Top 6 Fears about Home Loans
Worried that you can’t qualify to buy a home of your own?
Here are the top 6 fears about getting a home loan (and how to deflate them):
It’s impossible to get low down payment loans.
- FHA down payments are 3.5% and VA is 0%.
- In some areas, 0% down payment USDA loans may be available.
- FNMA and Freddie Mac have 3% down payment programs.
It takes perfect credit to get a loan. If I’ve had a bankruptcy or foreclosure, I definitely can’t qualify.
- Better credit can get you a better rate, but many issues on a credit report can be corrected to improve your score.
- Credit history after bankruptcy or foreclosure is very important, but extenuating circumstances can sometimes allow you to qualify.
- Know your options: speak with a reliable lender who can show you whether you can qualify immediately. If not, they can explain the steps you should take now to qualify as soon as possible. Just a few moments can help you take control of your financial future!
Getting pre-approved is expensive.
- Usually, the only expense to getting pre-approved is the cost of the credit report (~$35).
I should wait to qualify until I find a home.
- It can take weeks to qualify for a mortgage, especially if there are credit issues to be corrected.
- Many buyers believe they can afford a certain monthly payment, but getting pre-qualified with a lender can let you know for sure the actual amount you’ll qualify for.
- When you find the perfect home, the strongest offers include the soonest closing date. Being able to show that you’re pre-qualified and ready to close ASAP will be attractive to sellers.
All lenders are the same.
- Reliable lending professionals will explain the entire process before collecting fees, quote fees up-front, offer competitive loan products, and do what is necessary to get the loan approved and closed at the locked rate and terms.
Adjustable Rate Mortgages are more expensive than fixed rate mortgages.
- Adjustable Rate Mortgages can actually be less expensive than fixed rate mortgages, depending on a buyer’s situation. If you’ll only be in a home for a few years before selling, an ARM loan may result in the least expensive way to finance the property.
- Monthly payments for ARM loans can be slightly higher, but lower interest rates and shorter loan terms can reduce overall cost in the long run.
- An experienced lender can explain the many variables involved and help you decide which type of loan will be best to finance your home purchase, based on your specific situation.
Buyers and Sellers need solid information to make good decisions. Call Sea Scape Properties today for expert advice on how to find your next home and for recommendations on skilled, reliable lenders who can give you real facts to help you understand the best way to finance your next real estate purchase.