Planning for Home Ownership

Program Highlights

• 95% Financing (true 5% down program)
• No Max Loan Amounts
• No cash reserves required
• Gifted Down Payments
• No mortgage insurance required
• Insurance can be financed into the loan
• Terms up to 30 years
• Owner contact options
• Debt to Income Ratio up to 50%
• Fixed Rates
• Closing Cost can be financed

Rent vs. Buy

Should you rent or should you buy your home? It takes more than looking at your mortgage payment to answer this question. If you dream of buying a home you came to the right place. MHLoans can make your dream of owning a home a reality. We have a simple interview that will step you through the process of determining what you may be able to afford. Once you have a good idea of how much home you can afford, it's time to start figuring out what features are the most important. It's time to ask yourself a very important question - What am I looking for in a home? Once you have zeroed in on a neighborhood, you may want to drive around and note the number and the locations of "For Sale" signs. Pick up the local newspaper to get a taste of the area. This will help you get a sense of the local housing market.

What should I know before buying a home?

Here are some tips that could save you a lot of time, money and trouble.

• Plan ahead.
  Establish good credit and save as much as you can for the down payment and closing costs.
• Set a budget and stick to it.
  We can help you determine a comfortable price range.
• Keep your day job.
  If there's a career move in your future, make the move after your loan is funded. Lenders tend to favor a stable employment history.
• Know what you really want in a home.
  How long will you live there? Is your family growing? What are the schools like? How long is your commute? Consider every angle before diving in.
• Make a reasonable offer.
  To determine a fair value on the home, ask your real estate agent for a comparative market analysis listing all the sales prices of other houses in the neighborhood.
• Choose your loan (and your lender) carefully.
  For some tips, see the question in this section about comparing loans.
• Consult with your lender before paying off debts.
  You may qualify even with your existing debt, especially if it frees up more cash for a down payment.
• Don't shift money around.
  A lender needs to verify all sources of funds. By leaving everything where it is, the process is a lot easier on everyone involved.
• Don't add to your debt.
  If you increase your debt by financing a new car, boat, furniture or other large purchase, it could prevent you from qualifying.
• Timing is everything.
  If you already own a home, you may need to sell your current home to qualify for a new one. If you're renting, simply time the move to the end of the lease.

Home Purchase FAQ’s

• How much house can I afford?
  This depends on two things: your comfort level and the lender's approval. If you're young and upwardly mobile you may feel comfortable stretching to afford a bigger home, knowing that eventually your increasing income will make the payments easier as time goes by. But if you're older or retiring soon, you may want a lower mortgage payment that won't require as much of your income. The lender, on the other hand, will be looking at your credit rating, your income and other factors to determine how large a mortgage you can support.
• What type of loan will be best for me?
  A good lender can point out other loan options you may not be aware of.
• What will my closing costs be?
  Ask your lender for a general summation of the fees and commissions that will be required of you at closing.
• Will I be charged points?
  Sometimes a loan is only available if you pay points, so ask your lender if the loan quoted requires points.
• What items must be prepaid?
  Your lender should let you know what items, such as property taxes and insurance, must be paid in advance.
• How long will I be guaranteed the quoted interest rate?
  This is called locking in a rate. Ask your lender how long your rate can be reserved and if there's a fee involved.
• How long will the approval take?
  This varies, so get an estimate, especially if you're on a deadline.
• Does the loan have a prepayment penalty?
  If you think you may refinance or pay off the loan early, you should ask if there's a fee involved for doing so.