Are you thinking about buying a home but unsure of what the loan process will be like? Let us walk you through the entire thing today.
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It’s easier to get qualified for a mortgage than you think. There are many different kinds of loans you can qualify for, including:
• Conventional loans, which have down payment options from 3.5% to 25%. • FHA loans, which are government-backed loans that require 3.5% down. • VA loans, which require no down payment but do require the buyer to have military service. • USDA loans, which also don’t require down payments, but can only be used in certain locations.
The first thing you want to do if you’re trying to buy a home is reach out to a reputable local lender. If you don’t know one, we can help. We work with some of the top lenders in Colorado Springs.
Next, you’ll need to determine whether you want a fixed-rate or an adjustable-rate mortgage. In my opinion, a fixed rate is usually better because there are no surprises. You will always know what your payment will be. An adjustable rate is risky and can end up leaving you underwater.
“ADJUSTABLE-RATE MORTGAGES ARE PRETTY RISKY.”
Then you’ll have to determine the length of your mortgage. You can do a 15-year, a 30-year, or in some cases, a 20-year term.
Once you’ve decided what loan and terms are right for you, it’s time to fill out a loan application. It will ask you about your monthly income, expenses, account information, and all things financial. A credit score of 640 or above is usually good enough to qualify for any of the above loans.
Finally, you will need to consider the fees, the closing costs, and the interest rates to determine what decision is best.
If you have any questions for us in the meantime or would like us to connect you with a reputable local lender, don’t hesitate to give us a call or send us an email today. We look forward to hearing from you soon.