Are you preparing to buy your new home or get a mortgage home loan? Whether you’re already started looking or not sure about where to start, we are here to help you get your dream home.
At Texas Trust Home Loans, we have compiled a comprehensive home buying guide that can help you in your quest for the dream home.
You can’t get a single mortgage that fits-all. To help you evaluate your options, from different affordable lending products to the addition of a co-borrower to your mortgage, we have compiled everything in this post to help you understand your financing options.
- Explore different loan products
- Explore your down payment options
- Learn whether adding a co-borrower helps you out
- Assess if you can qualify for affordable lending discounts
Explore Different Loan Products
When planning to take a mortgage home loan, you do have choices about how do you want to repay your loan.
With a fixed-rate mortgage, your interest rate will remain the same for the period of your mortgage. You’ll get no surprises. Texas Trust Loans offers a 30-year, 25-year, 20-year, 15-year, and 10-year fixed-rate loan programs
- Adjustable Mortgage-Rate:
With an ARM you’ll get a 30-year mortgage with a lower rate which will be fixed for the initial period. However, the interest rate will adjust (typically rise) every year after that initial period ends. The adjustment of the interest rate is dependent on market-rate factors. Although, you’ll know the “worst-case scenario” as there’s a fixed cap that determines the maximum amount that the interest rate can go up every year. Texas Trust Home Loans offers you, ARMs with 5-year (5/1), 7-year (7/1), or 10-year (10/1) fixed periods.
Planning to refinance or sell your home within 5-10 years? Opting for an ARM could save you thousands of dollars.
Explore Your Down Payment Options.
If you have heard that without a minimum 20% down payment you cannot buy a home, it’s just a myth. Although, it’s a fact that putting 20% or more on a down payment will free you from Private Mortgage Insurance (PMI) that most lenders usually want for low down payments. However, borrowers with a steady income and good credit do have the option of down payment of as little as 3-5%, and that allows you to build equity and start investing quickly.
For example, if you have lots of student loans, but you also have an excellent stable career with a steady income (with pay stubs and tax returns for proof), and you pay a considerable amount in your rent – perhaps higher than what your monthly loan payment will be, you might not have the time to save for 20% down. However, your income profile, along with your high rental monthly payments, can indicate to lenders that you can make monthly mortgage payments easily.
Learn Whether Adding a Co-Borrower Helps You Out.
At Texas Trust Loans, many of our clients buy houses along with their spouse, or a family member. It might be beneficial for you if you add a co-borrower, as it may add extra income and assets to the negotiation table. You can even qualify for a jumbo loan with the combined income of you two, as with two incomes in your hands you can efficiently manage higher mortgage payments each month.
Alternatively, there is also a drawback to it as when it comes to credit; lenders are required to take the lower credit score between you two. That means if the credit score of one of you is below the minimum required score of the lender, you won’t qualify for the mortgage, no matter how high the score of the other co-borrower is. It also implies that the lower credit score of the tow will be taken to determine the interest rates on the mortgage. So you don’t need to add a co-borrower to the mortgage if their credit score is significantly low in comparison to yours and you don’t have dire need of their income as instead being positive it can turn out negative for your loan.
Remember, if adding someone to your mortgage home loan doesn’t make a good financial sense, you can only add them to the property’s title.
Assess Whether You Can Qualify for Affordable Lending Discounts.
Presently, there are two mortgage discount offers we like. Fannie Mae’s home ready loan and loan discount subsidized by local banks and national bank branches within your community. These programs offer you discount mostly in the form of credits. That helps you become eligible for more attractive loan pricing. It also means that you can get the rate on the loan you want with less money upfront.
Texas Trust Loan’s advanced technology automatically matches you for the mortgage discounts you can qualify for. We pass the savings directly into your account. Things like your income, location, or the median income in the area you live are required to assess your qualification for the discounts. We have already done the workings to identify those discounts from county to county to determine your qualifications accurately. One thing to remember, those discounts are not only available to first-time homebuyers. They are often also open to refinances and experienced home buyers as well.
For further information, you can visit our website www.texastrustloans.com.