Mortgage financing is a very important aspect of buying a home. Once you include interest and closing fees, the cost of real estate funding is often more than the original purchase price. With this said, it is good to gather as much information as possible on different mortgage options and costs available to you.
What type of home loan do I need?
Though there are tons of mortgage options made accessible by different lenders, typically the loan you choose will be determined from a few key factors:
- How much do you plan to put down? There are some loans available with 5 percent down
or less – actually, in recent years, major lenders have financed loans with no money down.
- If you plan on placing a down payment of 20 percent or less, lenders will ask that the mortgage be backed by an outside third party. Some include the Federal Housing Administration (FHA) or the Veterans Administration (VA). Another option is private mortgage insurance (PMI). This is necessary to protect the lender from possible mortgage defaults. Every year, millions of FHA, VA, and PMI loans are generated.
- Do you have a good line of credit? Eligible borrowers with good, solid credit are granted the best terms and rates. If you wish to receive a great loan, make sure you are paying in full and on time all of your installment payments, credit card notices, rent bills, and mortgage bills.
- Is this your first time buying a home? It can sometimes be perceived that “first-time buyer” refers to a person who has never owned property in the past. This is not always true. Under several state programs, this term refers to a person who has not owned any property for the previous three years.
How can I obtain a home loan?
To begin the mortgage process you must fill out a loan application as well as provide all necessary documentation. Some of the documents needed include current paycheck stubs, copies of recent bank statements, and if you are self-employed, tax returns and rental checks from the past two to three years are required. Your loan officer will explain in detail all of the paperwork you need to provide during the prequalification procedure.
Where can I go to get a home loan?
Our team of experienced, Oklahoma loan officers are available to assist you with your future home financing. Customer service and satisfaction is our top priority at Oklahoma Mortgage Bank and our team of professionals understands how challenging the mortgage process can be; therefore, we walk our clients through every step and are absolutely available to answer any questions that may arise. Contact us today about our mortgage programs and let Oklahoma Mortgage Bank turn your home ownership dreams into a reality!