Mortgage Articles

Knowing The Types Of Texas Conventional Loan

6 Conventional Loan Types That All Texas Home Buyers Need To Know

Conventional loans are a common mortgage option, that even works for first-time home buyers. Yet you may not know that there are different types of conventional loans.

Here is more information about the primary conventional mortgage product types, and how they differ and what they might mean to you.

1. Conforming Conventional Loans

If conventional loans are under the maximum loan amounts that the Federal Housing Finance Agency has set and it matches the other loan standards that the Fannie Mae or Freddie Mac have set, it is known as a “conforming loan”. Because Freddie and Fannie are both government-sponsored enterprises, these are also known as “GSE loans”.

2. Nonconforming Conventional Loans

When conventional loans exceed the FHFA loan limit or it has used underwriting standards which differ from the ones set by Freddie Mac and Fannie Mae, it is known as a “nonconforming conventional” loan. The Jumbo loan is one of the common non-conforming conventional loans. You might require a Jumbo loan if you need finance for something that exceeds $484,350, in most of the counties in the U.S.

3. Fixed-Rate Conventional Loans

Whether they are nonconforming or conforming, every mortgage comes with interest that you have to pay back. With fixed-rate conventional loans, your interest rate will remain the same for the duration of the mortgage. Most buyers prefer the 30-year fixed-rate conventional loan since it translates into affordable monthly payments. There are also shorter terms made available.

4. Adjustable-Rate Conventional Loans

This is an alternative to fixed-rate mortgage as these loans offer an ARM or adjustable-rate mortgage. The conventional loan linked with an adjustable-rate is also called hybrid ARM, which has a rate that might go down or up over time. ARM rates typically adjust annually, from the initial fixed-rate period which is usually 3, 5, 7, or 10 years.

5. Low-Down-Payment Conventional Loans

There was once a time where obtaining conventional loans would require a 20% down payment. Since borrowers that match these requirements only need 80% of the value of the home, this is also known as the “80/20 conventional loan”. However, the requirements for down payments have become a lot more flexible.

  • 3% Down Payment: Home Possible and HomeReady are two conventional-mortgage options that require low down-payments, sometimes as little as 3%. This is also known as a “3-down conventional loan”. Borrowers that qualify for the 3% down payment, have to obtain finance for the remaining 97%.
  • 5% Down Payment: The borrowers that have a low credit score may have to put down a 5% down-payment or more to obtain one of the conventional loans. This means that they would have to finance 95% of the value of the home.
  • Zero Down Payment: If you wanted to know if you can get 100% conventional-loan financing, the answer would be yes. However, these are not always easy to find. Certain lenders which are usually credit unions provide in-house, non-conforming conventional programs for mortgages that offer 100% financing, yet specific qualification requirements usually apply.

6. Conventional Renovation Loans

It can be difficult to find the ideal home within your budget. Investing in a fixer-upper is one of the ways to own a home when move-in ready inventories are low or the price of properties is too high.

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! 

Importance Of Having Your Own House In Texas

7 Amazing Benefits Of Owning A Texas Home

It is everyone’s dream to own a home at some point. The thought of having a space you can truly call yours is simply out of this world, and a goal worth working towards. While many people want the fulfillment that comes with owning a home, some people only see a nightmare from the same. The process of owning the house or saving up for the same can be a lifelong affair, which, to many, is nerve-wracking. The satisfaction of knowing the home is yours is, however, worth any pain. Here are some of the advantages and benefits of owning a home.

1. Social Benefits

Owning a home in a certain community makes you want to belong. You even start feeling attached to its people and the city in general. This is the reason you will want to be involved in any community event around your neighborhood. You even get to have a lasting relationship with other homeowners in the neighborhood.

2. Freedom

Owning a home gives you the freedom to do anything you wish with space and surroundings. You can choose to renovate the house, make a few additions, or even have a garden at the back. This is unlike living in a rented apartment where the landlord has the final say. In addition to this, you can choose what fixtures and amenities you wish to have in the house, and make it happen.

