Home Loans-Scottsdale, AZ
The city of Scottsdale, AZ, which is a part of the greater metropolitan area of Phoenix, is a beautiful area for homeowners to live in, and the real estate industry here is booming. Moving to this city can be the resolution to the American dream of homeownership. There is a reason why it was voted the top city in the country to raise a family in 2014.
Though affordability may be a cause for concern when you are looking for a new home, the right loan program at District Lending can help you purchase your dream property in Scottsdale, AZ.
Types of Loans
The best rates come with the best deal.get a quote
Factors That Affect Your Scottsdale Home Loan
The money that buyers are willing to pay upfront for homes is known as the down payment. The more people pay upfront, the lower the cost of the loan will be. Your down payment will also affect whether or not you have to pay for mortgage insurance.
For example, conventional loans require a minimum down payment of 20% to waive the addition of insurance premiums to your total loan cost. Plus, home value in Scottsdale continues to climb each year, so you can build equity faster with a larger down payment and property value appreciation.
Your credit history can show lenders how reliable you are at paying back debt. Those with lower scores may find that they cannot obtain competitive interest rates because the lender is taking on risk by loaning them money.
However, if you have a higher credit score in the 700s, you can access lower rates to reduce the cost of the loan and your monthly payments.
Every lender in Scottsdale, AZ, wants to avoid lending money to risky borrowers. The lender needs to know if a borrower is capable of paying the monthly premiums, and one of the measurements that will be used to assess the borrower’s capabilities is their debt-to-income ratio. This is exactly what it sounds like.
If your debt-to-income ratio is high, then you are considered a risky borrower because you have limited resources. Generally, lenders want to see a DTI of 36% or less for conventional loans, though exceptions could be made even up to 50%.
Closing costs are often overlooked by borrowers who are just excited to move into their new homes in the consistently sunny city of Scottsdale, AZ. However, taking the time to understand what closing costs are can prevent any surprises when it is time for a decision.
Expect fees for attorneys, loan creation, licensed realtors, title searches, property transfers, and more to cost about 3-6% of the total cost of the loan.
Closing costs are typically shared between the buyer and seller, with some being fees being paid only by one party and others being paid by both. It all depends on the terms of the agreement.
District Lending: The Scottsdale, AZ Mortgage Lender That Can Meet Your Needs
Multiple Loan Programs
Serving the community of Scottsdale, AZ and the surrounding area