Let us guide you through the process of obtaining the funds needed to make your dream of owning a home a reality!
The first step in preparing to buy your home is knowing how much you’ll qualify for, so you don’t waste time shopping for homes that are out of your price range. The best way to do this is by reaching out to a mortgage lender for a preapproval. We recommend the following lenders, but you're welcome to use whoever!
Your mortgage lender will assess your financial information including your income, credit, and assets to determine what you can afford.
Once you have chosen the perfect home and are ready to place an offer, you will talk to your mortgage lender about what financing option is best for you. There are many choices such as:
- Cash: if you are planning on making a purchase without needing financing, you will need to provide proof of funds. The easiest way to do this is to request a letter from your bank verifying that you have the necessary funds in your account to complete the transaction.
- Conventional: A conventional loan is not guaranteed by the federal government, meaning that a private lender is willing to make a loan without meeting a set of government requirements. A down payment of 20% is recommended on conventional loans, but you can put down as little as 3%. A down payment of under 20% does require additional insurance to protect the lender.
- FHA: FHA loans are backed by the Federal Housing Administration and allow borrowers to have a lower down payment and lower credit scores. FHA loans do require buyers to adhere to a specific set of requirements for safety when purchasing their home.
- VA: VA loans are a special benefit provided by the Department of Veterans Affairs. As a benefit for being a member of the US Armed Forces (active-duty military members, qualified reservists, eligible members of the National Guard, and qualifying surviving spouses and veterans), VA loans allow buyers to purchase a home with 0% down.
When looking to acquire home financing, it is also important to understand interest rates. Interest rates change frequently and are determined by current market rates and the level of risk the lender takes when loaning you funds. While you cannot change the market trends, you can show your lender that you are a responsible buyer by having a higher credit score and a lower debt to income ratio.
Our team of COSTA REAL ESTATE AGENTS would love to help you determine the value of your current home with a free market evaluation and list it for sale for less commission with a more aggressive marketing plan.
Get Help with Home Financing