Home ownership has, for generations, been described as the American dream. However, home ownership isn’t generally possible without the help of a lender. Home purchase loans make it possible for prospective homeowners to finance the purchase of a property, allowing families to own a property without having to save the entire purchase price first. In fact, common loans currently available make it possible for families moving into a new home while paying as little as 3.5 percent of the home’s selling price up front as a down payment. To make the process go smoothly, there are several things home buyers should consider when buying a home today.
Get Prequalified by a Lender
Before shopping for a property, it’s always a good idea to visit with a lender offering mortgage loans in Houston, Texas. The Loan Officer will evaluate each buyer’s circumstances and outline the mortgage options available. Since there are pros and cons to each option, review the expected costs associated with each type of loan to better understand their differences. Remember that origination fees and other upfront costs vary, so be sure to clarify which loan options are actually the best investment.
Understand What Is Really Needed in a Home
That simply means home buyers need to determine what they really need in a home. Shopping for a home means knowing, for example, how many bedrooms and bathrooms the property must have. It may be tempting to buy more home than is really needed, but that’s probably not the best idea for most buyers. Buying more home than is needed may make it difficult to qualify for the best financing terms available, as lenders loathe to take risks and charge higher rates as their risks increase.
Should Home Buyers Consider Homes that Need Repairs?
While moving into a perfect home is just about everyone’s dream, it may pay to consider purchasing a home that is less than perfect. There are home purchase loans in Houston designed for buyers buying homes that require repairs. The advantage of considering a home needing updating is that consumers are generally able to purchase more home for less money, even considering the need to complete repairs or other updates. If a home in a great area comes on the market, but needs work, discuss the financing options with the Loan Officer before making an offer. The Houston mortgage loans for properties needing repairs, such as an FHA 203(k) loans, may provide a tool for making an excellent investment.
Are Loans Available for Investment Properties?
The short answer is yes, there are mortgages for investment properties available. While finding home loans in Houston, Texas for investment properties may not be as easy as it may have been in the past, Loan Officers are available to discuss the opportunity and determine which financing options would best fit the investor’s needs.
No matter what type of Home Purchase Loans are needed, Houston area lenders are there to help. From minimum down FHA or Fannie Mae Homepath loans to financing investment opportunities, there are plans to meet each type of need.