If you are considering buying a home, there are a variety of things you should know about your financing options. You need to consider choosing a lender, choosing the right kind of loan, and navigating the application process. Team Couch would be happy to suggest lenders we have used successfully, who have proven themselves competitive and capable even with problem properties or poor credit.
Choosing the Right Lender
Interview several lenders to evaluate the following:
- Ability to explain things clearly and return your phone calls in a reasonable time period
- Competitiveness of interest rates, costs & fees.
- Availability of loan programs that suit your credit profile and desired property
- Access to local loan approval committee that understands the kind of property you are buying
Gather The Information Your Lender Will Need
You should create a Green File for your financial lender. A Green File should contain all of your important financial documents. Regardless of the loan type, lenders will need information about you. Make copies of financial statements; bank accounts, investments, credit cards, auto loans, recent pay stubs and two years’ tax returns.
Choosing the Right Kind of Loan
There are three types of loans that are the most common for financing. These loans are:
- Fixed loan: The fixed rate loan assures your monthly payments will stay the same over the life of the loan, which is typically between 15 and 30 years. Fixed rate loans may be best if you intend to hold the property for a long period of time, say over 7 years.
- ARMs (adjustable rate mortgages): ARM’s may be suitable if you plan to sell or refinance your home within the next few years. The starting interest rate is typically lower than a fixed rate loan, saving you money initially. However, it is important to understand the index, the readjustment interval, the capitalization rate and downside risks of an ARM before making a final decision to use this type of loan.
- Intermediate ARMs: Also called Hybrid Loans, these loans can offer fixed interest rates for the first 3, 5, 7 or 10 years after which the interest rate adjusts with the market every 6 months or year thereafter.
Lenders That Team Couch Recommends
Jake Scott – Germantown, TN
Desoto Mortgage Company
Clay Brown – Southaven Branch
Rachel Eben – Olive Branch, MS
Starla Murphy – Hernando Branch
Eddie Reed – Hernando, MS
Chuck Jackson – Senatobia, MS
Doug Capps – Hernando, MS
Pinnacle Financial Partners
Learn More About Financing Options With A Lender
If this is your first house or your last one, navigating the home buying process can be easy with Team Couch. Let our experienced team guide you through the process. You can always learn more about financing options by clicking here. Or, if you are ready to get started, just contact us today!