A4HB Homebuyer's Blog

2.6.1.0 The Loan Term

The Loan Term We begin with loan term because it is the simplest of the three factors. The “term” of the loan is the time between when the loan is made and when the loan would be paid off if you made the monthly payments in the appropriate amount and at the appropriate time. The most common terms for mortgage loans in the U.S. are 30 and 15 years, but any term is possible in principle. What Loan Term is Right for Me? From the Buyers point of view, choosing a loan term revolves around three factors: Affordability Most first

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November 16, 2017 No Comments

2.6.1 Types of Loans

There are many types of loans available to consumers in the U.S. market. In part, this is because mortgage lenders make money only if they can find a way to make you a loan. Additionally, it is because home ownership has long been a priority of the U.S. government.  They have put money and programs behind this priority. Much of the diversity in mortgage loan programs can be understood with reference to three factors: The “Term” — 10, 15, and 30-year loans The “Payment Structure” — fixed rate, adjustable rate, and balloon. The “Source” — FHA, VA, conventional, and jumbo

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November 16, 2017 No Comments

2.6.0 Home Loan Basics

Home Loan Basics The loan officer you meet with to begin the process of obtaining a home loan is not the lender’s gatekeeper but your “loan coach.” Their job is to identify the loan that best meets your needs and to find a way to help you get it. Loan and financing issues are inseparably linked with other aspects of the home buying process. There are many reasons why you should begin your home search by sitting down with a good loan officer. With them, you can talk through the options that are available to you. In our section about

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November 16, 2017 No Comments

2.5.2 Lender Documents

Lender Documents There are several forms that you’ll use in working with lenders, and these are highly standardized. Early in the process, you’ll run into the Loan Application form and the lender’s Good Faith Estimate.  These are both lender documents.  The application form requires little explanation. The good faith estimate is the lender’s attempt to give you a reasonable estimate of all the costs involved in purchasing a property. To determine whether the sales price is reasonable, the lender will hire an appraiser.  The appraiser will do an evaluation of the value of the property, called an Appraisal.  The appraisal

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November 9, 2017 No Comments