First-Time Homebuyer In Houston? These Loans Are Available For You

10 Houston First-Time Homebuyer Loans & Programs

As a first-time homebuyer, you must be navigating one of the toughest real estate markets in the economy. It’s very hard to find the right house to buy since most people are buying any available houses to flip for profit. On the other end, builders are now focused on high-end homes because of the escalating costs so they can boost their own profits.

The Benefits Of Loan Programs For First-Time Homebuyers

Are you thinking about buying your first home? Well, there are first-time homebuyer programs, loans, and grants available to you. These are financial assistance programs given to qualified buyers, especially if they meet the set income restrictions and have high credit scores. Here are some of the ways you can benefit from these programs.

1. Grants

You might be eligible for a grant to cover costs related to buying a home such as down payment or closing costs.

2. Assistance With Closing Fees

You can get a loan that puts a cap on the total amount you can be charged for closing fees.

3. Deferred Payments

With these loans, you will not be charged interest or be forced to repay the loan until you sell the home or pay off the mortgage.

4. Savings On Interest

Some loan lenders will pay the interest or subsidize it. You can also get help with qualifying for a loan with reduced interest rates.

5. Loan Forgiveness

If you stay in the home for a predetermined period, a portion of your loan will be forgiven.

6. Assistance With Down Payment

With this program, you will put down a small down payment and the lender covers the rest. Also, in some cases, you will not pay the down payment at all.

10 First-Time Homebuyer Loans & Programs

1. FHA Loan Program

It is a loan for buying a home guaranteed by the Federal Housing Administration. It is the best loan program if you have low credit scores and a little amount of money as a down payment.

2. USDA Loan Program

It is a loan program guaranteed 100% by the U.S Dept of Agriculture. It is applicable to low-income loan borrowers in rural areas.

3. VA Loan Program

It is a loan program guaranteed by the U.S Dept of Veteran Affairs. Here, any military personnel will not pay any down payment. It’s also applicable to veterans and their families.

4. Good Neighbor Next Door Buyer Aid Program

It is a program offered by HUD (the U.S Dept of Housing and Urban Development). It is a housing program for people in law enforcement, emergency medical technicians, firefighters, and teachers.

5. Freddie Mac Or Fannie Mae Loans

They are conventional loans that are backed by Freddie Mac or Fannie Mae. They require a 3% down payment. It’s the best loan for people with strong credit.

6. HomePath Ready Buyer Program

Here, you will get 3% assistance with closing costs if you are a first-time homebuyer. To qualify you must complete an educational course and also buy a foreclosed Freddie Mac or Fannie Mae property.

7. Energy Efficient Mortgage Program

It is backed by VA or FHA loan programs. Here, buyers can combine the total cost of energy-efficient upgrades and apply for loan upfront.

8. FHA Section 203 (k) Loans

Here, you can borrow the money needed to pay for any home improvement projects. You will roll the costs into an FHA loan with the primary mortgage.

9. Local First-Time Home Buyer Programs & Grants

Various cities and states offer first-time buyer grants and programs for a down payment on a new home or assistance with closing costs.

10. Native American Direct Loan

It is a program backed by the VA that offers loans to Native American Veterans. They can buy, build, or renovate homes on their federal trust land.

Before making a decision, let one of the experts at The Texas Mortgage Pros help you find out exactly what loan is best for you.  Feel free to contact us or call us today!

Decided To Have A Texas House? Here’s Initial Payment You Should Prepare

The Down Payment You Should Pay When Purchasing A House In Texas

Down payments are initial payments made when buying something under some form of hire purchase This means that a buyer first pays the initial installment, usually the highest amount of money, after which they can pay the rest in intermittent installments. When it comes to purchasing a house, the down payment you set aside is critical.

Lenders consider the amount that you pay upfront to be the stake you’re willing to put on your new home, hence it will influence the loan amount. The down payment also determines the probability of private mortgage insurance (PMI) as a requirement by the lender. As a rule of thumb, most, if not all lenders will require PMI if the downpayment is less than 20% of the house’s value. It also affects the interest quota. Without a doubt, the higher the down payment, the lower the rate of interest.

