Probably fairly confusing when you read on Seattle Loan Officers that there are mortgage products. You probably thought that getting a mortgage was getting a mortgage – simple as that right? No, it’s not. While it can be simple and pain-free to get a mortgage using a top-rated loan officer, there are a lot of variables (and what we call products) that go into a mortgage.
Mortgage Products AKA Mortgage Options
It’s fairly unlikely that you’ll hear the world “mortgage product” in the consumer/borrower world. It’s a term we use in the mortgage banking industry and it essentially means “mortgage option”. There are options when you get a mortgage, different rates, different financial backers, and different uses of mortgages.
Some people get mortgages to strictly purchase a home. That’s one product. Some people get a mortgage with a low-credit score or a zero-down payment. That’s a different product. Some people purchase a home get the funds to fix it up. That’s a different mortgage product. Some people get a mortgage to rent out that property. That’s another mortgage product.
Does this matter to me? Yes!
As someone who is looking to purchase a home or use a mortgage for some other real estate purpose, you need to know and understand your options. You have the right as a consumer/ borrower to shop around and look at a variety of mortgage products and loan officers! One company may provide you a better rate than another and some companies can provide you certain mortgage products while others can’t.
Certain banks do provide home-improvement loans (AKA the FHA 203K) while others don’t. Other banks may provide certain Freddie Mac products such as the Home Possible Mortgage while other don’t.
Learn More About Your Options
It’s important to have a clear understanding when you’re purchasing a home. Whether it’s your first home or your 100th investment property, you need to have an understanding of what’s going on. By choosing the right loan officer, you can have a clear line of communication to understand what your mortgage options are and how they fit into your overall life and financial plan.