Home Mortgage Loans

New Home Loans

It's time for a "wake-up call" for new home buyers to become wiser and more prudent when searching of a new mortgage loan. The existing real estate market is in chaos as record numbers of homeowners are facing home foreclosure because they entered into "creative loan packages" that allowed them to initially qualify for homes that they ultimatey could not afford.

Human nature that compels buyers to borrow outside financial means are further enticed by mortgage lenders and brokers that make it easier to qualify with interest-only adjustable rate mortgages that begin with a defined period of low monthly payments and dramatically increase due to higher adjusted interest rates or adding principle to the monthly payment. Many borrowers anticipate and assume wages will progressively increase to mitigate an inevitable problem. Unfortunately, if that does not happen, the homeowner suddenly finds themselves incapable of servicing the monthly debt.

Borrow Within Your Present Financial Means.

Although the overwhelming number of professional in the mortgage industry are ethical and recommend mortgage loan packages that consider both present and future home buyer affordability, there unscrupulous and unethical lenders that will entice borrowers into loan packages that will ultimately result in financial catastrophe.

A prudent borrower is one that is knowledgeable of the advantages and disadvantages of the different types of mortgage home loans, and will buy homes within their affordable range. They should never enter into an interest-only or adjustable rate mortgage assuming that wages will increase commensurately when higher rates of interest or principle payments are applied resulting in a significantly higher monthly mortgage payment. Otherwise, financial stress is inevitable and foreclosure becomes a possibility. A wise buyer will only purchase a home he or she can afford and opt for a fixed rate loan with a term duration that sets an affordable monthly payment that will not increase.

Solicit Mortgage Loans From Multiple Lenders.

When considering a new home mortgage, solicit multiple loan proposals from different lenders or brokers that have favorable reputations. Check with you local better business bureau and your state's Department of Real Estate to verify any problems or complaints from other borrowers. Before committing to your new mortgage, make sure you have a thorough understanding of your Good Faith Estimate and your Truth-in-Lending Disclosure. These two documents will give you the costs of your new home loan as well as the interest rate, terms, and will disclose any prepayment penalties as well. By law, a loan officer must provide these documents within three days of taking your application.

Do Your Home Work.

Visit the Federal Department of Housing and Urban Development website for a wealth information about federal mortgage laws and guidelines. We also welcome you to our Knowledge Center where you will find articles that will assist you in making well-informed mortgage loan decisions and learn to recognize the signs that depict a predatory lender.

Buying a home is likely to be the most crucial investment you'll ever make, so it's imperative to choose the right lender that will help you make prudent decisions. Before meeting with a lender company or broker, be armed with meaningful questions that will help protect your interests. When meetings with loan officers take place, be prepared with basic information such as gross income, monthly debt service, employment history, credit history and other minimum information that will enable a lender to pre-qualify loan affordability and the types of loans that fit your unique situation.

An Extensive List of Mortgage Lenders.

Using the map, click your state to find a wide variety lenders including banks, credit unions, loan brokers and other lenders licensed to do business in your state. You can also use the left navigation.