Purchase

Your Options for a Home Purchase

When you decide to buy a home, you’ll have several variables coming into the picture. At Fellowship Home Loans, we take a number of factors into consideration when looking at your mortgage application. Though we do everything we can to seek out the most competitive rates and most favorable terms for those who come to us for help, you can do a few things on your own before the loan qualification process begins. When it comes to a home purchase, you may find that you have more options than you think. To get personalized information and service, get started now.

One of the many elements we look at when choosing which loans ideal suits your needs is your liquid assets, which include checking and savings accounts. Ongoing deposits and withdrawals and your current balance hold equal weight when it comes to eligibility, so consider spending some time building these up before applying for a home purchasing loan. If you’ve got additional investments, like a 401k or other type of retirement account, let us know about these as well. The more finances you’ve got to draw from should the need arise, the better your financial standing will be. This will also help a great deal when it comes to your down payment on a home, which is typically 10 to 20 percent depending on the loan you get.

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HOUSEHOLD INCOME

We also take a look at your ability to pay. Obviously, your monthly household income is figured into the equation, but your employment history is as well. Having recently changed jobs doesn’t automatically disqualify you, though. If God led you to a higher paying position, one with more benefits or even a more emotionally rewarding career path, you were right in following those convictions. We simply need to verify steady employment over a period of time. We’ve seen a considerable increase in self-employed contractors and home-based businesses over the last decade so, if you fall into this category, be sure to have your tax returns on hand for us to make the qualification process flow a little more smoothly.

DEBT TO INCOME RATIO

Our team will also calculate your debt-to-income ratio or your monthly household income compared to your current monthly debts. As a general rule, we’ll be able to get you a loan with lower interest rates and a less hefty down payment if your DTI is less than 40 percent. This is one of the reasons it’s ideal not to establish any new lines of credit just before seeking mortgage lending.

CREDIT SCORE

Credit history is another important piece of the puzzle, and it’s the most dreaded for a lot of people applying for a mortgage considering the economic turmoil our nation experienced recently. We’ll look at your credit score along with when any relevant debts were created. If at all possible, try not to create any new debt around the same time you fill out your mortgage application with us because this could affect your eligibility. We look primarily at well-established lines of credit, and any new ones are going to increase your amount of debt as well as the burden on you to make your monthly mortgage payments.

If your credit score is in the low 600’s range, or you’ve got a high debt-to-income ratio, don’t immediately give up on your dreams of becoming a homeowner. We have some alternatives to the conventional home loan, and you may qualify for those. At the same time, our purpose goes well beyond just approving or denying loan applications. We offer advice and assistance for lowering your DTI as well as improving your credit score.

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Aside from the factors you can control, we also have to look at the state of the housing market in the area you plan to call home. It’s not a universal industry, so interest rates could be high while property values are low in one part of the country whereas the opposite is true in another. Crime rates in a specific neighborhood and conditions of any surrounding homes and businesses are also going to have an impact on the value of the home you may have in mind. These aspects are also going to affect insurance rates, which also play into your monthly expenses.

We don’t want to give you more of a loan than you can comfortably handle any more than you want to be weighed down by that type of financial and emotional stress. Our mission is to help you find a house you can transform into a home rather than struggling just to survive. Fill out the form we’ve provided, and let us help determine exactly how much of a down payment and monthly payments you can afford so we can find the right loan for you.

FHA FINANCING

Traditional home loans can be a bit difficult to qualify for, especially in today’s economy, but they’re not the only tried-and-true routes to home ownership. We’re proud to be able to offer this option to our applicants. This is often a blessing for those who’ve had credit issues in the past as well as lower-income families. Some of the benefits of an FHA loan include:

These are 30-year fixed rate loans so, in addition to rates being lower than those of a conventional mortgage loan, eligible clients don’t have to worry about fluctuations or the soaring interest rates projected for the years to come.
With most mortgage loans, insurance premiums will run you about 1.8 percent, but just last year, the FHA reduced its rates to .85 percent for 30-year fixed-rate loans.

Only 3.5 percent of the total loan amount is needed for a down payment as opposed to 10 percent or more with traditional loans.

We’ll still need to look at your employment history and the state of the housing market at the time you apply, but our FHA loans backed by the government and issued by Fellowship Home Loans give thousands of people the opportunity to buy a home when they don’t qualify for other options. These give us a lot more freedom to look at your unique situation rather than just your current circumstances. Feel free to fill out the form to see how we can help!

ADJUSTABLE RATE MORTGAGES

Adjustable-rate Mortgages are another option we offer our applicants. With a fixed-rate loan, you’ll be locked in at the same rate throughout the life of your mortgage whether you purchased a home when rates were low or at their highest point on record. ARM’s are different because they allow us to start you off at a low rate and lower initial monthly payments. Since we figure in those smaller payments when determining your eligibility, you may be able to borrow a more substantial amount with an ARM than with another type of loan.

