Every loan is different – you may have heard that before. But there are a lot of things that professionals know about lending that first-time borrowers aren’t often aware of.
When you view the loan as a unified organism, when you know how the deal factors and aspects work, when you’ve seen thousands of loans completed, you start to understand how these types of deals are put together and why detail matters.
Let’s take three of our core types of lending programs and just briefly go over some aspects of each one to help explain how the lending process works, and why our model helps so much.
First-time Home Loans
A first-time home loan is a somewhat generic type of loan, but again, every loan is different. Your borrower typically doesn’t have the kind of capital built up that you would get in a different type of loan, and does not qualify for some of those specialized loan options delivered by government and business stakeholders. You will however want to check for new programs that encourage first-time home buying, because these loans can have special concessions attached that can be valuable to the borrower.
An FHA loan is also popular with first-time homebuyers and those who are upgrading by selling one property and buying another.
One of the big benefits of an FHA loan is that it allows the borrower to put down as low as 5% to 10%, instead of, say 20% of value at the time of settlement. But that comes with a big caveat in the form of private mortgage insurance. Private mortgage insurance or PMI is now set for the life of the loan, unless the borrower can refinance.
This type of loan is fundamentally different, and is usually the jurisdiction of whales or high net worth investors. Typically the borrower is looking for a loan of over $500,000 with a considerable amount down. Jumbo loans are attached to some of your high-end properties like mansions and commercial buildings.
So what’s important with any of these types of loans?
Well, it’s important to have flexible guidelines, and it’s important to get the best rate that you can. We are good at both of these things, working with our clients to get them access to the lending programs that fit. Good customer service is so important, it’s almost impossible to overstate its value.
Check out the rest of the web site and get in touch with us for any questions. We want to help!