The home buying process can seem a bit daunting if you don't know where to start. Hell, it can be pretty damn scary when you think about it. The thought of committing a few hundred thousand dollars can keep you away from staking your own claim on the American Dream.
But don't let that deter you. Get some help. Ask questions, and everything will be just fine.
To help with that process, I am developing a series of videos covering many different topics that can clear the air!
With the help of Derek Goss ofCapacity Lending, we go over the main loan types that you will encounter on your home search. Take a look!
There are many different ways to pay for a home, but the main ways are cash or getting a mortgage. Let's talk about a few of the options that are available to you.
A conventional loan is the next best thing to cash. You'll be able to buy any house on the market. No restrictions on the home's condition or location.
An FHA loan gets a big of a bad rap, but it can be an awesome option for first time home buyers or someone with a lower credit score. More on that later. It is a government backed loan and it actually protects the buyer by making sure the home is in "livable condition" before allowing it to be purchased.
AUSDAloan (yes, the same as the label you see on meat) is for homes in rural areas. Another government backed loan that is allowable in areas under a certain population. No urban dwellings here.
The VA loan is for our veterans. So if you served this is a route for you!
What's My Downpayment?
USDA: 0% but in rural area
VA: 0% but be a qualified veteran
Most folks think they need to put 20% down to buy a home, but that's not true! Sure, if you want to avoid PMI (more on that in another video), 20% is the magic number. Truth be told, not everyone has $20,000 to put down on a $100,000 loan amount.
What About My Credit Score?
Conventional: 620 minimum
Your credit is a major determining factor in what loan you can receive, and the rate that you lock in. Conventional and USDA loan are a minimum 620, FHA and VA go down a bit further to a 580. Those numbers DO change from lender to lender, so be sure to shop around. Also, understand that a lender may require more funds, documents, a higher rate, or other items if your score is at the lower end of the spectrum.
I Want To Build Or Buy Land
Land Loan: 10% down, Build within 3 years
Sometimes folks want to live out in the country. A mortgage lender can handle that as well! Capacity Lending has land loans and construction loans for you. There are certain requirements that they have, so be sure to ask your lender those questions that apply to your situation.
There you go, it is simple as that! If you have any questions, please don't hesitate to reach out to Derek or me, leave a comment, share, tweet, Facebook!
Buying a home or investment property doesn't have to be stressful! Even if you encounter "bumps" in the road, the process CAN be fun AND memorable! :)
Communication and keeping you “in the loop” while taking away the small details of worry are my goals in each and every successful transaction. I believe that there is no such thing as being “too detailed” and value every piece of communication by putting those together in your “home-buying puzzle” to find your dream-home. In selling your property, my utmost goal is to give you the marketing of a large company, while taking care of your needs as if you were my sole client. I have access to many options and lenders to evaluate your personal situation to determine the best loan-package possible.
I offer you the “total Real-Estate Experience” in assisting with anything from a traditional single-family home, to multi-family or land investments. I believe that each and every transaction is as different as each and every individual, which is why listening to your goals, wants, needs, is my first priority. From there...together, we will create a plan based upon your individual preferences to meet your goals..whether buying OR selling.
Thinking of selling your home? Feel free to contact me today...(even if you just have questions) and I will gladly put together a broker-price analysis detailing how long homes in your neighborhood are staying on the market (to gauge when you shoud start looking for your next home), and how much they are actually selling for.