by Steve Ewell
That jingle in your pocket is the sound of front door keys to your new home. Getting serious about purchasing a home starts with two substantial, yet simple, commitments:
Getting connected with a Mortgage Lender who will obtain your credit score and help you understand what amount you qualify for, and then sitting down with your Realtor to discuss the purchasing process.
If you are not working with a lender, ask your Realtor for a recommendation. These local lenders are the experts, who will provide you with the specific details about your credit score and the lending program best suited for you.
For the first time home buyer, or someone who has not owned a home in three years, the Virginia Housing Development Association (VHDA) has just introduced a few exciting programs.
For one of these programs, you must have a credit score of 640 or better and have maximum household income caps.
• Your down payment is 3%; don’t be discouraged, keep reading!
• The rate of your loan will be based on the current interest rate
• These loans have no Mortgage Insurance (MI), AND,
• VHDA will provide the 3% down payment in the form of a grant; a grant you do not have to pay back.
OR, maybe a 30 year fixed Government loan:
• Your down payment is 3.5%
• You will be able to secure a slightly lower interest rate, maybe as low as 3.7%
• These loans DO have Mortgage Insurance (MI), AND
• VHDA will provide the 3.5% down payment in the form of a grant…yes, the same grant you do not have to pay back.
And lastly, FHA has a FHA Plus Program that provides 100% financing and offers a higher maximum household income cap. Find out which program works best for you.
Your Realtor’s advice on where to start should be to contact a lender. Get your credit score then monitor your score. Obtain a free annual report at www.freecreditreport.com. Keep your credit cards below 50% of your limit, and always remember you are scored on credit usage and credit availability. Discuss strategies on how to increase your score, one of which is not to ignore the items negatively impacting your score. There are lending solutions for most every level of home purchase.
Surrounding yourself with a good Realtor, Lender and Settlement agent will get you those front door keys to your new home!
Steve Ewell, Associate Broker
Coldwell Banker Traditions
www.steveewell.com
757-603-2807