Mortgage Center
Mortgage Center
Knowing how much you can afford is the first step in obtaining a loan and searching for a home. To find the right price range, get pre-approved with a lender. Being pre-approved will allow you to have more “bargain power” and save you time by not searching for homes out of your price range. If you would like more information on finding a lender in the Spokane area, we can help. Search for local lenders “here”.
Once you have found a lender that you are comfortable working with, there are a few things to consider when structuring a loan: The length of time that you will be living in your new home and how your income will increase in the coming years when looking for a loan program. These two factors will determine the type of loan as well as the amount you have to use towards a down payment on the home. Wondering what type of loan you should chose?
Types of Loans Made Easy:
Conventional- This loan requires a 20% down payment and generally gives the best interest rate for the traditional home owner. Go to www.freddiemac.com or www.fanniemae.com to view current interest rates.
Subprime- Most subprime loans are given to individuals who have low credit or financial problems. These loans are a higher risk to the lender so the interest rate is higher for the borrower.
FHA- Only a 3.5% down payment is required for insured Federal Housing Commission (FHA) loans. The FHA insures your mortgage so the qualification process is much easier. Fixed-rate, adjustable rate or rehabilitation loans are offered through FHA. If you are a first-time homebuyer, don’t have a lot of money to use toward the down payment, or are worried about qualifying for a loan, than this may be the option for you.
VA- VA loans are available to America’s veterans. A down payment is not required when using a VA loan. The interest rate is typically between .5% and 1% with the advantage of not paying private mortgage insurance.
USDA- The programs offered through USDA are only available in rural areas in towns with a population under 10,000. USDA loans do not require a down payment.
When searching for loan rates? Use our mortgage calculator provided below:
