Let’s face it, unless you win the lotery, most likely you will get a loan to purchase your first home.
Here’s what you need to know!
WHICH LENDER DO I CHOOSE?
This can be tough. Banks, mortgage lenders, online companies, and builder’s “preferred lender partners” all
want your business. So, where do you start? First, ask your real estate agent, or a trusted financial partner for
advice. And, shop around. Interest rates, and fees all vary. Ask for a “Loan estimate sheet” from each lender so
you can compare exact fees. While fees are important, sometimes you pay a little more for a better service.
WHICH LOAN TYPE IS THE BEST FOR ME?
There are so many options!
- Conventional Loan
These loans are not backed by a government
program and can be obtained with a 3% down
payment (mortgage insurance required).Best
for clients with high credit scores! - FHA Loan
Loan backed by the Federal Housing
Administration which requires only a 3.5% down
payment, and can be used for borrowers with
lower credit scores. FHA loans do have “minimum
property requirements” which means that some
repairs may be required in order for the fi nancing
to be approved. Additionally, FHA loans require
mortgage insurance which is typically rolled into
the monthly payment.
3. VA Loan
Loan off ered to veterans, backed by the
VA, and a $0 down payment and no mortgage
interest. There is a one-time funding fee required.
4. USDA Loan
A great option for lower-income borrowers. USDA
opportunities are open to specifi c “rural” locations
and have limits on home values. The home value
limit for Davie, Forsyth, and Davidson Counties is
$398,600. “Rural” locations can be closer than
you think!
5. NC 1st Home Advantage Program
Can be a great option for 1st time borrowers! There
is a 3 or 3.5% down payment required, but the loan
off ers borrowers $15,000 to cover down payment
and closing costs. There are repayment restrictions
if you sell within 15 years.
ACTION ITEMS FOR FUTURE HOMEOWNERS
1. Don’t wait! No matt er when you want to buy, fi nd a trusted advisor or lender partner NOW.
2. Start saving! So much easier said than done.
3. Keep working on your credit score! Every litt le bit helps. Pay your bills on time!
GO DEACS!
*This is a general overview of loan options available in NC. There are many more details, and fees, that apply to each loan.
Berkshire Hathaway HomeServices Carolinas Realty
Tori Boysen
Broker
336-345-3499
tori.boysen@bhhscarolinas.com
www.toriboysen.com
