Mortgage Information for Houston Real Estate Buyers
If you’re like most Houston real estate buyers, a home is the most expensive purchase you’ll ever make. Most home buyers will need some form of mortgage financing. Houston Prime Realty is here to provide home buyers with the mortgage information they need to explore their home purchase options. There are many lending institutions in the Houston area and nationwide that offer a variety of mortgage loan products. Mortgage qualification requirements, closing costs, and interest rates can vary widely among lenders. It is important to do your research and shop around to ensure you get the loan that best meets your needs at the best price. We would be happy to refer you to some very good mortgage contacts we have in Houston. You can access our Directory of Mortgage Lenders for a list of Houston mortgage lenders we have worked with in the past. Our mortgage lender directory is a free service to both real estate buyers and lenders.
Available Home Mortgage Types
There are many different home mortgage types available for all types of buyers and situations. FHA loans are available for buyers who lack funds for a larger down payment or have lower credit scores. FHA loans require a minimum 3.5% down payment and with credit scores as low as 580. VA loans are available to qualified military veterans and offer a zero down payment. Conventional loans are available for buyers with larger down payments and higher credit scores. USDA loans offer zero down payments to buyers in rural and more remote suburban areas. Hard money loans are available for properties and buyers that do not meet normal lending guidelines. There are even down payment assistance programs for lower-income buyers who qualify for the programs.
Mortgage Pre-Approval Letter or Pre-Qualification Letter
One of the first steps in purchasing a home is getting a mortgage pre-qualification or pre-approval letter from the lender of the buyer’s choice. A buyer can obtain a mortgage pre-qualification letter by contacting a mortgage lender, filling out a mortgage application and the lender ordering a credit report. A mortgage pre-approval letter takes the application process a step further by verifying the mortgage applicant’s income and their funds needed for a down payment and closing costs. Home buyers need to have at least an approved mortgage pre-qualification letter in order to make an offer on a home. Most real estate agents ask that home buyers obtain a mortgage pre-qualification or mortgage pre-approval letter before they start the home showing process. It is best if the home buyer and agent understand how much home the buyer is qualified to purchase before looking at available homes for sale. There is nothing worse than finding your dream home and then finding out it is not in the price range the buyer qualifies to purchase. Home buyers can contact any of the mortgage lenders in our Mortgage Lender Directory and request a free mortgage pre-approval letter or mortgage pre-qualification letter.
Mortgage Payment Calculator
Homebuyers can use our mortgage payment calculator to get an estimate of their monthly home payment including principal and interest. Monthly mortgage payments are made up of principal and interest payments to the mortgage lender. If the borrower uses a mortgage escrow account to collect and pay their annual property taxes and homeowner’s insurance, their monthly payment will also include 1/12 the annual property taxes and homeowner’s insurance in the payment. Escrow accounts are required if the borrower’s down payment is less than 20% of the sales price. A home buyer’s down payment can be as low as 3.5% of the sales price with a FHA loan, but the buyer will be required to pay FHA mortgage insurance. Most conventional mortgages with a down payment of less than 20% of the sales price require the borrower to pay monthly private mortgage insurance. The cost of mortgage insurance should be between 0.30 percent and 1.15 percent of the total loan amount calculated on an annual basis. The mortgage lender will provide you with the exact amount of the annual mortgage insurance required in their mortgage information worksheet. This amount is divided by 12 and added to your monthly mortgage payment. This mortgage payment calculator can give you a quick estimate of your monthly principal and interest payment portion of your mortgage payment.
Calculate Mortgage Payment
Houston Prime Realty is Here to Help Real Estate Buyers in the Houston TX Area
Houston Prime Realty can provide real estate buyers with the mortgage information and tools to find an acceptable mortgage lender and get approved for a loan to purchase a home or real estate in Houston or the surrounding communities of Houston Texas. Home buyers can use our Mortgage Loan FAQ for questions about real estate mortgage financing in Texas. If you would like a real estate buyer agent to help you purchase a home, Contact Us for free real estate buyer representation.