In addition to being a full-service real estate brokerage, our owner Justin Del Giudice is an experienced Loan Officer! If you need mortgage financing, we can get you pre-approved today! Call/Text 203-800-0646 to begin the mortgage pre-approval process! NMLS: 1166397
Before you begin shopping for a home it is important to determine how much you can afford to spend. It is essential to get pre-approved from a licensed mortgage professional who will be able to offer you several loan options and find the best available loan program for your needs.
- Buyers who are pre-qualified have provided a lender with their basic information to determine which loan programs they may qualify for.
- Buyers are issued a pre-approval when the lender has collected and verified the buyer’s financial information as needed to submit the loan file to underwriting.
- Your monthly payment will include mortgage Principal and Interest. Your loan servicer can also escrow payments for your Taxes and Insurance so you can conveniently make one monthly payment.
- Some loans may also carry Private Mortgage Insurance (PMI).
- PMI is provided by a private mortgage insurance company to protect lenders in the event that a borrower defaults.
- PMI is generally required for a loan with an initial loan-to-value ratio over 80%; occurring if your down payment is less than 20% of the purchase price.
- Fixed Rate Mortgages typically have a term of 15, 20, or 30 years.
- The interest rate will remain the same for the life of the loan, regardless of changes in market interest rates.
- Monthly loan principal and interest payment will be consistent.
- Adjustable Rate Mortgages typically have 5-year, 7-year, and 10-year fixed-rate periods.
- At the end of the fixed-rate term, the interest rate will adjust higher or lower. depending on market interest rates. (Most ARM’s have a “rate cap” which will limit the amount the rate can increase or decrease).
- ARM’s typically offer a lower interest rate for the initial fixed term (i.e. first 5 years or 7 years).
- It is critical to speak with a loan officer to explore your mortgage options and obtain a pre-approval.
- Certain loan programs offer lower down payments and closing costs. Ask your lender to explain various these programs to you.
- Your lender will issue a worksheet outlining your estimated closing costs and monthly payment so you can choose the program that works best for your budget.