How Do I Find Out How Much I Can Borrow?
Just contact Homefinders.com by e-mail, HELP@HOMEFINDERS.COM, or by telephone 800-711-7988. We can do the numbers and give you an estimated qualifying amount for a price range in minutes.
OUR AGENTS ARE EXPERIENCED IN THE NEEDS OF FIRST
TIME HOME BUYERS.
Advise our broker when you first call or e-mail our
office at 800-711-7988, that you are a FIRST
TIME HOME BUYER and we'll make sure that our agent
looks at your needs and the savings available.
OUR HOMEFINDERS.COM AGENTS ARE SKILLED WITH THE
NEEDS OF FIRST TIME HOME BUYERS.
T - - Teach new buyers the market and what their money
will buy.
L - - Lead first time buyers to the best homes and mortgage
types
C - - Coach first time home buyers through the inspections
and settlement.
Agents who specialize in working with home buyers in Montgomery County. Homefinders.com agents are patient and knowledgeable. We'll show you homes in your price range and help you understand how different features of a home will affect the value of a home in the future.
GETTING A HOME LOAN
As a home buyer, you're probably going to be spending many Thousands of Dollars for your home, closing costs, settlement costs, etc. You deserve to know the details of what the money is for and where it goes. Below is a description of the four types of real estate loans available; FHA, VA, Conventional and Jumbo loans.
FHA
This is a popular loan with First Time Home Buyers although the loan is not limited to these buyer. Any home buyer is eligible to obtain an FHA insured loan if they have US income and meet the loan to value criteria to qualify. Generally, you will be eligible for an FHA loan if the mortgage payment does not exceed approximately 30% of your monthly gross income. Higher ratios are permitted if the borrower has little to no consumer debt. These loans are insured by the Federal Housing Administration and permit buyers to finance some of their closing costs, thereby reducing the amount of cash that you need to buy.. Anyone can use the FHA loans but you may have only one FHA loan at a time. Contact a lender or real estate agent to get the current loan limits.
VA
These loans are guaranteed by the Department of Veterans Affairs (VA). Only active duty and military veterans can use this loan. This loan requires no down payment and the seller can pay up to 100% of the buyer's closing costs. The VA mortgage loan is the best loan on the market but limited to eligible borrowers. Loan limits are generally slightly lower than conventional Fannie Mae loan limits. Contact a lender or real estate agent to get the current loan limits.
Conventional Conforming
These loans conform to the Fannie Mae guidelines for eligibility, meaning that, on average, the buyers may devote up to approximately 28% of their before tax income to housing. These loans require a down payment of at least 5%. You can also obtain 100% financing with conventional loans. In exchange for a slightly higher interest rate, the lender will lend you money with no down payment and will even pay your closing costs. The higher interest rates are deductible and are often a good buy for folks with good income, good credit and little cash.
100% Loans
The 100% loans or "Zero" down loans are becoming very popular and as long as the lender is trusted and known to your real estate agent, these loans are helpful in areas where VA and FHA loans are not generally acceptable to sellers or where the loan limits exceed the VA and FHA loan limits. 100% loans make home buying available to home buyers that have little savings.
Jumbo Loans
For loans above Fannie Mae Conventional limit, lenders offer "JUMBO" loans. We work with lenders who specialize in the Jumbo or Portfolio loans for special people like you who are in the luxury home market. You will not have to lift a finger. Our lenders will communicate and process your loan by electronic means or, if you are local, will meet with you at your convenience in your office or home. Loans up to over several million are available and special long lock loans, up to 9 months, are also available. This may be important if you decide to build and it appears that rates may be on the increase. We follow loan programs with long term locks, float-down features, short term locks, fixed, ARMs, no-documentation or low documentation loans, or any type that is best for you.
Get Pre-Qualified
We highly recommended that you get "credit approved" prior to searching for a home. Many real estate agents will not assist buyers with their home search until they are assured by a qualified trusted lender the credit worthiness of a prospective home buyer. This is to your advantage because if there is anything on your credit report that might cause a problem later on in the approval process, the sooner you find that out, the sooner you can make the corrections with the credit reporting services. Your real estate agent can recommend a trusted lender to arrange to have you pre-qualified.
Documents needed for loan approval
Be prepared with basic financial documents when you visit the lender.
2 years Form W-2
3 months bank statements
Employment letters if relocating and if available.
Military Orders if military buyers
2 years tax returns for self employed borrowers
Get ready for an adventure. But, you will not be alone. Homefinders.com will be with you all the way to settlement.
Gaithersburg Real Estate
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