Finance a new home with U.S. Bank Home Mortgage

If you are ready to buy a house, you may want to look into financing your new home through U.S. Bank.

U.S. Bank offers mortgage programs and rates to fit almost every budget.

The loan application

Before you start your search for a home or a mortgage, you should get your financial information in order. Lenders will base your home loan approval rate on your credit history, income, and debt-to-income ratio. Many lenders require that your home expenses, including the mortgage, taxes, and insurance, are 36 percent or less of your net income.

Proof of your finances will be required with your mortgage application. To finance a new home with U.S. Bank, you need to provide tax returns, pay stubs, bank statements, and a list of debts and expenses. It is a good idea to pull your credit report and examine it before applying for a home loan. If there are discrepancies, you can fix them before asking for a loan.

U.S. Bank loans

One way to finance a new home with U.S. Bank is with a fixed-rate mortgage, typically for 15 or 30 years. In a fixed-rate mortgage, your interest rate and payments will be the same for the duration of your loan.

If you do not plan to stay in your home for five years, or you want a very low payment at the beginning of your mortgage, an adjustable-rate mortgage (ARM) is a good option. ARMsshutterstock_79849702 start with a low interest rate in the initial period and then adjust every quarter or year, according to the National Lender Index. The drawback is that your interest rate could rise several points over the term of the loan, possibly making your payments unaffordable.

Jumbo loans and FHA loans

U.S. Bank also has loan options if you have a limited income or an income with few limitations. On the high end of the spectrum, jumbo loans are available if the home you desire is more than the conforming limit of $417,000. These loans have flexible mortgage terms, so you can pick the terms that work best for you. For more modest incomes, U.S. Bank offers government-backed loans from the Federal Housing Administration (FHA) and the U. S. Department of Veteran’s Affairs. These loans require a down payment as low as 3.5 percent and may be accompanied by federal grants that pay your down payment, closing costs, or other home-buying fees.

As with any major purchase, it is important to learn as much about the process as possible before you start. Whether you want to purchase a small bungalow on a quiet street or a mansion at the top of the hill, it is possible to finance a new home through U.S. Bank. You can compare U.S. Bank’s mortgage programs and rates with other national lenders at RealtyNow. Once you have all the information you need, you can confidently begin the home-buying process and turn your dream of owning a home into a reality.

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