Mortgage Articles

Helpful Ways For Choosing A Diligent Texas Mortgage Broker

6 Steps To Finding A Qualified Mortgage Broker In Texas

Finding the right mortgage broker is important to consolidate your home buying costs over the next few years. Most buyers are not experienced in the home buying process. So they need the service of a mortgage broker who assures exceptional service at affordable rates. Here are 6 important steps to finding a qualified mortgage broker on the market.

1. The Experience Of The Broker

The most important thing to consider when choosing a reliable mortgage broker is their experience in the industry. Make sure you carefully analyze the potential broker and pick one with extensive experience to provide value for your money. Ask the broker about the types of homes or properties they dealt with in the past and for how long they have been in business.

2. The Mode Of Compensation

Consider the mode of compensation for the potential broker when choosing the right candidate for your project. Most brokers will charge you a fee that comprises of the percentage of the loan amount. This will be the same for each loan they sign for your company. Other brokers are compensated via yield premiums. Yield premiums are applicable when the broker finds a higher-yielding mortgage rate for the borrower.

3. Rate Locks

Rate locks are used by some brokers to speculate on the rise and fall of interest rates. If the broker uses rate locks, you should find out as much as possible about the process before you commit to the loan. If you want to prevent the mortgage broker speculating on your investment, make sure you get it in writing.

4. Get References

Getting references from other clients who have used the service in the past is important when choosing the right mortgage broker. The broker should be able to provide at least 2-3 references for their work. Talk to some of the past clients and ask about the level of service and the company’s commitment to providing affordable mortgages before choosing the right mortgage broker.

5. Interview Several Mortgage Brokers

Most homeowners make the mistake of choosing the first mortgage broker they come to contact with. It may save you time but lead to selecting the wrong broker in the process. Don’t forget to speak and interview at least three reputable mortgage brokers in the area before you decide to choose the best broker for the project.

6. The First Official Meeting With The Mortgage Broker

It’s important that you prepare for the first meeting with the mortgage broker. You should carry the important documents required for the mortgage loan. Some of these documents include proof of income, bank statements, credit card statements, and any other documents. This will help you reduce the time it takes to complete the paperwork when applying for the mortgage loan.

If you are looking for a reliable mortgage broker, you are in the right place. With a host of such professionals out there, choosing the right one isn’t easy. The above article provides 6 important steps to finding a qualified mortgage broker on the market. Feel free to contact us or call us today!

How Can I Get Approved For A Texas Mortgage With Bad Credit?

Tips To Get Approved For A Home Loan In Texas 

Financing is of high concern for people with bad credit. They are already extremely stressed by the mounting debt they have to pay off. With that, the late fees and interest are zooming out of control if they’re not making their minimum payments. If you’re dealing with a lot of debt and can’t get a loan you shouldn’t panic, you should look at what is the easiest mortgage to qualify for. It’s still possible to get a loan; however, it will be harder for you. The best thing you can do is to continue to work on your credit score. You may need housing now. It’s harder to rent an apartment if you have a poor credit score than it is to get a housing loan. You may want to consider the following options:

Remember That Most People Do Not Have Excellent Credit

You aren’t perfect? Neither is anyone else. Only 22% of Americans had an excellent credit score in 2018. Most fall within the low end of the 700. You’re probably suffering from a credit score that is at least 690 or below if you are reading this article. You have a lot more options if your credit score is in the 600 verses below 600. Those with a score of 620 can even get a conventional home loan. What if my score is below 600? There’s still hope for you.

A Co-Signer

Co-signers are commonly used by young people as they do not have a long history of credit or an adequate income in most cases. How do I get a mortgage on my house?  While it isn’t always possible, an adult may be able to get someone to co-sign for them. A stay at home mother, who has recently gotten divorced, may be able to convince her ex-husband to Co-Sign for a new place. The more willing he is to support his Ex-spouse, the better he will look in court during proceedings. 

