I’ve been in this arena for a lifetime. Financing isn’t as complicated as it may seem. For most, the numbers can be run quickly. Each situation may have its differences. Still, normally, I can get a very good idea of what you can qualify for in 5-10 minutes if the required income information is available. So, if you want to find out how much home you can qualify for, let me know, and we’ll figure it out.
When it comes to financing, there are a few things to keep in mind:
The larger the down payment, the better your rate will likely be and the lower your mortgage payment will be. There are a couple of reasons for this. With a larger down payment, your equity in the home is greater. When your stake in the home is greater, there’s more reason to maintain and protect the home. The bank’s collateral is being maintained. In addition, the bank has less of a stake in the home and would be affected to a lesser degree should you have trouble making your mortgage payment. Also, with a down payment of 20% or more, you avoid Mortgage Insurance. This is not something that protects you, but rather the lender. But you get the pleasure of paying the premium for the bank to have the insurance protection. So with 20% down or more, you may save anywhere from $50 – $400/mo.!
There is a difference between the normal Fannie Mae and Freddie Mac lending limits when it comes to the ‘conforming’ and ‘high balance’ lending guidelines, too. Then, above the ‘high balance’ limits are the Jumbo guidelines. All of these limits can be discussed in further detail with you, but you get the idea. Normally, as you go up the ladder from Conforming to Jumbo, the rates get a little bit higher (But there are exceptions to the rule sometimes).
I’ve helped people finance homes for 35 years, and still doing it. So if you have questions, give me a call.
