calm down, class. Stop throwing paper airplanes. Are we clear now? Open your books to page 72. Today, we go over the story of a mortgage.
no need to take notes. They will be provided.
childhood: 1930-1999
ready mortgage Americans made their debut in the 1930s, but they were not the mortgage we know today. When the first mortgages were put in place, you must have a deposit of at least 50%. They have also implemented with terms of five to seven years with a large balloon payment due at the end of the term of the loan to repay the principal. Foreclosures were common.
it is at this time that the Federal Administration (FHA) housing was created. In order to stimulate the economy during the great depression, the Government created the FHA to offer aspiring homeowners lower of down payments on mortgage loans. It was now possible to get a home loan with as little as 10% down. Qualification standards have also been based on the ability of a person to repay the loan, and the houses had to meet quality standards.
is planning one of the most important changes, FHA made was to set up depreciation for loans. Payments of interest only balloon have been replaced by a plan including the repayment of some of the principal with each payment of interest. Terms of the loan have been extended to the options of 15 years and 30 years later.
after that, not much has happened. New programs and deposit options have been introduced, but the process of obtaining a home loan has remained unchanged over the coming decades. You dressed and took all your documents in the Bank, and if you missed anything, you need to return several times to take care of things.
home loans
in the 190s, things began to change. Mortgage lenders, including the predecessor of Quicken Loans Financial Rock, began to take the digital loan process. 15-plus years, lenders have taken online and telephone applications. You have more to go to the Bank to get a mortgage. You could get a loan in your pajamas. (Is not living the dream?)
things were not yet perfect. You had to gather all your documents from a variety of sources and download it or fax it to the. It is certainly more comfortable, but still, there must be a better way, right?
mortgage ready rocket: The Future Is Now
fast forward until November 2015. At Quicken Loans, we are still obsessed to find a better way. It is in this spirit that we brought you Rocket mortgage.
mortgage rocket is revolutionizing the process we got accustomed to providing approval to refinance or buy a home, or a letter of pre-approval in minutes. The importance of this cannot be underestimated. Standards required by the industry are working overtime in the background while the data you normally have to scrounge for is posted with information authenticated trusted partners. You can obtain your prior approval while standing at the open day or be approved to get out cash to redo the House of your son sitting at a football match. It's a feeling of empowerment.
you no longer have to spend days of collection of documentation. You create an account just, import the information from your income and have one of our trusted partners and pull your own credit. He takes the trouble to the process, removes the tedious search for documentation, and offers you a real and personalized mortgage solution based on your unique financial situation.
that's all. Do not worry. It will not be a test. In fact, if you have any questions, just leave them in the comments section below. Good class!