Your low introductory rate will be set in stone for anywhere from 12 months up to 10 years depending on the specific loan for which you qualify. After that point, payments will go up or down every six months or annually according to the rates at the time. We already have a cap in place on the rates we charge our clients, so no matter how high they go in the future, you’ll never have to pay more than our predetermined price.

This option is ideal if you don’t plan to stay in the house you’re buying more than five years or so, as is often the case for those whose jobs keep them on the move. Though being unable to pinpoint exactly how much your payments will be a few years down the road is a drawback for some, many see their introductory period as the perfect opportunity to put a little extra money in the bank. If this sounds like the type of home purchase you’d be interested in, or if you want to learn more, just fill in the form to get started.

FIXED-RATE LOANS OFFER STABILITY

As opposed to adjustable-rate mortgages, fixed-rate home loans generate the same payment amount each month for the entire duration of the loan. Though you may end up paying a little more in the long run, many homeowners feel this is a small price to pay for absolute clarity on how much their monthly mortgage payments will run regardless of the going interest rate. Some who initially decided on an ARM have actually chosen to refinance their homes and convert their loan to a fixed-rate variety.

Whether purchasing, refinancing or consolidating all your debts into a single payment, a fixed-rate lending option may be right for you. For those considering a home purchase, Send us a few details about yourself and your situation using the form provided. From there, we’ll contact you with more information about how this alternative could work in your favor.

TRADE UP OR PURCHASE THAT DREAM VACATION HOME

At Fellowship Home Loans, we’re about far more than just offering advice on choosing the right mortgage option for first-time home buyers: Our team can help when the time comes to make a few changes as well. Perhaps your family has outgrown your current home, or your children have grown up and started families of their own, and you’re ready to downsize. Maybe it’s time to purchase a beach house or a remote cabin tucked away in the mountains. We can help! Just use the form below to tell us a little more about your current needs.

IF YOU CAN AFFORD TO RENT, YOU CAN AFFORD TO BUY

Until fairly recently, it was definitely less expensive to rent a home than to purchase one but, at this point, the scales are essentially balanced. The decision between purchasing and renting is now based more on your individual circumstances than your financial situation. If you need to move frequently for whatever reason, or you foresee a pay cut on the horizon, renting may be the better option. Otherwise, why not consider becoming an official homeowner?

We offer a variety of loans designed for a home purchase. If you can’t afford the traditional 10 to 20 percent down payment, we can help you find out if you qualify for an FHA loan. A number of government-funded assistance programs are available you may not even be aware of, and we’re here as your advocates for all of them.

Start your journey to home ownership by filling out the form on our website. Then, one of our representatives will get in touch with you as soon as possible to discuss which options are ideal suited to your individual circumstances. Owning your own home may be closer than you imagined! Let us help you realize the American dream with a home purchase!

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Nile & Stephanie
Our experience with FHL was exceptional, from our initial meeting to the actual closing. We were kept informed, given the right level of information and received...
Mark & Sharri D
Glad we can have a new mortgage with Biblical principles.Thanks for making this process very simple. :)
Camille M, Upper Marlboro, MD
I heard Fellowship Home on the radio and I wasn’t expecting they would be able to help me lower my rate because my current bank couldn’t do anything. I was shocked when they said they could do the loan AND pay off some of my credit cards as well. I was waiting for something to go wrong with the process because of my past experiences with mortgage companies but they did everything they said they would do. Simply amazing!
John C, (Jersey City, NJ)
I didn’t have great credit and had been getting the run around from banks when I had tried to lower the rate of my mortgage. I had heard Mike and Brian on the radio for years and God was telling me to try with them because they would be straight with me even if I didn’t qualify. Not only did I get a great rate, but I got 2 months off from paying my mortgage and $1,000 back at closing. I will never forget what they did for me.
Adelle W, (Trenton,NJ)
My sister had refinanced with Mike and Brian so I gave them a call when I was looking to purchase my first home. I was very unfamiliar with the process of course and very nervous of course. They held my hand and walked me through the process and I was a homeowner just a few weeks later. They truly helped me achieve the American dream of home ownership!

(800) 804-7283

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(800) 804-7283

Text18008047283

Purchase

Your Options for a Home Purchase

Loan Purpose

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HOUSEHOLD INCOME

DEBT TO INCOME RATIO

CREDIT SCORE

FHA FINANCING

ADJUSTABLE RATE MORTGAGES

FIXED-RATE LOANS OFFER STABILITY

TRADE UP OR PURCHASE THAT DREAM VACATION HOME

IF YOU CAN AFFORD TO RENT, YOU CAN AFFORD TO BUY

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