Home Mortgage Options to Consider

Where to start?

One of the best ways to improve your negotiating power is to present the home seller with a letter from your lender.

A Prequalification letter is based on unverified information you provide to your lender. This may be the quickest way to help determine the price range of your new home, but may not be the most accurate.

A Preapproval letter is based on verified information and a preliminary credit report. This letter is a more accurate indication of the price range of your new home.

Mortgage Pre-Qual

We recommend only proven, trustworthy mortgage lenders with a solid reputation. Our mortgage professionals can provide you with a free credit report and either a prequalification letter or a preapproval letter--often within 24 hours or less. Visit our Links Page for information on our preferred lenders.

You are under no obligation to use our preferred lenders in order to receive this free information. We can recommend several lenders for you to choose from or you can find your own.

Financing Options

Finding the right financing program that meets your specific needs will help determine whether you qualify for the home you would like to purchase. We are more than happy to assist you in exploring your options and to locate the most affordable program for you.

You can Contact Us for information on obtaining a pre-qualification letter from a professional lender.You may consult with one of our preferred lenders or a lender of your choice for more information.

Listed below is a brief summary of some of the more commonly used loan programs.

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Fixed-Rate Mortgage Loans

A fixed rate mortgage is a home loan in which the interest rate does not change during the entire term of the loan. A fixed rate mortgage is the most popular type of mortgage home loan because it offers the peace of mind that your monthly payment will remain the same for as long as you have the home loan. The most common term is 30 years although these loans are also available in 15 and 40 year terms.

FHA Mortgage Loans

This is a mortgage that is insured by the Federal Housing Administration (FHA). An FHA loan is sometimes referred to as a government mortgage. FHA mortgages have a maximum loan limit that varies depending on the average cost of housing in a given region. There are several advantages to FHA loans compared to more conventional loans.

Low Down Payment: currently 3.5%
Competitive Mortgage Rates: similar to conventional loans
Flexible Credit Guidelines: generally easier to qualify
Down Payment Assistance: can be a gift from friends or family
Cash Out on Refinance: up to 85% of appraised value

VA Mortgage Loans

A mortgage that is guaranteed by the Department of Veterans Affairs (VA). A VA loan is sometimes referred to as a government loan or a VA mortgage. These loans are offered to eligible veterans for home purchases and refinances. There are several advantages to VA loans compared to other types of loans.

Competitive mortgage rates
Little or no down payment required
Flexible credit guidelines
Relaxed requirements on debt-to-income ratios
No mortgage insurance premium

Green Mortgage Loans

Also known as an Energy-Efficient Mortgage, Green mortgages are rapidly gaining popularity with legislators, lenders, brokers and homebuyers alike. These mortgages allow borrowers to add up to 15% on the appraised value of a loan for energy-efficient upgrades such as windows, water heaters, insulation and solar panels.

Significant savings in energy bills are realized in the long-run and ultimately offset the slightly higher mortgage payments. The net result is a higher valued home with a lower costs of ownership. Visit our resources page for more information on Green Mortgages.

Adjustable-Rate Mortgage (ARM) Loans

An Adjustable Rate Mortgage (ARM) is a is a type of home loan mortgage that permits the lender to adjust its interest rate periodically on the basis of changes in the specified index. An ARM can lower your monthly mortgage loan payment because interest rates are usually lower than fixed-rate loans. ARMs can be good when you expect to own your home for a period of less than 5-8 years.

Interest Only Mortgage Loans

An interest only mortgage is a mortgage home loan in which the monthly payment covers only the interest due resulting in a lower payment. The lower payment typically increases the loan amount for which a homebuyer can qualify and helps reduce payment-shock for first-time and move-up homebuyers