Buying a home is one of the biggest investments many people make in their lifetime. If it’s your first time buying a home, the homebuying journey might seem daunting and leave you with a lot of questions. That’s where your mortgage lender comes in. They can help you understand the process better to create a more seamless and enjoyable homebuying experience. So, before you meet with your lender, here are a few questions you will definitely want to ask.
What mortgage is right for me?
There are many different types of loans available on the market. Whether you are a first-time homebuyer, a veteran or can be eligible for government-sponsored mortgage programs, your lender will be able to determine which loan program is the best for you. Lenders can also help you figure out which components of your financial history you can improve and how to work on them.
How much do I need for a down payment?
The old 20% down payment myth has long been debunked. Down payments don’t have to be as high as you might think! Yes, the more you put down the less money you have to borrow, but there are plenty of loan options and down payment assistance programs that can help get you in your dream home at a down payment that works for you.
How does today’s interest rate influence my loan and is right now a good time to buy?
Interest rates influence your purchasing power and the price of the home you can afford. And right now, we are still experiencing historically low interest rates.† That means that if you were considering homeownership, NOW may be the time to make your move. Mortgage rates have dropped, which means the price of the home you can afford with the budget you have may go up. But you’re going to want to act fast because even a 1% rate increase can drastically affect your purchasing power and leave you missing out on your dream home and resulting in higher monthly payments.
What main factors influence my loan?
Three things – debt, credit score and down payment.
- Debt: The lender will look at your debt-to-income ratio (DTI), which measures your debt to your gross monthly income. A DTI is expressed as a percentage where generally, a ratio of 36% or less is preferred, although some loan options do accept higher DTI ratios but they come with higher interest rates. So, try to eliminate as much debt as you can before completing an application.
- Credit score: Your three-digit credit score helps lenders assess whether you are a high risk of defaulting on the loan. You can get a free copy of your credit report once a year at AnnualCreditReport.com. Once you obtain your report, you can work with the lender to identify negative components of your credit history and address the issues that might help raise your credit score.
- Down payment (see above)
Can I start my search now?
Once you have an estimate of the home you can afford, you can start your search. And with numerous communities across the Nashville area, Lennar makes it easy to find a home you’ll love. Whether you are looking for townhomes and single-family homes, we have something for everyone. Plus, Lennar offers great resources with Internet Sales Consultants and New Home Sales Consultants who can answer all your questions about a community, home, floorplan and much more. Connect to our affiliate lender, Lennar Mortgage, HERE.
DISCLOSURE:
†This statement is based on currently available information from http://www.freddiemac.com/pmms/, current market conditions and should never be relied upon. Market rates are based on market trends and other factors that can cause predictive statements to differ materially. This statement is no guarantee of the present or future market conditions and market values. Financing is available through seller’s affiliate Lennar Mortgage, but use of Lennar Mortgage is not required to purchase a home (See Affiliated Business Arrangement Disclosure). Lennar Mortgage, LLC, NMLS # 1058. This is not an offer in states where prior registration is required. Void where prohibited by law. Copyright © 2021 Lennar Corporation and Lennar Mortgage, LLC. All rights reserved. Lennar, the Lennar logo, Lennar Mortgage and the Lennar Mortgage logo are U.S. registered service marks or service marks of Lennar Corporation and/or its subsidiaries. Seller’s Broker: Lennar Sales Corp., ph. 615-465-4328. Date 08/21