3. You Can Be Proud Of Your Achievement

Many people will be beside themselves with pride after making the last installment for their homes. You have not only achieved a life-long dream but are also sure your family is secure with a home. The security that comes with owning a home, and building up equity from the same, means you can work towards owning a nicer home in the future. You are also sure your family will always have a roof over their head

4. A Home Is An Investment

A home is one of the most significant investments anyone can make. A house, unlike some assets, appreciates with time. This is to say; your home will be worth a lot more in a few years, hence one of the best decisions you ever made. In addition to this, your debt goes down as you pay down the mortgage while its value appreciates significantly.

5. Gain Equity

Equity and investment are directly linked. The more you make payments for your mortgage, the more money you will have for reinvestment. Much of the money paid towards the mortgage goes to paying the principal and the rest to paying the interest off. The principal amount becomes equity that you can use for home upgrades.

6. Tax Benefits

The government uses tax incentives as a way of encouraging citizens to own homes. You thus get to enjoy tax benefits when you make your mortgage payments. This comes particularly in handy when making the initial mortgage payment.

7. Put A Stop To The Need To Move

One thing about renting a house is that you are never really sure how long you will be there. This, however, isn’t the issue when you are a homeowner. Homeownership means you can plan your future even better, hence some form of financial relief. You can thus make gradual improvements to your home to make it more functional and better.

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!

The Best First Time Home Buyer Programs In Texas

When people are looking for a home that they wish to purchase in Texas, they will want to be specific with the things that they are looking for in a home. They should think about how many bedrooms they wish to have and other such details. When they start to look for a home, they need to have a price in mind and have an idea about the process of buying a house in ten steps. The price will directly relate to what they can afford to pay when they are purchasing a home. Since they may have to sit down and draw up a budget, this will be important to them as they go about looking for the home that they wish to live in.

The Best First Time Home Buyer Programs In Texas

Buying a home in Texas is an exciting time and for many people, the first time is the best one. They will want to look into the program that will help them the most when they are looking for their first home in Texas. Here are some of the programs that will assist them when they are looking for their first home:

1. Texas Mortgage Credit Certificate

The Texas Mortgage Credit Certificate is a program that deals with a homebuyer’s federal tax liability. It offers them a dollar on the dollar reduction and this gives the new homebuyer great leverage when they want to purchase a home. You can also see conventional loan rates and requirements for 2020 if you would like to have more options.

2. My Choice Texas Home (MCTH)

This is a program that will help with down payments for the new homebuyer. It will give up to a 5% assistance on the mortgage loan. This is very beneficial to many people. This can make an incredible difference for people that want to by a home. It allows them to get the down payment that they need. 

3. Fannie Mae’s HomeReady

Another option for homebuyers in Texas is Fannie Mae’s HomeReady mortgage. They will need to put 3% down on this FHA loan. This is a traditional way for many homebuyers to purchase their homes. 

4. 30-Year Fixed Interest Loans

What are the Home Loans Program in Texas? These are loans that many first time home buyers will benefit from. They are provided by the Texas Department of Housing and Community Affairs (TDHCA) Texas. Many people have benefitted from these loans because they allow them to buy a home for the first time in Texas. Since the interest is fixed for 30 years, they never have to worry about it going up in the future. This can also help them in many ways if they decide to refinance in the future.      

Credit Scores Are Important For First HomeBuyers In Texas

When looking for a home in Texas for the first time, it is important that a person take a look at their credit report. They will want to make sure that they are paying their bills on time, reducing their debt, and looking at their credit score. A credit score of 580 is very important for a person to get the loan that they want when they are buying a home for the first time in Texas.  

Here Are Some More Specifics On First Time Home Buying In Texas

What are the requirements for home loans in Texas? People must make sure that they meet the requirements if they wish to get the help that they need. They will want to do a checklist to be sure that they can meet all of them so that their experience with buying a home will be a good one. Here are the requirements that they need to make sure that they meet:

1. Credit Score

For buying a home in Texas for the first time, people will need to make sure that they have a credit score of 620. If they do not, they will need to take steps to improve theirs. They will be able to do this as they make changes in their lives that will really make a difference for them.  

