The best way to find a mortgage lender

1. The best way to find a mortgage lender 1. Home price In the beginning, you'll need to figure out the cost of the house for which you're applying for mortgage. Check online to find out the homes that are currently selling in your local area. Studies have shown that the median price for homes in your local area is $175,000. The average home price is currently 180,000, the median value is around $175,000. To find local listings you may also look on the websites of realtors. 2. Credit Score In order to be eligible to get an loan, you'll be required to have an average credit score of 680 or more. To qualify to be considered for the best mortgage lenders will examine the credit score of the borrower as well as their income as well as whether loans or foreclosures have been made in their favor. When they satisfy certain requirements and have a low income, they may be eligible for a favorable loan. 3. Monthly Payment It's likely that you'll spend less money if you purchase smaller homes as opposed to buy a larger house. You'll save tax dollars and also pay more. An adjustable rate mortgage (ARM) will permit you to pay interest of 8% every year instead of 10 percent. However, an annual interest of 12% will be charged when you take out an ARM with a fixed rate of 15 years. 4. Deposit Payment A 20 percent down payment is required to purchase a house. You must make a minimum deposit of $41,400 into your account at a bank. You can take money from a friend or relative however this could make your monthly payments more expensive. 5. Types of loans A fixed-rate mortgage with a term of thirty years, or an adjustable rate mortgage could be selected. A 30- year fixed-rate mortgage earns interest for 30 years and an adjustable-rate mortgage (ARMs) alters the monthly installment in accordance with a fixed amount of the interest. Because you are able to lower your monthly payments in the future, ARMs may be an ideal alternative for those who do not plan to remain for a long time in one location. You'll lose the advantages of a lower interest rate if the property is sold prior to the expiration date. 1/3

2. Different types of mortgages Mortgages are essentially a type of loan that is made to someone or a business to buy a home. There are numerous choices for mortgages. The loans are divided in fixed or interest-only or variable loans based on the type of loan the lender is seeking to lower the cost of their loan over time or offer monthly interest to their clients. Mortgages can be secured or unsecure. The secured type of mortgage requires the borrower sign a pledge (the security) as collateral to this loan. The lender can take both the security as well as future earnings if the borrower is unable to repay the loan. A mortgage that is unsecured is, however it does not require collateral. The borrower's income is the security. There are various types of mortgages that are available, including mortgages with fixed rates and the variable rate mortgages. Fixed-Rate Mortgage Fixed-rate mortgages constitute considered to be the most fundamental type of mortgage. They come with a fixed final amount to pay. This applies to traditional home loans as well as student loans and also student loans and auto loans. They are guaranteed over the life of the loan. The fixed rate mortgages are classified in two categories either long-term or short-term. The duration of longer-term fixed rates usually ranges in between five and thirty years. The terms of short-term fixed rates typically range between 1 and 5 years. Variable Mortgage Variable rate mortgages come with the option of a fixed, initial payment. The cost of the loan varies based on the rate of lending and the points. They are extra cost on top of the base rate. The calculation of points is made with a variety of variables such as the credit score, the downpayment percentage, and the value of your property. Points fluctuate based on these variables, so the rate you receive can change. The amounts of payments may vary as opposed to the fixed rate. This is due to the fact that prices change constantly. Incentive only mortgage 2/3

3. An interest-only loan is like a fixed rate mortgage, but instead of a cost for a point that is added onto your monthly payments however, your annual installment increases until it is 100 percent. The payments will stop growing at this point, and will remain at the equal amount of your amount due. This mortgage is less expensive than a variable rate mortgage, however it will have more expensive monthly payments as well as longer duration payment. If borrowers intend to sell their home before the loan is completely completed An interest-only mortgage could be beneficial. Negative Amortization Mortgage Negative amortization loans may be created when buyers pay not more than 20 percent of the cost when buying a house. Instead of needing to pay cash in advance the borrower pays an initial down payment, and then obtains an installment loan to cover the remaining of the purchase cost. The borrower is able to pay a lower portion of the loan each month until they have completed the total sum. Negative amortization loans are a chance of failure because the borrower may end up spending more money on the house than he planned to. Contact Us:- Company Name :- Christensen Financial Inc. Location: 4860 Cox Road Ste 200 Glen Allen, VA 23060 3/3