You have several options, including loans backed by the Federal Housing Administration (FHA), if you finance a new home with Wells Fargo.
Buying a new home can be exciting and scary at the same time. There’s lots of work to be done, including searching for a home that you like, going to open houses and securing financing for your new home. You may want to finance a new home with Wells Fargo, as the bank offers several types of mortgages including loans backed by the Federal Housing Administration (FHA).
When you apply for financing with Wells Fargo, how much money you can borrow will be based on the mortgage payments you can afford. A loan officer will look at your income, credit history and debt-to-income ratio to get you approved for a home loan. He or she will make sure you pay your bills on time, including other loans, credit cards and revolving debts.
The costs associated with your new home financing will include a down payment, closing costs and possibly origination fees. Down payment requirements vary depending on the loan you get. A traditional mortgage may require a 20 percent down payment. However, an FHA loan may require as little as 3.5 percent down. Additionally, the FHA has grant programs to help you pay a down payment or closing costs. Closing costs can include origination fees, an appraisal, deed recording and buying discount points.
Once you are approved to finance a new home with Wells Fargo, the house you want to buy must get approved too. A professional appraisal and an inspection will show the fair market value of the home and the condition of the property. Wells Fargo will order an appraisal and may require you use one of its approved home inspectors. You will be responsible for the costs of both.
If you would like to compare mortgages and rates of other lenders to your options at Wells Fargo, go to RealtyNow to get home loan estimates.