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What
types of mortgages are available?
Most
American home buyers save up a down payment of 10 percent of the purchase price
and pay the rest with a
fixed-rate mortgage, however, the current trend has been
toward more flexible mortgage payment and terms.
We
offer a number of mortgage programs which include:
|
Fixed
Rate
first mortgages |
15 and 30
year terms |
A fixed-rate mortgage is
a loan whose interest rate, and monthly payments, are a
fixed amount over the period of the loan. |
|
Adjustable
Rate (ARM)
first mortgages |
1/1, 3/1, 5/1,
7/1, 10/1, 2/28, 3/27, 12 MAT terms |
A variable or adjustable
mortgage is a loan whose interest rate, and monthly
payments, fluctuate over the period of the loan. |
| “Interest-only”
option mortgages |
15 and 30
year terms 1/1, 3/1, 5/1, 7/1, 10/1, 2/28, 3/27, 12
MAT terms |
An option that lets you pay only the interest portion of the monthly
payment for a fixed period, and then the loan becomes fully amortized,
which results in greatly increased monthly payments. |
| “100%”/”No
down payment” mortgages |
15 and 30
year terms |
This type of mortgage is for
purchases without a down payment.
Because the loan amount is for more than 80 percent of the
purchase price, you will also pay for mortgage insurance (MI/PMI)
in addition to the normal payment. Rates are higher due to the
increased risk. |
| Agency
first mortgages |
3% or 5%
downpayment programs |
Mortgage programs with
flexible credit and income requirements designed for new
homeowners. There are also programs specifically for teachers, as
well as medical and safety workers. |
|
Home
Equity
Second mortgages |
15 to 30 year
fixed or
3/1 and 5/1 ARM terms |
For anyone that already owns their own
home, the amount borrowed depends upon the value of the
property versus the outstanding mortgage. |
|
"One-Time
Close” Construction-to-Permanent |
6 to18 month construction periods |
This is a loan to buy land,
build a house and finance it with a permanent first mortgage in one
process. This process
requires the assistance of a professional builder and a set of approved
construction plans. |
|
VA
first
mortgages |
15 and 30 year
fixed terms
|
A loan program that
specifically helps
veterans finance a home purchase with favorable terms and a rate which is competitive with
other
type of mortgage loans. These loans have a scaled, proportional guarantee
from the VA. |
How long does it take to get a mortgage?
Under Texas law, a loan cannot close before the 12th day after an
application is signed, so a typical mortgage loan can be closed within 3
weeks. A more complex mortgage loan can take longer. The time
depends on the type of loan, the status of your credit and finances, the
conditions that the lender issues with the approval, and the processing
requirements to meet the conditions.
What kind of documentation will I need?
The most common documentation that a mortgage loan
will require are pay stubs, bank account statements, W2s, deposit verifications,
employment verifications, and rental history verifications. Some mortgage
loan types can require tax returns, business reports for self-employed
borrowers, or even residency verifications for non-resident borrowers.
What
kind of credit is needed to get a mortgage?
Most
lenders use a credit score designed by Fair Isaac Corporation (FICO) in order to
measure your credit risk.
A
score above 760 is seen as excellent credit, 680 to 720 is good, and below 640
is generally considered sub-prime.
The current
minimum score for a conventional mortgage is 620. Agency mortgages can be
obtained with less, but will have more restrictive guidelines and regulations.
Why
should I use a Mortgage broker?
There are three reasons to use the services of a mortgage broker:
-
A
mortgage broker can directly offer the products of several lenders
simultaneously.
-
A mortgage broker also prepares the loan package and assists with both
the funding process and loan closing.
-
Mortgage
brokers represent the single largest residential loan origination source in the
industry.
Should
I get pre-approved for a mortgage?
Getting
pre-approved for a mortgage enables you to move quickly when you find a home and
make an offer without
waiting to obtain financing. It also lets a seller know
your offer is serious and could prevent you from losing out to
another purchaser who already has financing arranged.
After doing so, you will then know the maximum amount you can borrow,
as well as obtaining an “approval letter”, which will greatly enhance your
home buying process.
Additional questions?
If you have any additional questions, please
click here to forward them to
us.
How
do I get started?
If you are ready to start the
process, click on the "Preliminary App"
button on the navigation options above,
or if you prefer, you can download a
pdf version of the Residential Preliminary Application form at
the link below,
and forward the completed form to us
either by fax, by mail, or drop it by our office.
Click here to download a
printable Preliminary Application
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