2. Income And Loan Requirements

There are income requirements that they must meet. These can change so they need to make sure that they check for the current income requirements where they are. Loan requirements are the same way.

3. Property Location

The property must be located in Texas. It has to meet certain price limits so a person needs to be sure that they are looking at the right type of properties. It also must be a single-family home or single-family condominium. There may be some of the duplexes or manufactured homes that will be allowed too.  

Buying a home in Texas for the first time is an exciting experience for many people. They are so happy to get their own space and once they move in, they begin decorating as soon as they can. They absolutely love the feeling that it gives to them at any given time.

The Best First Time Home Buyer Programs In Texas

When people are looking for a home that they wish to purchase in Texas, they will want to be specific with the things that they are looking for in a home. They should think about how many bedrooms they wish to have and other such details. When they start to look for a home, they need to have a price in mind and have an idea about the process of buying a house in ten steps. The price will directly relate to what they can afford to pay when they are purchasing a home. Since they may have to sit down and draw up a budget, this will be important to them as they go about looking for the home that they wish to live in.

The Best First Time Home Buyer Programs In Texas

Buying a home in Texas is an exciting time and for many people, the first time is the best one. They will want to look into the program that will help them the most when they are looking for their first home in Texas. Here are some of the programs that will assist them when they are looking for their first home:

1. Texas Mortgage Credit Certificate

The Texas Mortgage Credit Certificate is a program that deals with a homebuyer’s federal tax liability. It offers them a dollar on the dollar reduction and this gives the new homebuyer great leverage when they want to purchase a home. You can also see conventional loan rates and requirements for 2020 if you would like to have more options.

2. My Choice Texas Home (MCTH)

This is a program that will help with down payments for the new homebuyer. It will give up to a 5% assistance on the mortgage loan. This is very beneficial to many people. This can make an incredible difference for people that want to by a home. It allows them to get the down payment that they need. 

3. Fannie Mae’s HomeReady

Another option for homebuyers in Texas is Fannie Mae’s HomeReady mortgage. They will need to put 3% down on this FHA loan. This is a traditional way for many homebuyers to purchase their homes. 

4. 30-Year Fixed Interest Loans

What are the Home Loans Program in Texas? These are loans that many first time home buyers will benefit from. They are provided by the Texas Department of Housing and Community Affairs (TDHCA) Texas. Many people have benefitted from these loans because they allow them to buy a home for the first time in Texas. Since the interest is fixed for 30 years, they never have to worry about it going up in the future. This can also help them in many ways if they decide to refinance in the future.      

Credit Scores Are Important For First HomeBuyers In Texas

When looking for a home in Texas for the first time, it is important that a person take a look at their credit report. They will want to make sure that they are paying their bills on time, reducing their debt, and looking at their credit score. A credit score of 580 is very important for a person to get the loan that they want when they are buying a home for the first time in Texas.  

Here Are Some More Specifics On First Time Home Buying In Texas

What are the requirements for home loans in Texas? People must make sure that they meet the requirements if they wish to get the help that they need. They will want to do a checklist to be sure that they can meet all of them so that their experience with buying a home will be a good one. Here are the requirements that they need to make sure that they meet:

1. Credit Score

For buying a home in Texas for the first time, people will need to make sure that they have a credit score of 620. If they do not, they will need to take steps to improve theirs. They will be able to do this as they make changes in their lives that will really make a difference for them.  

2. Income And Loan Requirements

There are income requirements that they must meet. These can change so they need to make sure that they check for the current income requirements where they are. Loan requirements are the same way.

3. Property Location

The property must be located in Texas. It has to meet certain price limits so a person needs to be sure that they are looking at the right type of properties. It also must be a single-family home or single-family condominium. There may be some of the duplexes or manufactured homes that will be allowed too.  

