You may be wondering if there are any benefits that are inherent in working with mortgage brokers, and we’re here to assure you that there are, indeed, benefits of working with brokers. Here, then, is the list of benefits you will receive when you work with a mortgage broker:
It will save you time and effort. You don’t have the time in the day to go searching for the best deal on your mortgage — and it definitely takes a long time to find the perfect deal. But that’s all the mortgage broker does, and will ever do: find the perfect deal on your mortgage. By hiring a mortgage broker to handle this important part of the home-buying process, you will be saving time and effort.
Mortgage brokers already have contacts and relationships in the banking industry that put them at a distinct advantage over non-professionals. These relationships will be suited to your needs — for instance, if you have poor credit, you will need one kind of mortgage broker; if this is your first time buying a home, you will need another kind of mortgage broker.
Finally, your mortgage broker will be able to streamline your application materials into one package. If you were to fill out a new application for each mortgage you were looking to apply for, you would waste time and energy and money in the process.
We are a committed team, here to help you find the right mortgage rate for your needs. We understand that every borrower is different, and we offer a variety of services to meet your individual requirements. For more information about us and our services, contact us today to see what we can do for you.
FHA refers to the Federal Housing Administration, a government organization dating back to 1934. Due to a high number of mortgage defaults and foreclosures during the Great Depression, the National Housing Act was passed by Congress, considered a part of the New Deal. The housing market was stimulated by offering a range of affordable loans.
Today, FHA loans remain a popular option for those seeking affordable housing. They are insured by the FHA, lowering the risk for the lender, enabling the lender to offer better terms. Borrowers can get a home loan for as little as 3.5 percent down. This can be a popular choice for those who want to put down less money than other types of loans, and are a viable option for those with lower credit and can’t afford the traditional 20 percent down payment.
However, FHA loans are strictly regulated. The property must meet standards of habitation, and if those standards aren’t met then it is the owner’s responsibility to make improvements. Borrowers have to pay a mortgage insurance premium, 1.75 percent of the total loan amount and a monthly MI payment. This must be paid either upfront during closing or included with their monthly mortgage payment. The borrower’s mortgage payment, fees, taxes, and insurance needs to be between 43%-55% of their gross income.
Despite these factors, FHA loans remains a popular option. If you would like assistance determining whether an FHA loan is right for you, Pacific Mortgage Group has team of professionals to help you explore your options. Please contact us and we will help you make the right financial choice.
Rates, terms, and conditions are subject to change without notice. Loan approval is subject to verification of credit, employment, income, and asset information.