First Trust Financial

Are You In The Market for a Mortgage?

Buying a home is a complex process that demands research, time, and a trusted lender. Find out how you can make the process go smoothly and efficiently by clicking through the links below.

• Check out this article from Moving.com to learn more about adjustable-rate mortgages and whether they’re the right loan option for you.
• If you need help finding a qualified and thorough home inspector, read through this article from Realtor.com to find helpful tips.
• Explore this article to learn about how your credit rating affects your mortgage rates. You’ll also find an easy-to-read chart on which rates you can expect to receive based on your credit rating.
• The first step every prospective homeowner should take is to get preapproved for a loan. Find out about the many ways you can benefit from mortgage preapproval by reading through this article.
• Visit the Federal Trade Commission online to learn more about how your credit score is configured.  

To pursue mortgage financing for your next home, call First Trust Financial at (888) 418-9346 today.

Buying a Home? Budget for These Closing Costs

Many people only look at the cost of the home when budgeting to buy, but in reality, there are many other costs associated with buying a home. To find out what you’ll need to budget for beyond a down payment on the home mortgage, keep reading.

Loan Origination Fee
The loan origination fee covers the administrative expenses incurred while your lender set up and processed your loan. Sometimes, this fee is a percentage of the mortgage amount.

Appraisal Costs
Before your loan can be finalized, the home will need to be appraised by a professional appraiser. In some cases, this fee is asked for at the time the application is submitted. Other times, the appraisal costs are included in the closing costs. Ask your lender beforehand so won’t be surprised by an unexpected bill.

Home Inspection Costs

A home inspection in not always required, but it benefits the buyer greatly. A home inspection can detect any leaks, building code violations, and potential problems that the home might have. Hiring a home inspector can save you thousands of dollars or more, so save up to cover this cost.  

Fee for Running the Credit Report
Your lender will run your credit report to determine your rating, which will determine whether you’re qualified for a loan and a low interest rate. This relatively minor service costs between $15 and $30, and you’ll need to be prepared to pay this amount when you submit your loan application.

Interest Payment
Most people are surprised to learn they have to pay toward interest on their new loan before the closing date. However, it is common for the buyer to pay interest on the mortgage loan during the time between the closing date and when the first mortgage payment is due.

Escrow Fees
You may also be expected to refund the escrow account if the lender pays the home insurance, property taxes, and any other closing payments out of the escrow account. Generally, this fee is paid at closing.

When you’re financially prepared to purchase a home, call First Trust Financial at (888) 418-9346. We can help you prepare and qualify for the financial support you need to realize your dreams of owning a home.

Fixed-Rate Versus Adjustable Mortgages: Which Is Right for You?

Many first-time homebuyers are intimidated by the home loan process because there are so many different options and steps to consider during application. It is easy to get overwhelmed, but with a little research and help from your lender, you can easily find the right mortgage option for you. Read the following overview to learn about how fixed-rate mortgages differ from adjustable-rate mortgages.

Fixed-Rate Mortgages

Fixed-rate mortgage refers to a home loan option that features a moderate, fixed rate of interest that won’t fluctuate over the term of the mortgage. If you’re buying a home on a tight budget, don’t have a flexible income, or appreciate the reliability of an unchanging payment, a fixed-rate mortgage might make the most sense for you. You may qualify for a lower fixed interest rate if put down 20% upfront. If you’re approved for a fixed-rate mortgage, you’ll receive a set monthly payment—every month—until your loan is completely paid off.

Another way to control the amount you pay each month is to choose the right mortgage term. The 30-year term is the most common because it allows for lower monthly payments. However, the longer the term the more you’ll pay in overall interest fees, regardless of rate. Consider a 15-year term that features higher principal payments, but lower interest payments.

 Adjustable Mortgages

Unlike fixed-rate mortgages, adjustable-rate mortgages are subject to fluctuations each month. As interest rates rise and fall with changes to credit market indexes, so will your monthly payments. This can be risky for those on a tight budget or those with little savings. In some ways, adjustable-rate mortgages are riskier because you can’t control when interest rates will spike. However, many people choose adjustable mortgages because they offer low initial payments and often allow the borrower to qualify for a larger loan.

If you need more advice on which mortgage option is best for you, contact First Trust Financial. We’re a residential and commercial mortgage organization helping people get the financial support they need to pursue their real estate dreams. To learn more about how we can help you, call (888) 418-9346 or visit our website.

Mortgage 101

If the current buyer’s market has you house-hunting for good deal on a new home, it’s important to determine what kind of loan and interest rate you’ll qualify for. But first, check out this video to learn a little about how a mortgage works.

There is a lot of fine print you must read before applying for a loan. In this video, you’ll get a simplified explanation of what a mortgage is, how mortgages work, and what you can expect to pay after qualifying for a mortgage. You’ll also find out that a lot depends on the mortgage term and interest rate. How much is a $200,000 home really going to cost? Find out with this clip.

When you’re ready to apply for a mortgage, call First Trust Financial. We specialize in residential and commercial mortgage transactions, so we can help you get the financial assistance you need. To get started, call us at (888) 418-9346.

Are You Trying to Find the Right Mortgage Loan?

Finding the right mortgage loan to meet your needs is an essential step in becoming a homeowner. You credit score and whom you secure your loan from are key aspects to obtaining a home mortgage loan. These useful resources will help you understand how good credit can affect your home mortgage loan.

•  In this article from The Truth About Mortgage, you can read about both mortgage brokers and bank loan officers. You’ll get a glimpse of the pros and cons of using mortgage brokers or banks.
• Read this article from Financial Uproar to learn more about using a bank loan officer or a mortgage broker for your home mortgage loan.
• Bank Rate offers this article discussing how your credit score can affect your home mortgage loan. In addition, you’ll learn how to evaluate and check your credit report, as well as steps you can take to bolster your credit score.
• To learn more about how your credit score affects your home mortgage loan rates and options, check out this article from RateMarketplace.
• This article from Mortgage Loan will help you understand your credit score and will teach you some measures you can take to repair your credit.

In Kansas City, the experienced team of professional mortgage brokers at First Trust Financial can offer competitive interest rates, a wide range of loan programs, and excellent customer service. Call (888) 418-9346 to learn more about First Trust Financial.