The majority of first time home buyers do not fully understand how to choose a real estate mortgage lender. Refinancing and buying a home can be one of the most important and expensive financial decisions you will make during your life. Thus, it is important that you have a basic understanding of the legal and financial commitments associated with the purchase or refinance of a home.
You should always check with several different real estate mortgage lenders to compare loan rates, fees, and points. You will find that the loan rates, fees and points will vary greatly among different lenders. You should make an effort to obtain a home loan that suits your financial needs.
The equity in your home may be the largest asset that you have. Over time, you accumulate equity in your home. Equity is defined as the difference between the value of your home and how much you owe on your mortgage. The equity in your home increases as the value of
your home increases. Also, the equity in your home increases as you gradually pay off the principal of your mortgage loan. Usually this equity is locked in until you sell your home.
You can access the equity in your home through mortgage refinancing. This can be done by refinancing your old mortgage with a higher principal or by getting an additional mortgage on your home through a real estate mortgage lender. If your home has appreciated, you may want to refinance to a mortgage with a higher principal than your existing mortgage, and take the difference in cash to pay off other debt that you owe or use the cash for any other purpose.
Another reason why borrowers take advantage of hi mortgage refinancing is for a lower interest rate. For example, if you have a fixed-rate mortgage that you obtained when interest rates were high, you may be able to get a new home loan at a lower interest rate. By refinancing at a lower interest rate, you can significantly reduce your monthly payments. You can have more money to spend and/or to save.
Before you can be considered for real estate financing for the purchase of a house, you must present us with a contract of sale. When you have decided upon the home you wish to purchase, you can make an offer to your real estate agency via a sales contract.
The name of this legal document may vary from state to state. In some states, it is called an earnest money contract. The contract will include the amount of money that you are willing to pay for the home, the date that you desire to take possession of the home and under what conditions the sale will be completed.
In most sales contracts, there will be a provision making the sale of the home contingent on your being able to comply with the conditions of the real estate mortgage lender at certain specified terms. This provision allows you to terminate the sales contract with your real estate mortgage lender without any obligation if you are turned down for a loan by a lending institution.
Another common provision that is found in almost all sales contracts requires that the house be free of defects prior to closing. This simply means that all repairs agreed to be fixed must be completed by the seller prior to closing. Finally, the sales contract becomes official and legally binding when it is signed by the buyer and the seller.
Choosing the right type of loan can be the determining factor as to whether or not you can afford to remain in the home you have chosen. Some real estate mortgage lenders require large cash down payments, while others call for smaller cash down payments. Some have larger monthly payments than others.
The loan that you will obtain is called a mortgage. A mortgage loan calls for a financial commitment on your part to the lending institution throughout its terms. It is a special loan given especially for the purpose of buying real property. The real estate mortgage lender agrees to provide you with the money that you need to buy the home that you have chosen. You in turn promise to repay the money based on the terms set forth in the mortgage (loan contract).
According to the Federal Truth in Lending Law, the contract should state the amount of the mortgage loan, the size of the repayment, the frequency of the payment and the annual percentage rate (which includes the mortgage interest rate, the premium paid for insurance, and "discount points").
Under the same law, the borrower pledges his home as security. The real property remains pledged until the loan is paid off. There is an additional clause in the contract giving the lending institution the right to "foreclose" (obtain possession of the property) if the borrower does not meet the terms of the mortgage contract. However, the lender must follow the prescribed formalities of law in exercising their right of foreclosure.
Under the laws of some states, the borrower is not given the title, but a document called the Trust Deed (also called Deed of Trust, Mortgage Deed or Deed to Secure Debt). In this financing arrangement, foreclosure is easier to carry out by the real estate mortgage lender if the borrower defaults. In other states, the mortgage itself is legally regarded as the deed and the lender is the virtual owner of the property until the mortgage loan has been repaid. In this case, it is more difficult for the lender to foreclose on your home.
Have a look at the articles below for more information on the home loan application process, how to choose the mortgae that is right for you and how to obtain the lowest mortgage rate.
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Fill out our free mortgage quote form in less than one minute.
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Mortgage Lender
The experience and background of a mortgage lender enable them to place you with a lender that will most likely grant you a mortgage loan.
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Hi Mortgage Refinancing
Hi mortgage refinancing can enable homeowners to take equity out of their home for a particular purpose and take advantage of lower interest rates.
