Before shopping for a home, should you consult with a home loan expert?

Before even venturing out to buy a home, it is mandatory to consult with a mortgage specialist first. A mortgage lender can help you determine how much of a monthly payment you can afford after you qualify for the home loan. Eligibility for a home loan will be determined by income and debt, employment, down payment, and reserve funds, among other things. To start looking for your new home, Schwab Mortgage is the company you can trust to provide you with an accurate fair market value.

The Federal Housing Administration (FHA), an agency within the United States Department of Housing and Urban Development (HUD), guarantees FHA home loans. One of the best deals that the FHA offers compared to others is that home buyers are not provided with the loan amount, but are instead insured through mortgage insurance, known as MIP. in times of default on your home loan. FHA home loan programs are available to all buyers and were created to help low- to moderate-income people with good credit who do not qualify for regular home loans.

Loans made to eligible veterans to purchase or refinance a home are guaranteed by VA. The guarantee says that the mortgage lender is protected against loss if you, the borrower, default on the loan. A VA guaranteed mortgage comes with a no-down payment option at a lower interest rate compared to other home loans.

Freddie Mac and Fannie Mae are not owned by the government – they are owned by shareholders and conventional home loans follow their guidelines. The federal government does not guarantee or insure home loans. A giant loan is still considered a non-conforming loan or a conventional home loan, even if it doesn’t meet government guidelines. You will be offered a higher interest rate and loan amount than a jumbo loan.

Now you can see why you need a mortgage approved before you can start looking for a home. Schwab Mortgage’s prequalification procedure is fairly simple and takes very little time.