Find a reputable loan officer or mortgage broker who listens to your needs. Having the right lender on your team can make or break your home buying experience and ultimately, your closing. You will need a preapproval letter before you begin looking at homes with your agent. This is to help you gauge your budget and protect sellers from unnecessary foot traffic. Your chosen REALTOR® and lender work closely together to ensure you make it to the closing table with as few obstacles as possible.
Lender Considerations
- Ability to close on time
- No surprises
- Rates and terms
- Availability
- Good communicator with REALTOR® and title closer
Key Factors to Consider
- Down payment
- Interest rate
- Debt-to-income ratio
- Closing costs
- Buy first vs. sell first
- 15 year vs. 30 year loan
| LOAN TYPE | AVERAGE RATE |
| Conventional Less than 20% requires PMI (private mortgage insurance). |
5% |
| FHA Lowest traditional down payment. Mortgage insurance required for life of loan. |
3.5% |
| VA A special program for military buyers. |
0% |
| FHA 203k/Renovation Loan Allows you to wrap the cost of repairs or improvements into your mortgage. |
3.5% |
| Downpayment Assistance A program for those who qualify for a loan based on credit and income but don’t have the necessary down payment. |
$1000 |
| Contract for Deed Option for those without qualifying credit scores. Interest rates are slightly higher than the market rate. |
10% |
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