Evidently, there’s a lot to think about with regards to making down payments when purchasing a new home. Primarily, the amount to pay initially depends on the cost of the home and the loan program you’re working with. Normally, the amount will be anywhere from 5% to 20%, but lenders vary, and so do their percentages. Some key aspects to consider include:

1. The Loan-To-Value Ratio

The initial installment is used by your lender to calculate the loan-to-value ratio (LTV) of the home. This is one of the factors a lender considers in extending a client’s credit. They also look at debt to income ratio as well as personal credit scores in relation to the LTV. This makes the LTV an important consideration when deciding the amount of down payment to make.

The loan to value ratio is the amount you’re obligated to pay after making the first deposit on the house. It is usually represented a percentage, which is, in essence, is the ratio between the principal amount, to be paid in installments at regular intervals and the estimated value of the house. The higher the initial payment, the lower the loan amount, hence the lower the loan-to-value-ratio. In detail, it is calculated as:

loan-to-value (LTV)= Loan amount/appraisal value or purchase price (The lesser amount is used)

Consider the following scenario:

Mr. & Mrs. Smith wish to buy a house whose purchase price is $200,000 while it’s appraised value is $205,000. The former, being lower will be used by the financial institution to decide the loan amount. If Mr. & Mrs. Smith decide to pay a downpayment of $40,000, she needs an additional loan of $160,000 to fulfill the asking price. In this case, the loan to value equation will be:

loan-to-value (LTV)= Loan amount/appraisal value or purchase price so,

LTV= $160,000/$200,000

LTV= 0.8 which in percentage(multiply by 100) is 80%

2. Private Mortgage Insurance (PMI)

As stated before, a down payment of less than 20% requires a backup PMI. This is because the financial institution stands to lose a lot in case you decide to default the loan, having financed an impressive 80% and above of your purchase. With an LTV as high as this, the lender is investing a tremendous amount, and to protect their risk, comes the insurance. Paying PMI, in turn, increases your monthly installment amounts.

Conclusion

Before deciding on the down payment for the property, assess the pros and cons that come with lending institutions. Would you rather pay a private mortgage insurance every month, even without knowing whether you’ll manage to be a homeowner in the long run, or does it make more sense to wait till you have a surmountable amount to pay as a down payment? With these two financial aspects to consider, the ball is in your court.

Before making a decision, let one of the experts at The Texas Mortgage Pros help you find out exactly what loan is best for you.  Feel free to contact us or call us today!

Important Things To Do Before You Purchase A Texas House Part III

What Do You Need To Do To Buy A House In Texas

Part 3

7. Find The Right Home

The initial process of finding the perfect home is to know exactly what you want. Write down your needs and your wants and give them a score on how important they are. This usually includes the size of the yard, the number of rooms, or how close the house is to a school district or your workplace.

Dallas texas brick home bought with assistance paymentsTo refine your search, look for the homes that are advertised online. When you check on the online listings, it will give you an idea of the houses currently available for sale and prescreen the homes in your preferred price range. This will ensure you only visit the homes you are actually interested in.

If you are finding it difficult to find homes that you like, speak to a realtor. Real estate agents are experienced in helping buyers to find homes, and they are knowledgeable about the housing market in your area. They can also assist you when it comes to setting expectations that are realistic and they can keep you confident and motivated when you feel like you will never find a home that you really love.

8. Make An Offer

As soon as you find a home that you see yourself living in, do not hesitate. Your realtor will assist you with the details on how to make an offer. You need to decide on the amount you are prepared to pay. If the market is hot, negotiations may not be an available option, which means you might have to pay for the asking price in order to secure the sale. In a cold market, you may be able to negotiate down to a lower price or specific seller concessions. Ask your realtor for advice when working out each detail of the offer.

Your offer has to state the terms linked to the sale, which needs to include any contingencies. A contingency will mean you can cancel the deal if a circumstance has not been met. This could include an inspection of the house that reveals that the home requires costly and significant repairs.

