Obtaining a mortgage loan shouldn’t be intimidating or confusing. We created the guide below with common questions and answers to help you gain a basic understanding of mortgage loans and mortgage terms. Click on the questions below to learn more.
I want a new home, but I don’t know where to start. Should I find a mortgage lender first?
What are the most common types of mortgage loans?
What costs are associated with getting a mortgage loan?
What special programs does Home Creations offer?
I want a new home, but I don’t know where to start. Should I find a mortgage lender first?
We recommend visiting with one of our Community Managers at a model home to begin the exciting process of finding your new home. All of our community managers are trained to help you find the home that fits your needs.
During your visit with our community manager, he or she will get some info from you regarding what type of home you desire and can help you set up an appointment with one of our preferred lenders to start the mortgage qualification process.
Our community manager will also show you through the model home and point out the standard features that come with that particular series of home. This is where you’ll see the Home Creations difference – tornado safety features, Energy Star certification, and more. Depending on how much time you have available and what homes we currently have under construction, he or she may be able to show you through some of our homes that may fit your needs.
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What are the most common types of mortgage loans?
Federal Housing Administration (FHA) loan: This government loan is perhaps the easiest type of new home loan to qualify for.
Minimum down payment: 3.5% of the purchase price
Loan term: 15 or 30 years
Maximum loan limits apply, call for information.
Mortgage insurance: Up-front premium plus monthly premium (waived with 20% down payment)
VA loan: If you’ve ever served in the military, you may be eligible for this government loan that offers 100% financing.
Minimum down payment: 0
Loan term: 15 or 30 years
Maximum loan amount: $417,000 in 1st VA home purchase
Mortgage insurance: not applicable
VA funding fee: 2.15% - 3.35% of loan amount – may be financed into loan amount
Conventional Loan: Non-government loan that offers conforming and non-conforming mortgages (stated income loans, no documentation loans, investor loans, etc.).
Minimum down payment: 5%, although some conventional loans offer 97%, 100% & 103% financing for buyers with very good credit scores
Loan term: 15 or 30 years
Mortgage insurance: monthly premium if down payment is less than 20%
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What costs are associated with getting a mortgage loan?
Down payment: depending on the type of financing you’re getting (FHA, VA, or conventional), a down payment may or may not be required.
Closing costs: These costs typically include charges from the settlement company (Title company) and the lender.
Pre-paid items: After your down payment and closing costs, mortgage financing also requires payment of three items that make up your escrow account. These costs represent 14 months of homeowner’s insurance, property taxes and interest from the day of closing through the end of the month.
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Special Programs through Home Creations
YES! We pay closing costs! When you use one of our participating lenders for financing, Home Creations pays your basic closing costs, saving you up to $2,500!
Trade In Program – If you need to sell your home within the Oklahoma City metro area in order to purchase a new Home Creations home, you may qualify for our Trade In Program. The Home Creations home you’re purchasing must be one of our select, completed homes and it must be at least 25 percent greater in value than your current residence, and we’ll pay you up to 85 percent of your home’s current appraised value. Call us today to see if you can take advantage of this program.
Special Interest Rate Financing – Home Creations occasionally offers a lower interest rate (such as a specific fixed interest rate or a 2/1 interest rate buy down) on homes that can close within 45 – 60 days of contract signing. Call us at 405.364.9999 for details, or email us at inforequest@homecreations.com to ask about our current financing specials.
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