As a Lakeville first time home buyer loan officer, we are here to help you secure a loan. Whenever you want to buy a house, one of the best things you can do is contact a local mortgage company and talk to a mortgage lender like the Minnesota Mortgage Guy. With mortgage lending, you’ll be in position to get the funding necessary to buy a home. Like all other types of services, it’s important to evaluate your needs as well as the lender that you are working with. You’ll want to make sure that the lender offers a variety of lending programs that will accommodate your financial needs. There are several things to consider such as the exact programs offered, the interest rates, the down payment requirements and the credit score you need in order to qualify.
Mortgage lenders offer several loan programs that you can take advantage of. One of the most common programs is the FHA loan. This is a type of financing that is offered through the federal government. With a FHA loan, you can get financing for as little as 3.5% down as well as with a credit score as low as 580. As a result, this loan program is ideal for first time homebuyers and those who have a low credit rating and a limited amount of funding for a down payment.
Another mortgage loan program is the VA loan. This is a financing option which allows you to get a mortgage through the Veteran’s Administration. The best things about this type of loan are that the closing costs are very low and there is no down payment required. As a result, you can get a home with little money up front. However, VA loans are only available to military veterans, servicemen and their families. You can also get a traditional mortgage loan from a mortgage lender as well. This type of loan offers you financing for a house at market interest rates as well as 20% down. These loans are the most commonly available and the ones that most people qualify for. When looking to get a traditional loan, it is important to have a good credit rating and enough funds to put down on the home purchase.
There are some qualifications that you will need to make when you are in the market for a mortgage. These qualifications include credit score, income and the down payment. It is important to keep these things in mind and know the exact requirements whenever you are looking to finance a house. The first thing that you will need to factor in is the down payment. This is an amount that you will need to pay up front in order to get the mortgagee. Most traditional bank loans will require a 20% down payment. However, there are some that may allow you to put between 10% and 15% down. Some programs such as FHA will require as little as 3.5%. When looking to get financing, it will be in your best interest to budget for the down payment.
You’ll also need to consider your income and the necessary qualifications when getting a mortgage. Most lenders will want you to have a debt to income ratio that is no higher than 35%. As a result, your mortgage must be no more than this. In most cases, lenders usually want the mortgage to be no more than one quarter or one fifth of your income.
All lenders who offer mortgages will check your credit and want to evaluate your rating. Therefore, you’ll need to have a certain credit score in order to qualify for a mortgage. To get the best rates, it’s important to have a credit score of 720 or higher. However, some programs will allow you to finance a house with a credit score that’s below 600.
Need help to prequalify for a mortgage loan? We're here to help! Ask us about Lakeville first time home buyer program.