If you are like most people, then the odds are good that you’ve dreamt of owning your own home at some point or another. Homeownership is one of the largest financial commitments individuals will make in their lives, and financial complications can do a lot to make that commitment harder.
Mark Hauser is the co-managing partner at Hauser Private Equity, where he has specialized in connecting his clients to the goods and financial services that they require to live their best lives.
Hauser took time to share his thoughts on the current real estate market while outlining the role that mortgages play throughout the process.
Mortgages 101: Different Types of Lenders
Mortgage lenders come in as many different varieties as home buyers do themselves. Most 21st Century homebuyers will choose from a variety of lenders depending on their market, financial background, and focus.
The most common lenders, as outlined by Mark Hauser, include
National, Regional, and Community Banks – Banks are the most common purveyors of mortgage loans in the industry. Whether living in a large city or a rural area, buyers will have access to a bank that can afford them a loan.
Credit Unions – Credit unions are also known for offering many different financial banking services. These unions tend to offer help to individuals with lower credit scores.
Mortgage Brokers – Credit unions also offer many banking services, and it is through them that Hauser suggests most people go. Large mortgage brokers are independent business owners looking for the best terms and loans for their buyer’s needs. These brokers work on commission, wherein they earn an income when a buyer makes their purchase.
Online Mortgage Lenders – Finally, shoppers can access online mortgage lenders who specialize in residential mortgages. These lenders are willing to work with buyers who have low credit scores while offering loan options and interest rates.
Mortgage Loan Requirements
Every lender will have unique qualification standards, so these will vary from one situation to the next. The type of mortgage will play into the process while the property type and proposed use of said property are also considered. Most buyers are expected to have a down payment ready, as well as all of the required documentation necessary. Mark Hauser suggests getting a prequalification to streamline the process.
Mark Hauser Outlines Types of Mortgage
Mark Hauser of Hauser Private Equity has spent much of his career guiding clients toward the right mortgages for their needs. As homebuyers begin on their journey, expect to look at the following loans.
Jumbo Mortgage – A mortgage loan is traditionally geared toward individuals with excellent credit and plans to purchase a higher-priced property. Traditionally, Hauser notes, jumbo loans require a 700+ FICO score.
Fixed-Rate Loan – Fixed-rate mortgage loans keep the same payment information for the loan period, carrying between 15 and 30-year loan terms. Some lenders allow for as low as an eight-year loan term.
Adjustable-Rate Mortgage Loan – An ARM has interest rates that rise and fall with the conditions of the market. This is an ideal outcome for individuals looking to stay in their homes for only a few years.
Work closely with a professional to ensure that you are being matched to the right loan to meet your needs.