Understanding Mortgages

Buying a house is an exciting part of life, but you may come across words or terms you haven’t heard of before.

Most common types of mortgage loans:

Buying a house is an exciting part of life, but you may come across words or terms you haven’t heard of before. We are here to ensure we define any term you may not hear of before so you understand completely in your home buying journey.

Conventional Loan

Conventional Loans

A conventional mortgage is a home loan that isn’t backed by a government agency, such as the FHA or VA. Conventional mortgages often meet the down payment and income.

FHA Loan

FHA Loans

An FHA loan is a mortgage issued by an FHA-approved lender and insured by the Federal Housing Administration (FHA). Designed for low-to-moderate-income borrowers, FHA loans require a lower minimum down payments and credit scores than many conventional loans.

VA Loan

VA Loans

A VA loan is a mortgage loan available through a program established by the United States Department of Veterans Affairs (previously the Veterans Administration). The VA sets the qualifying standards, dictates the terms of the mortgages offered and guarantees a portion of the loan, but doesn’t actually offer the financing. VA home loans are provided by private lenders, such as banks and mortgage companies, instead.

USDA Loan

USDA Loans

If you haven’t sold your house and are looking to buy a new one, a bridge loan can help you finance your purchase. Whether you’re buying a new home or building one, a bridge loan can help make it happen. Get started today before you even sell your current home.

Bridge Loan

Bridge Loans

If you haven’t sold your house and are looking to buy a new one, a bridge loan can help you finance your purchase. Whether you’re buying a new home or building one, a bridge loan can help make it happen. Get started today before you even sell your current home.

VMG is a full service lender. We offer all FNMA, Freddie Mac, FHA, VA and USDA products selling direct to agency.  In addition, we offer a full array of Non-QM products as well as some exciting products such as 96.5% ITIN loans, 100% DPA FHA loans, Reverse Mortgages, Renovation loans, Manufactured homes including OTC new construction on Manufactured Homes. We have many options to finance our clients dream.

FAQs

Should I Check My Credit Before Applying?

You should refer to your mortgage professional first before doing any credit checks. As your mortgage professional can check your credit for you and give you the whole report and guide you with the home buying path.

How do I know if I qualify as self-employed?

It’s when you own your own business and work for yourself. You have filed asself-employed with most common but limited to a 1099 form, or K1 form. For home loan qualifying purposes, you’d need at least a 1-year history for most loan programs.

What Is Included In My Mortgage Payment?

Your mortgage payment typically includes principal, interest, taxes, and insurance.

What is DTI?

Debt To Income is the measurement of all monthly debt payments divided by your gross monthly income.

Closing Costs Vs Cash to Close

Closing Costs: The fees paid at the closing of a real estate transaction.

Cash To Close: Funds needed to finalize a real estate purchase or refinance. Can include but is not limited to: Down payment, loan origination, insurance, interest, taxes, title and escrow fees.

Escrow Account

An account managed by your mortgage servicer. Your mortgage servicer will deposit a portion of each mortgage payment into your escrow to cover your estimated property taxes and your homeowners and mortgage insurance premiums.

Third Party Fees

Third-Party Fees include Title & Escrow, Appraisal and Homeowners Insurance

Pre-Qualified vs Pre-Approved

Pre-qualified: You are getting an estimate of what you might be able to borrow, based on the information you provide about your finances, as well as a credit check.

Pre-approved: You are getting a more concrete idea of what you can be approved for without a buying contract. This process involves a credit check, verification of income, and debt documents (tax returns, income statements, bank statements, retirement statements, credit reports.)