Home Financing Tips From A Residential Real Estate Lending Expert

First time home buyers have more options than they may realize when it comes to financing. Once they start exploring those options, they may experience information overload since the world of real estate financing has its own vocabulary (HARP loans, Ninja loans, balloon mortgage, etc.) that may be unfamiliar to the new borrower. To help clear the muddy waters, real estate lending expert Dustin DiMisa has dedicated a blog to providing advice on home financing. The following are some of the topics users can find on the site.

Online Loan Applications

Applying for a mortgage online can save time and reduce stress for the borrower. DiMisa describes Intercontinental Capital’s “Lending Made Easy” application process that matches individuals with a customized mortgage plan. Loan officers are available at all hours to work with clients online, answer their questions, and help them understand their options. He comments that once the online application was available, the application rate increased by 200 percent, indicating that home buyers find this method easy and convenient.

FHA Loans

FHA loans are insured by the Federal Housing Administration, and they offer better-than-average financing terms, especially on first-time mortgages or home loans for families and individuals with poor credit or a low income. Borrowers with a credit score of 580 or better can qualify for a loan with a down payment of just 3.5%. In his blog post on the topic, DiMisa summarizes different FHA loan types, including loans for manufactured homes under Title 1, equity conversion mortgages for older home owners, and home improvement loans.

Home Re-Financing

When interest rates go down, it may be beneficial to refinance a mortgage for a lower interest rate. Since there is a cost to refinancing, home owners need to be aware of the trade-offs. However, according to DiMisa, there are many advantages to refinancing when it is an affordable option. For one thing, a lower interest rate usually lowers monthly payments, making the mortgage more affordable. Refinancing can also offer the opportunity to change the terms of the mortgage, for example, shortening the length of the mortgage from 30 to 15 years.

First-time home buyers do well to research their options before they make a commitment to a loan. Check out this site to learn more today.