Property Loan Basics

Hello, I'm Richard Banner, senior vice president of lending at Vantage Bank. Are you Buying a home? Let’s demystify mortgages in one minute flat!

Step one: Get pre-approved. Know your budget and show sellers you’re serious. Tip: Rates change daily—lock yours in ASAP!

Step two: Loan types decoded. Pick your loan. A conventional loan has the best rates with 5% to 20% down. FHA is made for low-credit and lower-income customers, with an average of 3.5% down. And lastly, the V A or USDA loan offers low or zero down payment options.

Step 3: Hidden costs. Budget beyond the price—property taxes, home insurance, and closing costs, which are usually 2% to 5% of the price.

Step 4: Rate shopping. Never take the first rate. Compare APR, not just interest, from three or more lenders. Just 0.25% can equal $15,000 saved!

With these core principles and steps in the mortgage process, you're equipped to make better choices for you and your families future.