First Priority Mortgage, Inc offers special mortgage programs for individuals who meet certain income requirements, who are financing property in certain census tracts, or who meet other special requirements.
Contact a First Priority Mortgage, Inc Consultant to review your personal circumstances.
Lots of people don't even consider buying a home because they're afraid they can't afford it. But for most people, home ownership is within reach - especially with some of the special programs for first-time home buyers. In fact, for many, home ownership is as affordable as renting - in some cases even more affordable. Contact us today to determine your personal best alternatives.
Many home buyers are very worried about their credit. We've even heard one story that an applicant was denied a mortgage because he had returned a rented videotape late!
Of course, that could never happen. However, you can be better prepared if you get a copy of your credit report to review before you apply for your mortgage. That way, if there are any errors you can take steps to correct them before you make your application.
If you have had credit problems, be prepared to discuss them honestly with your Mortgage Consultant -- and come to your application meeting with a written explanation. Responsible mortgage lenders know there can be legitimate reasons for credit problems, such as unemployment, illness or other financial difficulties.
If you had a problem that's been corrected, and your payments have been on time for a year or more, then you may have options. If the answer is not now, we will assist you with making a plan to purchase or refinance in the future.
You must complete a full mortgage application in order to lock in a rate. Contact your First Priority Mortgage, Inc Consultant to discuss your mortgage options with you. He/she will also help you complete the application and lock in a rate if you’re ready. You can begin by completing The Clarity BuilderTM.
Q: Do they really need to know everything about me? [top]
It may seem that way -- but actually all your mortgage lender needs to know about you is your employment and finances, and information about the home your are buying.
However, you will need to provide quite a few details about these topics, and your application process will go much more smoothly if you're prepared. Be sure to ask your Mortgage Consultant what information you'll need to complete your application. Refer to the application checklist to get started.
Q: What is the difference between fixed rate and adjustable rate mortgages? [top]
A fixed rate mortgage is a loan where the principal and interest payment never changes during the life of the loan.
A adjustable rate mortgage is a loan where the interest rate can change periodically. The changes in the interest rate are tied into the market rates that exist at the time the rate is subject to change. They usually offer lower interest rates than fixed rate mortgages, but can adjust upward if interest rates go up. There is a pre-defined cap which defines how high the interest rate can adjust.
Fixed rate mortgages are beneficial to those who are on a fixed income, (adverse to interest rate change) and those who prefer fixed payment schedules.
Adjustable rate mortgages are advantageous for those who do not plan to stay in their home for a long time and those who can financially handle fluctuating payments.
Q: How do Adjustable-Rate Mortgages (ARM) work? [top]
There are many types of adjustable rate mortgages, but all have some common features.
One common feature of adjustable rate mortgages is an interest rate change that occurs after a stipulated number of payments have been made. The interest rate can increase or decrease depending on how the new interest rate is calculated. Typically, the interest rate change is based upon a pre-determined index value and a margin.
If a mortgagor currently has an interest rate that is pending adjustment, the new rate would be calculated by: current index + margin = new rate.
The index (i.e. 1 year Treasury bill) and margin would each be set by the mortgage lender.
The maximum amount the interest rate can change during any adjustment period is usually fixed. This maximum adjustment is called the cap. Adjustable rate mortgages also have a lifetime cap, preventing the interest rate from exceeding a predetermined rate.
Q: What are Fixed Rate Mortgages? [top]
With this type of mortgage your monthly payments for interest and principal never change. Property taxes and homeowners insurance may increase, but generally your monthly payments will be stable.
Fixed-rate mortgages are available for 30 years, 20 years, 15 years and even 10 years. There are also bi-weekly mortgages, which shorten the loan by calling for half the monthly payment every two weeks. (Since there are 52 weeks in a year, you make 26 payments, or 13 months worth, every year.)
Q: What are Adjustable-Rate Mortgages (ARM)? [top]
These loans generally begin with an interest rate that is typically below a comparable fixed rate mortgage, and could allow you to buy a more of a house.
However, the interest rate changes at specified intervals (for example, every year) depending on changing market conditions; if interest rates go up, your monthly mortgage payment will go up, too. However, if rates go down, your mortgage payment may also be reduced.
There are also mortgages that combine aspects of fixed and adjustable rate mortgages - starting at a low fixed-rate for seven to ten years, for example, then adjusting to market conditions. Ask your Mortgage Consultant about these and other special kinds of mortgages that fit your specific financial situation.
Q: What are escrow accounts and how much do I need in my escrow account? [top]
Escrows are payments you make to a bank for the purpose of paying your taxes, real estate insurance, and other payments associated with home ownership i.e. flood insurance, home owner association fee, if applicable. The bank is responsible for the timely disbursement of escrow funds. For example, paying the local county taxes when they are due.
Usually, a mortgage company (i.e. bank) collects funds for placement into the your escrow account with your periodic payment for principal and interest.
It is common practice for mortgage companies to hold an escrow cushion for a mortgagor. The cushion is kept by the mortgage company to assure that if the cost of any escrowed item were to increase in the future, there would be sufficient funds to pay all bills as they come due. There are Federal laws that limit the amount of "cushion" a mortgage lender can work.
Q: What is the status of my new home loan? [top] You can check on the status of your loan by using Current Loan Status, which allows you to track your loan online. Your username and password will be e-mailed to you with directions to access this feature. Current Loan Status is only available to those who have registered with their Mortgage Consultant.
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Equal Housing Lender | Licensed mortgage banker - NYS Banking Department