When entering the mortgage marketplace, you should know that you have
several lending alternatives. Below you will find descriptions of three
common ones:
1. Retail Lenders
The first option is your most basic type of lender: retail lenders. At
these “corner banks” you can deal face to face with a representative
who will take your application and then determine if your profile fits
their guidelines. Although usually loans obtained in this manner have
the lowest closing costs, these lenders usually have rigid approval
criteria.
2. Wholesale Lenders
By using a mortgage broker, you can gain access to a wide variety of
wholesale lenders that offer countless loan programs. Although you do
not meet your lender face to face this way, this is typically the best
way to go if you have less than perfect credit or no down payment
money. You will, of course, want to get many quotes when going this
route to ensure that you do not pay excessive closing costs.
3. Hard Money Lenders
If you do not fit the requirements for the previous options, you may
need to consider something more drastic: hard money lending. Equity and
asset based, these lenders loan you money from their own investments at
high interest rates. This route should only be used in extreme
circumstances, like staving off a sheriff’s sale, and you should only
keep the loans long enough to improve your rating for something better.
Although not the best alternative, these lenders can buy you time to
make positive changes in your financial life.
The important thing to understand is that you always have more than one
option when seeking a mortgage loan. To begin, you must assess your own
credentials to figure out which of these option suits your particular
needs.
Preferred Mortgage Lenders - We maintain a list of recommended mortgage
companies online and update the list regularly.
Poor Credit? See a List of Lenders Specializing in Borrowers with Poor
Credit
Article Source: http://EzineArticles.com/?expert=C.L._Haehl
Saturday, March 31, 2007
Mortgage Tips for the First Home Buyer
For the first time home buyer, the excitement and the worry of owning a home go hand in hand. But, getting approved for a low rate mortgage loan for that home should be no question. There are many ways that you can secure a low rate on your first home purchase. What’s more, you likely have what it takes to make that happen. For the first time home buyer, taking steps as soon as possible to get the loan they need is important.
What Factors Into A Low Rate?
One of the first things to understand is how interest rates are determined for home loan purchases. Lenders have the ability to select the rate that they feel is fair for you, based on several things including:
• Your credit history: a good credit history, with some experience with both secured and unsecured loans is an important part of the process. Get a copy of your credit report to determine your credit.• Steady employment and the means to repay the amount borrowed is also a consideration.• A down payment can help to lower the interest rate that you get as well, and can be very important in helping you to secure that first time loan.
FHA Programs
The government believes, in many ways, that homeownership is a very important aspect of life in the United States and therefore has developed FHA loans that can offer help in securing that first loan. These loans are designed specifically for the first time home buyer and provide a lower interest rate than conventional loans. They also provide for fewer qualifications in getting a loan. In turn, your lender will get more security with federal backing of the loan.
For the first time home buyer, it is essential to consider how well you qualify currently for a home loan. Making improvements to your credit is important. Taking advantage of FHA programs can also be helpful in securing the loan that’s right for you.
List of Recommended Mortgage Lenders for First Time Home Buyers - We maintain a list of recommended mortgage companies online and update the list regularly.
Creative Ways to Finance Your Mortgage- Read this article to learn some creative financing techniques to finance your new home.
Article Source: http://EzineArticles.com/?expert=C.L._Haehl
What Factors Into A Low Rate?
One of the first things to understand is how interest rates are determined for home loan purchases. Lenders have the ability to select the rate that they feel is fair for you, based on several things including:
• Your credit history: a good credit history, with some experience with both secured and unsecured loans is an important part of the process. Get a copy of your credit report to determine your credit.• Steady employment and the means to repay the amount borrowed is also a consideration.• A down payment can help to lower the interest rate that you get as well, and can be very important in helping you to secure that first time loan.
FHA Programs
The government believes, in many ways, that homeownership is a very important aspect of life in the United States and therefore has developed FHA loans that can offer help in securing that first loan. These loans are designed specifically for the first time home buyer and provide a lower interest rate than conventional loans. They also provide for fewer qualifications in getting a loan. In turn, your lender will get more security with federal backing of the loan.
For the first time home buyer, it is essential to consider how well you qualify currently for a home loan. Making improvements to your credit is important. Taking advantage of FHA programs can also be helpful in securing the loan that’s right for you.
List of Recommended Mortgage Lenders for First Time Home Buyers - We maintain a list of recommended mortgage companies online and update the list regularly.
Creative Ways to Finance Your Mortgage- Read this article to learn some creative financing techniques to finance your new home.
Article Source: http://EzineArticles.com/?expert=C.L._Haehl
Low Income Mortgage Loans
Low income mortgage loans are available to individuals that are looking for a good loan that is ideal for their income situation. In most cases, individuals will be able to get approved for this type of loan if they can meet other qualifications and they are selecting a home that falls in the right price range. There are also grants and government backed loans that can also provide reassurance to a lender that you can make payment on the loan for your home. For those with low income, mortgage loans are designed to fill their specific needs.
Qualifying On Your Own
Most individuals can qualify for a low income mortgage loan if they have proof of steady employment. You may not be able to get a large home, but you will likely be approved for some amount of money that can be used for a mortgage loan. In addition, a good credit score and having money for a down payment on the home can also be qualifications that can help you to get a mortgage loan even with low income.
Programs That Can Help
The government offers a variety of very low income to moderate income grants and loans that can help you to qualify for a loan. These housing assistance programs are designed to specifically help people that want to own a home but do not make a lot of money. They provide backing to a mortgage loan, such as with an FHA loan, in an effort to improve the lender’s view of you. Because the loan is government backed, you may qualify for more or qualify in general.
A low income mortgage loan is an ideal way to secure a home that you want. Achieving this American dream is something within reach of those that can qualify for a low income loan.
Recommended Mortgage Lenders for Low Income Borrowers - We maintain a list of recommended mortgage companies online and update the list regularly.
Signs of a Risky Mortgage- Read these 15 warning signs that you are getting into a risky mortgage loan.
Article Source: http://EzineArticles.com/?expert=C.L._Haehl
Qualifying On Your Own
Most individuals can qualify for a low income mortgage loan if they have proof of steady employment. You may not be able to get a large home, but you will likely be approved for some amount of money that can be used for a mortgage loan. In addition, a good credit score and having money for a down payment on the home can also be qualifications that can help you to get a mortgage loan even with low income.
Programs That Can Help
The government offers a variety of very low income to moderate income grants and loans that can help you to qualify for a loan. These housing assistance programs are designed to specifically help people that want to own a home but do not make a lot of money. They provide backing to a mortgage loan, such as with an FHA loan, in an effort to improve the lender’s view of you. Because the loan is government backed, you may qualify for more or qualify in general.
A low income mortgage loan is an ideal way to secure a home that you want. Achieving this American dream is something within reach of those that can qualify for a low income loan.
Recommended Mortgage Lenders for Low Income Borrowers - We maintain a list of recommended mortgage companies online and update the list regularly.
Signs of a Risky Mortgage- Read these 15 warning signs that you are getting into a risky mortgage loan.
Article Source: http://EzineArticles.com/?expert=C.L._Haehl
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