3 Types of Mortgages

Buying your first home is not the intimidating ordeal you might think. Although it is likely to be the most expensive thing you'll ever own, the home buying process is much simpler than most people think. Realtors, agents, contracts, home loans, pre-qualification letters, buyer loyalty agreements, sales and purchase agreements and banks are just a few of the many things to consider when starting the process of purchasing a house. Luckily, loan officer Jim DiVietri has teamed up with Expert Village to explain and demystify the seemingly daunting task of qualifying for a home mortgage.

In this free video series, learn how to qualify for a mortgage, how your credit history and credit score factors into getting a mortgage, what documents are needed for a mortgage, and how to choose the best kind of loan for your investments. Get information on the real estate market and how to best utilize your assets with these personal finance lessons. Watch these videos and be well-informed about the process of getting a mortgage.

"The type of plan that is right for you will depend on your personal situation and preference. Most commonly, the type of loans that people obtain are government guaranteed loans or your conventional fixed and ARM rate loans. ARMs are adjustable rate mortgages. Many home buyers try to qualify for the government guaranteed loans, initially, like the FHA and the VA because these loans offer lower down payments and lower interest rates. Fixed rate mortgages are attractive to home buyers who plan to be in their homes for a long period of time. The interest rate remains the same for the life of the loan. The adjustable rate mortgage (ARM) is attractive to home buyers who plan to be in there only 5 to 7 years. The interest rates on this mortgage will fluctuate, but oftentimes, you may get a fixed rate for the 1st, 3rd, 5th or 7th year of the loan and then it fluctuates after that. So, when you are looking for a type of loan, it's best just to decide if you qualify for FHA or VA. Oftentimes, lenders will not bring up the FHA because it's a difficult loan to process, but it has many benefits and could save you a lot of money."