Financing

How to Find a Lender

There are a number of ways to choose a lender.  You can search online, or get a referral from your REALTOR. When checking online, know that there are 3 main types of lenders- direct lenders, banks and brokers. We at the Franco Team, are happy to help you with a referral to lenders we've worked with in the past and have shown themselves to be highly capable. 

Choosing the Right Lender

Just like any other large purchase, it's good to check with at least 2-3 lenders. Here are a few things to look for: 

• Ability to explain things clearly and return your phone calls in a reasonable time period
• Competitiveness of interest rates, costs & fees.
• Availability of loan programs that suit your credit profile and desired property
• Access to local loan approval committee that understands the kind of property you are buying

Choosing the Right Kind of Loan

Today there are so many types of loans on the market that it would take a while to list them all. Your lender is the best person to help you select a loan program to suit your needs. Below are the three most popular loan types we see in practice. 

1. Fixed loan: The fixed rate loan assures your monthly payments will stay the same over the life of the loan, which is typically between 15 and 30 years. Fixed rate loans may be best if you intend to hold the property for a long period of time, say over 7 years.
2. ARMs (adjustable rate mortgages): ARM’s may be suitable if you plan to sell or refinance your home within the next few years. The starting interest rate is typically lower than a fixed rate loan, saving you money initially. However, it is important to understand the index, the readjustment interval, the capitalization rate and downside risks of an ARM before making a final decision to use this type of loan.
3. First Time Home Buyer, FHA & VA Loans: These are the loan programs for buyers in special circumstances. These programs allow for anything from Zero Down to 3 1/2% down. If you are interested in finding out if you qualify for these services fill out the form below and we'll help you understand your options.