The purpose of my post/blog is to provide answers to the three primary financial questions all home buyer's have on their minds when they are considering to start looking for a home. To answer these three questions, I contacted five Lenders I refer Clients to and I asked the following questions; what are the current interest rates ranges? What is the minimum down payment range? What is the lowest credit score acceptable, mid range and highest credit score?
Here is a summary of their responses;
- Current local interest rates range: for a 30 year fixed - 4.750 % to 6.0 %.
- Minimum down payment range: 3.5% to 5.0 %.
- Credit scores ranges: 580 - 680 (average) 681 - 720 (good) 721-740 and above (excellent).
They also provided me with generalization of the three primary loan products using 30 year fixed mortgage;
- VA (must have served in the military), VA certificate (certification is taking the government two months to turn around), minimum credit score 580 or higher, no down payment required, no PMI (private mortgage insurance), plus 1% origination fee, interest rates 4.75% and higher, depending on credit score, debt ratio and other loan requirements may apply.
- FHA, loan amount up to $310,000, minimum credit score 580 or higher, 3.5 % down payment, plus PMI, plus 1% origination fee, no late rent payments in the past 12 months, interest rates from 4.75%, depending on credit score, debt ratio and other loan requirements may apply.
- Conventional, loan amount great than $50,000, minimum credit score 600 or higher, 5.0 % down payment, plus PMI, interest rates from 4.75 %, depending on credit score, debt ratio and other loan requirements may apply.
- Conventional, loan amount great than $100,000, minimum credit score 720 or higher, 20.0 % down payment, no PMI, interest rates from 4.75 % and higher, depending on loan amount, debt ratio and other loan requirements may apply.
Note: all interest rates and requirements are subject to change without notice. Also, all five Lenders have other loan products available.
I hope this information gets you to rethink, that you can buy a home. Columbus home prices are stable and there are a lot of homes to choose from, it really is a great time to buy. Please contact me if you have questions, or you would like for me to refer you to a Lender, to get your mortgage pre-approval started.
Susan Buhr, Broker
PDS Real Estate
614-527-7724
www.pds-realestate.com
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