Purchasing a home is one of the most complicated and intimidating process that requires lots of research before taking the plunge. We are here to help educate you on the programs, process and requirements of purchasing a new home.
Conventional – Whether it’s your first home, or one of many, a Conventional Loan is always a great option for a qualified borrower.
- Options available with less than 5% down
- Low rates, low fees, and simple loan terms
- No PMI with 20% or more down payment
- Options available with no monthly PMI, as little as 5% down, for well qualified borrowers
FHA – If you are looking to purchase a home, there is a good chance an FHA Loan is right for you. FHA Loans are by far the most helpful program for potential and current American homeowners. With flexible credit qualifications, and low down payment options, FHA Loans make it possible for many Americans to take part in the American Dream of owning their own home.
- 3.5% down options available for purchase
- Great rates and pricing for a variety of qualification ranges.
VA – Here at Handshake Home Loans Inc. we have incredible respect and gratitude for the men and women who served our country. We have listed some of the benefits of a VA loan.
- No Down Payment – Unlike Conventional loans which require a borrower to put a 5-20% down payment and FHA loans which require a minimum 3.5% down, VA loans allow borrowers to obtain the home of their dreams with 100% financing.
- No Private Mortgage Insurance – VA loans are exempt from PMI requirements regardless of down payment or current equity in the home.
- Flexible Credit Standards – Borrowers can typically qualify for VA loans with lower credit scores than those needed for other loan programs due to their relaxed credit requirements.
Find A Realtor. (not required but recommended) They can help you with finding the right house within your budget.
Calculate how much house you can afford. Most Lenders like to see a Debt-to-Income Ratio less than 50%.
Find A Mortgage Broker/Lender and get Pre-Approved. This will give you a good idea of your loan program, interest rate and how much you can afford.
Begin the House Hunt. Use online real estate sites to help you find properties or you can utilize a Real Estate Agent. They are professionals in your area and may have exclusive information on which homes you may like.
Make an Offer on a Property. Once you are ready to make an offer, your agent will compare sales and other data needed to ensure you are presenting a reasonable offer. Then you will have your RE Agent draft up your offer letter and submit it to the Owners of the property.
Start your home appraisal and inspection. An appraisal will give you an estimate on how much your home is worth based on the market. Appraisers will look at the condition of the home and the overall property values in your neighborhood. An inspection will give you a more detailed look at the inside and outside of your property. Inspectors will let you know whether or not repairs will need to be made prior to the sale of the property.
Closing Time! Now that you have passed all the tests, you’re ready to start signing the necessary paperwork to take ownership of your New Home! Make sure you bring your Driver’s ID or some form of Identification. The major disclosure your will receive is the Closing Disclosure (CD). The CD will include information regarding your interest rates, closing costs, etc.
You’ll have to save up a down payment, have a reliable credit score, be able to show proof of income, and have the funds for closing costs. When purchasing a new home it’s always best to work with a professional such as a Real Estate Agent or A Mortgage Broker/Lender.
We hope this post has been helpful in understanding the process of Purchasing a New Home. If you’re ready to take that next step, we can help!
Fill out our online form and get connected with one of our mortgage experts today. They would be happy to answer any questions you have about your home loan options or provide more information on how refinancing could benefit you.
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