10 Steps To Home Ownership – Step 6 Get Funding

Posted on January 26, 2011 by JA/LEX Real Estate in Shippensburg homes for sale Shippensburg real estate

10 Steps To Home Ownership – Step 6 Get Funding
Brought to you by: JALEX Real Estate Services

Step 6: Get Funding

Often the cost of real estate financing is routinely greater than the original purchase price of a home (after including interest and closing costs). Because financing is so important, buyers should have as much information as possible regarding mortgage options and costs.

JALEX can provide Shippensburg homebuyers with extensive mortgage information as well as a variety of loan calculators. Local JALEX real estate agents can provide mortgage information, discuss financing options and recommend loan sources.

What kind of loan?

There are many loans available out there from a variety of lenders, but in general, the mortgage you choose will likely be determined by at least several key factors:

• How much down? Loans with 5 percent down or less are available — in fact, loans from major lenders with no money down are still common place.

• If you place less than 20 percent down, lenders will want the mortgage guaranteed by an outside third party such as the Veterans Administration (VA), the Federal Housing Administration (FHA) or a private mortgage insurer (PMI, or private mortgage insurance, is required by lender to protect against any mortgage defaults). Millions of VA, FHA and PMI loans are generated each year.

• How’s your credit? The best rates and terms are only available to those with solid credit. To get the best loans, make a point of paying credit cards, installment payments, rent and mortgage bills in full and on time.

• Are you a first-time buyer? It might seem that “first-time buyer” means someone who has never owned property before, but under most state programs, the term refers to those who have not owned property within the past three years. State-backed first-timer programs often feature smaller down payments and below-market interest rates. For details, speak with your local JALEX real estate agent

How do you get a loan?

To obtain a loan you must complete a written loan application and provide supporting documentation. Specific documents include recent pay stubs, rental checks and tax returns for the past two or three years if you are self-employed. During the prequalification procedure, the loan officer will describe the type of paperwork required.

Where do you get a loan?

Mortgage financing can be obtained from mortgage bankers, mortgage brokers, savings and loan associations, mutual savings banks, commercial banks and credit unions. Your JALEX real estate professional can provide you with information regarding who to call.

Call JALEX for answers to the questions you have regarding buying your home.  477-9326.