Home Buyers Guide...
 

Applying for a Mortgage (Step 3)

It is now time to find a loan program to suit your financial needs as a buyer and a homeowner. Go ahead and fill out the preliminary loan application ONLINE! National Lending Corporation will find the best loan program for your needs. Working with a mortgage broker, such as EW Mortgage can benefit you by providing you a wide range of mortgage options, such as; Adjustable Rate Mortgages or Balloon (Payment) Mortgages or Fixed Rate Mortgages. Finding a good rate and mortgage payment program is an essential step in buying a home because it could save you thousands of dollars.

Let's establish a loan amount of $80,000.00. This will be considered a conforming loan. The rules for conforming loans apply to loans of less than $227,150.00. Jumbo Loans cover the loans between $227,150.00 to $650,000.00. As a buyer, you can take a look at the rates offered by National Lending Corporation by following this link .

Mortgage brokers can offer you various programs such as 30 year fixed and 15 year fixed, each with fluctuating rates. Each type of mortgage program has benefits depending on the buyer's financial situation and preference.

In this example, we will choose the 30-year fixed program with a rate of 8.125% with no points. What are points? A dollar amount paid to a lender for making a loan. A point is one percent of the loan amount. If the buyer had chosen a rate of 7.875% with 1 point, the lender would receive 1 percent of the loan amount. This would be equal to $800 (80,000 X 0.01). Our mortgage calculator can generate the monthly mortgage table for you. Usually the rates are quoted by lenders for a 30 day lock rate. This means the closing of the loan should occur within 30 days of the lock-in date for the specified rate.

The hard work is done. Onto 4th step.

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