Our Loan service

If you are looking to buy a new home in this market there is one thing that is very important before you make an offer. That is to get pre-qualified by a lender. This gives the seller the confidence that you are serious and able to obtain a loan. In some cases if a seller has multiple offers on their home and one offer is higher than another the higher offer may be rejected because that buyer has no pre-qualification letter. The unapproved buyer is a risk to the seller and the seller doe’s not want to jeopardize the other offers that are already approved by a lender. There are many loan programs available today. The traditional 30 year fixed is one of the safe loans programs that have been around for ever. Your payment will never change and at the end of 30 years your balance is zero. There are also other terms available 15 year fixed, 10 year fixed, and I have even seen 40 & 50 year fixed terms. It all depends on how much you can afford to pay monthly and how soon you want to pay it off. There are many other loan programs that have made it easier for people to buy into today’s expensive real estate market. Some of these loans can be high risk if a borrower dose not understands what they are Appling for. Sad but true some lenders in the past few years never spent the time to explain to their clients how much their loan payments would increase at the time they are set to adjust nor let them know their chances of being able to refinance if the market changed. Some borrowers were well aware of what would happen but decided to take their chances and got stuck unable to refinance when the market slowed and turned downward. The recent most popular reason why they have trouble refinancing is they owe more that the home is worth therefore the banks do not want to know them. The so called credit crunch has caused thousands of people to loose their homes to foreclosure and most of those people had little knowledge on their loan type. The One aspect I cannot stress more is the concern I have with my clients understanding their loans they have chosen. Our lending department has most loan programs available and each one has it own advantages and disadvantages. Choosing an adjustable rate may be a good loan for an investor that is flipping a house or plans to sell with in a few months. A fixed rate may be a good loan for someone who plans on keeping their home for an extended period of time.  For those of you who are lucky enough to have made careful decisions over the past years and have some equity in their home, available to you are equity loans. There are two major types of equity loans. Home equity line of credit and home equity loan. A home equity line of credit is just like a credit card with interest only payments and a high credit limit secured by your home. You can draw money up to you credit limit for what ever you wish. As you pay off the principal over and above your interest only payments the available credit raises back to the original amount for future use. A home equity loan is nothing more than a second mortgage on your home. Let’s say you have some medical bills to pay and some high interest credit cards to pay off, you apply for a home equity loan and consolidate that debt together. Your payments have lowered and you may have boosted your FICO score by paying off some of your credit. You will make one principal and interest payment each month until paid in full. Please don’t rush out and buy a new plasma TV or new boat, the smart home owner will take advantage of these loans to invest in more real estate or their children’s education. If you would like to know more about this topic Contact me for more information and let me show you how it's done.