9. Prepare To Close

The next step is to ensure your mortgage is approved. The lenders you are dealing with might ask for updated or additional documentation. If the pre-approval expired, your lender will probably assess your credit score again.

The lender will then arrange an appraisal. This includes a professional that will evaluate the home and then compare the property to other properties that are similar in that area and then make a decision on the value of the home. This is a process that protects the lender and the buyer from overpaying for a property. You should also arrange for a home inspection during this time.

If the appraisal price is less than what you offered to pay, the seller may need to lower the asking price or you would need to cover the shortfall from your own pocket to close the deal. On approval of your mortgage and every detail is worked out, you are now ready for closing day.

Final Thoughts

Find out what is needed for the closing, and whether you need to pay the down payment in advance. You will usually need your passport or driver’s license, a certified or cashier’s check that covers the closing costs. You might also need to prove that you have insurance along with any other supporting documents.

When it is time to sign off the deal, you need to take your time to read over all the paperwork. Read over everything carefully as this is a really large purchase. From here you will be given the keys and remotes to your house. Enjoy every moment, and feel relieved that your buying process is finally over.

Before making a decision, let one of the experts at The Texas Mortgage Pros help you find out exactly what loan is best for you.  Feel free to contact us or call us today! Click here to go to the first article in this series.

Important Things To Do Before You Purchase A Texas House Part II

What Do You Need To Do To Buy A House In Texas

Part 2

4. Save For Your Down Payment

Saving for a down payment may take some time, especially when you are saving for a 20% down payment.

Fortunately, there are many options for people that cannot save that type of cash. For example, an FHA loan only requires a 3.5% down payment, and some of the options for conventional loans offer down payments as low as 3% provided mortgage insurance is included. If you happen to qualify for either USDA or VA loan, you could secure a property with 0% down.

The reason that 20% is often the quoted number has to do with that this is a minimum amount you need to put down in order to avoid mortgage insurance. In addition to this, if you are able to put down a large down payment, it will lower the monthly payments.

When working out how much to save, remember the closing costs. The closing costs usually vary according to your situation. However, it is usually around 2 to 5% of the value of the home.

You will also need to provide bank statements over a period of 2 months to show you have had the funds for a down payment in your account for a minimum of 60 days so that these funds become eligible for use. Lenders will ask for this documentation to make sure you haven’t taken out a loan in order to cover the down payment.

5. Get Pre-Approval

Once you feel confident that you are ready to approach a lender, getting pre-approved is the next step in the process. Pre-approval will indicate the amount you are able to borrow and it also shows a seller that you are serious.

For your pre-approval, lenders take into account your current credit report to ensure your credit score qualifies and to ensure you do not have major blemishes or debts like bankruptcy. The lenders also look at your debt-to-income ratio and they will also ask for information associated with your assets and income. You should have documents ready such as a recent W-2, bank statements, and paystubs, and other paperwork that may be relevant to ensure the entire process goes as smoothly as possible.

Once you receive pre-approval, make sure that you do not engage in making major changes when it comes to your credit profile. This could include switching jobs or taking on more debt as this may risk your chances of approval.

6. Find A Reputable Real Estate Agent

A qualified and experienced realtor will take you through the entire process, making everything go smoother and faster. They can also help to lower the anxiety that many first time buyers go through.

When you start looking for a realtor, in-person interviews or online reviews can be extremely helpful. You want to find someone that honors what you want and is happy to advocate on your behalf. They should also be honest and assist you in setting up realistic expectations.

Before making a decision, let one of the experts at The Texas Mortgage Pros help you find out exactly what loan is best for you.  Feel free to contact us or call us today! Click here to go to the next article in this series.

Important Things To Do Before You Purchase A Texas House Part I

What Do You Need To Do To Buy A House In Texas

Part 1

Buying a home is amongst the things that most of us eventually do at some stage, but not many people know how to go about this task. You may already know that you will need to tour homes, find a good realtor and obtain a loan, but you may not be clued up on where you should be going or who you should be talking to about these things, or the order in which you should be doing each task.

This is why we have formulated a step-by-step guide to buying a home.

1. Make Sure Your Finances Are In Order

You might be thinking about house hunting, loan pre-approval, and a real estate agent, yet the steps to prepare to purchase a property actually begins many months or even a year or two before you can actually look at the appropriate mortgage rate.

You have to make sure you are financially ready. This will mean assessing your financial situation currently and making sure that it matches up to what a mortgage lender wants from a borrower. You also need to work out what is affordable for you and you need to save for closing costs and your down payment.

2. What Do Lenders Look For?

Below is a list of the standard requirements that you will need to match up to, in order to ensure your mortgage is approved. This is just a general guideline and it can vary according to the lender along with the type of loan they are prepared to offer:

  • For conventional loans, your credit score should be 620 or higher, or 580 for an FHA loan.
  • Your credit history must be good.
  • You need to prove that you receive a consistent and reliable income.
  • Your income-to-debt ratio must below 50%

If you are only matching up to the bare minimum requirements, it might be a good idea to first improve your score before you start applying for mortgages, as it can improve your chances of getting a better rate.

3. Work Out How Much You Can Afford

You first need to obtain pre-approval for your mortgage to find out the exact amount that you can spend on your home. Working out your budget on a monthly basis and what it will be once you have a mortgage can assist you when it comes to deciding on whether you are able to afford a house.

Today there are home-affordability calculators that provide an estimate on the amount you can afford to spend on a house along with what your payments might be every month. You might discover that your payments every month may be lower than what you are paying currently towards rent. However, homeownership does come with many other new costs. This includes the maintenance of your home, insurance, and taxes. You need to factor these into the overall costs.

Before making a decision, let one of the experts at The Texas Mortgage Pros help you find out exactly what loan is best for you.  Feel free to contact us or call us today! Click here to go to the next article in this series.

Purchasing A Home In Texas: What Credit Score Do You Need?

The Ideal Credit Score That Allows You To Buy A Texas House

Part II

What’s The Minimum Score Unlikely To Affect My Mortgage Eligibility?

Corpus Christi texas classic home bought with assistance paymentsIf you are not a veteran who automatically qualifies for a home loan from Veteran Affairs, a credit score of at least 500 is a must. The same minimum is required in order for you to qualify for a 10% down-payment for a loan through the Federal Housing Administration.

If you don’t meet those requirements, it’s not the end of you. You can get a parent, spouse, or friend with better credit to cosign for your loan. This could help better your chances of approval for a traditional mortgage. If that’s not the case, follow suit and work to improve your credit score before proceeding to apply for a mortgage.

What Credit Score Do Lenders Check?

Almost 90% of lenders use your FICO Score. For your information, this is the credit score that’s most widely used. Though, depending on the type of loan, different versions of the FICO Score are used.

The following scores are likely to be in your lender’s checklist when you are applying for a mortgage loan:

  • FICO Score 2 based on Experian data
  • FICO Score 5 based on Equifax data
  • FICO Score 4 based on TransUnion data

What’s the Interest Rate You Are Likely To Get With Your Credit Score?

For simplicity, credit scores are broken down into categories. This helps you get to know the quality of your creditworthiness and steps you’ll move to boost it.

  • Poor – 300 to 579. With a poor credit score, it’s unlikely for you to get mortgage approval. But things may work out for you if you have a cosigner or an underwriter willing to accept you. With these terms, if you’re lucky to find a lender, be ready to cover high-interest rates on your loan.
  • Fair – 580 to 669. Though you’ll qualify for a loan with a fair score, your interest rates will probably remain high, a bit higher than with a good or very good score.
  • Good – 670 to 739. This is an awesome score that’s unlikely to affect your interest rate that much. Your rates are likely to range within 0.25% to 0.5% with such a score.
  • Very good – 740 and higher. Get the lowest interest rates and the best payment terms in the market with this score.

Is It Necessary To Check For Credit Report & Score Before Searching For Houses?

Sure thing. Having a rough idea of your credit score is vital for your home buying process.

