Staten Island Mortgage information and important facts    


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The information below will assist you in learning more about the mortgage process. The mortgage process can be complex, and there are many different types of mortgages available to buyer, and they can change from lender to lender. So research is necessary to make sure you are getting the best deal and service from your lender.

After you find the right house for you, the single most important aspect of your home purchase will be the mortgage loan. This amount will be determined by the sales price and the amount you have available to put down and also pay closing costs.

A lender will analyze your income to determine your ability to repay the loan. The loan can be accomplished by multiple incomes, as in two people purchasing a home together. The general rule of thumb to calculate how much of a payment you can afford is to figure 25-35 percent of your gross income or pre-tax income.

The interest rate, principle amount as well as the taxes and insurance (PITI) will help determine the total monthly payments. Most lenders will include the taxes in their monthly statements. Interest rates are usually determined by the credit score of the purchaser, however, lender do have special incentive discount rates from time to time. The length of a typical loan is 30 years. 15 year loans reduce the time but increase the monthly payments. This type of loan can save a lot of interest payments, if the buyer can afford them. These loans offer security to the borrower as the rate and payment is fixed over the term of the loan.

You also can borrow with an Adjustable Rate Mortgage or (ARM). This is not for the weak-of-heart. The rate can change based on the cost of money to the lender. It helps keep payments low in the beginning, but you must be aware that it can also go up and usually does. Buyers who plan to re-finance quickly might choose this type of loan.

FHA loans are used most often, especially by first time home buyers. They typically are 30 year fixed loans, and the allow for buyers with low down payments or some credit issues to secure a loan with Federal backing.

VA veterans loans fall into the same category as the FHA loans or typical bank loans. They are insured by the Feds, but do have some requirements to be met pertaining to home inspections, lending practices, etc. Unlike the requirement years ago that the seller paid the closing costs of veterans, this is not the case now. Closing expenses are the borrowers responsibility.

First time home buyers in New York, can take advantage of a program known as SNOYMA.
To read more about these loans and requirements please click here.

Shop around for your loan. Don't be afraid to ask questions and to compare one loan to another. Since you will be living with it for many years, make sure to get the best suited to fit your needs and financial circumstances. FHA is still the best way for first time homebuyers to get financing for their home purchase.

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The Real Estate Team
V.I.P. Real Estate, Inc.

           Property of: V.I.P. Real Estate, Inc.
         4212 Hylan Boulevard, Staten Island, NY 10308

4212 Hylan Blouevard
Staten Island, NY 10308
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