Mortgages in Carson City enable you to finance your dream of owning a home. Homes can be expensive, and not everyone has the cash to pay upfront for them. First, you have to fill out an application that will be approved or denied by the lender. The lender looks at several factors before deciding to approve your loan. Some of the factors include credit score, income, outstanding debts, and number of credit accounts. You should also learn about the types of mortgages available to avoid confusion.
Most consumers attempt to apply for prime mortgages. Lenders reserve these loans for customers with good credit scores and income at least three to four times more than the monthly payment. Getting approved for prime mortgages depends on the financial market condition. If the funding supply is good, you may be approved with a credit score of 620. Otherwise, you will need a score of at least 700. Subprime mortgages are offered for home buyer with low credit scores. Since the borrower poses a financial risk, the interest rates and fees are higher.
Balloon mortgages in Carson City are short-term loans with fixed interest rates and standard payments for a certain time period. The typical loan period for balloon mortgages is five to seven years. .After the loan period ends, you must pay the remaining balance or refinance. Balloon mortgages are easier to get approved for and come with lower interest rates. However, they also come with prepayment penalties. Balloon mortgages may be ideal if you plan to sell the home before the loan period ends.
A reverse mortgage is available for senior citizens 62 or older who own their home. It requires the same application process as the traditional mortgage. The difference is the lender pays you. You must live in the residence to qualify for payments. You can get them in a lump sum, line of credit, or monthly installments. All applicants for reverse mortgages must take counseling from an agency approved by the government.
There are many types of mortgages in Carson City to fit most any situation. Getting a mortgage is a big step and should be taken seriously. However, mortgages can make your dream of owning a home a reality. See contact Great Basin Federal Credit Union for your mortgage needs.