The Co-signer is promising that he or she will be responsible for the debt if you do not pay your mortgage. He or she will also be subject to a credit score reduction if he or she does not take on the debt. Parents often do not trust their kids enough to do this. It’s less likely it will happen for an adult that’s over 26. Let’s look at other options:

Make A Larger Down Payment

Many lenders will offer you a loan with a larger down payment if you have a poor credit score. There is a limit to this. This is more likely to happen if you have a credit score that at least falls above 590. Those with extremely poor credit scores may not be given this option and will have more strict conventional loan requirements.

State & Federal Programs 

Some programs may be available for you. As an example, veterans can get help through VA financing. VA financing does not have stringent rules about credit scores and requires no down payment. Those who are willing to live in rural areas can get a USDA loan. These loans are insured by the government. You have less to lose if you can’t pay. Also, you should avoid urban housing if you are struggling financially. Urban housing is way more expensive anyway. 

HUD housing does not require a credit score at all. Families with children, the elderly, and the disabled will be the priority for HUD housing. You cannot get HUD housing with a felony, especially if it is violent or sexual. HUD housing does have a max income cap. It may vary depending on dependents. 

It’s Possible To Get Housing

The government does not want people to go without housing. That’s why there are many home loans in Texas. You may be living with a false perception if you believe that you do not qualify. This is especially true for those with a credit score in the 600s.

Before making a decision, let one of the experts at The Texas Mortgage Pros help you find out exactly what loan is best for you.  Feel free to contact us or call us today!

How Do I Get A Texas Mortgage On My House?

Important Things To Consider When Applying For A Home Loan In Texas

If you have tried to obtain a mortgage before, you know how exhausting it can be. Before lenders decide to give you a mortgage, you will have to submit conventional loan requirements. You have to prove that you are creditworthy, and this step has a lot of procedures. It is true, sometimes you may end up getting frustrated with all the steps that you have to go through. Since the market crash in 2007, the mortgage applications and reviews got a lot harder. 

There are rigorous and extensive meaning that even something small may cause the lender to cancel your name from the list of homebuyers that need a mortgage. This means own thing: You have to prepare yourself before you walk into the bank to ask for a mortgage. Without prior preparation, you may end up getting more frustrated and maybe give up in the process. You will need to have your documentation ready as well as your income statements. If possible, have some collateral. 

This will increase the chances of you getting the mortgage. Below are more tips to help you get a mortgage for your house.

Credit Score

Corpus Christi texas classic home bought with assistance paymentsHow can I get approved for a mortgage with bad credit? This is a rule of thumb. If you have a poor credit score, there is no way that you will qualify for a mortgage. That is almost impossible. Banks and other financial institutions will only be willing to give you the house loan if they feel comfortable that you will be able to repay the loan. What better way to determine your ability to pay than checking your credit score? 

The secret is always ensuring that you have an excellent credit score. It takes very few minutes to pull your credit report. After you pull your credit report, you are supposed to go throw it and understand where you lie. Do this before you even submit your home loan application. Don’t just assume that your scores are high enough to qualify you for the loan. 

You may even find that they were an error in your report, which could have disqualified you from the house loan. Understand that credit scores have a significant impact on mortgage approvals. Hence, to ensure you are safe, try working on your credit score. Months before submitting your loan papers, ensure you are in good books with a lender and know what is the easiest mortgage to qualify for.

Gather Your Documentation & Keep Your Financial House In Order

The other thing that you need to do to increase your chances of getting your mortgage is to keep your house in order. Gather all the documentation papers required during the application process. Don’t be the kind of person that does things during the last minute because this will cost you a lot. Get your financial house in order before you even start the process. Pull together your bank statements from all checking accounts and savings. 

