Foundations of the Mortgage Industry (Part II)
There are two markets that structure the mortgage industry.
- The primary market: Where loans are originated. This consists of Brokers, Mortgage Loan Officers, Banks, Credit Unions and Thrifts.
- The secondary market: Where loans are sold. This consists of Fannie Mae (FNMA), Freddie Mac (FHLMC), Ginnie Mae (GNMA), Wall Street, and wholesale line of credit accounts. Interesting to note, FHA, VA, and USDA are in neither market. Read the rest of this entry
Foundations of the Mortgage Industry
Understanding the foundations of the mortgage industry can be very helpful when venturing into for the first time. Even if you have some experience with getting financed for a home, knowing and understanding these foundations can give you an upper hand when shopping for the best deal. Let’s get started. The fact is that 93% of homes in America are financed through either the private sector or government sector. The breakdowns of these sectors are below. Read the rest of this entry
Death by Detail
We all have met with the insurance salesman and died a slow death as our eyes glazed over and our head wanted to hit the table. Or wished for the worst torture we could imagine just to get out of the meeting.
Well prepare yourself for the latest and greatest torture technique to be developed since the dark ages, this one is worthy of the al Qaeda operatives and the like, better than water boarding. It’s what I call Death by Detail now offered by your local Loan Officer. This one sneaks up on you, seeming innocent in the beginning but slowly begins to pull you in little by little. Beware, it’s like the wood chipper ready to grab your sleeve and drag you in to its jaws. Read the rest of this entry
What Is A USDA Loan? USDA Loans offer affordable 30 year terms with 100% financing. That means no money down!
No Money Down: For starters, a USDA loan is one of the only loan programs offered that allows you to finance 100% the purchase price. That means no down payment of any kind! Read the rest of this entry
Ok, now that you have learned about the pre qualification process and have received a little information on the world of “credit reports”, let’s talk about allowable funds for your down payment and closing costs. With the mortgage industry and loan programs changing by the day and even the minute, this too has had many changes. Read the rest of this entry