Individual mortgage lenders may offer a variety of different loan rates, terms, and qualifications, which can make shopping for a mortgage seem confusing, stressful and time-consuming without expert help. The type of loan you obtain can affect not only the affordability of the monthly payment, but often how quickly you build equity in your property too. However, choosing the right loan and lender can help you feel emotionally and financially stable, and ready to enjoy the benefits of ownership.
There are a number of loan types available with varying pros, cons and qualifying guidelines for each. Some of the basic types of loans that may be offered can include Federal Housing Administration (FHA), Veterans Affairs (VA) or conventional loans, which are not secured by a government entity. Of course, there are many others including USDA, jumbo, construction loans, and more. Additionally, the loan may be offered at a fixed interest rate throughout the term or at an adjustable rate, where the rate may change periodically at typically predetermined intervals.
Loans can also have different requirements for down payment, private mortgage insurance (PMI), and varying fees, closing costs, or prepayment penalties. Further, some lenders may offer protection from interest rates rising with a rate lock for a period of time while the loan is processed, often for a fee. Additionally, some lenders may allow borrowers to pay a fee known as a discount point to reduce the interest rate and lower their monthly payment. By law, all fees and costs should be itemized and provided to you in a Good Faith Estimate after applying for your loan.
A trusted and knowledgeable mortgage professional can save you stress, time and money by helping you understand and compare the options. Don’t be afraid to ask them to take the time to explain your options, the pros and cons of each, and their expert opinion on which loan would work best for you based upon your needs and qualifications.
1 Stop Lending specializes in offering low-priced home financing with excellent customer service. We are available after normal business hours and on the weekends so that you always have the ability to have your questions answered whenever you need. After nearly two decades in the industry, you can rest assured that we are knowledgeable professionals with the expertise and attention to detail that you deserve.
If you are interested in learning more about comparing the best mortgage offers for you, we are just one phone call, text or email away from answering any questions you have. Please visit https://1stoplending.net for more.