mortgage questions

[ITE]

Exactly what is envolved in getting a mortgage? I know that there are different types, arm, fixed, etc. what is the difference between all of these? what kind of difficulties would one expect to run into in getting a mortage to build on spec?

[Rich]

If you're building on spec - you'll have a construction loan to begin with. Typically they want 20% down for a homeowner to be the GC.. possibly less for a builder. Then upon completion it can roll over to a mortgage.
Biggest thing is either equity in the property or some other property for collateral. And after that it's how good your credit is.

[geninfo@gmail.com]

you will find general info on how to start getting educated.

Then I suggest you go to a few banks and pick up written info. You may even talk to a rep at the bank but make it clear that you are just getting educated before you make any decisions. I suggest you do not sign on the dotted line the first time you walk in.

If there are mortgage brokers in your area, speak with them also. They represent a lot of lenders and should e knowledgeable about a lot of different products and be in a position to advise you what's best for you.

Again, do your homework and speak to a few people before you pick a lender or a mortgage broker.

Then there is always the internet. Google home mortgages or home financing inyour state. There's a whole load of info at your fingertips. There are tables to calulate how much you can afford, monthly mortgage costs, the cost of the loan over the entire term (amortization table)

Have fun. Good luck.