While having a good chunk of money to put toward a down payment can help with the cost of your loan and help kick start your equity, you don’t necessarily need twenty percent.* We offer a variety of loans for people in all kinds of financial situations, including little to no down payment options.†
*Possible loan scenario: 30 year term with 3.730% APR, a $245,471 loan amount, and zero down.
†Closing costs and fees may still apply.
Similar to our first myth, good credit can be more of a nice-to-have than a must-have. If you have perfect credit, kudos to you! You might get more favorable interest rates. But, if you have mediocre credit, or even a credit score that needs work, you have options. Talk to a PRMI Loan Officer to learn about FHA loans, VA loans or loans with adjustable interest rates. We’ll help to find a loan to fit your score.
Pre-qualified DOES NOT mean pre-approved.
Getting prequalified involves providing your Loan Officer with some basic financial information. Then they give you an estimate for how much you may be able to borrow. Getting pre-approved takes more work. The lender needs to collect and verify all the information and present it to the underwriter to get approved.
No loan is one-size-fits-all. The loan you need depends on your situation. How long do you plan to stay in the house? If it’s less than five to seven years, you may want an adjustable-rate mortgage (ARM) because they often have smaller interest rates the first few years. Are you near retirement age? If so, a 15-year fixed mortgage with no prepayment penalties might be what you want. Meet with a Loan Officer to discuss the options that are right for you.
In addition to your down payment, you will likely have other expenses when buying a home. The most common expenses are fees and closing costs. If you have a down payment, these fees can eat into how much goes toward the loan. Either way, they may affect how much you can afford to borrow.
Knowing these costs and planning ahead for them can help keep you within your budget.
Remember, every situation is different. Just because your brother had one experience when buying a home, doesn’t mean it’s that way for everyone. Know the facts and talk to a Loan Officer.
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by Primary Residential Mortgage, Inc. NMLS#: 919520 Utah DRE Mortgage Office License # 8335595. MLO 0117736. MC3094-122. All loans subject to credit and property approval. PRMI NMLS 3094. PRMI is an Equal Housing Lender. Some products and services may not be available in all states. Credit and collateral are subject to approval. Terms and conditions apply. This is not a commitment to lend. Programs, rates, terms and conditions are subject to change without notice.
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