Everyone is dreaming of having their own house. Being able to see the result of all sweat, tears, and blood is an overwhelming feeling.
However, it takes a long process. There are a lot of things a person needs to do before being able to have it.
Before acquiring a house, having a mortgage is needed. Yet, finding the right mortgage is challenging.
Finding a mortgage loan is challenging. There are a lot of options that have different offers.
Each mortgage lender offers different options and great deals. Sometimes, it is hard to choose because there are so many choices.
One of the mortgage lenders who provide mortgage loans is New American Funding Mortgage.
As a borrower, it is still your responsibility to check if it is a good company. Although New American Funding is a national mortgage lender for a very long time now, there’s a need to evaluate.
So, what makes a New American Funding Mortgage a suitable lender for many?
What is New American Funding Mortgage?
The New American Funding is a mortgage lender that offers an array of mortgage loan choices. Their options include refinance, purchasing, first-time home buyer loans, and government loans.
They have 200 branches in 31 states and the district of Columbia. They also make everything easier for their borrowers because of their online applications.
The New American Funding is a good choice for a borrower’s first home or refinancing their existing mortgage.
Breakdown of New American Funding’s Scores
In 2019, 19% of New American Funding’s loan was made by their Hispanic customers. On the other hand, 9% of their loans were from their Black borrowers.
Here is the New American Funding’s breakdown of overall scores:
Pros
- The New American Funding uses manual underwriting to be able to evaluate its creditworthiness.
- The New American Funding provides their borrowers an online application for a mortgage, rate quotes, loan tracking, and document uploading.
- There are multiple options for a mortgage. It includes low and no-down-payment loans.
- New American Funding offers fixed and adjustable-rate loans.
- In New American Funding, there is transparency when it comes to the lowest mortgage options.
- They also offer reverse mortgages.
Cons
- New American Funding is not available in some of the states. In particular, New York and Hawaii.
- They don’t disclose the fees unless the person is applying for a mortgage product.
- New American Funding’s mortgage rates are higher than the government-related lenders.
- It is required that the borrowers will receive phone calls and emails to get a rate quote.
Four things in Considering to New American Funding Mortgage Loan
Once a borrower decided or considering applying for a mortgage in New American Funding, there are few things they need:
The Low-Down Payment Options offers Flexibility for First-Time Home Buyers
One of the offers of New American Funding is mortgages for people who want to buy a home. Also, those who need to refinance their current mortgage.
If you are a first-time homebuyer, take an interest in applying for an FHA, VA, or Conventional loan. Right now, the New American Funding offers low-down-payment options.
- FHA Loans is applicable for those people who don’t have strong credit. The down payments start at 3.5% of the price of the house.
- VA Loans offers lower down payment requirements than FHA loans. It starts at 0%, but there are eligibility standards that a borrower needs to acquire this kind of loan.
- Conventional Loans are ideal for people who have more substantial credit. In New America Funding, they have down payment options that can go as low as 3%.
It is essential to know that buyers need to put at least 20% down on their mortgage. If they don’t put 20%, they will likely have to pay for a private mortgage insurance or mortgage insurance premium.
There’s an opportunity to get Equity.
The New American Funding offers a cash-out refinancing option. A cash-out refinancing option applies to those people who want to refinance their home loans.
The qualified person can use his/her Equity in other things, like home renovations.
On the other hand, if someone is replacing their old mortgage, it can be different. There are various terms and rates for this.
New American Funding said that a person is limited in accessing 80% to 90% of their home equity.
On the contrary, when the person is at least 62 years old, they are eligible for a reverse mortgage. In a reverse mortgage, the lender will send monthly payments.
However, there are conditions. The person needs to stay in the home and stay updated on their bills. The bills are insurance, property taxes, and homeowner association fees.
Borrowers have to Agree to be Notified by Phone Calls and Emails for a Rate Quote.
It is required to fill out an online form or call a lender to get a New American Funding’s rate quote. The online form is direct to the point.
A borrower has to agree in terms of receiving phone calls and emails to get their rate quote.
Most people look at this as not a big deal. However, some people do not like this kind of condition, and they wanted to experience all-digital events.
On the contrary, people who want an in-person experience have different branches located in 31 states applicable for them. These people can look it up on the internet if there are closer branches for them.
Their website is rich with resources and education.
The New American Funding spreads education and awareness to their customers and potential ones. They educate them by providing knowledge on their website.
The information they included on their website helps their customers understand lending, buying a house, and others.
People can also see their company’s daily mortgage interest rates. Most of them are lower rates. Still, keep in mind that there are qualifications to meet.
Their website also included a mortgage calculator that will help their customers in calculating their mortgages. There’s also a regular market update that emphasizes the trends in home loans.
What Kind of People is Perfect for New American Funding Mortgage Loan?
New American Funding is perfect for people who prefer in-person interaction in the process of a loan application. There are many branches in the U.S., and it requires people to talk with a loan officer to get a rate quote.
On the other hand, their website is filled with educational information that can provide them knowledge about the mortgage process.
For first-time homebuyers, New American Funding low-down-payment options are the best for them.
Additionally, if a person wants a customized mortgage term, the New American’s “I Can Mortgage” is perfect for them. A customized mortgage term is other than a 15-year or 30-year period.
Also, this plan gives people the decision to choose their term. It means you’re free to choose between eight to 30 years. It also gives people flexibility for their monthly payments.
Moreover, New American Funding offers adjustable-rate mortgages. It is also good to consider New American if a customer wants to pull money out of their house.
It can happen through cash-out refinancing or reverse mortgage. However, if the customer prefers a home equity line of credit or home equity loan, they must look elsewhere.
How to Apply for a New American Funding Mortgage?
Everyone can apply for a New American Funding Mortgage by filling out a form, calling, or visiting their branch. You can also gain a rate quote in these ways.
The online application of New American is straightforward. Essential information such as phone numbers and email addresses is needed in submitting one’s application.
Customers are also required to meet specific qualifications depending on the type of loan they want. For example, the mortgage provider said it is necessary to have a FICO credit score of 620 to have a conventional loan.
Some things can affect the amount they got approved to borrow or the rate. It can be affected by a high debt-to-income ratio, foreclosures, or a history of bankruptcy.
Final Thoughts
One of the essential things to consider in choosing their mortgage lender is to understand everything. They have to understand what the loan will cost; they need and want to have their mortgage.
At New American Funding, there are many reasonable offers and options for people who want to have their first home. Not just for them but also for those who are looking for a mortgage.
Educating yourself about the long process and all the essential things to know is necessary. It is better to know the circumstances to understand what is happening during the application.
Still, it is your decision if New American is perfect for you or not. That’s why it is essential to evaluate each company.
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