In case you have other investments that bring you income, ensure you have the receipts and documents to show that you are the actual owner. Once the lenders realize that you have a constant cash flow and several investments, they consider you a potential client. Remember, mortgage companies in Texas, don’t want to incur losses due to you failing to repay the loan they gave you. Also, ensure you provide tax returns of your business if you have any, as these are essential things the lenders look at. If you are self-employed, ensure you put certificates of all the taxes, you have remitted for about two years. Also, prepare your most recent profit and loss statement showing the costs, revenues, and expenses you have incurred during that fiscal year.

As much as getting a mortgage for your house is a daunting task, it is still possible for your dreams to come true. You only need to prepare in advance, to ensure the lenders don’t find a reason to deny you the mortgage.

Before making a decision, let one of the experts at The Texas Mortgage Pros help you find out exactly what loan is best for you.  Feel free to contact us or call us today!

Mortgages In Texas: Which Ones Are Easy To Qualify?

The Easiest Texas Mortgage To Qualify For

Have you been looking for the best mortgage companies in Texas, but you don’t know which ones are easy to qualify for? Don’t fret. This article will provide you with some of the options that will increase your chances of getting a mortgage. One thing you have to understand is that getting approved for a mortgage is not easy. The procedures are complicated and extensive. The lenders do a thorough evaluation, and thus, any wrong move or failure on your side automatically disqualifies you. 

For you to qualify for a mortgage, you will have to go through a lot of investigations. The lenders have to ensure that the person they give the loan to will be able to repay the loan as agreed. Failure to repay the loan puts the lenders at risk because they are the ones left with the bad debts. Besides, mortgage loans are expensive. 

How do I get a mortgage on my house? The bank is willing to give you several dollars for you to build your dream home. You don’t expect them to be lenient when choosing who qualifies for the mortgage loans and who doesn’t. Since the mortgage process is tough, it is useful to known which mortgage loan is easy to qualify for, to avoid all the hustle. Read on to get more information.

Government-Backed Mortgages

Some of the most accessible loans to qualify for are the government-backed mortgages. They are usually issued by private lenders, but they are guaranteed or insured by the government. By these loans being guaranteed by the government, it means that in case you fail to repay the loan, the government takes responsibility. 

The reason government agencies ensure some mortgages is that they want to help potential homeowners get approved for the mortgages. This makes it easier for the lender to approve the mortgage because they are sure that even if you fail to repay the loan, they won’t have to incur the losses. An example of government mortgages that are considered easy to qualify is the FHA loans.

FHA Loans

If you ask around for the mortgage that is easy to qualify, most people will recommend FHA loans. The federal department of Housing and Urban Development usually manages a mortgage insurance program that is operated by the Federal Housing Administration. 

These loans are easy to qualify for because first, they require a down payment of as low as 3.5%. This is lower than the conventional non-federal backed mortgages, which usually ask for a down payment of at least 5%. Secondly, these loans have a reasonable average credit score allowing most homeowners in need of the mortgage to qualify. 

How can I get approved for a mortgage with bad credit? In most cases, these loans don’t even require a minimum credit score amount, meaning that it is up to the individual lenders to determine the agreeable credit score before approving the mortgage loans. With these loans, you don’t have to worry much if you don’t have exceptionally high credit scores, because your score may qualify you when it comes to Federal Housing Administration loans.

FHA Insurance

Note that because the FHA insures the borrowers, the interest rate on FHA is considered more competitive as compared to the prime interest rate conventional mortgages. Note that one of the downsides of the FHA loans is that the FHA mortgage insurance can be more costly when compared to a conventional mortgage. This mortgage insurance is, however, important because it protects the lender by ensuring they get full recovery of their funds in case the borrower defaults. This is a bit different from the veteran affairs guarantees loan, which doesn’t usually require one to pay for mortgage insurance.

It is okay to look for easy mortgage options that you can qualify for. This helps because there is a lot of competition by homebuyers to get a mortgage. Instead of straining, why not look for a cheaper option and prepare the conventional loan requirements.

