The First-Time Homebuyer's Guide to Home Financing

If it’s your first time buying a home, then you surely know how much research plays into the process. Developing a reasonable budget and evaluating your credit are among the important steps to securing that house you’ve been eyeing. As money is arguably the most important factor in any home purchase, Carthage Savings & Loan takes a closer look at home financing to help first-time homebuyers find the best option.

How Home Financing Works

When you choose to finance your home, there are different evaluations that lending companies will need to perform to determine your loan amount and interest rates. Typically, they will run the following checks on borrowers:

• FICO score – a three-digit number based on your credit reports indicating your likelihood of repaying a loan
• Loan-to-value ratio (LTV) – a value comparing your loan amount to the value of your home
• Debt service coverage ratio (DSCR) – a value that considers your income to determine your ability to pay a mortgage

Depending on your evaluation results, you may be approved for a loan with smaller or larger interest rates, down payments, or overall amounts. To quickly determine your eligibility before you apply for a Carthage Savings loan, fill out our prequalification application. You can also check out our mortgage calculators to assist you in planning your purchase.

Choosing the Right Mortgage

There are many different types of mortgages that you can choose from to secure the best fit for you. Carthage Savings & Loan offers the following options that you consider as you continue your home financing research:

• Fixed-rate loans
• Adjustable-rate loans
• USDA rural housing loans
• FHA loans
• VA loans
• Seasonal loans
• No Closing Cost Mortgage Program

For a first-time homebuyer, an attractive option may be Federal Housing Association (FHA) loans, which feature lower down payments and require less stringent credit results. For instance, we offer FHA loans with down payments as low as 3.5%. Some basic qualifications for this type of loan include two years of steady employment and a FICO score of 580 or higher. With such reasonable standards, this loan is a great option for first-time homebuyers who are just dipping their feet into the world of home financing.

Another option that first-time homebuyers may want to consider is Carthage Savings & Loan’s No Closing Cost Mortgage Program. After securing the necessary funds for your new home, the last things you’ll want to worry about are closing costs. With this mortgage program, we will pay your normal closing fees so that you can focus on what’s most important. If you’re interested in either of these or other Carthage Savings loans, contact a loan officer near you.

Home Financing with Carthage Savings & Loan

At Carthage Savings & Loan, we utilize our more than 130 years of experience to help ensure that your first home-buying experience goes as smoothly as possible. If you have any other questions or are interested in applying for a mortgage with us, visit your nearest branch or contact Carthage Savings & Loan today.