Will you use/need a mortgage broker for your mortgage loan for nurses? Just 2 years ago, mortgage brokers started 2/3 of all mortgage loans. Now, this figure is less than half. Mortgage brokers were supposed to be a Godsend to borrowers, since they don’t work for any one bank and were more objective in assessing mortgage rates and terms. They were intended to provide a service that would get you the best mortgage loan at the lowest interest rates, and make it easy to compare rates.

Instead, they often they got referral fees from lenders and sold borrowers more expensive loan packages. Borrowers with lesser credit ratings paid over 5K more on loans that were initiated by a mortgage broker than those who went through a bank.

If mortgage brokers are to survive and provide a useful service, then they will be required to disclose fees and prove that they are representing the client’s best interest. Several banks have cut them out of the process altogether. If you want to use a mortgage broker, make sure the cost of doing so is disclosed in advance.

It’s very possible that mortgage loans for nurses in the future will be adjusted for risk. Extra mortgage fees will be added for what banks perceive as a risk adjustment before lenders will approve a mortgage. Banks and other mortgage lenders want to be able to assess the risk that you won’t pay your mortgage.

30-year-fixed rates for example have higher rates than 15-year-rates because there is greater risk over 30 years that interest rates will rise.  Lenders have already started to assess new fees that depend on your credit score.  As long as your credit score remained high, you get the best rate. For everyone else, there will be a graduated level of risk and fees assessed accordingly.

Credit scores are more important than ever. Mortgage prices may well be similar to insurance rate pricing, in which many factors are figured in. Factors like the amount of your downpayment, job history, your home’s history can all be factored in and considered – anything that could affect the loan repayment.

Borrowers with excellent credit will be favored and helped in this regard, and those borrowers will get better terms on mortgages than before the current financial crisis. Large downpayments often do a lot toward convincing lenders that you aren’t going to risk a default.

Getting a mortgage loan for nurses may be more time consuming than ever. You will be offered a wider assortment of rates and terms to choose from, so it makes sense to take more time considering the mortgage loan options and mortgage advice you get with each one.

First-time home buyers looking for mortgage loans for nurses are often shocked when they see the list of closing fees they must pay when buying their home. Some of these fees are paid to the mortgage lender while others are payable to different parties.

Closing costs are a significant part of purchasing a mortgage loan, and you should budget for them ahead of time. Here are the basics on what you will be expected to pay:

The Application Fee
This fee is charged when you first apply for your mortgage loan and is non-refundable. It covers the mortgage lender’s costs of completing your initial paperwork and perhaps even pre approving you for a certain amount.

Loan Origination Fee
This fee is charged by your lenders to cover all of the administrative costs they incur in processing your loan. It is generally charged as a number of ”points”. One point equals one percent of the amount you borrow. So if you are borrowing $200,000, one point is $2,000.

Interest rates are higher on loans that don’t have points. In addition, sometimes it will make sense to pay extra points to have the interest rate lowered.

Title Insurance
This insurance generally costs several hundred dollars. It is necessary to protect both you and the lender in case the person selling you the home does not legally own it. For instance, there could be a lien on the home or another owner that is not present or aware that the home is being sold.

Appraisal Fee
Your lender will require an appraisal of the home before funding your mortgage. They want to be sure that the house is valued at the price you have agreed to pay. Home appraisals general cost a few hundred dollars.

Home Inspection Fee
This is optional, but almost always a good idea. You’ll need to have this done on your own. You’ll want your new home to be inspected by a licensed home inspector. So that you don’t have any new homeowner surprises, you’ll want to know if there are any major problems with the home before signing the paperwork.

Attorney Fees
If you are hiring an attorney’s services there wil be a fee, usually several hundred dollars.

Homeowners Insurance
Most lenders now ask that you prepay the first year’s homeowners insurance at closing.

Private Mortgage Insurance (PMI)
If your down payment is less than twenty percent of the purchase price you will be required to pay private mortgage insurance (PMI). This insurance protects the lender in the event that you default on the loan, but it is an extra expense that you want to avoid if possible. You’ll be required to prepay a portion of this at your closing.

Prepaid Loan Interest
This cost covers the amount of interest that accrues from the time your mortgage is funded until you make your first payment.

Other Fees
You can most likely expect to see various other fees such as messenger fees, recording fees, and notary fees. These are all common fees that come with the cost of a mortgage.

Mortgage loans for nurses can basically fall into two categories.  There is the more standard option where you simply try to get the best rates and conditions that are available in the marketplace and there are also some state semi-funded programs that will allow nurses more favorable conditions in terms of acquiring a mortgage.

Some individual states have gotten on board to support mortgage loans for nurses. Providing nurses with low-cost mortgages and educational loans may be the key to solving Florida’s nursing shortage. Gov. Jeb Bush has announced a new joint venture between the state and two loan groups designed to do just that.

Under the unique plan, the state will team up with federal mortgage lender Fannie Mae to give nurses increased financing opportunities and more low-cost mortgage loans. The state will also work with the nonprofit Educational Funding of the South Inc., known as Edsouth, to give low-interest college loans to nursing students and professionals.

In Maryland, a bill was proposed to create a program to increase homeownership opportunities for nurses.  It authorizes the Department of Housing and Community Development (DHCD) to dedicate up to $25 million over five years to provide mortgage loans for nurses who are licensed in the State, employed by a hospital, and agree to continue practicing at a hospital for at least three years (assuming work is available).  The loans, which would be provided at an interest rate below the prevailing rate for similar programs, are available for property purchased in priority funding areas and to first-time homebuyers.  The program must be developed in consultation with the Maryland Board of Nursing and relevant professional nursing associations. 

Mortgage Loans For Nurses