Whether you are looking to purchase a home or just land in Harrisburg, Pa, there are points you should understand once you have found the property you want to purchase. Your first task, of course, was to find a reliable and reputable real estate agent. Once that is accomplished, you should explain your situation to them until you find just the right property for you.
Many real estate agents work with specific lenders to acquire your mortgage. The first thing you should know about Harrisburg, PA mortgage loans is that you do not have to use your real estate agent’s recommended lender. The next thing you should know is the difference between mortgage lenders and mortgage brokers.
Mortgage lenders are firms that loan you the money directly. They have loan programs that are approved by their board and you must meet the credit criteria that they set. If you do not meet this criterion you will not be granted the loan. Lenders also do not always participate in all of the loan programs that are available in Harrisburg, PA.
A mortgage broker, on the other hand, works with a variety of lenders and strive to get you the best mortgage deal they can based on your individual situation.
What Kinds of Programs Are Available?
Many people are adversely affected by the recession that occurred in the last decade. People had their homes foreclosed and many people had to declare bankruptcy. Many others simply ended up with low credit ratings and can’t qualify for loans from traditional lenders. The good news is that there are many lenders out there that have devised programs for people in these situations.
This is where a mortgage broker can help you. Instead of having individual lenders run your credit, your broker can run it once and bring the results to the various lenders they work with. Though Pennsylvania has banned loans without income verification they do allow lenders to devise programs to loan good, hardworking people with bad credit, prior bankruptcy or a prior foreclosure, to get a mortgage. In other words, you are not alone and all is not lost.
If you have not been able to save sufficient funds to meet the down payment requirements, a mortgage broker works with lenders that will be able to give you a mortgage with no money down. That is correct. No money down. Several programs such as VA loans and USDA loans allow you to purchase with no money down, but there are also special programs constructed by lenders to let you purchase the property with no money down.
You can do a rent-to-own agreement, also known as a lease purchase, and use the equity of the rent as your down purchase when the time comes. There are also land contracts, sales agreements, and private mortgages. These are not treated the same as traditional purchases. Sometimes they can be purchased from the owner and have the loan treated as a refinance.
The point is that if you are looking to save money or you have a special situation that you think would preclude you from owning a property, go to a local mortgage broker. You won’t be sorry.