Austin Texas Real Estate

Types of Financing Available

There are numerous different types of financing available to homebuyers today. Some carry a great deal of paperwork and complexity with them, but compensate by giving the buyer a great deal of flexibility in terms of downpayment and qualifiying terms. Other loans, while more difficult to qualifiy for can reward the buyer with lower interest rates.

The types and number of available loans are overwhelming without the help of a qualified mortgage professional helping you decide what loan package will best fit your needs. We highly recommend the ones listed in our "Vendors section".

When looking for a loan, you need to consider that a lender looks at these things:

1. Income - most lenders require that your monthly payment range between 25-29% of your gross monthly income.

2. Credit Report - lenders generally do this for you. Your credit report will report on your outstanding debt as well as your available credit. So, even if you have credit cards with no balance on them, as long as their active they will show up on your credit report and may count against you.

Most lenders require that your monthly mortgage payment, together with your other outstanding debt (from installment payments like a car payment and revolving payments like credit cards) total no more than 33-41% of your gross monthly income.

3. Assets - cash on hand, savings, stocks, cd's, etc.

4. Property - the property you are planning to purchase must be appraised to make sure that it is worth the value of the loan.

By using a qualified real estate professional and mortgage professional, you'll be able get through the maze of loan qualification relatively smoothly.

To make sure you've got all the documents you need in order to apply for a loan, check out our Mortgage Steps page to see what you'll need and to get a feel of what closing costs will be, see our Buyer's Closing Costs page.

David Hood
Austin Homes & Real Estate
(512)567-7053