Thursday, January 27, 2005

Do You Qualify? 

Buying a home is involved.

Choosing the style of home you want, choosing a location, making an offer, and perhaps a counter offer are all aspects of the process of home buying. A key element to buying a home is having the financial backing to actually purchase the house.

As a REALTORĀ® I can help you determine what kind of loan and how much of a loan you may be qualified for before you visit a mortgage company or bank. You will take a look at the sources of your income. What is your salary? Do you have any other forms of income? What does your job stability look like? If you have not had your position long, why not? Do you already have outstanding loans and other debts?

Also, as a REALTORĀ® I can let you know about the types of loans available.

There are loans insured or guaranteed by a government agency, such as FHA loans and VA loans. FHA loans are insured by the Federal Housing Administration for the full amount of the loan. Interest rates with an FHA loan may be fixed or adjustable. An FHA loan does not require large down payments, which is attractive to buyers who do not have sufficient cash for the down payment and closing costs.

A VA loan is guaranteed to a certain limit determined by the Department of Veteran Affairs. A VA mortgage's interest rates can also be fixed or adjustable. Most military personnel and veterans are eligible for this type of mortgage.

A conventional loan is not insured or guaranteed by a government agency.

They can also have fixed or adjustable interest rates. Most loans of this type require a 5% down payment. Conventional loans are available at most lenders and are usually for a larger amount of money than FHA or VA loans.

By reviewing your income, liabilities, and the type of home you wish to purchase, a REALTORĀ® can help you figure out what type and how much of a loan you may qualify for.

This is only one way I hope to make your home buying experience easier.

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