Buying a home is the largest investment for most Americans, and thereby requires much thought, research and documentation before purchasing. First-time home buyers may not have experience with buying a home, but there are ways to make the experience a more pleasant one. WestWind Homes helps you through the process by giving you as much information as possible. If your question isn’t answered here, contact us. We are ready to help.
Where do I Find a Mortgage Loan?
This is a great place to start! Ginnie Mae recommends that first-time homeowners consult with several lenders before applying formally for a loan. Every lender offers different interest rates and fees, and those can impact your monthly mortgage payment. By shopping with different lenders you can find the best possible deal. Consult different types of financial institutions, including mortgage brokers, credit unions, savings and loans, traditional banks and government lenders.
WestWind Homes has built strong relationships with some of the nations best mortgage companies and financial institutions. Our home investment advisers are highly trained and can assist you in obtaining the best financing package for you. We even offer a Home Buyers Club to help home buyers who may not have been able to get financing with other builders.
How Much Home can I Afford?
When evaluating how much you can afford for your home and mortgage, lenders usually use two rules of thumb:
1. Your maximum monthly mortgage payment should not exceed 28 percent of your gross (pre-tax) income.
2. Your maximum debt load, including your mortgage payment, should not exceed 30 percent of your gross income.
These ratios are typical of those required to secure a conventional mortgage. Lenders will be able to supply details about other types of mortgages, such as FHA or VA loans, which offer more flexible qualification standards. There are many types of mortgages and financial tools available that provide flexibility in interest rates, terms, and down payment requirements.
How Does My Credit Score Fit in?
Your credit score has a big influence on whether you’ll be approved to buy your first home. According to the Home Buying Institute, a score of 620 will usually get you in the door with lenders. But to get the best rates, you’ll probably need a score of at least 740 to qualify. Your credit score will influence the amount of interest you will pay on the loan.
We’ve been helping families with less than perfect get into a new WestWind Home for years. Our Home Buyer’s Club helps our customers with credit issues and gets them into their homes faster than they thought possible. It’s a great way to realize your dream of home ownership.
What's the Difference Between Being Pre-Qualified and Pre-Approved for a Mortgage?
Typically you will first pre-qualify for a mortgage, then get pre-approved before you have found the specific home you wish to purchase. What is the difference?
Pre-qualification: An informal determination by a lender or mortgage broker stating how much mortgage you can afford.
Pre-approval: A guarantee in writing by a lender to grant you a loan up to a specified amount.
WestWind Homes and our preferred have been working with many homebuyers to get the pre-qualified and pre approved for their homes.
How Long Does Your Process Take?
Situations vary depending on a customer’s financial picture. Some individuals are ready to buy homes right away and some need to take time to work on improving credit and other financial issues. Some people find a house they like right away and others take a bit longer. After you meet with a home advisor, you will have a better idea of how long it will be before you are ready to buy a home.
Why Should I Buy When it's Cheaper to Rent?
Homeownership remains cheaper than renting nationally and in all of the 100 largest metro areas. In fact, buying is 38% cheaper than renting now, compared with 35% cheaper than renting one year ago. Why is the gap widening? Two reasons. First, in the past year, the 30-year fixed-rate mortgage rate has fallen from 4.8% to 4.3%. Second, rents have risen faster than prices, excluding foreclosures. Together, these trends have made buying even more affordable versus renting than it was last year. Source: Forbes Magazine Oct.15,2014