Congratulations on planning ahead. The earlier you start your financing process the easier it is. We want to uncover any potential obstacles and rectify them as soon as possible. Every situation is different and requires attention.
If it's considered Real Estate for the most part it can be financed by Fannie Mae, Freddie Mac, FHA, USDA or Veteran's Administration. There are a few exceptions so be sure to ask.
Most all loans require 20% down to avoid mortgage insurance(MI). Mortgage Insurance premiums vary by amount of down payment, credit score and loan type being applied for. Veteran's loans have no monthly Mortgage Insurance.
A point is one percent of the borrower's loan amount.
A discount point is paid upfront to the lender and is supposed to lower the borrower's interest rate over the life of the loan. It is often called a buy down.
Depends on what your needs are and if the math warrants paying points. This can be answered with a full application. Variables such as loan size, term, credit scores and loan-to-value will have an impact on a loan's price and determining if paying "points" is a benefit to you.
Virtually every loan program has a "float down feature" that allows the borrower to take advantage of a lower rate in the event there is a material change in mortgage pricing.
$548,250Jumbo loans are any amount greater than $548,250.
You will have to provide proof of income and employment to qualify for a mortgage. There is no way around that one. It shows your creditworthiness.
Many lenders require hazard insurance on the property for which you are taking out a mortgage. It is important to figure in this cost so you know how it reflects in your loan payment.
A conforming loan is a mortgage that adheres to a set of loan guidelines or standards. These meet Fannie Mae or Freddie Mac guidelines. These two entities purchase mortgages from lenders and package them into securities for resale to investors.
"'Immediate Family Member' means a spouse, child, sibling, parent, grandparent, or grandchild. This includes stepparents, stepchildren, step-siblings, and adoptive relationships." MN Statutes 2015, Definitions 58A.02 Subd. 4
A closing is the process where the real estate transaction between a buyer and a seller is consummated. Documents are signed creating a security interest in real property that becomes effective between the borrower and the lender. MN Statutes 2015 58.02 Definitions
Taxes in this case refers to property taxes. Paying them through your mortgage can break up the fee around tax time (May and October) in manageable, monthly payments.
Interest is the amount you will pay back in addition to the principal loan.
Principal is the dollar amount that's being approved for the loan. This does not take into account any other fees during the process.
A Mortgage Loan Originator's role is to help you find a loan with a lender, product and rate that best fits a home buyers financial situation.
The best way to learn this is to contact your Mortgage Loan Originator. There are documents you need to have on hand and depending upon your history, you may need to provide additional items.
Generally to start you need to have:
The only fee we collect up front is for an appraisal. Appraisals range from $400 on up depending on the complexity of the property.
In summary a Bridge Loan is two loans held consecutively. Basically what you are doing is using the current equity as a down payment on a new house so you can be considered non-contingent in the transaction. It is can be a timing issue getting all parties to close on schedule. It does cost a little bit to do these types of loans.
Home borrowing costs were essentially unchanged last week and remain at historically low levels. The Mortgage Bankers Association reports that the 30-year fixed-rate mortgage rose two basis points to 3.11% with 0.43 in points for the week ending July 16, …[more]
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