What loans are available?
Conventional 30 years mortgage borrower has opportunity to borrow money on a long term basis without having to worry about the interest rates or payments changing. Monthly payments are lower than those on 15 years loans because the interest is amortized over a longer period. Conventional 15 years fixed rate mortgage allow building equity much more quickly due to shorter amortization schedules. Overall interest bills are dramatically lower than those on longer-term loans. Interest rates are lower than 30 years loans. FHA/VA First time home buyers and veterans alike qualify for a low-rate, fixed mortgage with little to no down payment. Jumbo-mortgages are loans that exceed the allowable loan limits set by mortgage giants Fannie Mae and Freddie Mac. Currently, the maximum “conforming” loan amount is $417,000
Preapproval means that our underwriting department has conditionally approved you for a mortgage loan based on a review of the credit information and documentation you provided. Pre-approval shows Realtor and home sellers that you will be able to finance the purchase of a property. It's a significant step in the home-buying process. A pre-approval is different from a pre-qualification. With a prequalification, the lender relies on information provided by the buyer to estimate how much the borrower could qualify for. With a pre-approval, the lender verifies the borrower's information and documentation to determine exactly how much it would be willing to lend to that borrower.
Get your Fico Score
FICO Scores provide a consolidated view of how consumers repay credit obligations, including accounts held by other lenders. The scores are empirically built using credit bureau data from millions of consumers. FICO Scores are updated regularly to reflect changes in consumer behavior and lending practices. FICO Scores are highly predictive measures of applicant and customer risk. Lenders can better determine, for example, which consumers to target, how much credit to extend and whether to raise a credit line. FICO Scores are used by Fannie Mae, Freddie Mac and the FHA to determine consumer creditworthiness. 95% of largest U.S. financial institutions use the FICO Score to make consumer credit decisions.
Apply and Gather your documentation
Once you've selected a loan option, Lender will walk you through your application, asking simple questions. Getting a home loan requires you to provide documents, such as pay stubs and bank account statements. Getting the documents right is important.