To determine how much house you can afford, many experts agree that people should spend no more than 28 percent of their gross monthly income on housing expenses and no more than 36 percent on total debt -- that includes housing as well as things like student loans, car expenses, and credit card payments. There are many types of home loans offering different terms and rates, some requiring lower down payments than others. Use this [...]
Typically, if you’ve never owned a home, you are considered a first-time home buyer. Additionally, if you have not owned a primary residence for the last three years, you may still be considered a first-time home buyer. There is maximum financing and flexibility for first time homebuyers, with as little as 3% down. FHA loans are very popular for first-time buyers due to low down payment requirements of 3.5%.
Pre-approval allows you to get pre-approved for a specific loan amount prior to finding the home you want to purchase. The loan documents are reviewed, and the lender commits to a specific loan amount. A strong pre-approval can provide an advantage if someone else is interested in the same home simultaneously. Drop us your details online or call us (425-748-9990) to get an accurate pre-approval right away. With your loan pre-approved, you can shop for [...]
Pre-qualification is the method of determining how much money you will be eligible to borrow before the loan application process occurs. A pre-qualification letter does not hold much weight when making an offer on a home. Buyers are strongly encouraged to go thru the pre-approval process.
You can lock or float your interest rate at any time once you are in contract to buy a home and a closing date has been determined. Your loan officer will advise you and discuss options at the appropriate time.
The costs of buying a home will vary depending on things like the price of the home, type of mortgage, and property taxes. Here’s a breakdown of the types of costs to expect: Ernest Money - When you make an offer on a home, you'll need to come up with earnest money to show the seller that you're serious about purchasing the home and can be around 1% to 2% of the purchase price. Down [...]
Initially, there is no fee collected for a pre-approval. Appraisal fees that may apply to your request will be collected if you choose to move forward with your loan.
An escrow account is maintained by the lender to collect funds from the borrower in order to pay the taxes and property insurance due on the loan.
Have a valid SSN and be a legal resident of the US. Have verifiable and steady income. Have a debt-to-income ratio less than 50%. Have a minimum down payment of 3.5% (varies based on credit score). However, the money can be gifted from a family member. The property must be used as your primary residence. The property must be appraised by an FHA-approved appraiser and needs to meet certain standards.
Must pay FHA mortgage insurance - both up-front as part of your closing costs and monthly as part of your monthly payment, paid for the life of the loan. More stringent property requirements – the house must be structurally sound and meet specific standards. If it is a fixer-upper, an FHA loan might not work. Must be your primary residence – FHA loans can not be used for vacation or investment properties. Limited loan size [...]