Buying a home in Texas for the first time is an exciting experience for many people. They are so happy to get their own space and once they move in, they begin decorating as soon as they can. They absolutely love the feeling that it gives to them at any given time.

What are the Home Loans Program in Texas

If you need to obtain a home loan in Houston Texas in the next few weeks, you may want to look at the many different home loan programs that are available. Those that reside in Texas have many programs at their disposal, many of which are very easy to qualify for. The same prerequisites for loans that exist in other states are certainly applicable for loans in Texas. However, not all of the loan programs are the same. Some of them make it very easy for first-time homebuyers to get financing. Here is a cursory overview of the different home loan programs in Texas that you may qualify for.

Different Home Loan Programs In Texas

There are several different home loan programs in Texas that you may be interested in and you need to know the process of buying a house in ten steps. First of all, there is the Texas first-time homebuyer assistance program. This is a program set up to make it easy for people to purchase their very first home. As most people know, is often difficult to find a lender that will trust you if this is your first one. There are also homebuyer mortgage assistance programs in Texas for those that have owned their own home in the past. There is also the FHA program, and other housing and community assistance programs, that may lead you to a lender that will be willing to help.

What Type Of Qualifications do You Need To Obtain A Loan?

What are the requirements for home loans in Texas? First of all, you need to have a full-time job. Second, your credit needs to be right around 640. Third, you should not have an inadequate debt to income ratio. Fourth, the home that you are purchasing should qualify for the available different types of funding. For example, larger homes that exceed half $1 million may not qualify for certain programs designed for first-time buyers. Finally, you need to have money to put a down payment on a home. This can sometimes be tens of thousands of dollars. There are certain circumstances where your interest rate can be dramatically reduced if you can put even more money down on the home you are purchasing.

How To Find Lenders In Texas That Offer These Programs

The first thing you will want to do is look for a loan broker. That is perhaps the easiest way to find out what is currently available. They will have relationships with multiple lenders throughout Texas. They will take your information one time, disseminate that to potential lenders, and many of them will provide you with an estimate of the total cost. Some of them may even prequalify you based upon your income level and your credit score. You can also contact banks directly, fill out their paperwork, and find out whether or not you will qualify. If you happen to work for a business that is connected to a credit union, this might be the easiest way to get financing. If you are a veteran, VA loans are available. Finally, FHA loans for first-time buyers apply to those that would like to obtain their first house. All of this information is readily available on the Internet. You can also search through the Yellow Pages to find these lenders. It is only by getting multiple estimates from these different lending institutions that you can decide who will prequalify you, and also which ones offer you the best deals. You can also ask for conventional loan rates and requirements for 2020.

Final Tips On Obtaining A Home Loan In Texas

If you do need to qualify for a home loan quickly, you should contact a representative of the SETH or TSAHC programs. They can assist with down payments, sometimes in the form of a grant, and eligible people may also receive help with the cost of closing. By asking these questions, and connecting with organizations that can offer this assistance, you could save thousands of dollars when you purchase your home. These are programs that are exclusive to the residents of Texas. As long as you are getting a home in the state, these will likely apply to you.

Look for the best first time home buyer programs in Texas. It can even be difficult if you are getting your second or third. Getting a loan is always dependent on your financial state. They are going to check your income, debt to income ratio, and your credit score before they even begin. They need to know that each candidate is financially viable. It is also important for them to trust you. That’s why all of this preliminary research must be done by the companies that offer loans. Once you have been prequalified, they can then offer you different types of loans from 15 years to 30-year mortgages at a wide variety of interest rates. In no time, you will be living in your new home in Texas courtesy of these different home loan programs in Texas.

What Are The Requirements For Home Loans In Texas Today?

Are you currently living in Texas? If you have been thinking about purchasing a new home or looking for the best first time home buyer programs in Texas, you may not be aware of the latest requirements necessary for getting a home loan. In Texas, the requirements may be different than what you would expect in neighboring states like Louisiana or Arizona. It’s good to know what to expect when you speak to a loan professional. As with any loan, there are minimum requirements that you must meet. Without doing so, you may not be able to qualify. To achieve eligibility, here are the things that you need to have to meet the requirements for home loans in Texas today.

