Lending Options in the Long Beach Island NJ Real Estate Market
Understanding LBI Real Estate Mortgages
Buying Long Beach Island Real Estate
Buying a home in the Long Beach Island real estate market is no small undertaking. With such a significant investment at stake, it is important that every stage of the transaction goes and smoothly as possible. One of the least investigated areas of the LBI real estate market, surprisingly, is mortgages. Many buyers will simply work with one lender who they have used in the past or who was recommended to them without investigating the other options available to them. This can be a costly mistake that will result in a higher LBI real estate ownership cost. Understanding LBI Real Estate Mortgages should be one of the first steps taken in any transaction on Long Beach Island.
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Understanding LBI Real Estate Mortgages
Despite the efforts of housing counselors, real estate agents, lenders and the Consumer Financial Protection Bureau (CFPB), many Americans lack basic knowledge of home loans and the home-buying process. A recent survey by FreeandClear.com, a site that provides mortgage education, found that 20 percent of borrowers think it is impossible to buy a home with a down payment of less than 5 percent. Yet the FHA loan program requires just 3.5 percent, VA loans have no down payment requirement and conventional loans are available with 3 percent down payment options. While this does not really apply much to the LBI real estate market demographic (mostly second homes that usually need at least 20% down) it is a telling statistic to the general lack of knowledge. The primary source of information about home loans, as with most subjects today, is the Internet, with 24 percent of borrowers researching on various sites. However, just 2 percent of borrowers said they learned about home financing from the CFPB. The survey found that 30 percent chose to work with their existing bank and 29 percent chose a lender based on their real estate agent’s referral. As I mentioned above, understanding the options available in the Long Beach Island real estate market can save thousands of dollars over the course of the loan. Borrowers appear to err on the side of caution when borrowing. For more information about buying a home in the LBI real estate market or about understanding LBI real estate mortgages, please do not hesitate to contact me.
By : Nathan Colmer | The Van Dyk Group
Cell: 609-290-4293 | Office: 800-222-0131 | ncolmer@vandykgroup.com
Click here to search all homes for sale in the Long Beach Island NJ real estate market
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