Before making a decision, let one of the experts at The Texas Mortgage Pros help you find out exactly what loan is best for you.  Contact us today Or Call Us @ (866) 772-3802

How To Apply & What Are The Texas Conventional Loan Requirements

Tips For Applying For A Conventional Loan In Texas

Conventional loans are the most commonly got loans in America. Perhaps, that is why they have obtained the title of being conventional. You should consider several factors before deciding to apply for a conventional loan. First of all, it is extremely important to make sure you meet the requirements to apply for one. Not everyone meets the requirements needed to obtain a conventional loan. They aren’t that stringent; however, they do require an adequate credit score. A poor credit score will be the most likely reason why you are turned down. Let’s look at all the conventional loan requirements in Texas:

Conformity To The Federal Housing Financing Agency 

Conventional loans are given by a bank. They are not backed by the government in any situation. With that said, they do have to follow the laws set by the Federal Housing Financing Agency. Most of these laws pertain to loan limits and credit scores. Here are some of the requirements that are largely set due to the Federal Housing Financing Agency:

Adequate Credit Score

You will need to have a credit score that does not fall below 620 in almost all situations. Some banks require you to have a credit score of at least 640. Any credit score that is below 600 will most likely disqualify you from taking out the loan. So how can I get approved for a mortgage with bad credit? Do not become too discouraged if you have an extremely low credit score. There are many ways to fix it. Paying off credit card debt is the number one way to do it. It is important to try to at least make the minimum every month. Do not expect yourself to pay it all down in a few months. 

Small Amount For A Deposit

You do not need to put down a large deposit if you are getting a conventional loan in most cases. This is designed to help homeowners become housed if they do not have a lot of liquid cash available. Some loan companies will have a higher minimum down payment. This rule is not standard. If you can pay at least 20% of the down payment. This will make you exempt from having to get private mortgage insurance in most situations. 

The Limit Amount 

You cannot buy a $10 mansion with a conventional loan. With that said, you can buy a pretty nice home if you are a decent qualifier. In most areas of the country, the loan limit is $510,400. That is enough for a small mansion in Texas. Those who live in more expensive areas can expect to see a loan limit of $765,600. A house can be bought in Brooklyn for $500,000. How do I get a mortgage on my house? 

There is such a thing as a nonconforming conventional loan. Lenders have more freedom to decide the amount of the loan. At the highest, you will be able to get a loan of $2 million. The credit score you need to apply for this type of loan is much higher, so is the down payment. 

Is A Conventional Loan A Good Idea?

A conventional loan is a great option for those who are at least middle class. Working-class and under individuals should consider loans that are backed by the government or have subsidized. You should be cautious if you’re worried that your financial situation may change. Remember, you do not have to have an outstandingly high credit score to get a conventional loan. With that said, you should not even try if you have a credit score below 600. 

What is the easiest mortgage to qualify for? One of them is a Conventional loan can be a great way to get housing. They are the most popular choice among Americans. Those who are in better financial straits should even consider getting a non-conventional or jumbo loan to purchase a home. Getting a conventional loan will make it possible for you to get the home you want.

Before making a decision, let one of the experts at The Texas Mortgage Pros help you find out exactly what loan is best for you.  Contact us today Or Call Us @ (866) 772-3802

Comprehensive Guide To Qualify For A Mortgage In Texas

Who can qualify for an FHA loan? some people qualify for home loans and purchase the property of their dreams. On the other hand, many people end up having their applications denied. If you are interested in becoming a homeowner and you are worried about whether or not you will be successful, here are 6 tips that will increase the chances of things going in your favor.

1. Get Your Financial Records In Order

When you apply for a home loan, you will be asked to supply proof of all money you have made in the past two years, This includes wages you have earned from your job as well as things like alimony, child support, and bonus earnings. Your W-2 statements and your tax returns will be key, so make sure that you have copies of all this available. Applying for a mortgage without having this available is a surefire way to end up with a denial. There are different types of home loans so you should know which loan is best for first time home buyers.

