Christian Principal Residential Mortgages
Christian principal residential mortgage lenders are more aggressively seeking customers, because with low interest rates available and the broad loan market that the Internet has brought into the real estate industry, competition is fierce. Principal residential mortgages can now be price compared and shopped for online with the ease and expedience that the Internet offers. And, these deals are offered through various websites online where seekers can find several lenders to compare, ensuring that homebuyers find the right principal mortgage company to fit their unique financial needs. Qualifications for the borrower have also evolved with the availability of credit reports and consumer's credit history technologies. This has opened up the possibility of owning one's own home to so many more people than was possible in the past decade.
The Internet has given consumers the great ability to shop, compare, and execute choices with a variety of industries. Title companies, banks, credit unions, and now, individually owned and operated finance companies actually compete for a homebuyer's business. There are even corporate entities that completely operate their companies online through the Internet. There are principal residential mortgages and brokering firms online that will assess the circumstances of a homebuyer and offer several various deals that can help that customer. A principal residential mortgage can have different interest rates, and interest rates are determined by the current rate index, the mortgage company, and a homebuyer's own credit history.
There are mortgages available online and a consumer can apply for and submit an application for such a deal from the comforts of their own home computer. Responses to principal residential mortgage submissions online can usually take about two days. Before completing an application online, it is good to be prepared with information that will be needed on the application.
When considering principal residential mortgages, keep life in perspective, and do not become anxious about application responses or closings. Ultimately, God is in control of all things, and He cares for each of us. "Behold the fowls of the air: for they sow not, neither do they reap, nor gather into barns; yet your heavenly Father feedeth them. Are ye not much better than they?" (Matthew 6:26) If our Lord is concerned about what a bird eats and where a bird sleeps, then a potential homeowner can be assured that He cares about their home and the purchase of it.
A new home mortgage is a means by which a prospective house buyer can finance a new house. For most people, their house is the biggest investment they will ever make and the source of much of their future wealth. The way a borrower handles a home loan will have an impact on the rest of his life, even if he only stays in the house for a few years. Borrowers have many options to choose from when qualifying for the funding. Loans can be paid out over a variety of lengths, including ten years, fifteen years, twenty years, thirty years, and infrequently forty years. The best case scenario is to sign a loan for the least amount of time possible, but the size of the payments rise as the loan length is shortened. Therefore, the buyer must carefully weigh the size of the payment against budgeting concerns.
Although new home mortgages come in many different shapes and sizes, the first thing a borrower should investigate is whether to sign for a fixed interest rate (FRM) or an adjustable rate (ARM). A general rule is that a buyer who plans to stay in a house for more than three years should apply for a FRM. If the borrower plans to sell the house in less than three years, an ARM may fit the criteria. New home mortgages are not always designed to help the homeowner. A wise borrower will make sure that the lender is not offering higher interest rates or terms than the borrower can find elsewhere. Comparing loan terms from one lender to another for a new home mortgage is essential. The borrower also needs to research the fees, prepayment penalties, and other charges that will accrue with the loan, including closing costs. Closing costs are not simply an extra mortgage. They are fees assessed by the lender and can vary widely from one company to another. The Internet is an excellent tool for doing this research.
When looking for a new home mortgage, a well-educated decision reaches much farther than one that is made hastily or without thought. As Christians, we are responsible to handle our finances in a godly manner. First Corinthians 4:1-2 instructs us: "Let a man so account of us, as of the ministers of Christ, and stewards of the mysteries of God. Moreover, it is required in stewards, that a man be found faithful." We cannot fail to be good stewards, especially in such a far-reaching decision as finding new home mortgages.
Christian FHA MortgageAn FHA mortgage is granted through HUD or the Department of Housing and Urban Development program, offering home buyers a federally insured loan. FHA mortgages are insurance programs on loans made by qualifying lenders to people purchasing or refinancing their home. This insurance program can help low and moderate income families become homeowners by lowering some of the costs associated with purchasing a house. FHA mortgages encourage lenders to make loans available to people that otherwise would not be able to afford the down payment or closing costs that traditional loans require. "Through wisdom is an house builded; and by understanding it is established" (Proverbs 24:3).
