Finance

In most cases you will need to obtain financing, in the form of a mortgage, to purchase a home. Mortgage lenders will examine a number of factors in detail when evaluating your mortgage application, and they will be most concerned with your creditworthiness, credit history, your capacity to repay the loan (income), and collateral (loan-to-value ratio).

A lender can help you understand the different financing options available and can recommend the reputable lenders in Wine Country best suited to your financial position and the property you wish to buy.

There are two basic categories of mortgages: the fixed-rate and the adjustable-rate mortgage. Within these categories, there are many variations.

Fixed-rate mortgage: This type of mortgage begins with a higher initial mortgage payment, with the trade-off that all future payments remain consistent and predictable. The interest rate on the loan does not change, making budgeting and planning for this type of mortgage simpler and less risky.

Adjustable-rate mortgage: This type of mortgage can be attractive because the initial mortgage payments generally start out much lower than those in a FRM. This early benefit comes with the risk of increased and fluctuating later mortgage payments, as the interest rate changes over the course of the loan.

Guild Mortgage Company; Equal Housing Opportunity, Company NMLS #3274 (www.nmlsconsumeraccess.org).Joane Hender NMLS#453286 is authorized to do business in the state of California. Licensed by the Department of Financial Protection and Innovation under the California Residential Mortgage Lending Act. 130 Allison Court Suite D-2, Vacaville, CA 95688. Guild Mortgage is not affiliated with Century 21 or any other featured company. This is a paid advertisement.