| Things to Know about Getting a Loan |
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| Written by admin | |||
| Monday, 21 June 2010 19:01 | |||
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Houses are on sale in this market and loan interest rates are at record lows. I am seeing buyers closing with rates as low as 5% this month!
Before you start searching for a home you should have your loan pre-qualification nailed down. Sellers typically want buyers to be pre-qualified for a loan before they are happy about showing their home. So, plan on getting pre-qualified before you hit the pavement. Getting pre-qualified is usually as easy as calling your lender and getting your credit checked.
Here are some basic things to know about loans:
There are two basic kinds of loans. FHA and Conventional. There are plenty of differences under the surface but practically speaking they are very similar. Their rates are similar, the down payment required is low, and the credit needed to qualify is similar. Here are the specifics:
Interest Rates (As low as 5%) The main thing you want is a great interest rate. Rates for FHA and Conventional loans have been following each other very closely so either way you're going to get a great rate.
Down Payment Conventional requires 5% Down Payment. FHA Requires a 3.5% Down Payment. (If you are eligible for a VA loan you can still get a 0% down loan) (There are a couple of programs that will allow as little as 3% down.)
Credit Score Currently the minimum credit score to get a loan is 620. Get a lender to check your credit. If there is anything that is an issue often times a lender can give good advice on how to get issues cleared up.
Of course, if you have any questions about a loan give me a call and I can get you in touch with a good loan officer that can answer all your questions.
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