Financing your Home: Insight from Movement Mortgage

The world of financing is ever changing however it doesn’t have to be a scary experience. Working with a knowledgeable loan officer at a reputable company is the first step in the right direction. There are several factors that influence a mortgage loan. The five major factors for qualifying are:

  • credit score,
  • employment and income,
  • type and use of property,
  • down payment and
  • terms of the loan

Credit scores vary depending on how wisely you use your credit. A Lenders use credit scores to determine if you are a safe bet or a risk for a loan. Don’t be surprised if your Lender pulls a different score for you than what you see as we use a different scoring module than one used say for credit cards.

Your employment and income will determine your debt to income ratio. This is the relationship between your gross income, the debt you carry and the new housing payment. Please check with your loan officer to make sure your ratios are fitting in with your desired program.

Type and use of property is also a consideration such as single family home, townhome, condo, duplex, quad and primary residence, second home, or investment. Please make sure to specify your intended purpose for the new home to your loan officer.

Down payment is another big factor for qualifying. The minimum for Conventional is 5%, FHA is 3.5% and VA is 100% financed. The only way to avoid Private Mortgage Insurance (PMI) is with 20% down. PMI can also be removed on certain loans within a few years. Discuss all options with your loan officer.

The final factor is the type of loan you are going for such as fixed, ARM, 30 year, 15 year, etc. So please consider how long you intend to live in the home. Remember the lower the terms the lower the rate, but the higher the monthly payment. Most loans have no pre-payment penalties these days so you can always make extra payments to principal.

Please know that obtaining pre-approval instead of simply being pre-qualified is important when shopping for a home. Sellers will accept a pre-approval more often than a pre-qualification. To get your process started today please feel free to contact me directly at:

Alyson Foy
Movement Mortgage

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