Abington Mortgage Brokers
How can an experienced Abington Mortgage Broker help you?
Whether a home purchase, large-scale rehabilitation, or entire construction is in your home-owning future, you will likely need to consider external financing options. Experienced mortgage lenders or brokers can help you receive the necessary funds to finance your next property.
Abington and the surrounding regions are home to many knowledgeable, accessible, and committed mortgage lenders. It is best to consult an expert who knows the ins and outs of the industry if you need assistance with financing or refinancing.
Things to look for before choosing mortgage brokers
Abington Mortgage brokers serve as the middleman between you and your financier and many work consistently with the same lenders they have developed trustworthy relationships with. Experienced brokers have a lot of experience under their belts and can significantly simplify the process.
As licensed and highly regulated financial professionals, brokers can guide you through the entire process. From gathering documents to running your credit report to check if you may qualify for a loan, an experienced broker takes the burden off of you and serves as a resource you can turn to with any questions.
Because mortgage brokers work independently from lenders, unlike loan officers, they may offer you greater options. Brokers typically receive a small percentage of the loan value, which is largely determined by the region you are looking to purchase in.
Consulting with a broker before applying for a loan might help you improve your application. Your broker can review your financial documents and help structure the application for you. They might also recommend for you to apply to various loans with differing interest rates and fees.
Is it important to analyze the market trends before taking a loan?
Before choosing a broker, you should do some research about the types of loan they can provide. Certain brokers only work with conforming loans, which are mortgages that meet standards set by the Federal Housing Finance Agency (FHFA) and Fannie Mae and Freddie Mac guidelines.
These are the most common type of loan in the market and typically have lower interest rates than non-conforming loans, but have a maximum limit on how much funding you can receive. Other brokers might work with jumbo loans, often used for pricier, higher-end properties, and other non-conforming loans.
The mortgage loan market can be complex and your broker can address your questions, helping you navigate the market. It is important for you to work with a broker you can trust.
Common Types of Loans to choose from to buy a new home
Buyers use at least five types of common loans, which can be difficult to sift through on your own. An expert broker realizes that the process can be tedious and convoluted and will break down your options into manageable steps.
Your broker should be approachable and ready to address your concerns. Since taking out a mortgage is a significant step in your financial journey, absolute transparency and no hidden costs are a must. The right broker will be upfront and understand the intricacies of your situation. A borrower can choose from one of the following loan types:
- Conventional loans
- Fixed-rate mortgage loans
- Adjustable-rate mortgage loans
- Federal Housing Administration (FHA) Loans
- Veteran Affairs (VA) loans
- Conventional loans
These loans might be right for a borrower with strong credit (above 620) and the ability to make a significant down payment. If your down payment exceeds 20%, you do not have to buy private mortgage insurance (PMI). Overall cost tends to be lower than for other types of loans.
- Fixed-rate mortgage loans
The interest rate and interest payments remain the same for the entire duration of the repayment term. This might be a good option if you are planning to stay in your property for the long-term, as the monthly payments are very predictable. However, high interest rates in your area can result in you paying more over the long-term than more flexible mortgages as your rate will remain the same as at the time of the signing, regardless of changes in the area.
- Adjustable-rate mortgage loans
Adjustable-rate mortgages (ARM) are 30 year loans with interest rates that reflect the movement of the market. There is an initial period of 5, 7, or 10 years where the interest rate is fixed, typically at a rate that is lower than the market, after which your interest will change depending on market rates. This may be a good option if you are planning to stay in the property for the short term.
- Federal Housing Administration (FHA) Loans
FHA loans are backed by the Federal Housing Administration, which limits a lender’s loss if their borrower defaults. These loans have more flexible financial requirements than conventional loans and may allow a credit score as low as 500 if a minimum 10% down payment is made, or 580 with 3.5% down payment.
- Veteran Affairs (VA) loans
VA loans are a service benefit for eligible military members, including veterans, and their families. These are a type of government loan backed by the Department of Veterans Affairs (VA) and allow qualifying members to receive lower-cost mortgages with no down payment. Due to their lower credit requirements, VA loans are considered non-conforming and are used to increase the accessibility of home ownership for current and former military members.
Contact our experienced Abington Mortgage Brokers today
Taking out a mortgage can feel like an enormous step. It is always a smart idea to consult with a qualified broker who can guide you through the process. Your broker understands the market, will help you navigate principal and interest rate options, has the resources to find your best options, will address your concerns, and has your best interests in mind.