When the time comes to finance a new home in De Soto LA, one of the first details should be finding the right Mortgage Lender and the right Mortgage Loan product for you. This will make it much easier for you to qualify, and it will help you to save a lot of money over the life of the loan. Before the financial crisis of recent years, there were so many choices that borrowers were often confused by the process. While there may not be as many choices today, it continues to make sense to choose wisely from the limited selection available today.
Before 2007, major banks, insurance carriers and even some corporations that were lending money had their own particular loan packages they promoted to those interested in buying homes. Mortgage brokers and banks often made these funds available to people who wanted to secure a Mortgage Loan on behalf of these investors. The bad thing about this is that not every loan product served the borrowers interests well. The Dodd-Frank Act, also called the Wall Street Reform and Consumer Protection Act, became law in 2010 which put an end to many of these products.
Nowadays, consumers have fewer financial tools to help them achieve their dreams, but each of these is unique in its own way. Whether you are looking for a Mortgage Refinance option, or looking to work with a Mortgage Lender for the first time, you need to understand about those differences.
The federal government wants to encourage homeownership, and one way to do that is through FHA loans. These loans are still provided by banks and mortgage companies like Sun Mortgage Funding, but they require a much lower down payment which makes it possible for low and moderate income borrowers to get into a home of their own.
Fannie Mae and Freddie Mac, which are lending institutions under the conservatorship of the United States federal government, offer home buying loan products that are known as conforming loans. This is the type of loan that most people use when purchasing a home. Because there is little flexibility in the guidelines for underwriting these loans, this is why the term conforming is in the name.
Since armed forces veterans have served our country, the Department of Veterans Affairs guarantee mortgages for those who qualify. This is not to say that the government is acting in the capacity of a lender, but it does mean that it guarantees the loan if the borrower gets in trouble with repayment.