Explore Our Collection of Helpful Resources and Expert Tips "
Looking for a mortgage can be a daunting task, but with the right resources and tips, you can make the process much smoother. Whether you're a first-time homebuyer or looking to refinance, there are a few you should keep in mind. In this article, we'll provide you with some helpful advice on how to find the best mortgage lending solutions for your needs.
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Increase Your Purchasing Power
Put your best foot forward and qualify for the most when you
- reduce or consolidate debt
- use less than 30% of approved credit
- do no close accounts or leave no activity but instead use them and pay them off in full possibly every month
- guard your credit score - Most lenders will require 580 minimum, 620 average, and for best interest rates above 700s
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How Much Do I Qualify For?
- a general rule of thumb is that your loan qualification is approximately 5x your yearly income (varies by credit and interest rate)
- debt counts against you so reducing debt will help reach this approximation --- Increase your purchase power
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Loan Terms:
- Understand advantages and disadvantages of
30 year and 15 year loans
second mortgages
fixed rates and adjustable rates
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Types of Mortgages:
Conventional loans allow you to borrow up to a certain amount with a credit score of 620 or higher.
You must have a down payment of at least 3%.
Most conventional loans have 15-year or 30-year terms.
Jumbo mortgages exceed the maximum amount for conventional loans; They require a higher credit score and a down payment of at least 10%.
FHA loans allow a credit score of 500 with a 10% down payment or 580 with a 3.5% down payment.
These loans have a guarantee from the Federal Housing Authority and can be used to fund both home purchases and renovations.
VA Loans, backed by the Veterans Administration, provide zero-down mortgages for eligible veterans, service members, and spouses.
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USDA Loans:
The USDA also has a no-down-payment loan program. To qualify for this type of mortgage, you must buy a home in a rural area.
The USDA mortgage also has maximum income limits depending on your family size and zip code.