Purchasing a home is an exciting and terrifying leap. Although it might seem like an enormous task, there are practical steps you can take to streamline your experience and secure your Alamo home loan. In this article, we’ll outline the easy things you can do to guarantee you get the best deal for your mortgage.
What is a Home Purchase Loan?
A home purchase loan is a mortgage that allows you to finance the full price of your Alamo, CA property and will allow you to move right in. For many people, this can be an overwhelming sum of money, which means they’ll need to secure a loan from their bank or other financial institution before they actually buy their Alamo house.
- Fixed-rate loans
- Adjustable loans
- Jumbo loans
- VA home loan
- USDA home loan
- FHA loan
Homeowners can choose from a variety of loans to finance their homes. The right Alamo home loan for you will depend on your financial situation and what kind of house you are buying. Even better, there are things prospective homeowners can do long before they’re in the market for buying to improve their chances of snagging the best loan option.
How to Secure The Best Alamo Home Loan Option
Make the Biggest Possible Down Payment
The larger your down payment, the less money the lender will have to give you, and the lower your interest rate can be. Alamo home loan lenders typically prefer to see at least 20 percent down for a conventional Alamo house. Lenders also like to see applicants with a history of steady employment and income. Benefits of paying a larger down payment include:
- Smaller monthly mortgage payments
- Less interest overall
- Lenders will offer low interest rates
- You won’t have to pay private mortgage insurance
Raise Your Credit Score
Your credit score is one of the most important factors in getting a decent home loan. Your mortgage lender will check your credit history to make sure you are reliable and trustworthy before they give you any money. If your credit isn’t great or if it has been marred by late payments, it’s in your best interest to raise your credit score before applying for pre-approval.
Get Your Paperwork Ready
Lenders require a great deal of documentation, and the earlier you have access to everything you need, the smoother the home loan purchasing process will be.
Here’s what you need:
- Income verification. Home loan lenders will need to see your pay stubs, W-paystubs, tax returns or Alamo self-employed statements from the last two to five years.
- Asset verification. Mortgage companies want to know how much money you have in savings and investments so they can determine if you are able to afford to pay your loan.
- Liabilities. This includes student loan debt, credit card debt, existing home loans, or any other outstanding debts.
Last, you should always shop around to find the best Alamo home loan rates by comparing offers from multiple lenders such as credit unions or online banks.
Talk to Us
If you’re looking for a mortgage broker in your area, contact The Mortgage Genie by calling (925) 648-0981. With decades of experience and expertise, our team can help you to find and secure the right Bay Area home loan for you.