When you’re ready to buy a home, having a higher down payment can save you money in the long run. If you plan to buy in the near future, setting money aside now for a down payment can only help.
Credit score is a pretty big deal when it comes to buying a home. While you don’t have to have perfect credit to get a mortgage, the higher your credit score, the more choices and better rates you’ll have.
PREPARING TO BUY
A standard rule for lenders is that your monthly housing payment should not take up more than 28 percent of your income. However, home affordability is about more than just how much you can borrow.
THE MORTGAGE PROCESS
Prequalification and pre-approval can boost your confidence and could make house hunting easier – but it’s important to understand the difference between prequalification and pre-approval, and when to do which.
CLOSING ON YOUR HOUSE
Closing is the last step in the home-buying process. Closing happens in a meeting between a combination of the buyer, the buyer’s agent, the seller, the seller’s agent and a closing agent.
Prequalification helps you see how much you might be able to borrow.
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You could qualify for first-time homebuyer benefits even if you’ve owned a home before. There are several programs and benefits that could include low down payment options,Ìýdown payment assistance,Ìýbut your credit score is definitely one factor that lenders consider. You could qualify for aÌý»ÆÉ«¶ÌÊÓƵÌýlocal or state grants and more.
To qualify for mortgage loans that are best suited for first-time homebuyers, there are general requirements that can include,
OurÌýÌýcan work with you to see if you qualify for any first-time homebuyer programs.
Depending on your home-ownership goals, we have a lot of greatÌýmortgage loan options for first-time buyers. Just to name a few, conventional loans can be ideal if you've been saving for a while and have a strong credit score. FHA loans can help if you're looking for a lower down payment option. OurÌýÌýcan also help you determine which mortgage loan would work best for you.
Depending onÌýhow much you canÌýafford,Ìýyour down payment could make a big impact on your monthly mortgage payments. Currently theÌý»ÆÉ«¶ÌÊÓƵÌýaverage down payment is about 11% for a first-time homebuyer. We offer several products that allow an even lower down payment percentage, though you could avoid certain fees associated with mortgages, and lower your monthly payment, by maximizing your down payment. A 20% down payment typically eliminates the addition of private mortgage insurance, or PMI.
You don’t needÌýperfect credit to qualify for a mortgageÌýloan,Ìýbut your credit score is definitely one factor that lenders consider. You could qualify for aÌý»ÆÉ«¶ÌÊÓƵÌýmortgage loan with a credit score as low as 620, but monitoring your credit activity will be important as you prepare to buy a home. The higher your score, the better.
Yes. There is not a specific minimum income to qualify for a mortgage and there are several loan options and programs available that can help makeÌýbuying a home with low incomeÌýpossible.
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