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Fixed Rate Mortgage
A fixed rate mortgage loan has the same interest rate and mortgage payment throughout the life of the loan.
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Variable Rate Mortgage
A variable rate mortgage has an interest rate that fluctuates over the life of the loan, but offers a lower interest rate during the first year of the loan.
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Uniform Residential Loan Application
The uniform residential loan application allows you to submit multiple applications to several different lenders using the same form.
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Good Faith Estimate
A good faith estimate is given to you during the loan application period. The good faith estimate includes the closing costs, monthly interest rates and the APR.
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Home Appraisal
A home appraisal is required before your home loan can be approved by a lending institution.
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2nd mortgage rate
A 2nd mortgage rate is higher and has a shorter pay off period than a first mortgage.
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Subprime Mortgage Lender
A subprime mortgage lender will get you a loan despite a poor credit history
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Reverse Mortgage Lender
A reverse mortgage lender provides eligible seniors who are in need of additional income the opportunity to convert the equity in their homes into cash without taking on a new monthly payment.
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Jumbo Mortgage Refinance
Several mortgage lenders offer jumbo mortgage refinance loans that will allow you to take equity out of your home.
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FHA Loan Requirements
FHA loan requirements can be met by most buyers with fairly decent credit histories.
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FHA Guidelines
FHA guidelines allow buyers who have low-to-moderate income to acquire home ownership with a minimum down payment of 3% of the sales price or with an approved gifted down payment.
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FHA Interest Rate
The FHA interest rate on home loans is set by the market, but is usually lower than those on conventional mortgages.
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Mortgage Lender Ratings
Mortgage lender ratings are available to consumers through various federal, state, and local agencies.
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California Mortgage Lender
Find the California mortgage lender that will get you the lowest interest rate on your home loan.
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Los Angeles Mortgage Lender
Find the Los Angeles mortgage lender that will get you the lowest interest rate on your home loan.
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San Francisco Mortgage Lender
Find the San Francisco mortgage lender that will get you the lowest interest rate on your home loan.
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Orange County Mortgage Lender
Find the Orange County mortgage lender that will get you the lowest interest rate on your home loan.
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Sacramento Mortgage Lender
Find the Sacramento mortgage lender that will get you the lowest interest rate on your home loan.
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Oakland Mortgage Lender
Find the Oakland mortgage lender that will get you the lowest interest rate on your home loan.
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San Diego Mortgage Lender
Find the San Diego mortgage lender that will get you the lowest interest rate on your home loan.
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San Jose Mortgage Lender
Find the San Jose mortgage lender that will get you the lowest interest rate on your home loan.
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Los Angeles mortgage broker
Find a Los Angeles mortgage broker that will place you with a lender that will most likely grant you the best mortgage loan.
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San Diego mortgage broker
Find a San Diego mortgage broker that will place you with a lender that will most likely grant you the best mortgage loan.
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Los Angeles mortgage company
The experience and background of a Los Angeles mortgage company enable them to place you with a lender that will most likely grant you a mortgage loan.
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San Diego Mortgage Company
Find the San Diego mortgage company that will get you the lowest interest rate on your home loan.
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Massachusetts Mortgage Lender
Learn how to protect yourself from abusive lenders and get a loan from the fairest massachusetts mortgage lender.
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Boston Mortgage Lender
Learn how to protect yourself from abusive lenders and get a loan from the fairest Boston mortgage lender
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Maryland Mortgage Lender
A Maryland mortgage lender is prohibited from engaging in unfair lending practices and must provide borrowers with mortgage loans based on their qualifications.
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Maryland Home Mortgage Loans
Learn how to find the lowest interest rate and choose the Maryland home mortgage loans that are right for you.
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Baltimore Mortgage Lenders
A Baltimore mortgage lenders are prohibited from engaging in unfair lending practices and must provide borrowers with mortgage loans based on their qualifications.
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Dallas Mortgage Lender
Find the Dallas mortgage lender that will get you the lowest interest rate on your home loan.
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Houston Mortgage Lender
Find the Houston mortgage lender that will get you the lowest interest rate on your home loan.
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Houston mortgage broker
Find a Houston mortgage broker that will place you with a lender that will most likely grant you the best mortgage loan.
