Being pre-approved will give you an edge when bidding against other buyers and getting a pre-approved is fast, easy and free. Let sellers know you’re a serious buyer who's loan is likely to close. Know your limit before you shop.
If you are concerned you may not qualify due to bad credit, more the reason to speak with a lender. Be sure to talk to at least three or four lenders before making your decision. They have excellent tips and sometimes services to help you improve your credit score. The total interest you pay over the life of the loan is a big figure, and a low rate can save you thousands of dollars.
A lender or broker will have to pull your credit information and process a loan application to provide an accurate rate, which you can then lock in if you’re satisfied with the product. Once you have several quotes in hand, compare costs and decide which one makes the most financial sense for you.
Check with your mortgage lender or broker if buying discount points to lower your rate makes sense. If you buy points, you’re paying some interest upfront in exchange for a lower rate on your mortgage. This might be a good move if you plan on living in the home for a long time.
Principal and interest payments on a mortgage aren’t the only costs of buying a home. You should ask your lender about all fees including closing costs, points, loan origination fees, and other transaction fees.
Max mortgage amount $350,000
1% Down Payment - Less cash needed to purchase
2% Grant Provided - First time or Repeat Buyers
No Mortgage Insurance - Lower monthly payments
Buy Now & Save Later - Lender fees waived to lower payments if interest rates drop
Correspondent lenders are often local mortgage loan companies that have the resources to make your loan but rely instead on a pipeline of other lenders, such as Chase, to whom they immediately sell your loan.
They work for a specific financial institution and package loans for consideration by the bank’s underwriters.
These member-owned financial institutions often offer favorable interest rates to shareholders. And many have eased membership restrictions, so you can likely find one to join.
Once the bedrock of home lending, S&Ls are now a bit hard to find. But these smaller financial institutions are often community-oriented and worth seeking out.
Another type of thrift institution, like savings and loans, mutual savings banks are locally focused and often competitive.
A fixed interest rate loan is a loan where the interest rate doesn't fluctuate during the fixed rate period of the loan. This allows the borrower to accurately predict their future payments.
A wide range of fixed-rate mortgage programs are available, including 10, 15, 20 and 30-year programs.
A variable-rate mortgage or adjustable-rate mortgage (ARM) is a mortgage loan with the interest rate on the note periodically adjusted based on an index which reflects the cost to the lender of borrowing on the credit markets.
Common types of ARMs include 5/1, 5/6, 7/1, 7/6, 10/1 and 10/6.
An interest-only mortgage, your monthly payment pays only the interest charges on your loan, not any of the original capital borrowed. This means your payments will be less than on a repayment mortgage, but at the end of the term, you'll still owe the original amount you borrowed from the lender
A jumbo loan is a home loan for more than the conforming limit set by Fannie Mae and Freddie Mac. Interest rates on jumbo loans are comparable to rates on conforming loans. One main reason: Lending standards for jumbo loans tend to be stricter, with larger down payments required.
A renovation loan lets you wrap the costs of home improvements into the total amount of the home loan. Especially when mortgage rates are low, this can be a way to borrow more money for repairs while paying less interest than you would with another type of home improvement loan, like a personal loan.
A Bridge Loan can provide the funds for an investor, real estate professional, or contractor to purchase, build, fix, or flip a home or building. If you own a property free and clear or with substantial equity, you can use this as collateral for a Bridge Loan.
An FHA insured loan is a US Federal Housing Administration mortgage insurance backed mortgage loan that is provided by an FHA-approved lender. FHA mortgage insurance protects lenders against losses. However, FHA mortgages do also require mortgage insurance premiums, which can result in higher overall costs.
A VA loan is a mortgage loan in the United States guaranteed by the United States Department of Veterans Affairs. All veterans and active military members qualify for VA loans. These offer up to 100% financing, simplified loan approvals, and lower interest rates. They can be much lower than conventional loans.
A USDA Home Loan from the USDA loan program, also known as the USDA Rural Development Guaranteed Housing Loan Program, is a mortgage loan offered to rural property owners by the United States Department of Agriculture, Rural Development. These loans are available to buyers in rural or low-density areas and offer up to 100% financing and below-market interest rates. Additionally, because of the government's loose definition of the term "rural," some of the buyers in the smaller communities surrounding Alexandria will qualify for this loan.
A reverse mortgage is a loan that uses the home’s equity as collateral. The loan generally does not have to be repaid until the last surviving homeowner permanently moves out of the property or passes away. At that time, the estate has approximately 6 months to repay the balance of the reverse mortgage or sell the home to pay off the balance. Any remaining equity is inherited by the estate. The estate is not personally liable if the home sells for less than the balance of the reverse mortgage.