2. Verify Your Current Income

This part is twofold, so make sure that you pay close attention. It will be necessary for you to gather your last few pay stubs to prove the amount you are bringing home weekly. Also, it is likely the lender will contact your boss to make sure that you work there. While they are not allowed to ask for most personal information, they will ask about the dates you started work as well as the amount of your salary. For this reason, you must be totally honest when you are filling out all of your paperwork.

3. Focus On Your Credit

Owning a home in Texas is quite hard. There is no way that you will qualify for a loan if your credit is in bad shape. If you know that your score is not as high as it could be, this is something that you should take care of before you even bother to apply. Also, if your credit is in decent shape, try your best to keep it that way. This means that you should avoid applying for credit cards, making big purchases, and anything else that can hurt your credit rating.

4. Try Getting A Raise

The more money you make, the more likely is lenders will be willing to take a chance and offer you a loan. If you have been working at the same place for quite some time, you should consider asking your boss for a raise. Even if it is only a dollar or two more, this will look great when it comes to determining whether or not you will be able to keep up with monthly mortgage payments.

5. Save More Money

When you have more money available for a down payment, this means that the lender will not have to approve you for such a large amount. As a result, you are much more likely to be funded. Having more money yo pay upfront means that the lender will have less liability, which would make you a far more appealing candidate for a loan. While most people aim to have about 15-20 percent of the purchase price available, having 10-15 percent more means that you can look forward to lenders who are more willing to work with you and monthly payments that are far more affordable.

6. Move Quickly

Once your application is accepted, you should move forward with the home buying process as quickly as possible. There are occasions when things happen and mortgages fall through. You can avoid having this happen to you if you avoid hesitating. The longer you wait to complete the process, the more opportunities you are giving the lender to change their mind.

Keep in mind that appraisals can take quite some time; speak to your lender about this to see if there is anything they can do to expedite things.

Buying a home is a common process, yet many are not able to do so because the loan process is far too complicated. If you are interested in applying for a home loan you must learn what are the different types of home loans that would suit your budget. If you also want to increase your chances of faring well, make sure to keep all of this information in mind.

Before making a decision, let one of the experts at The Texas Mortgage Pros help you find out exactly what loan is best for you.  Feel free to contact us or call us today!

Can You Qualify For A Texas FHA Loan?

Thoughtful Ideas On Knowing If You Are Qualified For FHA Loan In Texas

Buying a home can be difficult in this economy. The reality of the situation consists of home prices that keep going up and up. Those who are stuck in apartments, or their parent’s house, often feel discouraged by the high price of homes. If you’re a millennial reading this, yes, your parents had it easier. The price of a typical home in a cheap, suburban area used to be $47,000 in 1980. Now, the same home will cost around $110,000. Because of this, it’s time to be aware of your mortgage options. What are the different types of home loans is the first thing you should know.

The government doesn’t want us to be homeless. While it can seem to be the opposite sometimes, they want as many Americans housed as possible. That’s why they’ve created a program that doesn’t rely on veteran status, area, or disability to qualify for. The Federal Housing Authority created the FHA loan to help Americans purchase homes when they could not otherwise.

There are several things taken into account when you are being assessed for qualification especially if it’s your first time buying your first home in Texas. Not everyone can get an FHA loan. Those who can consider taking advantage of it as it has some extreme financial perks. Here are the qualifications for an FHA loan:

  • bathroom in El Paso home bought with an FHA mortgage loan moderate incomeThe property must meet HUD housing guidelines
  • The loan you are taking out is for your primary residence (It Can’t Be Used To Buy A Beach House)
  • You need to have been employed for the last 2 years.
  • This loan cannot be taken out if it has been 12 months to 2 years since you declared bankruptcy. The amount of time depends on the circumstance.
  • You must wait 3 years if you have had a house foreclosed on.
  • You cannot have debt payments that will exceed more than 43% of your income when it is combined with the mortgage.
  • Your income must be verified.

What’s The Main Perk?

