What's the process to get a mortgage loan? My parents need it. Has anyone done it? Ugh.
All mortgage loans are not created equal. If you are looking for a loan, you have probably discovered the array of loan types and options. It can be confusing forthe first-time borrower and even for those with more experience! Here, we will discuss the different types of loan options, and how they work.
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First, there are two main broad categories of mortgage loans: government loans (FHA, VA, and RHS, or Rural Housing Service loans) and conventional loans (all other loans). In general, government loans have low or no down payment requirements for the purchaser and are easier to qualify for than conventional loans. They are also guaranteed to the lender, which allows the borrower to obtain more favorable loan terms.
Best bet is your own bank. There are different options, variable and fixed interest rates... there are also long and short amortization periods but 25 years is typical and payments are usually set up for a five year term, which means at the end of the 5 years you renew it at another interest rate or shop somewhere else.
There are rules about how much you can borrow, based on how much you earn, what your overall debt is, and how much downpayment you're making.
If you are maintaining a bad credit, bankers will not provide you small loans, and with us, there will be no check payday loan and get a loan amount up to $1,500.