What Type Of Credit Score Do You Need?

What are the home loans program in Texas? If you need a loan, one of the first things that a loan professional will do is run your credit score. They need to know that you can be trusted. If your credit score is 620 and above, you have a high chance of getting qualified by many of the local lenders in the area. If it is not 620, the only way that you would be able to qualify is by getting a cosigner or perhaps putting more money down. If that is the case, you would need to clearly show that your debt to income ratio is adequate, and your gainful employment would be more than enough to make the payment.

What Type Of Income Do do You Need For A Loan?

The amount of money that you earn is measured by loan professionals before they can qualify you for any loan. By measured, this means that they will look at your net income, as opposed to the gross amount that you are paying before taxes. This is the money that you will have available to spend and pay your bills. If you do not make at least four times the amount of the mortgage, it is unlikely that you will qualify. Even if you had good credit, perhaps in the 700 range, it would still be questionable as to whether or not they would allow you to have a loan through their business.

What About The Property Location?

Unless you are working with a personal lender, or an investor, the homes that you get at Texas home mortgages must be located in the state of Texas. In conjunction with this, the purchase price limits must not be exceeded. Unless you have an extensive amount of available cash, you will have to purchase homes that fall under this criteria. You can also ask about conventional loan rates and requirements for 2020.

What Type Of Home Can You Purchase?

If you are a first-time homeowner, the only way that you were able to get that loan was by investing in the single-family home that you purchased. You may have also purchased a single unit in a condominium complex. They need to test you to see if you can make the payments. This is common throughout all of the states that offer loans. As mentioned before, the credit score that you have is very important. It is built up by making payments on credit cards, loans, and other things that require monthly amounts. Therefore, if you get a loan, it will likely be for a single-family home that is well within the purchase price limits in the state of Texas.

Can You Purchase A Manufactured Home Or A Duplex?

Some lenders will allow you to purchase a manufactured home. These are difficult to get financing for in general. Unless you have established credit, it is unlikely that they would be happy to accommodate you. Duplexes fall under this category. The only way that this will not be a problem is if your credit is exceptional and your monthly payments from your job are excessively high. Otherwise, you may have to find someone to help you as you are applying for this loan as duplexes and manufactured housing units are not as popular with loan officials.

What Types Of Home Loans Can You Apply For In Texas?

The types of home loans that are available will include conventional loans, FHA loans, VA loans, USDA loans, and also first-time homebuyer mortgages. They also have Texas bond programs, Texas VLB loans, and if you are a teacher, they have loan programs for educators.

This brief overview of the many requirements for home loans in Texas should give you a cursory understanding of this process. If you can qualify, depending on the type of loan that you are applying for, it could take several weeks for it to be approved. However, if you do have good credit, and an outstanding job, you could prequalify right away. It just depends on what type of home you are purchasing, the type of loan that you would like to obtain, and how much that loan will be for when compared to your credit. Always study the process of buying a house in ten steps to avoid future issues.

What You Need To Know About Conventional Loan Rates And Requirements For 2020

Most Americans ask what are the requirements for home loans in Texas. It is so popular that many refer to it as a standard loan. Most major banks offer a conventional loan and they all have different standards and rates that they provide their customers with. You should consult a financial advisor before deciding on which loan to take. They can give you the best assessment one which type of loan is the best for you. 

Most lenders will not give out a conventional loan to those with a credit score below 620. A 620 credit score is fairly modest. With that, many Americans fall below this score. For those who have a credit score lower than 620, it is best to seek an F.H.A loan. This is one of the only types of loans you can get with a credit score that falls below 600. 

You should not be able to qualify for a loan that offers you less than 3% when it comes to the down payment. Let’s take a $100,000 mortgage note. If you were to give a down payment that is %3 of that, you would end up putting down $3,000. Since there are many different types of conventional loans, and for most Americans, it provides the lowest rates they’ll see, 3 out of 5 homeowners currently have a conventional loan. Only those who are in financial trouble should look into getting an F.H.A backed loan instead. You can also look for the best first time home buyer programs in Texas.

