during the Pre-Approval process. If you have any questions please call a qualified mortgage expert: