The Shiny Penny
A statement from Community State Bank President and CEO on the recent bank closures of Silicon Valley Bank (California) and Signature Bank (New York). Read More
There are many factors that some might find intimidating when venturing into the housing market, especially first-time homebuyers. If you find yourself in this boat, it’s likely that loans and mortgages play a heavy role in the intimidation factor.
But you’re in luck – we have information that can help you with this process. We recommend meeting with one of our friendly and knowledgeable CSB Mortgage Lenders so that you can have face-to-face discussions specific to your home-buying circumstances and needs. In the meantime, we’ve compiled information about FAQs that can help guide you on your way.
Credit Score Details: Your credit score is important in securing a loan; however, there are other factors (like income, savings, etc.) that are also relevant. Need to improve your credit score? Reach out to one of our community bankers to learn how you can start working on that now.
Debt-to-Income Ratios: In addition to a solid credit score, you must also have a good debt-to-income ratio. Typically, this is 43% or lower, but lenders will consider higher ratios with compensating factors like a down payment of 10% or up, reserves, and / or a strong credit score.
Loan Programs: For first-time homebuyers, quality options for financing are FNMA HomeReady, USDA Rural Housing, and VA loans. It is possible to qualify for conventional loans with as little as 3% down.
Additionally, many aren’t aware that most states and counties have housing finance agencies and special programs that can assist with down payments and closing costs. By working with a community bank, you can ensure you’ll receive information about local programs that could benefit you.
Fixed Rate vs. Adjustable Rate Mortgage: Generally, a first-time homebuyer will be better off with a fixed-rate loan. Typically, you should only consider an adjustable rate loan when the initial rate is fixed for at least the first five years.
Interested in learning more? Visit the CSB Mortgage Center to meet our team of lenders and apply online today!