Some Of The Requirements 

Besides the credit score of 620, you will need to show proof that you have a debt-to-income ration that is below 43%. You will also need to be able to come up with the down payment. Those who are looking to take out a conventional loan for 2020 should be aware that the value of the property cannot be more than $510,000 in most locations. The higher cost of living areas, like New York or California, may allow someone to take out a conventional loan on a property that is of a higher value. 

The Best Financial Shape 

Conventional loan texas might not be right for you just because you’re under the 43% debt-to-income ratio and have a credit score that’s in the 600s. It’s wise to look up the F.H.A loan if you have a credit score that falls below 700 and you are in quite a bit of debt. Those who seek out an F.H.A loan do not even have to provide proof of income. 

A conventional loan is a much better idea for those who can provide a decent down-payment. The larger the down payment, the better rate you will get. Being able to provide 20% of the value of a home will lead to much lower monthly payments than being able to provide only %3. Your credit score does not have to be in perfect condition. If you have a credit score that is in the 700s or 800s, you have the best prospects when it comes to finding low-interest rates. 

The Options 

Some are led to believe that they must have 20% of the home’s value to enter into a conventional loan agreement. While this is the ideal situation in almost all cases, it certainly isn’t necessary. There are six options to choose from when it comes to getting a conventional loan:

-Conventional Loan Without PMI- Down Payment Of 20%

-Piggyback Loan Without PMI- Down Payment Of 10%

-Conventional Loan With PMI- Down Payment Of 5%

–Conventional 97 Loan- Down Payment of 3%

–Freddie Mac Home Possible Loan- Down Payment of 3%

-Fannie Mae HomeReady Loan- Down Payment Of 3%

Interest Rates And ARP

The greatest factor that will determine your interest rate is the length of the loan. With that, being able to provide a solid down payment and having an excellent credit score can certainly improve things. Some wish to take out a shorter mortgage as it can lead to them owning their home sooner. A 5-year loan will carry a much higher interest rate and ARP than the traditional 15 or 30-year ones. 

Those who would like to take out a 15-year conventional mortgage in 2020 in average financial straits should expect to receive a 2.75% rate for both the interest and the ARP. Those who wish to take out a 30 year one should expect to see 3% for both the interest rate and ARP. Your interest and ARP may vary depending on the financial state you are in. You should also ask the process of buying a house in Ten steps to make things easier for you.

Deciding On Your Best Option

Only a financial adviser can give you the best advice on what best suits you and your family. A banker might be biased. It’s best to go to an independent one and ask what are the home loans program in Texas. With that, those on average or above-average financial standing are the best candidates for this type of loan. It’s important to not have too much debt compared to your income. Being able to provide a 20% down payment is excellent, but not needed. The higher your credit score, the better. Do your research and talk to an adviser before signing anything.

How To Become Eligible For A Texas USDA Loan

Applying For A USDA Loan In Texas? Here’s A Perfect Guide For You

Part 2

Income Limits For USDA Loans

For the loan guarantee, a maximum adjusted annual income amount is set by the USDA. This is a limit to prevent anyone outside of the low to the moderate-income bracket from being a recipient of the loan.

historic Fort Worth home bought with an FHA mortgage loan moderate incomeThe following income limits are set by the USDA:

  • A household with 1-4 members: $90,300
  • A household with 5-8 members: $119,200

There are regional differences that must be accounted for, and the USDA deals with these differences by using household sizes and locations to make limited variations. 115% of the median household income of an area is the base limit that the USDA sets on income. To determine if you’re eligible, they’ll compare the regional median to your qualifying income.

USDA Repayment Income

For the USDA, repayment income and qualifying income carry huge differences. Repayment income shows the ability of a borrower to pay back the loan, which is different from the ability for income requirements to be met by borrowers.

