Before you commit to a purchase as large as a home, you should be certain that you’ve chosen a lender that has your best interests in mind. As you speak with various lenders about your upcoming loan, be sure to have these four questions in mind!
One of the most significant choices you will make throughout the homebuying process is selecting a type of mortgage. Keep in mind that a good mortgage lender will act as your advisor in this situation and happily walk you through each of your options in an attempt to help you reach the best choice for your needs and your budget.
Mortgage lenders often prefer down payments of at least 20%-25% to lower their lending risk, but you shouldn’t assume that all lenders will enforce this. You can even find mortgages that only require a 3% down payment with diligence. However, keep in mind that you will likely end up having to opt-in for private mortgage insurance if your down payment is under 20%.
Sometimes, life can make it hard or even impossible to come up with a sizeable enough down payment for a home loan. Quality mortgage lenders will explore all avenues to help bridge this gap in savings, including down payment assistance programs administered by various sources like local and state housing authorities, and sometimes directly through the mortgage lender itself. Lease to own is another option your lender can help you explore if saving for a down payment proves troublesome.
The interest rate a prospective lender is willing to offer should be one of the first things you explore, as it is directly tied to the annual percentage rate (APR) of the loan. Feel free to shop around until you find an APR you are comfortable with!
Clearview Realty helps home buyers in Colorado, Florida and California understand the different types of mortgages that are available and provides loans to help people achieve the dream of homeownership. Since the specifics of which mortgage to choose is dependent on a variety of factors, we encourage you to call us for more information and find out which is right for you. Our number is (720) 217-5731, or you can send us a message.