If you've been saving for a down payment, it's probably time to start thinking about getting a housing loan. It'll help you qualify for most types of mortgages, including FHA and VA loans. Of course, there are some things you should consider before applying:
Make sure you qualify for a loan
To get a housing loan, you'll need to meet certain criteria. First and foremost, you must have a steady job and enough money saved up for the down payment, monthly payments, and closing costs. You should also be able to prove that your income meets or exceeds what lenders consider "good" (which is typically between $50k-$75k per year). If this sounds like it's too high-level for your situation, then keep reading—we've got some tips on how to ensure that this doesn't happen!
Credit score counts
Your credit score is one of the most important factors in determining whether you qualify for a mortgage. It's based on your history of paying bills on time and using credit responsibly, as well as any other financial obligations you may have (such as student loans).
Your credit score ranges from 300 to 850, with higher scores indicating better-than-average odds of getting approved for loans. There are a number of factors that contribute to your eligibility for a particular loan—including payment history, amount owed, length of credit history and type(s) of accounts used—but it all comes down to how much money you owe relative to other potential borrowers with similar profiles at different banks or lenders.
Down payment
The first thing you need to know about getting a home loan is that your down payment can be anywhere from 3% to 20%. The lower the down payment, the less money you'll have to pay in interest. But on the other hand, if your credit score isn't good enough for lenders to trust you with a bigger loan amount and affordable monthly payments, then they'll most likely reject your application.
Credit scores are used by lenders as an assessment of how likely it is that someone will repay their loans on time—and what might happen if they don’t. The higher your score (the lower its number), then better chances there are that everything will go smoothly when applying for mortgages or other types of loans such as car financing or student loans.
Be realistic about what you can afford
When you're shopping around for a mortgage, it's important to be realistic about what you can afford. That means taking into account how much money you make and how much debt you currently have. If your only income is a low-paying job, for example, don't take out a loan that will saddle yourself with high monthly payments or cause problems down the road if things don't work out as planned.
If possible, try to find low-interest loans through local banks or credit unions so that interest rates aren't as high—and thus the total cost of borrowing will be lower overall (and easier on your budget). Also consider paying off any existing debts before applying for new ones; this way there won't be any extra stress added onto an already difficult situation!
Shop around
It can be tempting to go straight for the first lender you talk to, but it's important not to be afraid of asking for a lower interest rate or down payment. You'll also want to make sure that your lender has competitive rates—if you're paying more than others in your area, maybe it's time for another option.
You should always shop around for financing options with multiple banks and lenders so that you have access if something goes wrong (like when one bank stops offering loans). If this sounds overwhelming or intimidating at all, there are plenty of companies out there who specialize in helping borrowers find affordable housing loans while also providing assistance during application processes as well as after closing on their new homes!
Choose the right type of loan
When you're looking for a mortgage, there are many options available. You can choose from fixed rate mortgages or variable rate mortgages. Fixed rate mortgages are often the most popular option because they have lower interest rates and less risk of rising prices than variable rate loans.
Variable or adjustable-rate (ARMs) loans have more flexibility than other types of mortgages; however, they also carry higher interest rates and may make it difficult to refinance your loan in the future if rates rise above certain levels determined by your lender.
Get pre-approved before shopping
Before you go shopping for a home loan, it's a good idea to get pre-approved by a lender. This can be done by:
A bank or credit union (if you already have an account)
The mortgage broker who worked on your sale of an existing property.
You can get a housing loan
You can get a housing loan, but you'll need to be realistic about what you can afford. You also need to make sure that your credit score is high enough for the lender and that it's not too far off from being perfect.
You'll want to shop around for the best deal on your particular needs, so check out all of the options available in your area by visiting websites like Zillow and Bankrate (or similar sites). If there are no lenders in town that specialize in housing loans, consider moving away from where you live temporarily until one opens up nearby—there are lots of reasons why this might be necessary: perhaps there aren't enough potential customers within driving distance who would benefit from having access to affordable housing options; maybe some industry regulations about how long loans must last before renewals occur mean people couldn't get approved quickly enough; or maybe just because there aren't many places nearby where people want affordable homes built means construction companies don't see much demand either!
Conclusion
You can get a housing loan, but you should have realistic expectations about what you can afford. If you don’t qualify for the loan, consider looking into other options like renting instead.