What do you need to qualify for a home loan? People who meet the standards for an FHA loan often decide to take advantage of it for the low cost of the down payment. Conventional loans, also called Fixed-Rate loans, almost always require a down payment of at least 20%. This is unrealistic to meet for a lot of families. Because of this, the government has made it possible for people to get homes who can only meet a smaller down payment. The FHA offers two different options for down payments. These are not options that are chosen by you. They are assigned based on your FICO score. This is your credit score. The down payment is assigned this way:

  • Those with a score between 500 to 578 will need to put down 10%
  • Those with a score of 579 or above will only have to put down 3.5%

While it may seem unfair that those who are in a better financial situation pay a smaller down payment, the government wants to make sure they get paid. This loan still has a smaller rate than a fixed-rate loan if you have a poor credit score.

The Limitations

An FHA loan cannot be taken out by someone who is intending to buy a home to flip it. This mortgage was designed for those who need a home to live in and cannot afford one through any other method. That is why homes being purchased through this program have to meet HUD housing guidelines. It prevents loans from being taken out on fixer-uppers.

There is typically a limit on the value of the property. This limit varies by area. The Federal Housing Authority is well aware that homes cost more in New York City than they do in Houston. Those who are looking to purchase in their area should look up the amount limit for the property they are intending to buy.

Is It Right For You?

You should speak with a financial adviser to discuss which loan is best for first time home buyers. It may be necessary for you to enter into this type of loan to purchase a home. This is a wonderful opportunity for people who cannot afford a home any other way. This loan is not designed for the wealthy. It is meant to help everyday people live the American dream. It may be the perfect option for you.

Before making a decision, let one of the experts at The Texas Mortgage Pros help you find out exactly what loan is best for you.  Contact us today Or Call Us @ (866) 772-3802 

Which Loan Is Best For Texas First Time Home Buyers?

 Home Loan Options For First Time Home Buyer In Texas

For first-time homebuyers, the myriad of financing options out there can seem overwhelming. However, taking the time to do some research on the basics of property financing could save you a substantial amount of money and time. Learning the market like where to locate the property and if it provides incentives to lenders might result in added financial perks for you. So, you need to double-check your finances to make sure that you are receiving the mortgage that best suits your requirements and who can qualify for an FHA loan.

Mortgages that are neither insured nor guaranteed by the federal government are known as conventional loans. Typically, they are fixed-rate mortgages. While they have stricter requirements for a larger down payment, lower-income to debt ratios, the potential to require private mortgage insurance, and higher credit scores make them the hardest to qualify for. Usually, conventional loans are less expensive compared to guaranteed mortgages. Know more what are the different types of home loans that would suit you.

By definition, conventional loans are either non-conforming loans or conforming loans. Typically, conforming loans adhere to the guidelines like loan limits put in place by the government-sponsored enterprises (GSEs) Freddie Mac or Fannie Mae since different lenders usually purchase, package, and sell these loans as securities in the secondary market. As of last year, a conventional mortgage’s loan limit is $484,350 overall, although it could be more for certain designated high-cost areas.

Mostly, a loan made above this particular amount is known as a jumbo loan and often carries a relatively higher interest rate. However, these loans have more risk (because they involve more money), which makes them less appealing to the secondary market. When it comes to non-conforming loans, a portfolio lender, or the lending firm underwriting the loan set their guidelines.

FHA Loans

The Federal Housing Administration (FHA offers different mortgage loan programs. Typically, an FHA loan has relatively lower down payment requirements and is much easier to qualify for compared to a conventional loan. In general, FHA loans are better for first-time homebuyers since, apart from less stringent credit requirements and lower upfront loan costs, and you can make a low-down-payment of 3.5%. Usually, FHA loans cannot exceed the specific statutory limits named above. You should also know who can qualify for an FHA loan and know the guidelines.