One of the unique factors of the FHA mortgage insurance program is the ability to receive a loan with only 3% of the purchase price down as an alternative to the traditional 20% down. This enables an entirely different income level of citizens to realize their dreams of home ownership. The FHA mortgage insurance program has stiff requirements on the loan. They have their own home inspectors review the potential home and utilize high inspection standards. If the home does not meet these high standards then the loan will not be granted until the appropriate repairs have been made. This filters out the "bad" homes so that in case of default, HUD can resell the home without a great loss.
It is extremely important to note that FHA mortgages are not loans. The insurance is a guarantee by the government that if an individual defaults on a loan, then the FHA will pay the balance. Lenders are usually excited to offer this insurance program to their borrowers. Typically an interest rate will be lower than traditional mortgages, unless the borrower has exceptional credit and is offered an equally exceptional rate. The program can be used to purchase a home or building up to four units.
FHA mortgages may also be used to refinance a home. Another benefit is to include the closing costs in a mortgage, instead of paying for them out of pocket. The closing costs are usually the responsibility of the buyer, and having them wrapped into a mortgage can really help someone purchase a home with little money down. HUD sets limits, however, on how much can be borrowed. Each state and area has its own limitation based on the housing market. For example; housing in California has a higher limitation than housing in Nebraska. It is advised that anyone interested in purchasing a home using the FHA mortgage insurance program contact their financial institution for a more thorough description.
VA loans are one way this nation has shown its appreciation since WWII for those men and women who have served in all branches of the military to secure the freedom all Americans enjoy. Veterans eligible for this type of assistance include members of Selected Reserve, active duty service personnel, and spouses of deceased veterans who have not remarried. Once an individual finds property he or she wishes to buy, they can find a lender and apply for a VA mortgage loan. Part of the application is the presentation to the lender of discharge or separation papers related to the Veteran's last period of service and/or a Certificate of Eligibility. The property is then appraised and an estimate of the property's value determined and the application approved or denied.
The Veteran's Administration (VA) ensures that all veterans applying for VA mortgage loans are given equal opportunities for loans, regardless of race, gender or origin as long as they are financially able to pay back the amount. Of particular importance to most veterans is the fact that a down payment is not required, and there are limits on the closing costs. These loans are assumable, but it is the responsibility of the veteran to be sure the original amount is paid off or they will be responsible for it later. The interest is negotiable, fixed for the life, and there is a long amortization period so payments are kept as low as possible. Veterans have the right to prepay without penalty, and leniency is extended to veterans who experience periods of financial difficulty.
Once a Christian veteran has shown he or she is eligible for a VA mortgage loan, they have to show that they are going to occupy the property. A veteran can not buy a house for someone else unless it is a multiple family (up to four units) dwelling where the veteran will occupy one unit and someone else the others. Veterans applying for VA home loans have to meet the same criteria as any other home mortgage applicant, in that they must have an income that will allow them to meet the note payments. Also, it is crucial to have a good credit rating.
Cooperatively owned property or property that is located in another country does not qualify individuals to receive VA mortgage loans. An individual can get a VA mortgage loan in one state for property in another if the lender agrees to it. Those veterans not eligible are WWI veterans, those who took active duty training but were separated before serving their term, National Guard or Coast Guard veterans. Under the recently passed Veterans Benefits Act, the maximum amount now allowed is $359,650, refinancing is available with a VA mortgage loan, and veterans can cash out up to 90% of the value of the home for consolidating debt, home improvements, or whatever the veteran wishes to do with it. Respect for soldiers is mentioned in the Bible and is part of the Christian tradition and duty to respect our military. "All these the sons of Jediael, by the heads of their fathers, mighty men of valour, were seventeen thousand and two hundred soldiers, fit to go out for war and battle" (1 Chronicles 7:11).