If you are ready to buy a house, you may want to finance the new home with U.S. Bank. U.S. Bank offers mortgage programs and rates to fit almost every budget.
If you are ready to buy a house, you may want to finance the new home with U.S. Bank. U.S. Bank offers mortgage programs and rates to fit almost every budget.
The loan application
Before you start your search for a home or a mortgage, you should get your financial information in order. Lenders will base your home loan approval and rate on your credit history, income and debt-to-income ratio. Many lenders require that your home expenses, including the mortgage, taxes and insurance, are 36 percent or less of your net income.
Click here to get mortgage rate comparisons.
Proof of your finances will be required with your mortgage application. To finance a new home with U.S. Bank, you need to provide tax returns, pay stubs, bank statements, and a list of debts and expenses. It is a good idea to pull your credit report and examine it before applying for a home loan. If there are discrepancies, you can fix them before asking for a loan.
U.S. Bank loans
Now you can select the U.S. Bank home loan program that best meets your needs. One way to finance a new home with U.S. Bank is with a fixed-rate mortgage, typically for 15 or 30 years. In a fixed-rate mortgage, your interest rate and your payments will be the same for the duration of your loan.
If you do not plan to stay in a home for five years or you want a very low payment in the beginning of your mortgage, an adjustable-rate mortgage (ARM) is a good option. ARMs start with a low interest rate in the initial period and then adjust every quarter or year according to the national lending index. The drawback is that your interest rate could rise several points over the term of the loan, making your payment unaffordable.
Jumbo loans and FHA loans
You can also finance a new home with U.S. Bank if you are buying a mansion or if you have a limited income. On the top end of that spectrum, jumbo loans are available if the home you desire is more than the conforming limit of $417,000. These loans have flexible mortgage terms, so you can pick the terms that work best for you.
If you have a more modest income, U.S. Bank offers government-backed loans from the Federal Housing Administration (FHA) and the U. S. Department of Veteran's Affairs. These loans require a down payment as low as 3.5 percent and may be accompanied by federal grants that pay your down payment, closing costs or other homebuying fees.
As with any major purchase, it is important to learn as much about the process as possible before you start. Whether you want to purchase a small bungalow on a quiet street or a mansion at the top of the hill, it is possible to finance a new home through U.S. Bank. You can compare U.S. Bank's mortgage programs and rates with other national lenders at Reply! Once you have all the information you need, you can confidently begin the home-buying process and turn your dream of owning a home into a reality.