How Can I get Financing to Buy a Home?
You can get financing to buy a home by applying for a mortgage through a reputable financial institution. Before looking for a house what should you do? Click to find out
What is a Mortgage?
A mortgage is a loan that is secured by a property. In return for giving you funds for the purchase, the lender will ask for a guarantee from you to pay back the funds over a determined amount of time at a certain cost. If you default or can no longer pay the loan, the lender will take over as owner of the property.
To get financing to buy a home you will need to provide a lender with the fallowing list of documents:
Types of Mortgages:
It is important to understand the types of mortgages that are available, so you can decide which is the best for you, depending on your credit score, the length of time you expect to own the property, the amount of money available for a down payment and your cash flow.
Fixed Rate Mortgages:
*Determined payment over time
*Interest rate will remain the same for the length of the loan
*Suited for those who plan on staying in their homes for a longer period of time
Adjustable Rate Mortgage (ARM):
*Interest rates will adjust to reflect the market condition
*At the beginning this type of mortgage offers a lower interest rate, and will increase over time
*It is suited for borrowers who may want to sell or refinance early and can afford to make larger monthly payments
FHA Loan:
*Also known as Federal Housing Administration loans.
*Barrowers have to pay mortgage insurance
*These loans are designed for homebuyers who do not have the funds for a 20 percent down payment
*Some features may offer low down payment requirements and use gift funds for down payment and/or closing costs
VA Loan:
*Also none as a Veterans Administration loan, offers benefits to qualified veterans, reservists and their spouses
*These loans offer a 100 percent loan to value with no Mortgage Insurance and no down payment required in most cases
*Other loans may become available, and lending institutions may offer additional loan products.
Now that you know how to get financing to buy a home, it is time to start looking for you NEW HOME click to find your new home
If you would like to get neighborhood information click here.
Sandra E. DeVargas
Licensed Real Estate Salesperson
call or text 716-316-1629
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