Home Financing Is Easier Than You Think

Dated: 08/15/2019

Views: 153





You saw an online ad for low mortgage rates and decided to apply — just to see if you qualify. Now your phone is buzzing nonstop, and lenders are emailing you about “DTIs” and W-2s. 

The onslaught of financing questions can be baffling when you’re tackling them alone. But it doesn’t have to be that way. 

Looking for some insight to make financing more straightforward? These four tips will get you started:

1. It’s okay to play the field.
Don’t be afraid to apply for several loans with different lenders to compare the terms and rates. You can — and should —  shop around. 

Just be sure to do so within a set time period to avoid multiple credit inquiries

2. Manual underwriting can help you qualify.
Most lenders automate their approval process to speed up transactions. However, if you fall outside conventional requirements, they can’t see your full financial picture. That’s where manual underwriting comes in.

Buyers with concerns about their income or credit should verify that their lender will manually underwrite the loan if needed. 

3. Broaden your prospects with a fixer-upper mortgage. 
Buying a fixer-upper can give you more home at a lower price. Did you know that the Federal Housing Authority (FHA) and Fannie Mae offer loans that will cover the mortgage and necessary home repairs?

4. You don’t need 20% down.
Perhaps the biggest homebuying myth is that you can’t buy without 20% down. But you can. Here’s how:

  • Low Down Payment Options: FHA loans only require 3.5% down with a FICO score of 580 or higher, or 10% down with a score of 500 to 579. 
  • 0% Down Options: Buyers shopping in rural areas may be eligible for a USDA loan with 0% down. For qualified veterans and active-duty military members, VA loans often have no down payment requirement.
  • Buyer Assistance Programs: There are down payment and closing cost assistance programs available to first-time homebuyers. Not a first-timer? Some are also available to those who haven't owned a home in the past three years.    

Mortgage financing can feel overwhelming. But you’re not in it alone.

Reach out today for a referral to a trusted lender to get preapproved for your next home.

Blog author image

Greg Faulkner

I focus primarily on working with clients who want to sell single family residential homes in the greater Jacksonville area. I am particularly well equipped to help those who have a great property but....

Latest Blog Posts

Home Financing Is Easier Than You Think

You saw an online ad for low mortgage rates and decided to apply — just to see if you qualify. Now your phone is buzzing nonstop, and lenders are emailing you about “DTIs” and W.&

Read More

Don't Get Blindsided by Closing Costs

Have you ever decided to buy something, only to find out about additional costs at the end? The last thing you want is to be surprised by unexpected fees – especially at your closing. You

Read More

Don't need it? Then don't pay for it.

You know all those fantastic home features you hear your friends gushing about in their new home? The top-notch school district and Jacuzzi? The spacious third level and even more abundant yard?;

Read More

5 Ways to Use Your Refund Toward a Home

Who doesn’t love getting a tax refund? It’s exciting to know that your bank balance will get a boost. But remember, a refund isn’t a bonus -- it’s your hard-earned,

Read More