The primary loan that is used to buy a house or other real estate property. The mortgage loan is secured (protected) by the lender putting a lien on the house or property that you purchase with the loan. First mortgage programs offer the most flexibility of all loans. They can be at a fixed interest rate or available interest rate and they sometimes offer many great programs such as first-time homebuyer's discount, no money down, no closing costs, 100% loan (a loan for 100% of the value of your home) and pre-approved loans for prospective homebuyers.

A loan that replaces the original loan or loans on your property with a new loan. These loans can be used to lower your mortgage interest rate, take out equity in your home (by taking a loan larger than your original mortgage), or to consolidate multiple home loans that you may have on your property. A refinance loan has the same terms as a traditional mortgage loan.

A mortgage loan that is secondary to the first mortgage. That means that if you defaulted on your loan, that a first mortgage lender would have first rights to the property before the second mortgage lender could stake their claims. Because a second mortgage has a higher level of risk, these loans typically carry a higher interest rate than a first mortgage. When evaluating second mortgage options, you should decide if it is better to get a second mortgage or to refinance your existing mortgage with a larger loan. To make that decision, look at the interest rate of your current mortgage. If it is very low, then it probably makes sense to get a second mortgage. If you feel that you could refinance a larger mortgage at or about the same interest rate, then you may be better using a refinance loan.

A home loan used to withdraw equity from your home without refinancing your original loan. These loans are typically faster and easier to get than a typical mortgage. They are also appealing because you can get them to fund such things as auto or other miscellaneous purchases and they are typically tax deductible. Home Equity loans come in a variety of types, can be fixed rate or variable rate, and can span from 5 to 30 years.

This loan is similar to a credit card loan, except it is secured by a lien against your home and it is tax deductible. These loans allow you to withdraw cash only when you need it, and typically stay open for about 15 to 25 years. Terms on a home equity line of credit include fixed rate, variable rate, interest rate on unused portion, varying rates depending on percentage used, principal only repayments, and have many different loan lengths, typically between 10 and 25 years.

A loan where you pay a fixed interest rate over the life of the loan. These loans typically have a higher interest rate than a variable rate loan, but they are also protected from upward swings in interest rates.

Also known as an adjustable rate (ARM) loan, this type of loan has an interest rate that varies over the life of the loan. The interest rate is typically tied to a benchmark interest rate such as the Prime interest rate or the LIBOR rate, and it can be adjusted on a daily, weekly, quarterly or even an annual basis.

A loan that replaces all of your credit card debt, auto loans, boat loans, personal loans and any other loans that you have with one loan. These loans are usually backed by the equity in your home and are beneficial because they can reduce your monthly payments and lower your interest rate significantly.

A loan for someone with bad credit. These loans typically carry a higher interest rate than a typical loan and they are typically made for a smaller percentage of the equity in your home. These loans are also known as sub prime loans.

Almost as important as your income and the amount of equity you have to put toward your home (or already in your home if you want to withdraw equity), your credit report will dictate how much money you can borrow and at what interest rate. Your credit is often summarized into a numeric representation of your deemed credit worthiness using a credit score. Your credit score is then used by banks and lenders to determine whether or not you are creditworthy, and if you are, how much and at what interest rate they will lend you money.

Your credit score is based on your credit reports and is determined by averaging the information on your credit report against millions of other people's credit reports. The primary factors that determine your credit score are: your previous payment behavior (the fewer late payments the better), your current debt (the lower the better), the length of time you've used credit (the longer the better) and whether or not you are pursuing credit (the fewer recent credit applications the better). A credit score can vary from 375 to 900, with 900 being the best. And although not everyone agrees, a credit score of 650 or higher is considered excellent by most lenders.

It's important that you understand your credit before you apply for a loan. If your credit is great (as core above 650) then you should expect to get very competitive interest rates and lenders may even offer you loans higher than you ask for. On the other hand, if you have bad credit, don't worry, there are plenty of lenders out there that will give you a loan. However, these loans will often be for higher interest rates and/or lower loan amounts. Understanding your credit is important so that you can accurately set your loan expectations.

Try to be realistic on this. If you have good credit and you feel that the loan payments would be well within your means, you should probably be able to borrow that much money. However, if you have bad credit, don't expect to be able to borrow as much money as you need. The amount of money that you can borrow will vary dramatically between lenders. If you are seriously considering applying for a loan, your best bet is to apply to a company that has lenders compete for your business. That way, you can get several assessments of your credit worthiness in one easy step. Also, because different lenders are looking for different types of investments, your loan could be worth twice as much to one lender versus another. It is really hard to determine how much you can actually borrow until you apply for a loan. However, don't get discouraged until you've thoroughly explored your options. A good example of this is the following: A friend of mine wanted to get a first-time home loan. He applied a this local bank and was told that they would lend him $70,000. Discouraged, my friend almost gave up on buying a home until he used an online service that included various lenders competing for his business. When he did so, he realized that he was able to borrow over $100,000. Why, because often times, mortgage companies are more lenient than banks, and even more so, certain mortgage companies really need a specific loan type (for example, a single family loan in a certain geographic location) to balance out their portfolio.

