How Do I Find the Right Mortgage in Madison County?

Buying a home is an exciting experience, and getting the right mortgage can remove a lot of the stress that comes with it. 

The right mortgage will vary from person to person depending on financial situation, home price, and more. Our guide will help you navigate the process for finding a mortgage that is right for you in Madison County.

Where to Start

There’s no right way to go about the home buying process. Many buyers start by talking to a lender to find out how much they can borrow for a mortgage, and then start home shopping for houses within those numbers. Others fall in love with a home and decide to buy without knowing what kind of a mortgage they qualify for. Whatever your situation is, it’s important to go through the steps to learn about all of your mortgage options.

Know These Types of Mortgages

Historically, home buyers have gone through a bank to obtain a mortgage loan and needed a 20% down payment. That’s not always the case, today. There are many mortgage options that allow for much lower down payments. Learn about these types of mortgages and ask about them when you talk to lenders:

  • FHA Loans – These loans are for first time homebuyers and are ensured through the Federal Housing Administration. They offer as little as 3.5% down payments with low interest rates and easy credit qualification.
  • USDA Loans – USDA loans are also known as rural development loans, and are subject to location and income limitations. 
  • VA Loans – If you or your spouse have served or are currently serving in the armed forces, VA loans are a great option. They have low interest rates and require no down payment. 

Talk to a Lender

Online searches and asking friends and family can be helpful, but you won’t get real numbers for an actual mortgage until you actually talk to a lender. Your local bank or credit union is a good place to start. Ask about mortgage rates, down payments, and what loan programs they offer. Check with several lenders to compare numbers before you choose the one you want to process your mortgage loan.

Get Pre-Approved

Pre-approval is a great way to find out how much a bank will loan you for a home and what kind of monthly payment you can afford. The lender will do a full credit check, as well as fully analyzing your financial state, employment history, credit score, and more. Many sellers ask for a pre-approval letter from a lender before they will accept an offer, so they know you will be able to pay for the house.

Local Home Buyers Can Help

Are you ready to get the right mortgage to move on to your next home, but feel stuck because you need to sell your current house first? Local Home Buyers can help! We buy homes fast in Madison County, Alabama. Simply tell us a little bit about your home and we’ll make you a cash offer within 24 hours, no matter what condition your home is in. Contact us today for your all-cash offer!

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