At Steelman Mortgages, we get a lot of questions from first-time and repeat homebuyers. Educating homebuyers and homeowners is something we are passionate about. We want to make sure that the mortgage process to be as easy as possible and that you sign on a home loan which is the right individual fit for your needs.
So, we would like to answer a few of our most frequently asked questions below.
If you are looking for more detailed information on any of these topics, or if you have questions about mortgages that we have not answered here, please call (916) 847-7263 to schedule a consultation.
What is the rate?
The interest rate for a home loan depends on a number of factors. These include the type of loan you apply for, going rates at that time, and individual factors such as your credit score, debt-to-income (DTI) ratio, and income.
What is the minimum credit score?
The minimum credit score to apply successfully for a mortgage depends on the type of loan you are applying for.
We can connect you with government-backed loan programs such as FHA, USDA and VA which are aimed at homebuyers who do not have perfect credit scores.
What is the cut-off for the best interest rate?
This, too, depends on the type of mortgage you are applying for as well as other factors in your borrower profile such as your income and DTI ratio.
What is the down payment on a conventional loan?
There are advantages to making a 20% down payment on a home with a conventional mortgage, but you may qualify for a lower down payment.
In fact, conventional loans may have down payments as low as 3% for borrowers with competitive credit scores, income levels, and DTI ratios.
How can I buy a home with a low down payment?
With a strong borrower profile, you might be able to buy a home with a low down payment using a conventional loan.
But even if you do not have ideal credit, buying a home in California with a low down payment is still possible.
Government-insured loans through the USDA, VA and FHA mortgage programs help offset the risk associated with lower credit scores, allowing lenders to offer competitive rates and low or no down payment.
FHA mortgages come with down payment requirements as low as 3.5%. Eligible borrowers buying a home with a USDA or VA loan can do so with no down payment.
Who can apply for an FHA loan?
Both first-time and repeat homebuyers are welcome to apply for FHA mortgages.
Am I eligible for a VA loan?
If you are a veteran, active-duty service member, or surviving spouse, you may qualify for a VA mortgage.
To determine your eligibility, we will need to take a look at your service record, which we can do during your consultation.
No matter how long ago you performed your service, you can use a VA mortgage, because they do not expire.
Also, did you take out a VA mortgage in the past? If so, that does not affect your eligibility for taking out another VA loan now.
What is difference between a mortgage broker and a lender?
A mortgage broker is a company that can connect you with loan products from multiple lenders.
In doing so, the broker saves you considerable time and research by shopping for the most competitive rates.
A broker also may be able to bring you deals which are not advertised to the public, but are only available through the broker’s established relationship with he lender.
Cindy Steelman works with a wide network of lenders throughout El Dorado, Placer and Sacramento counties, and beyond.
So, wherever you are shopping for a home in California, Cindy can help you find your ideal loan.