Home mortgages are not one-size-fits-all financial instruments. There are lots of different types of mortgages, all targeting certain groups of people with different needs. Needless to say that a conventional mortgage is not the best choice for every home buyer. This implies something particularly important: finding the right mortgage for you makes an enormous difference in everything from the home you purchase to how much you pay every month.
Conventional loans are the industry standard. They are very general in terms of who they target. Thankfully, they are not the be-all and end-all of mortgage lending. Buyers have access to additional options like VA loans, first time homebuyer mortgages, FHA mortgages, and even home loans for physicians.
So how would you know which type of mortgage is right for you? You either need to be well versed in mortgage lending or work with a trustworthy mortgage broker willing to leave no stone unturned in the search for your best loan option.
Your Circumstances Matter
As a Colorado home mortgage broker, one of the first things we look at is the client’s circumstances. We want to know everything about a new client, especially information that will help us figure out the best mortgage option. Here is a good example: we want to know if a client is a veteran or veteran’s spouse. Why? Because both types of individuals usually qualify for VA loans.
If you are a first-time buyer, there is likely a special mortgage available to you as well. And if you are a first-time buyer looking to buy in a certain geographic region, there may be an even better product to look at.
Buying in Certain Locations
Some state and local mortgage programs are designed to target certain geographic locations for the purposes of encouraging homeownership in those locations. That being the case, location is something else we look at in the search for the perfect mortgage product.
Urban renewal areas illustrate this point very well. Your typical urban renewal program offers discounted mortgages and/or grant programs designed to encourage homeownership in an area that is economically depressed. The thinking is that getting people to buy homes and move in will lead to an overall improvement in the region. So state and local governments are willing to help things along with mortgage and grant programs.
We Look at Credit Score and History
Yet another thing we need to look at is a client’s credit score and history. People with low credit scores may not qualify for conventional mortgages. And even if they do, the terms and rates on a conventional mortgage might be prohibitive. That would lead us to look at products offered by private mortgage lenders. The chances are pretty good we could get a better deal going that way.
Along those same lines are mortgages for self-employed individuals who might have a challenging time proving their income. In such cases, credit score and history play an even greater role in determining mortgage eligibility.
Why It All Matters
At this point you may wonder why all this matters. It matters because finding the right mortgage equates to getting the most value for money while staying within your budget. Isn’t that what most buyers want? Absolutely.
Mortgage brokers like us here at Mortgage Maestro are on a mission to help clients find the best possible mortgage products for them. We look at every piece of information necessary to point us to the right loans. In closing, this is one of the advantages of using a mortgage broker instead of going right to a bank. If you’re looking to close a home, contact us today to secure your home loan with a Colorado mortgage broker.