Financing Options

Why Connecting with a Lender is Important

Connecting with a lender early in your home buying process offers several benefits:

• Preapproval: Getting preapproved for a loan gives you a clear idea of your budget and shows sellers that you’re a serious buyer.

• Expert Advice: Lenders can provide valuable insights into the types of loans you qualify for and help you understand your financial situation.

• Customized Solutions: A good lender will work with you to find a financing option that fits your specific needs and goals.

Types of Financing Options

There are several financing options available for home buyers. Here are the most common types:

1. Conventional Loans: These are traditional loans that are not insured or guaranteed by the federal government. They typically require a higher credit score and a larger down payment. However, if you’re a first-time home buyer with good credit, you may qualify for a 3% down conventional loan.

2. FHA Loans: Insured by the Federal Housing Administration, these loans are popular among first-time home buyers because they allow for lower down payments and more flexible credit requirements.

3. VA Loans: Available to veterans, active-duty service members, and eligible spouses, VA loans offer competitive interest rates and no down payment requirement.

4. USDA Loans: These loans are designed for rural and suburban home buyers and offer low interest rates and no down payment requirement.

5. Jumbo Loans: For homes that exceed the conventional loan limits, jumbo loans are available but typically require a higher credit score and larger down payment.

Additional Financing Considerations

• Interest Rates: Interest rates can significantly impact your monthly payments and the total cost of your loan. Shop around and compare rates from different lenders.

• Loan Terms: The length of your loan term (e.g., 15 years vs. 30 years) will affect your monthly payments and the total interest paid over the life of the loan.

• Down Payment: The size of your down payment can affect your loan approval, interest rate, and whether you need to pay private mortgage insurance (PMI).

• Closing Costs: These are fees associated with finalizing your loan, including appraisal fees, title insurance, and more. Be sure to budget for these additional costs.

Get Our List of Recommended Lenders

To help you navigate the financing process, we’ve compiled a list of trusted lenders who have a proven track record of helping home buyers secure the best financing options. Simply fill out the form below so we know where to send the list