Finding the right loan officer that you trust is critical. When going thru the mortgage process you need someone who will respond to calls and emails, because there will be many! You want a Loan Officer who can review your credit accurately and provide you the best mortgage options available based on your current financial situation.

We can refer you to the best in the business, or if you already have a chosen lender we can assist with question and answers they may have about the transaction.

Understanding Different Mortgage Options:

While the details of every loan are different, each lender has a variety of mortgage options. You’ll want to ask each lender you contact what special loan programs they offer that you may qualify for. Here are some of the basics you should know about mortgage options - make sure to discuss the different options available with your lender.

Most mortgages fall into two categories: fixed-rate and adjustable-rate. Fixed-rate mortgages provide a constant interest rate and monthly principal and interest payment for the life of the loan. The rate and payment on an adjustable-rate mortgage can fluctuate.

Mortgage types:

• Conventional loans: A fully amortized conventional loan is a mortgage in which the same principal and interest payment is paid every month, from the beginning of the loan to the end of the loan. The last payment pays off the loan in full. There is no balloon payment. Conventional loans start with a min of 5% down but standard is a 20% down payment.
• FHA: Some lenders also offer low down payment loans such as an FHA loan.  You may be able to put as little as 3.5% down and in many cases, it can be gifted from a family member or an employer. Ask your lender about their first-time home buyer or low down payment loan programs.
• VA loans: Veterans Affairs (VA) Home Loans are provided by some private lenders, such as banks and mortgage companies. VA guarantees a portion of the loan, enabling the lender to provide you with more favorable terms, such as low or no down payment. Ask your lender about these programs. 

Loan terms: Most mortgage loans are 30-year loans. However, there are also 15- and 20-year options.  Arms loans are also available. They are typically 5-7 year loans that are fixed for that time then become an adjustable rate. These loans typically have lower interest rates, but the rate will adjust after the fixed time-frame. Talk to your lender about these loans and ask if they have any pre-payment penalties.

Ways to reduce your rate: You can reduce your interest rate when you “pay for points” to lower your monthly payment. One point costs 1% of your loan amount and can reduce your interest rate by about 0.25%. 

Your lender can explain the details of the loan programs available and help you decide which one is the best option for you.