PrimeSource REAL ESTATE

Mortgage information

The prospect of buying a new home can be daunting for many buyers, requiring a detailed understanding of the closing and financing process. Mortgages can vary widely depending on the financing options presented, your credit history as well as the nature of the transaction itself in terms of price, ownership factors and contingencies of the sales contract. Understanding financing costs can help provide important perspectives on how to get the best terms on your purchase of a new property. Your credit score, history and ratings have a large impact upon your ability to qualify for a better mortgage contingent upon your income, equity, debt ratio and history of credit payments. Understanding your various options for financing a new home purchase can provide you with a broader perspective as either a buyer or a seller.

Importantly, the financing costs on a new home can vary widely depending on a number of factors related to the broader financial market as well as the particulars of the property, buyer and seller. Today, it’s increasingly common to find nontraditional purchases through short sales, foreclosures, auctions and bank accepted offers on homes past due – understanding how nontraditional options impact your ability to raise revenue provides important insights on the buying and selling process from a financial perspective. Since each mortgage agreement is unique, it’s important to work with a professional realtor from Prime Source to fully understand your options, opportunities and structures for financing a new home.

Understanding Mortgage Information on Home Purchases

The mortgage market has shifted significantly in recent years, as financing properties has become more challenging in a competitive environment. While many buyers with poor credit histories were able to obtain variable interest loans with little or no down payment in the past, lenders today increasingly want to take on contracts with at least 20% equity in terms of a down payment. In fact, many financial institutions have stringent income standards and require more than 33% equity in a home to be purchased in advance of issuing a property loan. With a broader perspective on financing options you can evaluate multiple lending institutions in order to determine the best possible terms on your home loan.

Another important factor to consider are specialized programs from the FHA (Federal Housing Administration) that allow first time and lower income buyers to quality for better terms on home loans. While these programs have stringent conditions, the nature of your application can make a major difference in terms of helping you to qualify and maximize your chances for acceptance in a given program. The professionals at Prime Source have worked with a wide range of buyers to help them qualify for better terms during the closing process. A small shift in the financing rates on a new home can mean the difference between a stable financial situation and a compromised economic situation. Therefore, negotiating better terms on your home loan can help to ensure you can put yourself in the best possible position in order to qualify for better financing terms.

Importantly, you’ll want to make sure you fully understand the obligations under your mortgage so you can position yourself ideally during the process. At a base level, you are required to continue to pay down the base (principle) amount on the loan along with ongoing interest (financing) payments on the contract.

Each financial contract has variable interest rates, financing terms (15 or 30-year terms are most common), along with different options in terms of payments, refinancing and adjustments in terms. Given shifts in the market, your personal financial situation and market properties, it’s important you understand your obligations and options under a mortgage.