With knowledge on your credit report and score you’ll be able to:

  • Make corrections of inaccurate information in your report before applying.
  • Make a prediction of whether you’ll get approved or not, and approximate your interest rate.
  • Find out the areas to improve your creditworthiness before buying.

How Can You Improve Your Score Before Applying For A Mortgage?

There are tactics that are likely to work for you in order to improve your credit and enjoy low-interest rates and the best terms when you apply for a mortgage. Let’s review them:

  • Accumulate savings for a large down payment
  • Keep a close eye on your credit report.
  • Ensure to pay your bills at the right time
  • Look for the services of credit repair experts
  • Hold off on other credit.
  • Reduce your credit utilization ratio.

You can use any of the interactive features on our website or call us anytime to speak to a diligent mortgage professional directly. We hope to work with you soon! Click here to go to the first article in this series.

Purchasing A Home In Texas: What Credit Score Do You Need?

The Ideal Credit Score That Allows You To Buy A Texas House

Part I

If you’re not well conversant with the real estate industry and beginning to think of purchasing a home, it’s good you know that your credit score can affect your ability to get a mortgage. Though it doesn’t mean the world, a good credit score is vital. It boosts interest rates and improves loan terms. However, it doesn’t mean that you need perfect credit in order to own a home. There’s much still hope.

Knowing everything, in terms of the impact your score has on your mortgage rate, you’ll be able to grow your credit in advance before you proceed to own a home.

How Does Your Credit Score Affect Your Mortgage Rate?

Fort Worth texas brick home bought with assistance paymentsLet’s face it! Before a lender settles on a decision of approving you for a mortgage, he/she must consider your credit score. Moreover, they put into consideration your accumulated savings, debt-to-income ratio, and the amount of money you readily have available to give as a down payment.

Your scores go beyond determining whether you’re eligible for a mortgage. The interest rates and payment terms you get are largely influenced by your score. A credit score ranging anywhere from 650 to 699 – which is below average – means lenders may bring in risk-based pricing while stating details regarding your mortgage.

In order to cancel out the perceived risk of having to deal with a borrower whose credit score is low, a lender may take the step of increasing the mortgage rate. What does this mean? It means a credit score of 650 is likely to get a higher interest rate than a credit score of 720. This could cost you a fortune more throughout the life of your mortgage.

What’s The Required Credit Score To Buy A House?

It’s estimated that with a score of 660 you’ll probably qualify for a home loan. Though it’s not certain. On the other hand, scores of 660 and below, means you have to deal with a high-interest rate and poor loan terms.

With a minimum credit score of 580, you qualify for an FHA loan. 3.5% of your purchase amount goes to the down payment. However, you’ll be good to go in case of an underwriter intervention. The underwriter assumes the financial risk, and may only require you to carry minimal debt and prove to have a significant amount of savings.

At the moment, the average American’s credit score is 695. That’s relatively high. In case you desire top-level rates, focus on reaching a credit score of about 740 before even thinking of how you can apply for a mortgage.

  • With a credit score of 620 or higher, you’ll comfortably work with conventional mortgages.
  • A credit score of 640 or higher is needed for USDA loans.
  • No minimum credit score is necessary for Veteran Affairs loans.

You can use any of the interactive features on our website or call us anytime to speak to a diligent mortgage professional directly. We hope to work with you soon! Click here to go to the second article in this series.

Knowing How To Choose A Capable Texas Mortgage Lender

Tips To Find A Competent Mortgage Lender Suitable For Your Need In Texas

Part 2

2. Seek Recommendations From People You Know

Start by asking your family members, friends, and agent for recommendations.

A good mortgage lender entails more than the terms they offer, and no one knows better how a particular lender operates than their previous clients. Ask your family and friends to provide recommendations (both for and against) mortgage lenders. By seeking recommendations, not only will you have some mortgage lenders to consider, but you will also get an insight into what to expect from a particular lender in terms of refinancing options, communication, and more.

