Resources    Communities    Mortgages    Helpful Links    Service Providers    Market Reports        JOHN & ED JOHN LYNCH (617) 755-8465 Lynchj@RaveisRe.com EDWARD JOHNSTON (617) 762-4059 JohnstonE@RaveisRe.com JOHNSTON | LYNCH GROUP AT WILLIAM RAVEIS REAL ESTATE Mortgages It is important to understand the mortgage and how it affects your purchase of a home. As a result I have addressed some of the questions that I have heard from my buyers. Why get a pre-approval? The most important reason you should get pre-approved is for yourself. A pre-approval will include a loan officer reviewing all details of an your income, assets, and credit. Then they will provide you with the information you need to better understand what you can afford. Once you have received a pre-approval letter, you can give that letter to your Realtor so they find a home within your financial parameters. What's a credit rating? A credit rating is a scoring system that rates your reliability with financial obligations. The best place to learn more about credit is at www.myFICO.com. What is the difference between loan officers? When looking for a mortgage you will speak with individual loan officers that represent different institutions. The three most common are retail banks, mortgage brokers, and mortgage bankers. Direct bank / credit union - "Retail" These local banks have mortgage products for applicants and can consult you on any question you might have. The rates are from their bank and may or may not have limitations. Many times existing customers can receive extra benefits and discounts. Mortgage Brokers - "Warehouse" A mortgage broker obtains access to dozens if not hundreds of banks and hundreds of mortgage programs from banks in a more warehouse style format. That allows them to shop around for their clients and find you the best program or rate. Mortgage Bankers - "Self Branded Warehouse" The mortgage banker is very much like a mortgage broker but they also can fund mortgages with their own name. As a result they often can make guarantees and approvals on unique mortgage products. Mortgage Programs There are various mortgage programs available to homebuyers. 30 year fixed – An interest rate is assigned to your mortgage for the 30-year life of the mortgage. Adjustable Rate Mortgage (ARM) – A starting interest rate is assigned to your mortgage for a given period of time and subsequently will adjust up or down at a given period thereafter. 7/1 ARM fixed rate for 7 years and then it will adjust each 1 year thereafter. Other examples: 3/1 and 5/1. To learn more about the benefits of one mortgage over another and to get current rates contact a mortgage loan officer. (see Service Providers) You can also go to BankRate.com and read all about the programs.

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