|
Community Mortgage C o r p o r a t i o n
Home Buying Basics |
|
|
|
|
||
|
|
If you have purchased a home
before you may be familiar with Once upon a time the majority of mortgages were based on 30 years with a fixed interest rate. You had to be employed for several years, and your income as compared to your debts had to exceed a certain percentage. You had to put 15 to 20% down, and pay certain closing costs. The big changes came during the 21% rates of the Carter years.
During this time mortgage lenders became very creative. Payment and interest buydowns entered the scene. Balloon mortgages arrived. And finally, the adjustable rate mortgage was born. The FHA began to make 97% loans - only 3% was required for the down payment. All these type loans were designed to help the average homebuyer obtain a mortgage on the home he wanted.
These loan programs are still around, and are very good choices depending on your circumstances. But now there is a new member to the process of obtaining a loan. This is the credit score. It is simple, the higher the credit score, the less interest and financial analysis you go through. The lower the credit score, the higher the interest rate, and a more detailed analysis of your financial situation would be required.
There are many other issues borrowers may face. Along with the lower down payments comes higher mortgage insurance. Currently, this affects many borrowers ability to get the home they want. Fortunately, the mortgage industry is addressing that problem with 80/20 loan combinations, as well as other loan options.
So, it all begins with a credit score. At that point all of your available options can be reviewed. That is what Community Mortgage and our loan officers do best. We can provide you with financing options and help you choose which one best suits your needs. And the best part? Initial pre-qualifications and credit opinions are free. No cost, no obligation.
If you are a first time homebuyer, or a home owner considering a new home, we want to help. You can email a loan officer, complete the Quick Application, or a complete detailed application. We'll take it from there, answer your questions, give you good choices, and let you decide. Our whole reason for being here is to help you with your mortgage financing needs. |
|
|
|
||
|
|
||
|
© Copyright Community Mortgage
Corporation, 1989 - 2006. All Rights Reserved
|
||
the process. If you are a
first time homebuyer,
the experience can be
confusing, frustrating,
and
intrusive.
What most people don't realize is that all mortgage lenders play by almost
identical rules - those established by the Department of Housing and Urban
Development, better known as HUD.
We use the rules in your favor.
Another factor that has come
into play is down payment. Many families and individuals can afford a home,
but do not always have the necessary cash to complete the purchase. We now have
100% loans,
and in some situations almost
nothing
is required to move in.
Equal
Housing Lender