In shopping for news home it is very necessary to understand the financing market and this is true if you are looking at Vancouver Washingotn Real Estate. Below are some insites.
When anyone is in the market to purchase a piece of residential real estate property, they must realize that all lenders go by the rules and regulations of Freddie Mack and Fannie Mae and not only does the borrower have to qualify, but the property must qualify also.
There are loans for different purposes and the lenders may charge different rates based on the purpose of the loan, the credit worthiness of the borrower, the property and its age, its location, and any other special circumstance regarding the piece of real estate being purchased.The ‘loan to value’ of a piece of real estate is the value that the final appraisal will show, minus the % of the down payment the borrower is making, then adds loan costs, appraisal costs and all other costs associated with the loan and adds it all together making the total loan amount. On a residential loan, the lenders will vary on each of their minimum requirements that you must meet to qualify, however most requirements are standard with all lenders, as outlined by Freddie Mac and Fannie Mae.
Some examples of Residential Real Estate Purchase Loans:
*Fixed Rate Mortgage: You can request the lender to make you a 20 or 25 year fixed rate loan.
*Adjustable Rate Mortgage: Adjustable rate mortgage loans are not reliable nor secure.
*FHA Loans: Remember that the qualifications and requirements for FHA will be governed by the Federal Government.
*No Mortgage Insurance Loans: This might be a great option for you, but there are certain aspects of the purchase that must be approved by the lender for you to be approved for this type of loan.
*Interest Only Loans: These mortgages require only interest payments for 2, 5 or10 years or what ever your lender has to offer, but beware it all comes due at once.
*Jumbo Loans: Jumbo Mortgage Loans can be had for fixed rates and for adjustable rates.
*VA Loans: If you served in the U.S. military, this loan might be your best option, with rates that are fixed for the term of the loan.