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Despite what many believe, qualifying for a home loan is much easier than you may think.
Between trepidations about the costs and the anxiety that accompanies not knowing where to begin, purchasing a home can seem pretty daunting. What few people realize is that homeownership is not only less complicated than it appears, but is also a far better investment than simply renting a property.
In many instances, you might actually be able to pay less for a mortgage than what you’re currently paying in rent.
On top of that, the steps you take when purchasing a home are surprisingly similar to certain aspects of renting.
One of the first things you’ll do is fill out a credit application—just as you would with a rental property. Next, you’ll meet with a lender who will fit your needs with your budget in order to find the property that’s right for you.
So though homeownership and the steps it entails may, at first, seem daunting—the real difference between buying and renting is that when you purchase a home, it’s yours.
Another thing to keep in mind is that you don’t necessarily need to put 20% down on a home. In some instances, you may be eligible for other types of loans, like USDA or FHA, where the down payment is close to zero percent. In today’s market, you no longer need to save up thousands of dollars for a down payment.
For first-time homebuyers especially, the money you put down on a home can often time be less than a thousand dollars out of pocket.
On top of many of the well-known loans such as USDA, which I’ll explain in a moment, it’s good to also keep an eye out for local loan programs and grants—both of which are designed to help you find your way into a home. Right here in our area we have the Salisbury Neighborhood Housing Organization as well as the Maryland Mortgage program.
USDA loans specifically, which are income-capped, exist to help qualifying moderate income families afford housing.
As you can see, there are many ways in which you can qualify for a home loan. If you’d like to learn more, feel free to call or email us. We look forward to hearing from you.