​​Paying for $$ your New Home:  

Financing

Not everyone is fortunate enough to have cash readily available to purchase the home they want. You may need a lender to help you finance your home.  There are many options available for financing.  Similar to finding the right agent, finding the right lender is important, too.  Interest rates are important, but a great lender will also help you determine the type of financing best for you in your situation.  There are different types of loans available.  Conventional, FHA, MSHDA, USDA Rural Development and VA are some of the most common.  Some loans will require MIP or PMI, Private Mortgage Insurance, depending on the amount of money you put down on your loan.  It can be possible to finance a home with zero down. Calculating financing using apps on the internet are not always the best idea.  These are quick, easy ways for lenders to capture your information so they can follow-up with you to start the loan process, but are not always ideal or accurate.  Sometimes working with someone local is best.


If you do not already have a lender that you know and trust, ask your real estate agent to refer you to someone.  While agents typically do not get deeply involved in the financing process or your credit situation, they do work with lenders on daily basis and their experience with particular lenders can help guide you choose one that might be a good fit for you.  


Cash Sales

If you do have cash you plan to use to purchase your home, offers are typically submitted showing Proof of Funds, most often a bank statement showing you have enough money in your account to move forward with the purchase.  If you do not wish to show your entire bank statement with activity, most banks or credit unions will upon your request provide you with a letter stating you have X amount of funds available for withdrawal.  Your agent will forward this letter with your offer.


Contingent Offers

If you plan to use funds from the sale of your current home to purchase your new home, there are options for you as well.  See Contingent Offers.  You might talk with your lender about a bridge loan or other options that might be available to you.