August 18th, 2017 1:50 AM by Heidi Lawler
As you search for the perfect San Diego mortgage, there may be a few common terms or questions that arise.
Throughout my years of experience in the mortgage industry I have learned that many of my clients often have the same questions when it comes to some of the common terms they are unfamiliar with. These normally include questions about down payments and rate locks.
Below you will find the explanations to a few of these common questions. It is my hope that these explanations help you better understand the mortgage process and help you feel more comfortable as we work together to find the right mortgage for you!
Are there any mortgages that don’t require a down payment?
VA and USDA loans are the true zero down payment mortgage options that you can obtain in the United States. We also offer several loans that provide down payment assistance. The down payment assistance programs allows a zero down as well, without requiring you to be a veteran or live in a rural area. Whether or not these mortgages would be viable options for you will depend on your qualifications.
If you do not qualify for a 100% financed mortgage like a VA, USDA loan or down payment assistance, a Conventional loan could still be a great option for you as it only usually requires 3% as a down payment.
What is a rate lock?
A rate lock is an agreement between you and your lender that is made prior to the closing of your mortgage which allows you to set, or lock in, a certain interest rate. This rate lock is agreed to prior to closing in order to give your lender time to prepare your loan documentation with the set interest rate.
In some cases, borrowers may want to lock in their interest rate well in advance of closing, and in other cases they will wait until the last possible minute. This will vary based on the type of mortgage you are obtaining and the current rates in your area.
Did any of the above information leave you with more questions? Don’t hesitate to ask!
If you are looking for a San Diego mortgage and would like more information, give me a call today at (619) 249-3220! I can’t wait to help you find the perfect mortgage!