A DTI, or debt to income ratio is used by lenders to figure out just how creditworthy an applicant really is at the time of the application process. USDA loans have a 41% DTI standard. This means that 41% is the maximum amount of a monthly income that can be spent on debts by a borrower.

Although 41% is the standard, a USDA loan can be obtained with a higher DTI. The lending requirements will generally be tougher when applying with a DTI higher than 41%. Each lender has their own guidelines related to this.

Location Requirements For USDA Loans

Homes in rural areas are where USDA loans are intended to be used. The term rural can encompass many locations, and suburbs can often fit the USDA’s definition in many cases.

An open country that is away from an urban area is considered to be a rural area by the USDA. Depending on the area, a maximum population of 35,000 may be required for the designation of rural.

Nearly all of the land available in the U.S is eligible to receive a loan for rural development because of the USDA definition, with 100 million people living across the land.

Any income producing property can’t be purchased with the help of a USDA loan. There is a loophole to this, as properties that aren’t being used for commercial purposes anymore can still be purchased. This includes silos, barns, livestock facilities, and greenhouses.

Properties that can also be eligible:

  • Newly constructed properties
  • Modular and manufactured homes
  • Townhouses and condos
  • Homes that have been foreclosed and subjected to short sales

Thousands of people have benefited from the loan program available from the USDA, and for anyone who wants to become a homeowner, it stands as one of the top options.

In The State Of Texas, Get Your USDA Loan By Going With The Texas Mortgage Pros

We want to give our clients the best service possible and building a foundation with them that will last for years. We will use the utmost security with your information and keep it private, which is more than other companies can say. We are a leading company that many people trust.

Use the tools on our website or call us to speak with a mortgage professional that has the necessary experience to guide you. We can’t wait to work with you.

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.

The Process of Buying a House in Ten Steps

Buying a house is one of the most rewarding things for most people. Having to pay rent for years on end is stressful. Finding the perfect home that will suit your family is one of the greatest feelings ever. The challenging bit is the process of buying the house. The process can also be full of surprises. If you are new to this, it is always good to have someone to guide you through the house buying process. Since you will be spending a lot of money on your investment, you cannot just afford to rush into the whole process. Therefore, you need to be well informed on what are the requirements for home loans in Texas to ensure you are getting the best deal for yourself. Below are some of the steps you need to follow when buying a house.

1. Check Your Credit Report

If you want to buy a house and you plan to take a mortgage, it is essential to check your credit score. Lenders will also look at your credit report before they decide to give you a mortgage. If your credit score is high, it shows the lender that they can trust you with the loan repayment. Also, the higher your score is, the lower the interest rate will be. Before you even contact the lender, ensure your credit report is up to per.

2. Compare Mortgage Rates

It is vital to do your research before you decide to approach a particular lender. Understand that different lenders offer different mortgage rates. There are also different types of mortgages. By researching, you get to learn more about the available options and make a smart decision. It is also a good idea to get mortgage pre-approval, which gives you a general idea of how much the lender is willing to give you.

3. Find A Real Estate Agent

Look for qualified and experienced real estate agents to help you through the whole process. If possible, ask for recommendations from other homebuyers. Once you get a few names, look them up online. Check for reviews to see whether the agent has positive reviews. Hiring an agent who has been in the business is ideal because they will give you professional advice, which will help you make the best decision when buying your house.

4. Know What You Need

When working with a real estate agent, it is vital that they understand your needs and wants. You don’t want to get suggestions for houses that have not reached the standard you had set. Find the best first time home buyer programs in Texas and Have a sit down with them, and outline your needs and wants. For example, state the number of bedrooms you need as well as your preferred location. Don’t settle for a house just because your agent insists.

5. Have A Budget

It is imperative to set your budget for the house from the beginning. This will enable the agent to know which kind of houses they should be looking for. You need to know what are the home Loans Program in Texas to know what’s best for you. When seeking a home loan, the rule of thumb is to buy a house that costs approximately two and a half times your salary. This ensures that you can afford to repay the mortgage without too much strain.

