The process of buying a new home is no small task, and is certainly not something you want to rush into without considering all of the details, processes and risks involved. For many families, it can be the single weightiest decision they ever make. And that is why having the right help and guidance can be such a crucial asset on the path to home ownership.
Richfield Homes works with a variety of trustworthy lenders who are able to provide a range of different mortgage programs with the intent of making the process of buying a home a viable prospect for your family. There are several mortgage options available to you, and our team of professionals will do whatever they can to make sure that you find one that suits your needs and situation.
It is important to note the difference between mortgage options and choose one that suits your needs. Fixed-Rate Loans are a good choice for those who want a stable payment remains static throughout the entirety of term. Applicable taxes and insurance prices may change, but the primary payments will go unchanged. Most Adjustable-Rate Loans on the other hand, start off with a lower interest rate, but that may increase after a set term. These loans offer more flexibility for those who may need to move again refinance.
The FHA (Federal Housing Administration), USDA (United State Department of Agriculture) and VA (United States Department of Veteran Affairs) offer loans insured by the government. Loans from these sources have very low, if any, down payment obligations. The procedures involved in these loans are often less strict and easier to follow.
If you are going to have a home built for your family, some of our clients take advantage of Richfield’s access to an “Up Front Close” loan program. With as little as 3.5% down, this program that allows you to lock your interest rate at the beginning of construction, and can save you both time and money throughout the building process. Ask your local Richfield Homes Sales Manager for details.
Your credit score will be a large factor in deciding whether you qualify for a home loan. A credit score basically identifies your creditworthiness; that is, the likelihood that you will be able to pay off debts. The most commonly-used model is the FICO Score. Factors such as payment history, your utilization of credit, and how long you have been using credit are all considered in your score. Scores range from 300 to 850, with 300 being the riskiest.
Why is your credit such a big deal when it comes to home financing? Usually, the better the score, the lower the interest rate on the mortgage. Credit score is basically a system to predict your reliability in making payments. Every action with credit will affect your score either positively or negatively.
Since purchasing a house is one of the biggest decisions you will make, it’s important to know the risks and processes. We will be with you through every phase of the process, from getting the loan, to getting the keys to your new front door.
The Loan - Step one is the application for a loan. Our recommended Mortgage Loan Officers will help you pick the loan program suited for you from the types explained earlier. They will then help you through the process of providing the correct documentation to complete the application and determine the proper interest rate.
Pre-Closing - When the loan is approved, Mortgage Loan Officers will contact you about any additional steps that need to be taken care of before closing. This can be a lengthy process, but we will strive make it as painless as possible.
Closing - Finally, your Closing Agent will go over the documents that you need to look over and sign. Legal identification and a cashier’s check or wired funds will be required to place your down payment and any closing expenses. Once the process is complete, you can start unpacking and get settled into your into your new Richfield Home. Welcome Home!