Mortgage Points

When you go to a lender and discuss the terms of your loan, the lender might say something like. “you will have a rate of 7% on your 30 year loan with a charge of 1 point”. These Points are a way to lower your prepaid interest on your loan. The more points you have the lower your rate. There are many factors to think about when deciding points. One of these factors is how much money you can put down at closing. In order to get the lowest closing costs you want to have a zero-point option. Here at Consumer Mortgage we can help you understand what your points are doing to your mortgage , so give us a call at 757-552-7000 or 800-882-0066. We will use are 30 years in the business to get you the mortgage to purchase your next home

Special Loans

There are a couple special loan programs that allow lower down payments or other benefits. The following are some of these programs:

Department of Veterans Affairs (VA) Mortgages: This type of mortgage is backed by the US government. This type of loan helps veterans and their spouses. There is most likely no down payment and their might be some other benefits, depending on qualification. Because it is backed by the government, it tends to me more understanding to borrowers who default.

Federal Housing Administration (FHA) Mortgages- This type of mortgage is administered by HUD and is also backed by the US government. The standards for this type of loan are easier. The credit qualification, sown payment, and underwriting all have easier standards. The HUD collects mortgage insurance so that the lenders are insured if the borrowers default.

Here at Consumer Mortgage we can help you with both VA and FHA mortgages , so give us a call at 757-552-7000 or 800-882-0066. We will use are 30 years in the business to get you the mortgage to purchase your next home

Down Payments

Down payments tend to be the hardest part of a mortgage. Lenders usually require anywhere between 5% and 20%. If you have a lower credit score then putting down more of a down payment, somewhere in the 25% to 30% range, the lender will be more willing to give you the loan. If you cannot make the down payment, then you might have to get Private Mortgage Insurance, or PMI. Can me and we can look at your options. Jeff  Moore 757.552.7000.

Prequalification and Preapproval

If you are trying to buy a home, prequalification or preapproval is a helpful step. This is because prequalification or preapproval helps you learn how much money lenders will lend you to buy this house. They both do the same thing, the lender checks your credit, income, assets, and debts to help figure out this magic number. The difference is that with preapproval, the lender checks the information you give him, and it is binding. The reason that prequalification is not binding is because the lender is relying on your word, instead of proof.  Here at Consumer Mortgage we can help you with both prequalification and preapproval, so give us a call at 757-552-7000 or 800-882-0066. We will use are 30 years in the business to get you the mortgage to purchase your next home