your mississippi mortgage brokers
what is a mortgage broker?
Not sure if you really need a mortgage broker? A mortgage broker is different from a mortgage lender and can be much more helpful and informative when searching for a mortgage loan. A mortgage broker’s job is to act as an intermediary between lenders and borrowers. Over time, as the market for mortgages has grown, the job of mortgage brokers has become more important in the competitive market. The job of the mortgage brokers at Motto Mortgage is to help you find a lender who is ready and willing to make the specific loan that you are wanting and needing. Our goal isn’t just to sell you a mortgage loan, but to get you the one that is right for you.
Why use a mortgage broker instead of a mortgage loan officer? A mortgage broker works as an intermediary between the borrower and the mortgage lender, while a loan officer usually works directly for the lender and is invested in selling that particular lender’s products. Usually, a loan officer has a vested interest in getting you to buy from their lender, which is not necessarily the lender with the best loan for you. A mortgage broker has no affiliations to a particular lender and is free to give you all of your mortgage loan options so that you can make an informed decision about what’s right for you.
are you a first time home buyer?
It can be frustrating and confusing to buy a home for the first time. We understand. We’re not here to confuse you with weird mortgage lingo and throw out information about types of loans and down payment requirements. We want to make sure you are well informed through the whole process, even in the flood of overwhelming information. Of course, if you’ve never owned a home, you are considered a first-time homebuyer. However, you may also qualify as a first-time home buyer if you have not been an owner in a primary residence for at least three years leading up to the purchase of your new home. The Mississippi Home Corporation defines a first time home buyer as someone who has not owned a home in the past three years, although certain exceptions are sometimes made for veterans and people buying in federally designated target areas where incomes are typically low. Along with Mississippi Home Corporation, some nationally available loan programs may also reduce barriers to homeownership.
Mississippi Home Corporation helps home buyers with down payments and closing costs. The programs target first time buyers as well as veterans, residents of low-income areas, and rural teachers. In order to be eligible, the home you are buying must be in Mississippi and occupied by the owner. The borrower must meet minimum credit score requirements, which will vary by loan program and own payment percentage. The property in question must be a single-family home, town house, condominium, or qualified manufactured home. Home buyers are required to take a home buyer course in order to qualify. Depending on the program, other specific requirements may apply. These programs offer assistance in the form of grants and forgivable loans and mortgage interest tax credits are sometimes available. The Smart Solution program is great for low mortgage interest rates, down payment assistant and closing cost assistant. This program offers competitive interest rates and down payment assistance in the form of a ten-year loan for 3.5 percent of the purchase price. An income limit applies. A Mortgage Revenue Bond 7 provides seven thousand dollars for a down payment and closing cost assistance. Housing Assistant for Teachers is an amazing program for educators in the state of Mississippi. This state program is designed to entice qualified teachers to move to rural areas. By agreeing to teach in a targeted district for at least three full school years, home buyers are eligible for a grant of up to six thousand for a down payment and closing costs. The buyer has to contribute at least one percent toward the down payment. Ask your mortgage broker for more information about loan options in Mississippi.
do you qualify for an FHA loan?
Federal Housing Administration loans are different from conventional loans because they are government backed. Federal Housing Administration loans exist to help you buy a home with lower credit scores or limited access to finances for a down payment. With a Federal Housing Administration loan, it is possible to purchase a home with as little as 3.5 percent down, which is an amazing benefit. When you’re ready to look into a Federal Housing Administration, there are some things you’ll need to know about your eligibility. You will need to be able to verify your income as a first qualification for a Federal Housing Administration loan. Recent tax returns or pay-stubs can prove your income. For conventional loans, lenders prefer to see that you have been employed for at least two years, preferably with the same employer or at least in the same field. With the Federal Housing Administration program, loans can be given to people with shorter work histories. At the bare minimum, the FHA requires that applicants have an established credit history. An established credit history requires at least two lines of credit. This can be achieved through credit card payments, student loans, or a car payment.
The most difficult requirement for a Federal Housing Administration loan is about existing debt. The borrower must be able to afford the monthly loan payment as well as any currently existing debt. Your mortgage payment plus any other monthly debt must equal less than forty-eight percent of your monthly income. If you don’t currently meet that requirement, you can spend some time paying down existing debt in order to get yourself closer to qualifying. The minimum credit score for a first-time buyer is set by the lender, and the Federal Housing Administration is not the lender, they are the insurer. Usually the minimum credit score for a first-time home buyer is 580, but a lender may choose to raise that minimum to as much as 640. Still, this credit score is a lot more accessible For conventional mortgages the minimum credit score is closer to 800. Only some homes qualify for an FHA loan, and the borrower cannot purchase a home that exceeds the FHA loan limits. There are federally set limits to how much you can borrow with an FHA loan that vary by state and county. Fortunately, the limits are high enough that nearly all borrowers should not need an FHA loan to buy a more expensive home. Ask your mortgage broker what the limits are in your state.
what loan is right for you?
With so many loan options out there, it can be difficult to know what mortgage loan is right for you and your family. The experts at Motto Mortgage are here to help you know all of your loan options and help you discern which ones might be best for your needs. Thankfully, nationally available loan programs exist to help people who would normally have barriers to home ownership. There are loans aimed at people who need help with down payments, people who value consistency, people who served our country in the military, and everyone in between. Our mortgage brokers are here to talk you through your mortgage loan options and help you make sure you understand the pros and cons of each option. We’ll help you learn which loans you are eligible for and which ones would be the best for your lifestyle. When you want to learn more about the different kinds of loans available, contact one of our brokers, or click the link below to learn more!