VA Loans

VA Loans are typically guaranteed by the U.S. Department of Veterans Affairs (VA). Although the VA doesn’t make the loan itself, it guarantees mortgages made by professional lenders. With these guarantees, service people and veterans can acquire home loans that have favorable terms, often without a down payment. Mostly, VA loans are much easier to qualify for compared to conventional loans. In general, lenders use the conventional mortgage loan to limit the maximum VA loan. Ensure to ask for eligibility from the VA before applying for a loan.

Fixed Vs. Floating Rate Mortgages

Obtaining a floating-rate (or variable rate) mortgage is another important consideration. The rate doesn’t change for the entire loan period in a fixed-rate mortgage. The obvious advantage of obtaining a fixed-rate loan is that you know what exactly the monthly costs will be for the entire period of the loan. If prevailing interest rates are considerably low, you’ve got a decent rate for a substantial time. On the other hand, a floating-rate mortgage, like an adjustable-rate mortgage (ARM) or an interest-only mortgage is specifically made to help first-time homebuyers or those individuals who expect their incomes to increase significantly over the loan period.

The Bottom Line

For those who are seeking a home mortgage for their first time, it might seem challenging to sort through every financial option. You should take your time and determine how much house you can actually afford and then fund accordingly. For those who can afford to come up with a substantial amount or have sufficient income to make a low LTV, then you will have more bargaining power with the lenders, as well as the most financing options. In case you push for the largest loan, you might be issued private mortgage insurance and a relatively higher risk-adjusted rate.

Consider the pros of acquiring a more jumbo loan with the risk. Typically, interest rates float during the specified interest-only period and will usually adjust in reaction to market interest rates changes. Furthermore, weigh the risk that your disposable income won’t increase combined with the possible rise in borrowing costs. If you’re from Texas FHA loan programs are available in several banks you just need to have the best deals.

A reliable mortgage banker or mortgage broker should help in steering you through all the various options and programs, but nothing will be comparable to understanding your priorities for a mortgage loan.

Before making a decision, let one of the experts at The Texas Mortgage Pros help you find out exactly what loan is best for you.  Contact us today Or Call Us @ (866) 772-3802 

 

Hiring A Texas Mortgage Lender: What Are The Questions To Ask?

10 Important Questions To Ask Your Mortgage Broker Or Lender In Texas Part II

 

5. What Are All The Costs?

Mortgage lender fees also include third-party vendor fees such as credit reports, appraisals, pest inspection reports, title policy, taxes, recording fees, and escrow where applicable. The loan estimate should include an estimation of all these fees. Federal law requires that the broker or lender gives you a loan estimate when getting a mortgage loan. The lender should deliver the loan estimate when the loan application has been completed.

6. Is It Possible To Get A Loan Rate Lock?

Interest rates can change or fluctuate on a daily basis. If you believe that the interest rates are moving up, you should ask the lender if it’s possible to get the loan rate locked. A lender should charge zero to one point to lock the loan rate. Ask if the lender charges a fee for the service and whether the lock-in protects all the loan costs. Are they giving the loan lock-in writing and for how long will they lock the rate?

7. Are There Any Prepayment Penalties?

Some states don’t allow prepayment penalties. So, you need to ask about this. A prepayment penalty will allow the lender to collect an additional 6 months of unearned interest if you decide to pay off the loan early – ether by selling the property or through a refinance. If your state permits prepayment penalties, make sure you ask the lender how much it is. Get to know about the terms of the prepayment since some are in effect only during the first 2-5 years of the mortgage loan.

8. Will The Lender Approve The Loan In-house?

Make sure you get to know if the lender can handle its own underwriting or it’s assigned out. Underwriters will review the loan and issue certain conditions before rejecting/approving the mortgage. FHA and VA loans would take longer to process. But some lenders will automatically approve or disapprove a loan without sending it to the FHA or VA.

9. How Long Will You Take To Disburse The Loan?

The average time to process a loan is between 21 to 45 days. You should know about the closing date when writing a purchase contract. You should coordinate with the lender to get this date. Ask about the obstacles to closing the loan and how long the final application approval will take.

