As a Farmington first time home buyer loan officer, we help you secure the loan that best fits your situation. Financing a house is one of the most significant financial transactions that you’ll ever make and therefore you’ll need to work with a mortgage lender to help you with the process. Whenever you’re looking to get mortgage lending from a mortgage company, you’ll need to evaluate your financial situation and learn more about mortgages, so you get a house on the most affordable terms. Anytime you look to get a mortgage, you’ll need to keep several things in mind. You’ll need to know about the required down payment, the income qualifications, the terms of the mortgage, your credit score, and also the monthly payment on a 30 year mortgage or a 15 year mortgage. By knowing these things, you’ll be in a better position to find a mortgage that’ll best meet your needs.
The first step in getting a mortgage is to evaluate your financial situation. Since buying a house can be very expensive, it’s important to know about your finances before committing to a mortgage. You’ll want to evaluate your income situation, know your credit score, factor in your current debt such as credit cards, student loans, and auto loans and also find out how much you have available in savings for a down payment, closing costs, and moving expenses. Evaluating your financial situation will help you get a better idea if financing a house is right for you at this time.
Another key step is to find out how much you can afford. While you may want to buy a nice large 5,000 square foot house, you need to keep in mind what you can realistically afford based on your budget, savings and credit rating. When figuring out how much you can afford, you’ll need to factor in a number of things. You’ll need to know your income, your credit rating, the down payment and your current debt to income ratio. These factors will determine how much house that you can afford. Based on these factors, you’ll have a clear picture of what price range you can get.
Once you find out how much you can realistically afford and have a good grasp of your financial situation; you’ll then want to shop around for a mortgage. When shopping for a mortgage, you’ll need to know about the available programs, the interest rates and the types of lenders that you can use.
The programs that you can take advantage of include FHA and VA loans. With an FHA loan, you can get financing from the federal government. An FHA loan will allow you to get a mortgage at a credit score as low as 580 and a down payment as low as 3.5%. This program is ideal for first time homebuyers and those with less than perfect credit.
The VA loan is offered through the Veterans Administration. Those who served in the military or who currently serve are eligible for this financing program. With a VA loan, you’ll have very low closing costs and no down payment required. As a result, this is an ideal financing option if you’re affiliated with the military.
When shopping around for a mortgage, you’ll also want to keep the interest rates in mind. This is a small percentage you’ll need to pay on top of your principal loan balance. It’s important to get the lowest rate possible to make your mortgage payments more affordable.
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