The Mortgage Process

Choosing a Loan Program
The first step in securing a NJ mortgage is to contact a mortgage financial expert at Sunquest Funding to help determine what type of New Jersey home mortgage loan is best for you. Some terms and concepts you should have a familiarity with include the following:

• Loan Program - a term that describes whether the New Jersey mortgage interest rates for a particular loan remain fixed or will change, and how long the loan will last.
• Conventional loans - the most common type of New Jersey mortgage loan. With low down payments, private mortgage insurance companies usually insure conventional New Jersey mortgages. Private mortgage insurance adds a relatively small cost to your financing and allows you to buy a house with a lower down payment.
• FHA mortgages - allows low down payments and are insured by the Federal Housing Administration. When obtaining a mortgage, NJ homebuyers can pay a significant up-front mortgage insurance premium at closing, plus an additional annual fee. The one-time mortgage insurance premium and certain closing costs may be financed through the mortgage.
• VA Mortgages - insured by the Veterans Administration, are available to certain members of the U.S. military. If you qualify, this special government benefit to veterans might be a good option for you. Ask your New Jersey mortgage banker at Sunquest Funding for more details.
• Conforming loans - "conform" to the criteria and limits set forth by the largest buyers of loans, Fannie Mae and Freddie Mac.
• Jumbo loans - loans that are bought by different investors. The loan amounts for jumbo loans exceed the conforming guidelines.
• Fixed Rate Loans - have New Jersey mortgage interest rates that can never change for the life of the loan.
• Adjustable Rate Mortgages (ARM) - have features that allow for future interest rate changes. There are many variations of ARMs so be sure to ask your New Jersey mortgage banker at Sunquest Funding to fully explain the features of the loans they offer.
• Home Equity Loans - A fixed rate second mortgage that allows you to do home improvements, consolidate debt or use as purchase money to avoid mortgage insurance.
• Home Equity Line of Credit (HELOC) - A home equity line of credit usually tied to the prime rate for the same purposes as a home equity loan, but with the added flexibility of taking equity out of your home as you need it.

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