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The most common loan type, which is offered by private lenders - banks, credit unions, etc. This is seen as the strongest financing method in the eyes of sellers because it is the most difficult loan to qualify for.
This is a government-backed loan with lesser qualifying standards than conventional. There is an additional "inspection" that occurs simultaneously with the appraisal, which can spark repair requirements on a home before closing.
VA loans are available to active duty service members, veterans, and surviving spouses of the US military. Unfortunately, VA loans are viewed as weaker than conventional. Veterans have earned this benefit and we should help them redeem it. VA also has an additional inspection with the appraisal and can spark repair requirements
A non-QM loan is non-qualified mortgage, which means it does not meet consumer protection provisions of the Dodd-Frank Act. In layman's terms, it is an alternative loan qualifying process for individuals or entities that face challenges with meeting the typical requirements of a qualified mortgage - credit score, debt-to-income ratio, job history, etc.
MSDHA offers the most well known program known as MI Home Loan, which is eligible for first time home buyers or buyers who have not owned a home in the last three years and a minimum credit score.
Note: there are restrictions based on the purchase price of the home, county of which the home is located, and household income.
The MI $10k DPA (down payment assistance) program is available through the MI Home Loan which provides up to $10,000 in down payment assistance - all you have to do is take a class!
Note: It is not free money. But, it is 0% interest and you don't pay it back until you sell, refinance, or pay off the mortgage.
Odds are you won't know everything going into something for the first time, so it is important that you ask questions. Also, you want to consult with more than one source of information. Ask around and speak with a few mortgage lenders to understand if there are any new or lender-specific programs that you can qualify for!
Speak with a few lenders and shop rates. See which lender you believe will be the best fit, and request a pre-approval letter. Kyle can recommend a few lenders for you to get started.
If you have done the first two steps before this one, you are respecting the process, well done! Kyle will set up a custom search for you so you get notified immediately when your future home becomes available
The only way to buy a home is to make an offer. Kyle can advise on offer strategy and tactics in order to make the most competitive offer and get the house of your dreams! Don't let it slip away.
Inspections will typically take place after your offer has been accepted by a seller. This is a protection period for you, so you don't buy a 'broken' home. Depending on how your offer is structured, price and repairs can be negotiated based on the inspector's findings.
Once the inspection period has passed, you will kick off your loan process - aka underwriting. Included in that, an appraisal will occur at the home. This is another protection mechanism in the process, so you don't pay more than the property is valued.
After a satisfactory appraisal and your loan is clear to close, you are on the home stretch. Get to the closing table and purchase your dream home!
Bonus: Curious how much $ it takes to actually close on a home? Check out the estimator attached!
Looking for a new house? Use this property tax calculator to estimate the new tax bill post purchase.
Note: property taxes uncap after a new purchase, so DO NOT expect the current taxes to be the same as yours.
Buying a house is expensive. For most, it is the largest purchase of their life. Down payments can be tens of thousands of dollars, but so can be the grants - see if you qualify for them!
Kyle Madak does not provide tax, legal or accounting advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for tax, legal, or accounting advice. You should consult your own tax, legal, and accounting advisors before engaging in any transaction.