Mortgages are complicated, as are the lenders that provide them and the borrowers that require them. There are thousands of lenders in the United States today, each with different loan criteria, requirements, and programs. Making things even more complicated is that each lender caters to a certain type of borrower, such as Subprime (bad credit), A Paper (excellent credit), first-time homebuyer, refinancer, and debt consolidator. Why are mortgages so complicated? Because every borrower is unique. They have different goals and different credit histories, and for every borrower there needs to be a lender that caters to them. Understanding the basics will teach you about lenders and much about yourself.
What's the secret to finding a good mortgage? Understand the basics. Understanding how a mortgage works will enable you to figure out what type of loan is right for you and what you need to do to secure a loan with a low rate. Shopping around for a loan is important, as long as you are shopping from the right lenders.
Make the entire loan process go smoother with fewer surprises and mistakes. You’re on the right track since you are taking time to read through this mortgage guide. We packed a lot of information into a short guide, and strive to explain everything in plain language.