In a survey conducted by Wells Fargo in June of this year called, “How America Views Homeownership” it was found that, “Americans still view homeownership as an achievement to be proud of and many believe that now is a good time to buy a home.”
Although the majority of Americans have a desire to own their own home, many surveyed gave answers that suggest they may not be aware of all the options available to them for buying a home. There are a wide variety of financing opportunities for potential home buyers, such as down payment assistance, grant programs for down payment, FHA loans, VA loans and physician loan programs. Here are few myths you might not know aren’t true:
- MYTH: 30 percent of respondents believe that only individuals with high incomes can obtain a mortgage.
FACT: You do NOT need high income to qualify, debt to income ratios up to half your gross monthly income are still available with some loan programs.
- MYTH: 64 percent of respondents believe they must have a “very good” credit score to buy a home.
FACT: We closed a loan for a member of our staff last month who had a 613 credit score, old late accounts and collection accounts still on her record. You can get a loan with less than perfect credit!
- MYTH: While 64 percent of respondents said that they are knowledgeable about how much of a down payment is needed to buy a home, nearly half (44 percent) also believe that a 20 percent down payment is required.
FACT: Zero down financing is available through a handful of financing options including an NHF Grant, Rural Housing and VA and you can also get a gift or even borrow 5% or 10% for the down payment on many programs. There are programs that allow you to buy with zero down or low downpayments!
- MYTH: When respondents were asked to list the biggest barriers to owning a home, lacking the funds for a down payment was among the top issues, especially for respondents aged 18-34.
FACT: Down payment will not stop you from buying a home; we have solutions!
- MYTH: Nearly half (44 percent) of the respondents said that they know nothing or very little about the closing costs required for buying a home.
FACT: Although there are many different closing cost structures, typically there is a fee charged to compensate everyone who will work on your loan including: an origination fee for the loan officer, processing fee for the processor, underwriting fee for the underwriter, appraisal fee for the appraiser and title fee for the title/escrow officer closing and title insurance. There are many ways to cover those costs and asking for several closing cost options will help you understand the ways you can pay for them, often times the rate can be adjusted upwards slightly to cover costs on your behalf.
Getting started is easy, we invite you to contact us at 801-747-0200 or by clicking the chat button above and we’ll answer a few questions and describe the solutions we have for you. From there, it’s a 10 minute online application from the comfort of your own home. With that information, we’ll craft a total cost analysis which will outline all of the loan solutions, rates, payments, costs and cash to close scenarios.
We then gather your loan documents and have our pre-underwriter review and issue a full Credit and Income Approval. You will then have a fully underwritten approval that is like a blank check! Find your home and make your offer with complete confidence you have the financing secured for your new home!
We’d be honored to help educate you and finance your new home.
Copyright©2017 Fairway Independent Mortgage Corporation. NMLS#2289. 4801 S. Biltmore Lane, Madison, WI 53718, 1-877-699-0353. All rights reserved. This is not an offer to enter into an agreement. Not all customers will qualify. Information, rates, and programs are subject to change without prior notice. All products are subject to credit and property approval. Not all products are available in all states or for all dollar amounts. Other restrictions and limitations may apply. Fairway is not affiliated with any government agencies. Fairway is required to disclose the following license information. Alaska Mortgage Lender License No. AK2289; Arizona Mortgage Banker License No. 0904162; CA: Licensed by the Department of Business Oversight under the Consumer Finance Lenders Law; Loans made or arranged pursuant to a California Finance Lenders Law License #262571; Illinois Residential Mortgage Licensee No. MB. 0005475; Kansas Licensed Mortgage Company. KS License #MC.0001375; MA Mortgage Broker and Lender License #MC2289"; Minnesota: MN-MO- MN-MO-20183136. This is not an offer to enter into an agreement. Any such offer may only be made in accordance with the requirements of Minn. Stat. Section 47.206 (3) and (4); Mississippi Licensed Mortgage Company; Licensed by the New Hampshire Banking Department Licensed by the NJ Department of Banking and Insurance; Licensed Mortgage Banker-NYS Department of Financial Services; OH MBA License #2289; Oregon Mortgage Lender License ML-3791; Rhode Island Licensed Broker & Lender; VA: NMLS ID # 2289; Washington Consumer Loan Company License No. CL-2289.
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