In case you’ve identified a reliable real estate agent, then they could have some good recommendations. They work with different clients on a daily basis who are, in turn, working with different mortgage lenders. Hence, they are able to deduce which mortgage lenders the clients most satisfied with.

Decide whether a mortgage lender is suitable for you.

If you want help sorting through all the available options, then a mortgage lender is an expert who can help you choose the best mortgage lender for you. Obviously, the trade-off is that there is a fee you have to pay. While most mortgage brokers have access to mortgage products that provide adequate savings to offset this cost, you aren’t guaranteed that it will work out this way. Considering the amount of time that you have to commit to researching mortgage lenders and comparing them, letting a mortgage broker do all this for you might be the best option.

3. Communicate With Lenders For Pre-approval

Seek pre-approval and compare the numbers.

Though getting mortgage pre-approvals might sound like doing something official, it is, in fact, part of the comparison shopping process – Just to be clear, pre-approval isn’t the same as pre-qualification, which you may have already done. Pre-qualification provides a ballpark figure of the price of a home you can afford. Narrow down to your top three options and apply for pre-approval to all of them. Meticulous comparison shopping is crucial as even the slightest difference in interest rate percentage point can save you thousands of dollars over the long-term period of your loan.

With that in mind, applying with three lenders normally enables you to find out how much you can afford under the numerous terms that you will qualify for.

The pre-approval letters you get serve two functions. The first and most important one is that you’ll begin your house hunting with confidence and you will be able to present an offer on a particular house you like with the support of a mortgage lender. Secondly, you get to check out all the terms a lender is ready to offer you. With these terms, you will be able to choose the best offer.

Understand APR versus interest rate.

When comparing mortgage terms, there are two terms that people often confuse and they are annual percentage rate (APR) and the interest rate. It is easy to assume that comparing the interest rates between different loans is a fair comparison, however, it isn’t. A low-interest rate mortgage can have hidden fees that make it more expensive in the long-term than a high-interest rate mortgage. The APR manages all that. Compare different APRs and you will be able to make a more accurate comparison.

Contact our expert mortgage professionals, call us today, or use our interactive tools that are on offer on our site. We cant wait to meet you. Click here to go to the first article in this series.

Knowing How To Choose A Capable Texas Mortgage Lender

Tips To Find A Competent Mortgage Lender Suitable For Your Need In Texas

Part 1

Finding the right mortgage lenders has and will always be crucial for home buyers. Chances are that your mortgage lender will be enabling you to make the most significant investment of your life. In addition, your mortgage lender will be a part of your life for many years to come or even decades.

The following is a brief guide on how to find the best mortgage lender for you:

1. Find Out The Available Mortgage Options

Decide whether you want a hands-on lender or an online lender.

houston home bought with an FHA mortgage loan moderate incomeWhen you are finally ready to apply for a mortgage, you will have plenty of options. Credit unions, national banks, local banks, and mortgage lending institutions are some of the common options. Depending on your needs, any of them could double as your best mortgage lender. In case you are looking for a very hands-on experience, where you will be able to just walk into an individual’s office and ask questions, then a credit union or a local bank might be your best option. If you aren’t a big fan of the hands-on experience and just want the online experience, then there are online mortgage lenders who got you covered. It is smart to research a number of vendors in each category in order to find out which one provides the terms and services that are favorable to your needs.

Research mortgage types.

There are various kinds of mortgages, and you want to ensure that you choose a mortgage lender that offers the type of mortgage that best suits your needs. The following are some of the different kinds of mortgages:

  • Adjustable-rate Mortgages: After an early period of a low-interest rate – normally 3, 5, 7, or 10 years, the rate will adjust with the market. This makes payments unpredictable for the remaining period of the loan. However, this type of mortgage could be the most ideal option if you are planning on selling before the completion of the initial period.
  • Fixed-rate Mortgages: For this type of loan, the interest rate remains the same even for the entire period of the loan. This means that you will be able to predict your mortgage payments.
  • Conventional Loan: As the name suggests, this is a traditional loan. It can either be an adjustable rate or fixed -rate. The terms of this loan are based on your credit score, financial history, and down payment.
  • Government-backed Loans: VA, USDA, and FHA are some of the programs that are supported by the government. Generally, they are fixed-rate and need lower credit scores and lower down payments. However, each has specific requirements such as purchasing in a rural area, being a veteran, or passing income requirements.
  • Jumbo: This is a type of loan that surpasses the amount stipulated by the Federal Housing Finance Agency. These loans are normally used to purchased luxury homes or homes in markets that are highly competitive. Their requirements are different from those of smaller loans, for instance, they have a large down payment and require very high credit scores.

