Loan Purpose: Purchase
Congratulations on your decision to purchase your first home or maybe it’s your fourth. There are many types of home loans in Dallas, Texas available. Supreme Lending is here to help you figure out which home loan is best for you. Understanding the various options before you meet will help you make decisions as an informed consumer. The two most important factors in selecting a mortgage type are downpayment and FICO score. The downpayment is the initial money you put towards the purchase of your home. Some loans have a minimum amount you must use as a down payment.
Some home purchase loans have a max or minimum of how much you can borrow. Some loan types allow you to roll closing costs into the mortgage, saving you cash upfront. Some mortgages will require you to carry mortgage insurance, which protects the lender in case you default on your loan.
FICO is the best known, largest company that calculates a person’s credit score. Having a larger down payment and/or having a higher credit score will earn you a lower interest rate on your mortgage. Having more money to put down can balance a lower FICO score and vice versa.
Advantages:
- All interest on the mortgage may be tax deductible*
- Establishes credit history
- Secured investment
- Builds equity
- Can be used to borrow against
*Supreme Lending is not a licensed CPA or Tax consultant and therefore, cannot determine if your mortgage interest will be eligible as a tax deduction per IRS code. You are advised to contact a tax professional. This in no way implies you are guaranteed a tax credit.
