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Purchase Loans Explained: How You Could Land Your Dream Home

Purchase Loans Explained: How You Could Land Your Dream Home

There are a variety of loans available to home buyers in modern America. When it comes to finding your perfect home, you should consider using a purchase loan to complete your sale.

Investing in Florida real estate and lending funds with an agreed fixed term allows you to plan for your financial future, with minimal disruption.

Defining Purchase Loans

A purchase loan is essentially finance provided to a home buyer by a lender for the purposes of purchasing property, or other expensive assets.

One of the first steps of going through with this, is known as the pre-approval.

This first initial process can take place either in person or over the phone. You’ll provide some basic information which will help your lender get a better idea of what financial options you have.

The information you’ll need includes; your full name, social security number, date of birth, two-year history of addresses, recent employment history, verification of income, report of liquid assets, credit report and supporting information.

Once all information has been verified, you’ll usually be provided with a detailed report, listing all the loan programs available to you.

 Purchase Loans Explained: How You Could Land Your Dream Home

How They Can Work For You

There are three forms you could find a purchase loan. 

If the seller is without a mortgage, then you as the buyer will pay a down payment. You will then finance the remaining cost of your home via this purchase loan from the seller. The seller will establish the interest rates and monthly payments. The buyer can also apply for a VA loan in Florida if he is a former or current member of the military.

If there is a current mortgage on the home, then the buyer will assume all responsibility for the sellers’ mortgage payments. You’ll find the difference between the down payment and the remaining mortgage monthly payments is the amount the purchase loan will be financed by the seller.

If you purchase the home using a down payment and a traditional loan, but you don’t qualify for a large enough loan to cover the house price, then a portion of the purchase loan is financed by the seller.

When it comes to getting your sale complete, you should use a loan lending provider that promises to close on time, getting the best loan possible. 

Consider contacting the Home Loan Expert, as they offer a variety of home loan opportunities such as the purchase loan. They offer consultations over the phone with high class customer service.

Tips For Home Searching

In 2021, we’ve seen a rise in virtual home viewings and general online searching due to the impact of COVID-19. Now, realtors have kept with it due to practicability of long-range views.

Locally, in-person viewings are once again available to help you visualize your future home more.

When viewing a property that’s currently being lived in, it’s important to look past what current owners are doing, especially with furnishings. It will look very different when empty, so don’t worry about the mess and don’t fall in love with furniture that will leave.

Ensure you have enough savings for home purchasing, you will need somewhere between 3%-20% for most down payments, depending on the realtor and lenders terms.

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