Buying a home is one of the most exciting times in your life. Before you can begin shopping for a home you need to determine your budget. You will need to find a loan that will meet your monthly budget. When it comes to home loans in NC there are many options. Your credit history and income will be reviewed as part of the loan application process. It is helpful to understand the most common types of home loans in NC.
Types of Home Loans in NC
The two most common types of home loans in NC are likely the fixed rate loan and the adjustable rate mortgage. A fixed rate loan is considered a traditional type of loan. It provides you with a set interest rate and has a fixed term of 15 or 30 years. An adjustable rate mortgage (ARM) has an interest rate that adjusts over the life of the loan.
The government provides loan assistance for some individuals. A Fannie Mae loan is a government sponsored loan that is designed to help home buyers and allows for small down payments. If you don’t have a good credit score you may not qualify for a Fannie Mae loan. An FHA loan may be available instead. A VA loan is another option that is available for veterans and those who serve in the military.
A jumbo home loan is a large loan that may be available when you are seeking up to $2,500,000. A mortgage loan originator will be able to assist you in determining the type of loan that is best for your particular financial situation and requirements.
Obtaining Home Loans in NC You will need to gather you financial documents and personal information in order to apply for a home loan. Determine how much money you have available for a down payment. Some types of loans, such as an FHA loan, allow you to use gifts for the down payment and closing costs.
Once you have all of your documentation available you can fill out a loan application. You can often complete an application online through a secure server. If you are filing for a joint loan you will both need to submit detailed information.
You must provide your personal information along with your income verification and bank records. You must also give details about your monthly expenses and payments such as other loans, credit card bills and others.
Once you submit your application you will receive a determination. If you have been approved you can obtain a pre-approval document that you can use to make shopping for a home easier and less stressful. You can view some of the application guidelines online and review the checklist that provides you with a list of items that you will to provide in order to process your loan. Whether you are buying your first home, a second home, investment property or manufactured home we can help you get the best loan possible. Contact us today for assistance with all your loan needs.