Mortgage Lenders & Financing Options

If a Buyer is serious, they will be “pre-qualified” for a loan sufficient to purchase your home. You will hear two terms associated with pre-approval-- “pre-qualified” and “pre-approved.”

PRE-QUALIFIED: A lender takes information about the Buyer’s income, amount of down payment and employment background and then qualifies the Buyer as an approvable Buyer, contingent upon the lender’s approving the Buyer’s completed formal application, a satisfactory credit report, employment verification, etc. Note that there has been no formal application, satisfactory credit report, verification of employment history, etc.

PRE-APPROVED: The buyer has submitted a formal written mortgage application, completed financial records, and completed a satisfactory credit report. The lender will then approve the Buyer for a specific loan amount. This approval is subject to a satisfactory appraisal of the property and a satisfactory title report.

Buyers will then discuss with lending agencies the most popular types of mortgages in real estate transactions. A brief review of the salient features of the more common types of mortgages follows.

1. Fixed Rate or Conventional Mortgage (30 year, 20 year, etc.)
2. FHA and VA Mortgage
3. Adjustable Rate Mortgage (ARM)
4. Graduated Payment Mortgage (GPM)
5. Balloon Mortgage
6. Assumption
7. Owner Financing

These will be described in more detail on the following pages.

Next Page : Fixed Rate ...

Page | 1 | 2 | 3 | 4 | Next