Demystifying the Mortgage Loan Process

Nov 29
Category | Blog

There are so many moving parts to the successful purchase of a home, and getting a mortgage is a big part of that. We’re often asked “what are you doing that whole time”? Here’s a simplified overview of what we do, as the lender, to make your mortgage:

Once you have a sales contract on the property signed by both parties, we recommend that you lock in your interest rate and confirm the specific of the loan. Your INTEREST RATE/LOAN LOCK will take place fairly early on during processing so that all subsequent documents reflect the correct loan program and the interest rate(s) you are committing to.

Speaking of process, the next step is, in fact, called PROCESSING. This is where we align your loan application with the loan product and interest rate you have locked. Loan Processing is the general term used while we collect and double-check all of your information and documents. It starts with the information on your application and your real estate purchase contract. All of the supporting documents and verifications are reviewed and checked until the information you provide (the documents, bank balances, credit reports, etc) is validated to ensure you have proper documents to commit to the loan and accept ownership of and responsibility for the home. Processing also includes several checkpoints based on the ...

The process of getting a mortgage has it’s own lexicon. There are words, acronyms and shorthand that take a little getting used to. Here’s a quick overview of a few of the terms you are likely to hear as you work with a Loan Officer on your mortgage:

The person borrowing the money to purchase or refinance a home (that’s you)

Usually a bank or financial institution who offers the mortgage to the borrower (that’s us)

The finance charge the borrower pays to use the Lender's money to purchase the Property 

An agreement where a homeowner pledges an interest in their property (the house you have contracted to buy) as collateral for a loan on that same property 

New Jersey and New York Mortgage QuestionsEveryone has advice when it comes to buying a home. But there are a few things that you should keep in mind specifically about mortgages.

Some of them may surprise you . . . and all of them can be explained by a licensed loan officer. Here are our top 3 things we think you should know about mortgages:

1 - The higher your credit score, the lower your interest rate can be. Think about it, the lender is taking a big risk ...

First Time Buyer? Get Set!

Oct 19
Category | Blog

Financial documents in order and accessible? Check.

Credit score at least 580+? Check. 

Downpayment funds building up? Check. 

Good News, you may be financially ready to start looking for your first home. Now you just need a little guidance on how to go about it. It’s best to have professional advice. With any big purchase, there is a lot of research and trust involved, so there are a few thing you need to consider BEFORE you explore your local listings.  

Get Ready. 

Get recommendations from friends and colleagues and talk with licensed loan officers in your area. You will be sharing a lot of personal financial information with them, and the home buying process can be intense, so you need to feel comfortable and have a level of trust.

  • Ask them about new home buyer programs in your community.  You may qualify for grants, down payment assistance or special loan programs that can help reduce the cost of buying your first home.

Frontier brings to mind windswept fields and plains dotted with distant homes and outbuildings.  Rural, you might say?  Maybe not.  As defined by the United States Department of Agriculture (USDA), rural actually has a very broad definition. And that’s a good thing for home buyers in select areas of the country.  Especially for those who have the ability to pay a monthly mortgage, but who don’t have a sufficient down payment saved.  That situation is not uncommon.  In a recent survey of young home buyers, coming up with a down payment was the second biggest barrier to purchasing a home.

The good news is, in many parts of the region, there is still a no-money-down mortgage option available. It’s called a USDA Loan and is specific to homes in rural areas as designated by the USDA -  the United States Department of Agriculture. There are many USDA eligible zones in New Jersey. These homes may be in small towns, exurbs and even suburbs outside of our major metropolitan areas. It’s worth exploring as you house hunt for your primary residence. Even the Jersey Shore has many communities with USDA eligible properties.  In fact, most homes on LBI are USDA loan eligible.

Like all mortgages, both the home buyer and the property need to qualify for a loan. With a USDA Loan, ...

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