10. Do You Guarantee On-Time Closings?

Closing the transaction on time is important. Your lender should be able to give you a closing date with committing to the loan. You will have to face problems if the lender can’t disburse the loan on time. Ask about any increases in interest rates if the lock-in expires. What if you have to pay movers to reschedule? You need to ask all this from the lender before committing to the loan.

Contact our expert mortgage professionals, call us today, or use our interactive tools that are on offer on our site. We cant wait to meet you. Click here to go to the first article in this series.

What Type Of Texas Mortgage Perfect For Your Needs?

The Different Types Of Home Loan In Texas

Many home buyers are more interested in looking at homes than checking in with their banks which loan is best for first time home buyers? While touring homes is certainly more fun than checking into the different types of loans out there, you will not be able to get home if you do not find a mortgage that works best for you. Getting a mortgage isn’t that easy these days; however, being sucked into one that’s wrong for you and your situation is. It’s best to be careful in this area as home loans will affect your financial situation for as long as you choose to live in your home.

Most homeowners are looking for a loan that will allow them to pay the least each month. This isn’t always a good strategy for those who are looking to eventually have their home paid off and have better financial situations. You should check with more professionals than just the guy doing mortgages at the bank. Those who have private financial advisers often end up in better predicaments. It’s important to be knowledgeable about the different types of loans before you talk to a real estate agent, banker, or financial adviser. Here are the different types of home loans you can choose from:

Fixed-Rate Loan

This is the type of loan most homeowners get. It is sometimes referred to as a conventional loan as it is an extremely common choice of homeowners. If you are not certain that you will be spending a great deal of your life in the home you are about to purchase, this may not be the best loan for you. Most financial advisers tell people who are going to stay in their homes for a long amount of time to get this loan.

A fixed-rate loan is often attractive as it offers the homeowner predictability. Some do not wish to have the uneasiness of knowing that the amount they pay for their home each month could go up. If this is so, you should consider getting a loan with a fixed rate. A fixed-rate loan is one that has a fixed interest rate, payment, and term. The time it takes for you to pay off your home will be determined and permanently established before you sign off on the mortgage. Most fixed-rate loans last between 15 to 30 years. For people who are older and wish to own their home, a 15-year loan may be the best option for them. It largely depends on the financial situation and you can inquire at any bank what do you need to qualify for a home loan. Those who go with a 15-year loan will be paying more each month. The payments will be for the same amount each month until it is paid off.

FHA Loan

You may like this option if you do not have a lot of money for a down payment. A fixed-rate loan usually requires the homeowner to put a 20% down payment on a home before the mortgage begins its regular process. This type of loan allows you to pay only 3.5% of the down payment upfront. You will be paying off the home for longer as a result of this.

How is the down payment reduced? The FHA is the Federal Housing Administration. They created this type of loan to help people who cannot afford a large down payment to get adequate housing. It is government-backed. This is not an excellent option if you would like to have a more expensive home. The cap of the home value is set at $417,000. Ask first who can qualify for an FHA loan to the nearest bank near you.

USDA Loan & VA Loan

The USDA home loan is for those looking to purchase a property in a rural area. It was created because many rural areas have impoverished people who cannot afford homes. The down payment is gone as it is 100% backed by the government. This is also an excellent idea if you need subsidizes on your mortgage.

You must have served 180 days in the military to be eligible for a VA loan; however, you only need to have served 90 days if you were involved in combat. This option allows veterans to get homes without having to pay a down payment or insurance for the property.

Which Is Best For You?

Again, speak with your financial adviser before making a decision. The type of mortgage you get will be one that you have to live with for a long time. If you’re from Texas FHA guidelines are a must to read before doing your step first. is best to make a well thought out decision that’ll keep you housed until you decide to move somewhere else.

Before making a decision, let one of the experts at The Texas Mortgage Pros help you find out exactly what loan is best for you.  Feel free to contact us or call us today!