Mortgage 101
Getting a loan to buy a house may seem like a complex and difficult process, but it doesn’t have to be. Just spending a few minutes getting familiar with the mortgage types and process will put you way ahead of the game and make the application process much easier.
The Mortgage Application Process
Prequalification: the first step, and what it allows you to do
Preapproval: why you need one and how to get one
Final Application: how it works and what you need to do
Lenders:
What are the types of lenders and what does each one do?
Portfolio Lenders
Mortgage Bankers/ Direct Lenders
Mortgage Brokers
Government & Private Agencies:
What they are and how they can help you buy the home of your dreams.
HUD
- Federal Housing Administration (FHA)
- HUD Homes
- Good Neighbor Next Door Programs
- Dollar Homes
- Nonprofit Housing Programs
- Ginnie Mae (Government National Mortgage Association)
Fannie Mae
Freddie Mac
Veterans Administration
Rural Housing Services
Loans:
What are the different types of loans available and how do you choose the right one for you?
Types of Mortgage Loans:
Fixed vs. ARM? Subprime or Interest Only? Zero Down or Reverse?
Terms of Mortgage Loans:
15 vs. 30 year, the advantages and disadvantages of each
Rates:
The math may be hard, but the ideas are easy to understand. Read through this and you’ll know more than many professionals about mortgage rates, and be better prepared to buy a home.
Interest Rates
Annual Percentage Rate (APR)
Points: Discount and Rebate
Effective Rate
Monthly Payment
Rate Locks