Getting a Mortgage
Are you a little confused about getting a mortgage? You're not alone! Almost everyone finds getting a bewildering. Even if you've done it before, you've probably forgotten everything except the stress. We'll you get through the process and into your new home.
If you look in your local paper, you'll see endless ads from lenders offering a mystifing number and types of mortgages. Many seem to be in some sort of code like "ARM 3-1." Our Types of Mortgages article has an overview of the most common types of mortgages including fixed rate mortgages (FRM) and adjustable rate mortgages (ARM).
If you already know what type of mortgage you want and are getting ready to apply, we can explain the mortgage application process and how to find the best mortgage for your situation.
There are free government publications to help you. The Federal Reserve Board has an article about the mortgage application process here. IRS Publication 530 (2005), Tax Information for First-Time Homeowners gives you the details on what you can and can't deduct from your taxes. The Department of Housing & Urban Development (HUD) sponsors housing counseling agencies throughout the country, here's a list. HUD also has a pamphlet that explains mortgage insurance.
If you're considering getting a mortgage, home equity loan or refinancing through a mortgage broker, read our article on how to find a good mortgage broker. The NAMB (National Association of Mortgage Brokers) says that "over 70 percent of brokers are legitimate" -- that is they have safeguards and policies in place to make sure that they stay on the straight and narrow. Make sure yours isn't one of the other 30%.
It pays to shop around for a mortgage to get the terms you want. Interest adds up over the life of the loan, a mortgage with a
slightly lower interest rate can save you thousands of dollars over the life of the loan. The mortgage business is very
competitive, be sure to get several quotes from different lenders and compare them carefully to find the best deal. There are
several websites that will let you submit a mortgage application to several banks at once -- free. The services listed below
are all free, there's no credit check and there's no obligation:
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Ameriquest Mortgage works with borrowers
who have less than perfect credit. They have over 150 branches nationwide, you can apply at a branch or online.