Purchase Mortgage Rates

Written by on January 10, 2012 in New Jersey Mortgage Rates - No comments
Getting A Purchase Mortgage In New Jersey…

Buying a new home is always a big step.  You have to get your finances in order, save for a down payment, search for the perfect house, and make sure you find a neighborhood that’s perfect for you and your family.

In the mortgage business when you buy a new home the loan is often referred to as a “Purchase Mortgage.”  When you speak with a loan officer they will often use this term as it separates your transaction from a refinance mortgage.  Despite the different terminology for refinancing and purchasing, both loans share many similar characterisitcs when it comes to qualifying for one.  There are also a few added criteria when obtaining a purchase mortgage.

Purchase mortgages are similar to refinance mortgages in the following ways:

  • When you apply for a Purchase Mortgage, your credit score is a major factor, just like it is when you are refinancing.  The higher your credit score the more likely you will get approved for the best interest possible.
  • How large is your down payment?  The amount of money you put down on your home will determine the Loan-to-Value, or LTV.  If your LTV is below 80%, meaning you put 20% or more down on your home, it is likely that your mortgage terms, including your rate, will be better than if you only put 5% down.  Also, if you put 20% or more down you can avoid having to pay mortgage insurance.  This alone could save you $100-$200/month.
  • Just like when you apply for a refinance loan, your purchase mortgage application will depend greatly on your Income.  Your income needs to be sufficient enough that you can pay your new mortgage along with any outstanding debt you might have, like car payments, student loans, or credit cards.

Getting a purchase mortgage in New Jersey is not as hard as many make it out to be.  If you have been relatively responsible with your credit and finances, have income that can be documented, and you are organized, the purchase mortgage process can be rather painless.

If you are looking into buying a new home, take some time a get “Pre-Approved” by a reputable mortgage lender.  Realtor’s and home sellers would like to know up-front that you qualify to purchase their home.  Pre-approvals are not difficult to obtain and shouldn’t take more than 72 hours to receive.

If you are interest in getting pre-approved for a purchase mortgage click here or you can complete the form to your right.  Our experienced lending partner will get your approval process started.

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