When the time comes to purchase a new home or refinance an existing one, consumers want someone who puts their needs first, rather than focusing on any commission that may be made on the mortgage loan. Uncovering this type of individual isn’t always easy, as those in the mortgage industry are geared to making a sale. They understand what to say to convince a borrower to work with them. For this reason, many potential home buyers or those looking to refinance a loan turn to a Christian lender that shares their values and puts their needs first.
The Christian faith-based mortgage creates a dual relationship with the Christian fellow and has a mutual agreement to help in distress, and some of the common features found are as follows.
Enrolment of membership benefits.
Helping Christian fellows with the bad credits.
Compliance with the country's government laws.
Become part of the respective firm Christian community.
No harsh mortgage conditions, but a mutual legal agreement.
MORTGAGE CONDITIONS & FORECLOSURE POLICY
Conditions are important in the concept of a faith-based mortgage, which will classify the Mortgage to be faith-based or not. In the conventional bank, if foreclosure happens, the house is taken away by the bank, and the payment you paid is gone. Since Mutual mortgage is very customized, it is important to ask the following questions
What are the mortgage conditions? Would it be the same as a conventional mortgage?
What is the policy of Mutual mortgage for foreclosure in an unfortunate event?
If a person loses his or her job and there is no way to pay the mortgage, then ask the Mortgage provider to address the following questions,
If I lose my job and want to get rid of my House and mortgage, What is the policy?
It matters to know the net amount coming out of pocket. If the total mortgage amount is $610K, then the interest I would be paying is $400K approximately with the conventional bank then
How much is the total mortgage amount, including fees and interests?
What will be the interest rate?
INTEREST SAVINGS VS RENTAL SAVINGS
Most conventional banks are allowed to make accelerated bi-weekly and additional yearly payments, saving 5-55% interest. So for the mortgage amount of 610K, the potential interest savings is $280K, approximately at a 3.69% interest rate. About this,
What are the policy for making accelerating and additional payments together?
If there is a monthly rental payment as a part of the mortgage agreement, what is the policy for accelerating and additional payments on top of rental payments?
How much minimum down payment or deposit is required?
How much maximum additional payment is allowed per year?
HISTORY AND REFERENCES
The Faith-based mortgage concept is new, and many institutions recently entered the market. Ask following questions
How long have you been established?
How many mortgage owners as of today do you have with mortgage plans?
Can I get references from your customers?
BEFORE MAKING DECISION
The bottom lines are that the person making a decision should consider a few precautionary measures. If I am buying something, then it is my due diligence that I make the informed and subjective decision-based. Review personal necessity vs. nice to have it; review market conditions, Your job situation and household income, and your opinion on household people, and buy what is needed. If my family can stay in a small property, I do not need to buy a big one, Review and assess rent vs. owning, and many more.
Disclaimer: This information intended for reference only. Please contact respective mortgage operator for more detailed information.