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Mortgage Lender in PA
Learn how to choose the best mortgage lender in PA for refinancing or the purchase of a new home.
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Philadelphia Mortgage Lender
Learn how to choose the best Philadelphia mortgage lender for refinancing or the purchase of a new home.
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Colorado Home Mortgage Loans
Learn how to find the lowest rates and the proper Colorado home mortgage loans for your financial situation.
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Denver Mortgage Lenders
Denver mortgage lenders are prohibited from engaging in unfair lending practices and must provide borrowers with mortgage loans based on their qualifications.
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Chicago Mortgage Company
How to select the Chicago mortgage company that will offer you the lowest mortgage rate.
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Chicago mortgage broker
Find a Chicago mortgage broker that will place you with a lender that will most likely grant you the best mortgage loan.
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Louisiana Mortgage Lender
A Louisiana mortgage lender who provides home mortgage loans to consumers have to abide by Louisiana State Laws prohibiting unfair residential mortgage lending or they will be penalized.
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Detroit Mortgage Lender
The experience and background of a Detroit mortgage lender enable them to place you with a lender that will most likely grant you a mortgage loan.
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Seattle Mortgage Lender
A Seattle mortgage lender is prohibited from engaging in unfair lending practices and must provide borrowers with mortgage loans based on their qualifications.
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Phoenix Mortgage Lender
A Phoenix mortgage lender is prohibited from engaging in unfair lending practices and must provide borrowers with mortgage loans based on their qualifications.
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Las Vegas Mortgage Lenders
Las Vegas mortgage lenders are prohibited from engaging in unfair lending practices and must provide borrowers with mortgage loans based on their qualifications.
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Minneapolis Mortgage Lender
A Minneapolis mortgage lender is prohibited from engaging in unfair lending practices and must provide borrowers with mortgage loans based on their qualifications.
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Minneapolis mortgage broker
Find a Minneapolis mortgage broker that will place you with a lender that will most likely grant you the best mortgage loan.
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Credit Union
A credit union offers a wide range of services to their members such as checking, savings, credit cards, and home mortgage loans.
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Federal lenders like the Navy Federal Credit Union can offer low mortgage rates
The Navy Federal Credit Union offers a wide range of services to their members such as checking, savings, credit cards and home mortgage loans.
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Credit Monitor Service
A credit monitor service will give you frequent access to your credit reports from all three credit bureaus (Trans Union, Experian and Equifax) and to monitor changes on the reports that are tied to y
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Credit Report Law
Credit report law gives consumers certain rights that affect consumer credit information.
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Credit Reporting Agencys
The three credit reporting agencys, Experian (TRW), Trans Union and Equifax can provide you updated credit reports.
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Fixing Credit Reports
Fixing credit reports can be achieved by credit reporting agencies correcting incorrect or incomplete information in your credit report.
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Free Credit Report No Credit Card Required
" Free credit report no credit card required " is a phrase that an unethical entrepreneur may use to lure you into signing up then placing you on an automatic billing lists for additional reports
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Increase Credit Score
An increase credit score will improve you chances for getting a loan Your creditworthiness is often measured by your credit score.
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Meaning of Credit Score
The meaning of credit score is a numerical measurement of your creditworthiness.
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National Credit Score
The national credit score is a numerical measurement of your creditworthiness.
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Online Business Credit Reports
There are several companies that offer online business credit reports and a vast array of other credit-related services.
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Raising Credit Score
You can improve your creditworthiness by raising credit score.
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Reading Credit Reports
Reading credit reports can sometimes be a problem because credit reporting agencies vary in their formats, codes and symbols used to explain the entries.
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Rebuild Credit After Bankruptcy
You can rebuild credit after bankruptcy if you establish a good credit history for at least two years.
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Understanding Credit Score
Understanding credit score is a necessary component to repairing your credit report.
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USAA Federal Savings Bank offers financial services to military personnel
The USAA Federal Savings bank offers mortgages for military personnel
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Online banking with TCF bank, Hibernia Bank and Santa Barbara Bank and Trust ...
TCF bank, Hibernia Bank and Santa Barbara Bank are examples of why online banking is more convenient than traditional banking methods.
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Web Resources
We recommend that you review the resources below to educate yourself on the mortgage loan process.
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Contact Us
Contact us for any questions that you may have in regards to real estate financing.
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