PURCHASE
Key Features of a Mortgage Purchase Loan with Lonestar Home Loans
Down PaymentYour down payment is the portion of the home’s price you pay upfront. The size of your down payment can influence your interest rate, monthly payment, and overall loan amount.
Interest RateThe interest rate affects how much you’ll pay over time. Rates vary depending on credit history, loan type, and current market conditions.
Loan TermThis is the length of time you’ll take to pay off your mortgage. Common options include 15, 20, or 30 years, depending on your budget and goals.
Monthly PaymentsYour payment typically includes principal and interest, and often escrow for taxes and homeowners insurance. Understanding how these pieces fit together helps you budget with confidence.
Closing CostsIn addition to the down payment, you’ll need to plan for closing costs. These may include lender fees, appraisal, title services, inspections, and other related expenses.
Things to Keep in Mind● Affordability: Be sure you’re comfortable with the total monthly payment, including taxes and insurance.● Credit Score: A higher credit score may unlock better rates and more options.● Down Payment: Putting more money down can lower your monthly payment and eliminate mortgage insurance.● Closing Costs: Budgeting for these upfront fees avoids last-minute surprises.● Mortgage Insurance: If you put less than 20% down on a conventional loan, you may need private mortgage insurance (PMI).
Popular Loan Options We Offer● Conventional Loans: Not government-backed, often requiring stronger credit and a higher down payment.● FHA Loans: Backed by the Federal Housing Administration, popular with first-time buyers due to flexible credit and down payment requirements.● VA Loans: Available to eligible veterans, service members, and spouses—offering no down payment and no PMI.● USDA Loans: Designed for eligible rural areas, often with no down payment required.● Specialized Programs: Additional loan programs tailored to unique situations, depending on your goals and needs.
Why a Mortgage Purchase Loan Can Make Sense
Benefits:● Build long-term wealth and stability through homeownership● Possible tax advantages on mortgage interest● Forced savings as you build equity with each payment● Pride and security in owning your own home
Challenges to Consider:● Long-term debt commitment● Interest adds up over time● Risk of foreclosure if payments aren’t made● Ongoing property taxes and insurance● Market changes can impact your home’s value
The Lonestar Difference
At Lonestar Home Loans, we believe buying a home shouldn’t be overwhelming. Our team takes the time to understand your unique situation and walk you through the options available. Whether you’re a first-time buyer or purchasing your forever home, we’ll guide you every step of the way, from pre-approval to closing; so you feel confident in your decision.
Ready to explore your purchase loan options? Let Lonestar Home Loans help you find the right path to homeownership.