You have found the home of your dreams, now you just need to apply for the loan. Getting a mortgage loan can be a lot of work and it can't be done by just anyone. Banks like FCN Bank and other lenders require a certain criteria from borrowers before they hand over the money for a house. If you are in the market to purchase a home and can't pay for it all at once, you will need to secure a mortgage loan.
When looking for a home loan, there are generally three options at your disposal.
Commercial banks Dedicated mortgage banks and loan officers Mortgage brokers The problem is that many people confuse the different types of mortgage lenders, or otherwise assume they're all the same. Understanding the differences can help you make a far more informed choice.
1. Using a Commercial Bank for Your Mortgage Loan
A commercial, or retail, bank is typically one of the first places that come to mind when people consider mortgage loans.
If you have ever served in the military, you may have heard of a VA loan. Learn what this type of loan is, what it is mainly used for, how it can benefit you, and how you can get a free VA loan quote.
What a VA loan is
Like the name implies, a VA loan is a type of loan extended to military service members. If you need money and are active military, a veteran, or the surviving spouse of someone who has served in the military, you may be eligible for a VA loan if you have financial need.
Buying a home is an exciting time of life. If you are a first time homebuyer you might be confused as you go through the process of applying for a loan. The more prepared you are before you start the process, the better. Here are some things that you should be doing before you apply to improve your chances of becoming qualified for a home loan.
1. Don't Open Any New Credit Accounts
The cash advance option your credit cards offer may seem convenient, but cash advances can be expensive in the long run. On the positive side, being an informed consumer and knowing how to use credit card cash advances wisely can save you money.
If you find yourself in a real bind for some quick cash, consider the following factors before taking a cash advance:
Interest rate. The interest rate for cash advances is higher than a credit card's interest rate for purchases.