How to Find the Best Home Loan

Back when the real estate market was booming, you didn’t have to go far to find a great mortgage. Practically all of the lenders were eager to loan money for home purchases. Now that the real estate market has dramatically changed, the easy mortgage money is history. If you are in the market to make a home purchase, it is still possible to find a mortgage, but you are going to need to recognize that the avenues available for best home loans have dwindled and restrictions for home loans have increased.

Lenders today have become far more wary when it comes to making home loans and with good reason. Given the number of mortgage defaults, it only makes sense that most banks today have decreased their mortgage loans as well as tightened lending restrictions. There are even some banks that will no longer consider working with mortgage brokers, making it even more difficult to locate a mortgage loan in today’s market. So, what do you need to do to find a mortgage loan in spite of these problems?


The first step is to turn to the Internet. Shopping online has become quite commonplace today and that includes shopping for a mortgage. Browsing the web will provide you with some crucial information regarding current home mortgage rates. You should keep in mind that many of the mortgage sites you will come across actually act as a referral service and or not actual mortgage brokers or banks, but still, it’s a good way to become informed before you actually begin the process of shopping for a mortgage. Just make sure that you keep your confidential information private when you are in the early stages of research. You shouldn’t supply your social security number or any other confidential information until you are actually ready to apply for a mortgage.

When submitting information to receive mortgage loan quotes, make sure you enter only accurate information. Avoid the temptation to guesstimate when it comes to your credit score or income. If you aren’t sure about something, wait until you have the accurate information before you enter all of the data. Otherwise, the rate you are quoted could end up being much different than your actual rate based on your verified information. Get your free and best mortgage rate quotes here!


Keep in mind that if you are refinancing or if you are looking for a loan less than $417,000 then contacting your bank may be the best option for finding a loan. Sometimes banks are more willing to make a loan to an existing customer, whom, they already know. The key is to make sure that you’re working with a loan officer who truly understands the new regulations. The last thing you want is for your loan to fall out in the middle of the process because your loan officer was less than informed about changing underwriting regulations.

Mortgage Broker

Working with a mortgage broker can also still be a good option. If you are a first-time home buyer, a broker can actually be an excellent asset. If you are trying to go it on your own and shop online there will not be a lot of support available. Working with a mortgage broker can provide you with the crucial support you need during the process. Also, a mortgage broker may be able to provide you with more mortgage options than you would be able to find on your own.

If you are planning to finance investment property or you are looking for a jumbo mortgage, typically more than $417,000, then it can also be a good idea to use a mortgage broker, who can help you look for lenders who will underwrite loans that are less conventional. Keep in mind that the more unique your loan needs, the more difficult it may be locate a mortgage at the current time, especially if you are trying to do it on your own. This is where a mortgage broker really excels.

Finally, when you do find the mortgage and rate you are looking for, make sure you exercise the option to lock it in, if the lender offers that capability. Remember, loan rates do not remain static. They can and will change from one day to another. Do not make the mistake of assuming that a loan rate will remain available. The best option is to make sure that you are ready to take advantage of a good mortgage deal when you find one, because they are definitely not as plentiful as they once were.

VA Home Loan Program Or FHA Home Loan Program – Which is the Best For You?

The United States government provides many benefits to the members that are now serving or have serve in the past in the US military. Active and former members of the United States military can take advantages of benefits ranging from education incentives to compensation for disability occurred while in the military to even life insurance programs. One of the most used and most important is the Veteran Home Loan Program that provides assistance in financing a home loan.

There are currently over 23 millions living veterans and just little less than 10% of these veterans have taking advantage of this great benefit. But there is also another government backed home mortgage loan that veterans may want to consider also. This government backed loan is the FHA Home Loan Program.

So if you are an active member of the military, a veteran, or even a surviving or current spouse of a veteran you may want to compare the advantages and disadvantages of both the VA Home Loan Program and the FHA Home Loan Program.

You need to be fully informed before you buy a home because it is a huge decision and making the wrong decision can cost you thousands of dollars in the future.

