Home Mortgage Loans from Delta Home Loans

The Home Loan Process Explained

The Team at Delta Home Loans are here to assist you in understanding the loan process with our primary goal being to make your buying experience a pleasnat one. 

Each individual home financing loan application has its own circumstances and qualifications, the process is quite simple: a mortgage is a loan made to lend the funds needed to purchase a home.  The loan is an advance of funds in which you repay over a specific period of time.

The Total Cost of your Mortgage

Rate, Points and Fees: The total cost of the mortgage is determined by a number of different factors including the interest rate, discount points.  The expenses that contribute to the const of your loan are express as the annual percentage rate (APR).

• Interest rate is the percentage of your outstanding loan balance that you pay the lender each month as part of the cost of borrowing money.  The interest rate is determined by the overall interest rate environment as well as your credit, income and asset qualifications.
   
• Points or Discount Points are a percentage of the loan amount.  1 point is equal to 1% of the loan amount.  A Discount Point is used to “buy down” your interest rate.  The more Discount Points you pay, the lower your interest rate will be for the term of the loan. Points or Origination is compensation to the lender for the successful completion of the loan.
   
• Loan Fees are fees associated with obtaining the loan and include; the appraisal, processing, underwriting, credit report, tax service, loan documents, flood certification, escrow and title fees.
   
• Monthly payments are generally divided into four parts; interest, principal, property taxes and homeowners insurance (PITI). And for low down payment programs, Mortgage Insurance with helps to protect the lender in the event you fail to repay the mortgage.  This is dependent upon the type of mortgage that is obtained.

Purchase Loan programs we currently specialize in:

• Conventional Fannie Mae and Freddie Mac
• Jumbo and High Balance Conforming
• FHA & VA
• 100% USDA Rural Guarantee home loan for rural communities
• CalPERS and combination FHA CalPERS
• STRS State Teachers Retirement System members
• First Time Home Buyer