Nashville Tennessee Mortgage Loans

Are you in the market for a Nashville mortgage? If you are looking to buy a home in Nashville or refinance the one you already own, you will need to find professional guidance. This will include the type of loan you need, the terms of the loan and of course, the rates.

The Basics

The first thing you will want to do is get pre-approved for the loan if you are house shopping. This will allow you to make an offer on a home if you find the one you want to purchase. What is the process for getting pre-approved? First of all, your income will need to be confirmed and your credit score will be checked. This will let the lender know what you qualify for in terms of the amount of the loan.

You will need to give the mortgage company your information, which includes names of the applicants, address, dates of birth and social security numbers. Usually the last two pay stubs for applicants and the two most recent tax returns will suffice for the paperwork. These will be used to determine the amount you qualify for and the interest rate.

Once you receive the pre-approval, you will get a letter stating the amount. This will help immensely when you find the home for which you want to make an offer. Many home owners specify that offers will only be entertained

by those with pre-approval. This keeps them from wasting time with someone who may not be approved for the loan. The Nashville mortgage loan you are applying for will be one of three types.

A conforming loan (conventional loan), a non-conforming loan (sub prime) and a government loan ( VA, FHA or USDA) are the three types. When you apply for a loan with either the FHA or the USDA, your credit score must be at least 620. A loan through the VA will look at 12 to 24 months of your credit before you apply more so than the score at the present. However, this type of loan is only available if you are a current member or a veteran of the armed services who has been honorably discharged.

Nashville mortgage loans are normally from 10 year to 30 year terms. If you do not have a substantial down payment on a conforming loan and the amount financed is above 80% of the cost of the home, you will need to have Private Mortgage Insurance. Once the amount you are paying back falls below the 80% mark, you will no longer be required to keep the insurance.

Foreclosures

Often a foreclosure is a good way to purchase a home if you are not in the market for a new home. The price will usually be considerably lower and the equity in the home is instant. The banks are fairly easy to work with on this type of property because they lose money the longer they hold onto the house.

When considering this type of home for a Nashville mortgage, often the closing costs can be paid by the bank. This means you will not have to have as much money to close.

As you can see, the types of mortgages and their availability depend on certain criteria. However, the process is not nearly as complicated as you may think. The biggest hurdle after you have made the choice of the home you want is the paperwork.