VA Home Loan Program VS FHA Home Loan Program

VA home mortgage loans are similar to many conventional home mortgage loans but they do have many great benefits that are not found in conventional loans such as: you do not need a down payment, your credit scores can be lower than what is required for conventional loans, and you can “rolled” the closing and loan fees back into the mortgage thus making it a 100% financing loan.

The FHA Home Mortgage Loan Program is the most popular of mortgage loan programs for non-veterans and is growing in popularity because of the tight mortgage market today.

They have some of the same advantages of the VA home mortgage loans such as: they are easier to refinance, more lenient on the credit scores to qualify, and certainly lower down payment than conventional loans. The FHA home mortgage loan down payment is currently 3.5 of the purchase price of the home.

VA Home Mortgage Loan Eligibility Requirements

A veteran will have to get a Certificate of Eligibility that is issued to by the military to qualified veterans. The Certificate of Eligibility will also include the entitlement amount, which is the portion of the mortgage loan that the VA will guarantee. You can get the Certificate of Eligibility from the VA or you can have your mortgage lender get it for you on the Internet.

One big difference from a VA mortgage loan and a FHA mortgage loan is almost anyone can get a FHA mortgage loan, only people that are or have been in the military can be a VA mortgage loan.

There are no income limits for FHA loans, but there are limits on how much a person can borrow and it varies from each county in the country. You can find out from your mortgage lender what the limit is in your area.

VA home mortgage loans do have limits on how much you can borrow but the limits can currently go up to $729,000 in some parts of the country.

Another difference from FHA loans and VA loans is VA does not require a mortgage insurance premium called a PMI. FHA loans do require mortgage insurance (MIP). By getting a VA home mortgage loan you will save this expense which can be quite costly over the years.

VA home loan makes sense if you are a qualifying member or veteran of the military and they will allow you to take advantage of today’s very low interest rate plus you can buy a home with 100% financing.

If you don’t want to tackle the slight hassle of dealing with the VA or you do not have available VA entitlement then a FHA home loan will make the most sense.

Whether you choose the Veteran Home Loan Program or the FHA Home Loan Program you will need to work with an approved mortgage lender who will help you through the mortgage and closing process.

Owning a home is still the American dream and the government has two great programs to help you to achieve that dream, so get more information on the Veteran Home Loan Program and the FHA Home Loan Program and make that American dream happen for you!

Don’t Get Trapped With Low Home Loan Rates

If you are planning to buy a new home, you have to know about home loan rates. You are going to pay for it in a very long time so you have to make sure that you get a home loan rate that will best fit your budget.

There are a few companies who offer low home loan rates. For sure you will be tempted to grab the offer right away failing to get into the finer details that makes up the deal. Before making an instant decision that could possibly trap you into paying more than what you bargained for, here is some useful information that you could use to make sure that you can truly afford the house you are buying for:

The first step to determine if you can afford to have a new home is not by knowing whether or not home loan rates are at their lowest points. Consider first your income and liabilities. Compute for your monthly income and determine how much your total liabilities for a month are. Always include in the computation your total monthly spending that do not always reflect on writing or billing statements such as your budget for pool cleaning, gardening services, even your babysitter’s payments. If you have more than enough left both for savings and for your emergency fund, then you must be ready for a bigger project like purchasing a new house.

It is also important to determine your debt to income ratio or DTI ratio in order to know whether you have the capability to apply for a home loan. Even if you get to avail of a low home loan rate, you must be comfortable of how much you are going to pay for it every month. DTI ratio computation will give you an idea how much you should budget on your monthly housing payment, monthly liabilities, and savings.

Do a thorough search for the best home loan rate there is. Do not get satisfied with only one offer as there are many other lenders that you can go to. Try searching online for faster results. When you do find the rate that you are most comfortable to be paid for, proceed to make an appointment with the lender to know more about its details. Do not forget to read the fine print of the deal as it generally contains the most important information that should not be missed.

When shopping for a new home, having the best rate in your hands is not always the key to getting your dream home. Home loans are offered not solely for the purpose of helping people get the house that they like. They are there because they are someone else’s business. If you are just going to grab an offer right away just because of the low rate that it got then you are not ready to take on this responsibility. Considering your capabilities to pay for it should be your top priority. You have to know whether you can pay for the loan or risk losing the house because of an unpaid mortgage.