Are you in the market for a new home? If so, congratulations! Buying a home is one of the biggest milestones you can achieve in life.
Before you start packing up your belongings, there are a few things you need to do to prepare yourself financially. Here are some tips for financing your new home.
Start Saving For A Down Payment
Saving up for a down payment is one of the first steps towards buying a house. Some homebuyers may be able to get by with no down payment on certain loans, but in most cases, a bank or mortgage firm will want you to bring 20% of the home's value to the closing table.
The larger your down payment is, the lower your monthly home loan payments will be - and the more home you will be able to get. So it’s very important to
start saving early on!
Determine What Type Of Mortgage Is Best For You
No two home loans are alike — nor are home buyers. That's why there are a wide variety of home financing options available. The most common loan types are:
Conventional: Best for borrowers with a solid credit history
Jumbo Loans: Designed to finance large purchases and ideal for consumers with excellent credit
Government-insured: For individuals with poor credit or little money for a down payment
Fixed-rate: Ideal for clients that want the consistency of predictable payments throughout the duration of their loan
Adjustable-rate: For borrowers who don't want to stay in the property for very long and are okay with the risk of bigger payments in the future
You'll need to consider your income, credit score, savings account balance, cash flow situation and home goals carefully before making a final decision on which mortgage is best for you.
Pick The Right Lender
Just as there are a wide range of mortgage types, there are a wide range of home lenders. Do your research and select a home loan professional you can rely on to walk you through the process step-by-step. This will help ensure nothing falls through the cracks, from pre approval to closing day.
Vision Lending Services is our premier home financing partner. We've developed a trusted relationship with them to help thousands of clients buy their new home.
Vision Lending has home loan experts available 7 days a week to answer your questions and help you get your home financed.
Be Aware Of Closing Costs And Fees
Many homebuyers don't realize that home loans come with fees. These vary depending on the lender you select, but there are some home loan costs you can expect:
Appraisal Fee: The cost of having an appraiser survey your home's value for the bank
Origination Fee: The cost your lender charges to prepare your loan (not paid for by the buyer)
Title Search/Escrow Fee: A fee that covers the home buyer's legal and administrative costs associated with transferring home ownership to them
Closing Costs: The total of all closing-related fees, which include attorney's fees, courier charges, recording fees and insurance premiums (specific to each individual state).
A good lender, like Vision Lending, will make it very clear from the start exactly what home loan costs you'll be responsible for.
If this is your year to buy a new home, we hope you find this financing information helpful!
We would love to connect you with
our preferred lender to discuss your options and help you get home financing that works for you. Contact our team today!
