Best Fixed Rate Mortgage Deals

admin — Sun, 03 Jan 2010 22:21:52 +0000

Trying to find the best fixed rate mortgage deals is very easy in the current marketplace. The reason is simple: interest rates are down and the best fixed rate mortgage deals are available locally. The only problem is that now you need to make sure that your credit is in tip-top shape. The lenders, being beat up from the recent credit card legislation, are anxious to get good loans with at least 20% down payment.
Try as you may to get something with 0% down, the fact is that credit is still a serious business and banks are unwilling to compromise while the Fed is supplying them with money.
ON the other hand, the best variable rate mortgage deals are also available. But these types of loans should be avoided since that is one of the main cause of the current mortgage crises.

admin — Wed, 08 Jul 2009 04:40:47 +0000

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Direct Mortgages

admin — Fri, 03 Jul 2009 00:17:02 +0000

Searching for a new home is a draining process. Going through online ads, newspapers, real estate magazines, and talking with your real estate agent take up much of your time. When you do decide on your dream home, whether it is a modest one bedroom condominium or a sprawling 5 bedroom estate, the next step is even more complex – getting financing that is affordable for your new home.

Here are some quick steps to help with that part of the process.

PreQualify

The most important part of the process is to determine realistically what is it that you can afford. The simplest way is to call your local direct mortgage lender – bank or savings institution – and asked to be pre-qualified for a home loan. When you go in for your appointment make sure that you have all the information they will require including your income from all sources, current outstanding credit card bills, car loans or other notes and obligations etc. Eventually these will all need to be verified by the loan processor so try get a jump on it first.

Application

Applying for a mortgage is not complicated but it requires a significant amount of information that is no always readily available. The loan officer will usually work closely with the borrower on filling out the app. Some of the details include, of course, the income, debt, and expenses of the borrower and information on the property. The Application fee usually covers the appraisal of the property as well.

Mortgage Costs

Nothing is free, except the pre-qualifying for your loan, so you can expect to pay certain fees for your mortgage. The most difficult to grasp is the “mortgage points”. These “points” are used for a couple of different things. One is to reduce the interest rate that you are going to pay and the other is to pay a commission to the loan officer. Yes, they are sales people and expect to be paid for generating business for their institution.

The other costs may include an appraisal of the property, processing costs, set up costs, title insurance, mortgage insurance etc. Overall expect to pay between 5 to 8 percent of the loan as the cost of the mortgage.

Loan Officer

When you apply for a loan from a direct lender, such as a bank, the process is the same as if it were with a mortgage broker. Each bank has a specialist who oversees the details of your application to make sure that each step is completed in a timely manner. The loan officer acts as a liaison between the real estate broker, the borrower and the processor. The loan officer will set the appointment with the appraiser in order to determine the value.

Processor

This is a back office function and requires a lot of attention to details. The loan processor is the person who packages the documents for the loan committee. She sends out all the verification requests to employers, other lenders etc. and goes through a lengthy check list of items before the loan is submitted.

Appraiser

This is a licensed professional who job is to determine the value of the property. They use a variety of methods including complete inspection, comparisons of similar properties and recent market conditions.