6. Negotiation

When you spot your ideal home, it always helps have excellent negotiation skills. Don’t just pay the stated amount without doing any negotiation. Mortgage lenders in Texas should help you get the best deal in the market. Understand that the contract offers will go back and forth before both parties settle on an agreement. Trust the process and strive to get the best deal out of the sale.

7. Appraisal Valuation

Buying a home is a complicated process that will involve several parties. You will need to have the new home valued to determine its present market value. Usually, an appraiser will compare your home to similar homes that have been sold recently, to come up with the home’s real value. This ensures that the price you pay for the house is justified.

8. Home Inspection

As a homebuyer, you need to hire a home inspector to do a thorough inspection of the home. The inspection is vital because you can determine whether there are any issues even before you purchase the home. Your realtors should use the inspection report to negotiate a reasonable price for you, especially if there are several repair and maintenance issues.

9. Get Insurance

When you decide to buy the house, you will be required to get homeowners insurance. You need to have an idea of the insurance company that you want to work with. Insurance is crucial since it protects your investment. Secure yourself a home insurance coverage to cater for any incidences.

10. Closing On Your House.

This is the last process of the home buying process. You will need to have a cashier’s check for your down payment, license, and a pen since you will have to sign a lot of documents. Be patient enough because the process may take longer than expected. After closing the deal and signing the documents, you become the legitimate owner of the new home.

If you plan on buying a house, ensure you follow the steps given above. You won’t regret it. You can also check Conventional Loan Rates and Requirements for 2020, you can have more options on getting your own house.

How To Become Eligible For A Texas USDA Loan

Applying For A USDA Loan In Texas? Here’s A Perfect Guide For You

Part 1

Anyone who applies for a USDA loan must meet the USDA’s requirements for eligibility. Income, home location, credit, and property usage are all taken into account for eligibility.

The USDA wants to give families with low and moderate incomes clean and safe housing, and these facts are important in making this possible.

USDA Loan Minimum Requirements

Dallas texas brick home bought with assistance paymentsThe USDA requires that these minimum guidelines are followed:

  • Have permanent residence or U.S citizenship
  • Have a credit score that is at least 640 or some way to prove that you’re creditworthy
  • Income that is dependable and stable
  • Mortgage payments for 12 months without being late or any collections taken
  • Less than or equal to 115% of the median income of an area for the adjusted household income
  • The location of the property must be in a rural area that qualifies, and it must be the primary residence

The Rural Development program from the USDA isn’t the only one to have requirements, the lender can have its own set that must be met.

Credit Requirements For USDA Loans

A proper credit history that shows that an applicant can actually pay the loan back, and a steady income are things that an applicant must have.

The USDA loan doesn’t require a specific minimum credit, but applicants can use the automated underwriting system if they have a credit score of at least 640. Those with a score lower than 640 can still apply for the loan but have to deal with more strict guidelines because they must use the manual underwriting option.

The following will be reviewed by a lender to determine your creditworthiness:

  • Patters of repayment
  • Your credit history length
  • Your credit score
  • How your credit is utilized

If an applicant doesn’t have credit, they can still be eligible for the loan, but in order to verify them, the lenders may enact their own policies. They may check insurance payments, utility payments, rent payments, and other sources for credit verification.

Income Requirements For USDA Loans

To determine whether a borrower has the right income for a loan, the USDA uses four calculations that are unique:

  1. Household Income on an Annual Basis
  2. Adjusted Household Income on an Annual Basis
  3. USDA Qualifying Income
  4. Repayment Income

Verifiable and stable income with no signs of stopping is the minimum of what is required of applicants by the USDA. Pay stubs and income taxes from as far back as two years are generally used to check the employment status and income of a person respectively.

The total of all income made by everyone in a home is considered the annual household income. The household limit includes all adults with income, even if they aren’t the loan applicants.

When acceptable deductions are subtracted from the annual income, the adjusted annual income is calculated. Whether a person meets the income restrictions of the loan program is determined by this figure.

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.