When it comes to buying a new home, one of the most important tasks is finding the right mortgage to meet your specific needs. Loralynne Ball, Senior Vice President at Vandyk Mortgage, has shared some valuable information with us. She suggests meeting with your real estate agent first. A seasoned and experienced agent will walk you through the entire home buying process. Most likely, your agent will suggest that you get pre-approved for a home loan before you ever start looking at properties. Pre-approval means that the lender has pulled your credit score as well as necessary personal information to determine if you will qualify for a loan. A pre-qualification letter does not hold as much merit, as it only means the lender has had a conversation with you about your credit and income without verifying the information. If you do not have a preference or prior experience with a specific lender, your agent will be able to give you a list of reputable mortgage companies with which they have experience and trusted relationships. Once you choose a lender, the pre-approval process begins. This process is important for several reasons. First, you will know the exact amount of the loan for which you will qualify. This gives you and your agent a better idea of your budget and the price range of the homes you will be shown. Pre-approval also gives you more confidence when making an offer, and gives the seller more confidence in considering and accepting an offer.
Maybe you are wondering if you can qualify for a home loan. Lenders take many factors into consideration when choosing the right loan for the right individual. Your mortgage company will not expect you to have a perfect credit score of 800. If you don’t have some type of “hiccup” in your credit history, you are not among the average American. Instead, they will expect you to have a score no lower than 620. Of course, the higher the score is the better. Determining the type of loan which will best suit you is fairly straight forward. The typical loans are VA, FHA, Conventional, and Jumbo. The VA loan is one that is designed for veterans and secured by the government. These loans often require no down payment. The FHA loan is also backed by the government and usually requires a low down payment with less strict requirements than a Conventional loan. A Jumbo loan is any loan over $417,000. Wondering about a down payment? A down payment could range anywhere from 0% to 20% depending on all of the variables that must be taken into consideration. In order to calculate the down payment that will be required for most loans, the lender will look at your credit, capacity, and collateral. This means your credit score, your debt-to-income ratio, and your assets. While interest rates remain low and affordability of home buying is ideal, you may have circumstances that prevent you from qualifying for a mortgage. In this case, most lenders will point you in the right direction, outlining a plan for raising your credit score and getting you on the path to home ownership.
More information about Vandyk Mortgage can be found at www.vandykmortgage.com, and Loralynne Ball can be reached at (954) 512-8838.