Are you dreaming of buying a home and not sure where to begin? Have you spent hours looking at homes online, browsing Zillow and Realtor? Maybe you’ve even reached out to a realtor to set up a viewing or maybe you’ve seen lots of homes and think you’re ready to buy.
The excitement of looking at homes can sometimes overpower the reality of what it takes to buy a home. The true test of whether or not you’re ready to buy is determined by financing. When you begin to research and discuss financing options, that’s when you are on the path to getting the keys and buying the home of your dreams. There are several types of loans and lenders available, so finding the best one for your financial situation is going to save you a lot of hassle and money in the long run. We can discuss your options with you and work in Houston, Conroe, Humble, Spring, and Sugarland so if you’re considering any of these areas and need to secure financing, don’t hesitate to reach out.
FHA loans are a great way for first time home buyers to secure financing to purchase a home especially if they have less than perfect credit or lack a large down payment. FHA loans are accessible to a wide range of people and are backed by the government so they aren’t as risky as financing offered by private lenders. FHA loans are good for those that might sell their home in the future because the mortgage is assumable. This means that the loan can be transferred to a new buyer upon being sold.
How To Qualify
If you have done any research into funding or lenders, you may have discovered that your financial situation is going to play the biggest role in qualifying you for a loan. Your credit score is very important when discussing finances with a lender so you want to do whatever you can to make sure it’s at the highest it can possibly be. This means reviewing all three of your credit reports and correcting any errors as well as making all payments on time. In order to qualify for an FHA loan your credit score needs to be over 580. You’ll also need a down payment but it’s only 3.5 percent which is a lot less than you would need for other mortgages.
These are the two most important requirements that are needed to qualify for an FHA loan but there are others listed below:
-Social security number
-FHA loan must be used for a primary residence
-Front and back end ratios must fall under specific percentages
-No recent foreclosures or bankruptcy
An FHA loan is fairly easy to qualify for, especially in comparison to a conventional loan so that means there are some stipulations that must be met on the back end. You must have mortgage insurance if you want to secure an FHA loan. The first type of insurance premium is paid in full and the other is a monthly payment.
Call Us Today
There are a lot of obstacles when it comes to purchasing a home and the process can be time-consuming and challenging but that doesn’t mean it can’t also be rewarding and educational. We at Commonwealth Mortgage Corp, want to make sure we are here for you from the first step to the last, so don’t hesitate to reach out today.