You should know how much you want to borrow before you apply for a loan, especially if it is a home equity loan, a home equity line of credit, or a second mortgage. This is an important topic because often, if you have excellent credit, the lender will often offer you much more money than you were planning on. Don't let this catch you off guard. If this happens, only accept a loan for the amount of money you really need. By accepting higher loans, you are much more likely to spend the additional money on frivolous items and you could also have to pay interest on unused lines of credit or on money you would not have otherwise borrowed.

If so, it probably is. Check all of the loan covenants carefully before accepting the loan. Look carefully for any hidden costs and enquire about any covenants that you don't understand.

Make sure that the loan you apply for has NO PREPAYMENT PENALTY. Prepayment penalties have become less and less common, however sometimes a lender will try to add a covenant that adds a fee for any early payments of principal or an early loan payoff. These loan covenants protect the lender from the risk that interest rates go down and that you pay the loan off early. In some cases, a prepayment penalty is acceptable, but only in cases where 1) you are positive that you will not pay off the loan early, even if interest rates decline, 2) if the prepayment penalty is low and 3) if the loan interest rate is lower because of the stipulation. If you take on a loan with a prepayment penalty, you will be often be subject to large fees if you decide to refinance the loan or to payoff the loan early. Sometimes, prepayment penalties only apply during the first5 to 10 years of a loan. The important point here is that you understand the covenant and that you leave yourself with as much flexibility as possible.

Loan fees are sometime obsessive. Try to avoid a lot of loan fees. Loan fees are typically quoted as a percent of the mortgage. Understand that these fees are negotiable. If a lender offers you a loan with a 2% loan fee. Tell them that you'll accept if they cut the fee to 0.5%. They won't always be able to lower the fees, but if they won't, make sure that the higher fees are worth it. Higher loan fees can be worth it if they also offer lower interest rates or some other attractive loan incentive

Mortgage points, also known as loan points, are fees paid by you that effectively lower your mortgage interest rate. For example, one lender may offer you an 8% loan with 0 points and another lender may offer you a 7% loan with 2 points. To translate what this means, it means that you can either get an 8% loan, or you can get a 7% loan, but to do so, you need to pay, upfront, in cash, 2% of the entire loan value you are borrowing. The rule of thumb on mortgage points is that, if you keep the loan longer than 7 years, it is worth paying the points to reduce your mortgage interest rate. If there is a good chance that you will pay off, or refinance the loan within 7 years, then you are probably better off taking the 8% loan with zero points.

Appraisal fees are almost always required when getting a first mortgage. However, if you are getting a second mortgage, a home equity loan, a home equity line of credit(HELOC), a home improvement loan or a consolidation loan, you may not need an appraisal. Appraisal fees range from $150 to $800, depending on where you live and what type of home you own. Also, a loan that does not require an appraisal is often quicker and less expensive than a loan that requires a new appraisal.

Inspection fees are usually only required for first mortgages. And then usually only for older houses or for areas that are susceptible to earthquakes, floods, termites, etc. If you are applying for anything but a first mortgage, you should try to negotiate these fees out of your loan.

After you apply for a loan, make sure that you compare each loan offer that you receive. Some may offer low interest rates and high loan fees. Others may offer higher interest rates but other more favorable loan terms. It is up to you to assess these different options and to make the decision as to which loan offer is best for you.

- Social security number
- Name and social security number of any co-applicants
- Property Address
- Phone Number
- Residence Address
- Previous Residence Address (for credit report)
- Estimated Value of Property
- Annual Income

- Proof of Employment and Income (a recent check stub)
- Last year's W-2 forms
- Last 2 years of income tax returns
- A copy of your most recent mortgage statement
- A recentstatement
- A copy of the home purchase contract (if applicable)
- If you received a cash gift, you need a copy of the check and the name of the gifter
- If you own other real estate, you may need the lease information, property tax and insurance documents
- If you receive alimony or child support, you may need evidence of the income (canceled checks or bank statements)
- If you've had a bankruptcy in the past seven years, you'll need a copy of the agreement and an explanation of the circumstances
- If you currently pay rent, you may need to supply the name and address of your landlord
- If you receive social security, you'll need a copy of the awards letter and a copy of a recent benefit check

It's a pretty simple process, either fill out our simple online Loan Application, or call one of our licensed Loan Officers to provide your information over the phone, either way works for us!