You think you can lower your rate by 2 percentage points or more.
You want to renovate but you need your home equity to do so.
You want to shorten your mortgage term (to pay your home off faster) or extend it out (to lower your monthly payment).
You’ve looked at the closing costs and calculated the break-even point — and everything looks A-OK.
No. Many credit-scoring agencies are forgiving when it comes to borrowers shopping for the best rate. Agencies don't treat all inquiries the same. In fact, mortgage, auto, and student loan inquiries enjoy special treatment because credit scorers know you’re hunting for the best rate. Remember, comparative shopping is always the smartest move to make, especially when you're financing a major purchase like a home.
20 percent: If you can swing it, putting 20% down has its benefits like lower payments, more equity, and no PMI.
10 percent: For an FHA loan, you’ll need 10% and a credit score of 500 to 579.
3.5 percent: If your score is a little higher (580+), 3.5% will do for an FHA loan.
3 percent: A conventional loan owned by Fannie Mae or Freddie Mac requires as little as 3% down.
0 percent: Qualify for a VA loan or a USDA loan? That’ll be zero dollars down, please. High-five!
PMI, FHA, VA, USDA….choosing the right loan and down payment doesn’t have to be confusing. If you’re researching your options and have questions, reach out. I’d love to point you in the right direction!
A pre-approval is valid for about 30-90 days. Be sure to check with your lender, as it may vary.
Conventional mortgage: Loans backed by private lenders rather than the government. You may even qualify with as little as 3% down
Adjustable-rate mortgage: Loans with low initial interest rates that mean big savings early on, but over time the interest rate typically increases.
Fixed-rate mortgages: Loans with predictable payments month after month, year after year.
Government-insured mortgages: FHA loans, USDA loans, and VA loans. These government-insured options make homeownership more accessible if you have less liquid cash or less-than-stellar credit.
Jumbo mortgages: Common in high-cost areas, these loans allow homeowners to borrow more money in expensive zip codes.
If you need guidance or suggestions of awesome loan officers in your area, let me know! I'd love to help.
1. Mortgage pre-approval: Just a bit of paperwork to see what you can and want to spend. It also show sellers you’re a serious buyer once it comes time to write an offer.
2. Shop and make an offer: Work with an agent to search for the home in the location(s) you desire most. Work with you Realtor to make offer sellers can’t refuse!
3. Loan application: Beef up what you started in the pre-approval process to get your loan ready for underwriting.
4. Loan processing: Loan processors review all info provided in your loan file and gather documents about the house for the underwriter.
5. Underwriting: Underwriters are the key decision-makers in the whole process. With everything reviewed, he or she will approve, reject, or come back and ask for additional documentation.
6. Closing: Once you’ve made it to closing, you’re in the home stretch. Documents are approved, and after a few signatures, the house is officially yours!
Want to speak with a lender? Reach out today & lets set you up with a top notch lender!
The BEST thing for you is to find a Realtor that you can trust to guide you with the education, tools and professionals needed to make the best decision for you, now or in the future!
Not in Massachusetts? Reach out and let me help you find a trusted agent in your area!