This quick guide will help explain a few of the buying options along with our video presentation of the home buying process! At Texas Premier Mortgage, we believe everyone can achieve the dream of home ownership with the right guidance and support after all you’re looking for a Team to help you with this process – right? We can assist you no matter what starting point you are at. Striving to make the home loan process as simple and smooth as possible while providing an educational experience is our goal. For over a decade we have helped thousands of home buyers achieve their ultimate goal of home ownership.
To Watch Our Informative Video Go To: https://youtu.be/85ShmghtEtk
This video is informative and has a wealth of knowledge from the upfront process to underwriting and closing!
- FHA Loans
FHA is a common loan with several benefits to new and repeating home buyers. The qualification requirements are easier than other loan options with only a 580 FICO credit score requirement, 3.5% down payment minimum, and flexible qualifications related to employment and income as compared to a conventional loan. They also allow down payment assistance, which is an attractive feature for some borrowers. The down payment can also be gifted from a relative or employer. Texas Premier Mortgage also offers “0” closing costs on these loans and many times can credit money back to cover the remaining closing costs saving you thousands of dollars in upfront costs. - Conventional Loans
Conventional mortgages are best for those who can afford to pay a larger down payment and might have an excellent credit core. They also usually offer better loan terms than FHA with no upfront MI – mortgage insurance to pay to the lender. The down payment mortgage options range from 3% – 5% down payment as a minimum requirement. - USDA Loans
Offer 100% financing and a great option for a specific client and area of purchase. USDA loans are an excellent option for those who want to purchase a home in rural areas which we see on the outside boundaries of major cities, suburbs and other rural smaller communities in Texas. They are available for low income to moderate income borrowers. There are specific limitations on this and specific areas we will help you identify that qualify. There are many ways to structure your loan, so you get in the house for little to no money. - VA Loans
Offer 100% financing for active duty military members and veterans. These loans are the best loans in America with no PMI – private mortgage insurance tacked on the monthly payment. The interest rates are also often lower than most loans. - Jumbo Loans
Any loan that does not meet the conforming or FHA loan limits is considered a jumbo loan over $484,350 effective January 1, 2019. We have a variety of options to choose if your first home is a jumbo mortgage loan.
THE DO’S & DON’TS DURING THE LOAN PROCESS
When starting the pre-approval process, you should not do anything that will have an adverse effect on your loan from this point through your closing date. It may be tempting to start opening credit cards for furniture and other miscellaneous items, but this is the time to keep your financial picture frozen in a stable position until your loan closes. The slightest mistake can cost you thousands of dollars or the ability to obtain financing.
FOR YOUR PRE-APPROVAL TO REMAIN VALID THROUGH THE PROCESS, FOLLOW THESE EASY STEPS:
DO’S:
- Do stay current on your existing accounts.
Any late payments (existing mortgage, cars, credit cards, or anything else) on your credit will cost you dearly and can even keep you from getting financing.
- Do keep using your credit as you normally would.
Now is not the time to start changing any patterns to your normal spending.
- Do call your local mortgage expert.
It’s best to call if you have any questions or concerns before/during the loan approval.
DON’TS:
- Don’t make any changes to your employment.
Quitting or changing jobs within the same company can wreck your entire loan approval.
- Don’t apply for new credit.
No opening new accounts for furniture, appliances, computers, etc. until the loan has closed.
- Don’t pay off collections or charge-off accounts.
This will usually result in lower scores. Do not do this unless we tell you otherwise.
- Don’t make any adjustments or transfers in your assets.
Keep your money where it’s at. No deposits other than payroll.
- Don’t over charge or max out your existing credit cards.
This is a quick way for your credit scores to drop. You want to keep the balance.
- Don’t consolidate your debt to one or two cards.
Again, this could put you over the 30% threshold which would affect your credit scores.
- Don’t close credit card accounts.
Written By: Steve Head, Mortgage Expert, Top Producing Loan Officer, Texas Premier Mortgage
For more information about Texas Home Buyer Education, our loan options and how it may apply to you, please contact us direct at 281-627-4222 or submit the quick quote form on this page. Home Page: Best Houston Mortgage Lender https://www.txpremiermortgage.com
#1 Rated Houston Mortgage Broker serving Houston, Conroe, Katy, Magnolia, The Woodlands, Spring, Kingwood, Sugar Land, Pearland, League City, Richmond, Stafford, Humble, Jersey Village, Cypress, Missouri City and surrounding areas including the entire state of Texas.
