Did you know that everyone’s mortgages can be financed through different types of loans? There are several loan programs that have been created over the years to open the doors for home ownership to people of all circumstances. For all you researchers out there; looking at the variety of home loan options is a great way to see what is available and comparing them can help you to see which ones might be the best option for you. However, researching all the loan programs out there is not necessary, our mortgage bankers work with these programs every day and have been for years. By having a conversation with your mortgage banker about your goals, circumstances and type of house you are considering, they can give you the best options available.
Don’t get me wrong, living in an apartment isn’t always terrible; I had access to tennis courts and a well-maintained pool all summer, just a few steps from my front door. But I also had to walk my bag of garbage to the dumpster in the pouring rain, rush home to get my UPS package before the office closed, and deal with loud neighbors, who had weird smells coming from their place. Plus, there are just some things that now, as a homeowner, I’m not willing to give up even for tennis courts and a pool. I thought I’d make a list to share with you! I would love to hear what you have come to enjoy about being a homeowner… leave a comment below.
Long gone are the days requiring 20% down on a house. Thank goodness! Could you imagine the struggle of a generation full of college graduates working entry level jobs trying to stay on top of student loan payments trying to save up tens of thousands of dollars? Homeownership would appear to be a far-off dream that may not be achievable. So how much is needed for a down payment? That depends on what kind of home loan for which you qualify.
For many first-time homebuyers, the biggest obstacles to overcome when buying a house are likely the down payment and credit score. For some, their credit history may not be as established as a mortgage lender would like or it could have become damaged from a series of financial missteps. Credit is a topic for another day; today we are going to focus on the down payment. Let’s be honest with one another, saving money is hard. So, our attention is piqued when we hear things like, “No down payment”. But how true could that statement be?
You may have heard, “it is a good idea to meet with your mortgage banker before house hunting”. If you haven’t, well let me tell you, “it is a good idea to meet with your mortgage banker before house hunting.” Even though I’m writing this from my office, inside one of the largest independent mortgage banks in Kentucky, this tip is not something concocted by mortgage bankers to get you in the door. Getting prequalified can save you some heartache, speed up the process, and could even help get you the house you want!
Did you know that the FHA 203k Loan is a just one renovation loan option? While this loan has helped lots of people turn their current home into their dream home and several others in creating the home they’d been searching for, it isn’t the only option for this kind of lending! We’ve mentioned the option of a HELOC which requires established home equity but we would be remiss if we didn’t mention that there were other mortgage products available outside of the 203k.
As a first-time homebuyer, I was told an escrow account was set up for me. That’s about as far as my knowledge of escrow accounts went—I had one. So, before we start talking about what makes up a 203k Loan Escrow Account, let’s establish what an escrow account is and what it isn’t.
How to Pick a 203k Lender
Is the FHA 203k Loan difficult? Only if you don’t know what you are doing. The 203k has a few more steps than the standard FHA loan but that shouldn’t scare you away because your lender should know the in’s and out’s. Mortgage banks exist to lend money so people can finance their homes, mortgage bankers or loan officers exist to walk you through the process and answer questions along the way. So, when it comes to selecting your FHA 203k Lender being guided by someone who has been through it will prove to be a huge benefit! Think about it by way of illustration; consider the difference between someone who had hiked the Appalachian Trail leading you on the trail versus someone who had read a couple books on the Appalachian Trail but had never been there before. Which would you choose?
Your dream home may be the first home you purchased but for many people this is not the case. For most families it isn’t until they have been homeowners for several years that they consider searching for their dream home. Searching for your dream home is one thing, while finding your dream home is another entirely, especially in this housing market. We have seen an extreme shortage of homes available to purchase. In fact, one of our mortgage bankers has 16 families who have prequalified for homes, they just cannot find one to purchase.