Check out customer reviews and company information.

Check out online customer reviews and carefully look through the company’s website to find out more about it. Narrow down to the mortgage lenders that offer the kinds of mortgages that you are looking for, provide the kind of customer service that you are yearning for, and have overall positive reviews.

Contact our expert mortgage professionals, call us today, or use our interactive tools that are on offer on our site. We cant wait to meet you. Click here to go to the next article in this series.

Complete Guide When You’re Preparing For A Mortgage In Texas

Get Ready For A Texas Home Loan With These 10 Useful Tips

Part 2

6. Financing The Home Purchase

You will need to do some homework on the types of financing available to you, 30 or 15 years, fixed or adjustable mortgage, when looking to purchase a new home before choosing one that best suits your situation. A mortgage with a fixed rate is your best option if you want a guarantee and security that payments will remain the same over the life of the mortgage. A mortgage with an adjustable-rate, on the other hand, is a better fit for those who think that rates will fluctuate over the course of the mortgage and desire some wiggle room.

7. Your Options Increase As Your Down Payment Grows

While still being realistic as highlighted above, it is important to point out that the terms of the deal you get improve as you increase your down payment. As the years go by, in the world of mortgages, zero down payment offers are disappearing. You can be assured of making lower monthly payments if you start by making a higher deposit.

8. Penalties For Pre-payment

Some lenders may penalize borrowers for paying off their mortgage early; be sure to find out this first before taking up a mortgage. When borrowers receive a huge amount of money, it is common for them to increase their mortgage payments to ensure that the mortgage is paid up earlier. However, you should first find out whether paying your mortgage earlier will actually come with a penalty.

9. Make Mortgage Applications In A Strategic Way

Your credit rating is temporarily lowered by the hard inquiry made by lenders whenever you make a loan or mortgage application. You might end up lowering your credit score significantly by making numerous applications to a variety of lenders over an extended period. However, making a number of applications over a two week period is only treated as one inquiry; and thus won’t do much harm to your credit score.

10. You Might Have To Wait Longer To Own Your Own Home

While the prevailing rates may appear to be a once in a lifetime occurrence, it just might not be possible for everyone to get a mortgage at this time. However, you should not abandon your dreams just because you fall into this group. You should remember that the mortgage crisis came about as a result of borrowers biting off more than they can chew, and as the economy is still fluctuating, things could still change in your favor. The importance of proper timing cannot be further emphasized when it comes to huge investments such as buying a home.

Meet The Texas Mortgage Pros

Committed to offering all clients the best level of service when it comes to all their mortgage requirements, the team at Texas Mortgage Pros is made up of mortgage professionals distributed all over the state of Texas. From Houston, Dallas, Tomball, Spring, and Austin to The Woodlands, San Antonio, and Dallas, Texas we also offer numerous loan programs and the lowest rates. To ensure that you get a mortgage that is perfectly suited to your situation, meeting your specific expectations, our seasoned mortgage professionals will work closely with you. Our team of experts has what it takes to help you find the right loan at the best possible rate, whether you are refinancing an existing loan, or buying your first or dream home.

To ensure that we continue serving our customers for the foreseeable future, we aim to cultivate a long-lasting relationship with each one. We maintain the privacy of your information; a promise that the larger service providers cannot keep. Across the lending arena, our brand is widely trusted.

You can use any of the interactive features on our website or call us anytime to speak to a seasoned mortgage expert directly. We hope to work with you soon! Click here to go to the first article in this series.