Buying a new home can be such a thrilling experience. However, it can also be a stressful time in your life. You want to make sure you get the perfect home for your family, and you also need to finance the purchase by getting a mortgage loan. Obtaining a mortgage loan can be very complicated and time consuming; you want to make sure you choose a good lender who can walk you through the process. One reputable lender who offers mortgage loans is Wells Fargo.
Types of Loans Offered by Wells Fargo
With Wells-Fargo, you can get a fixed rate loan, adjustable rate loans, VA mortgages, FHA mortgages, and jumbo loans. If you choose an adjustable rate mortgage, you will be offered a fixed rate for the first three, five, seven, or ten years before it begins to fluctuate. After the fixed term ends, you might be able to get a lower interest rate. If you initially get a low interest rate for the loan, you might just want to start with a fixed rate.
The most popular type of loan is an FHA loan, which is backed by the Federal Housing Administration. You do not need perfect credit for this loan, and you can get the loan with a low-down payment.
If you are in the service or a retired service member, you will qualify for a VA loan. This loan is backed by the Federal Government and requires no down payment.
Eligibility for a Wells Fargo Mortgage
The company prefers people who have excellent credit, and you will need a low debt-to-income ratio to qualify for a loan. The minimum credit score they will accept is 600; however, they would like the score higher than that. You will need an acceptable amount of income that shows your ability to repay the loan.
Applying for a Wells Fargo Loan
You can go on the website and get pre-qualified for the loan, so you will know exactly what your price range is. Use the calculator to estimate your payments and compare your options. Just go online and complete the application. After you enter your name, address, phone number, and email address, you will select the time frame for when you plan on buying the home. You can choose to discuss your options through email, by phone, or at a local branch. After you are pre-qualified for the loan, you can start shopping around. Wells Fargo will send you a Truth in Lending Disclosure and a Good Faith Estimate, so you will know your fees and rates. You can lock in the interest rate. Eventually, an appraisal and inspection will be done on the home. You will also be asked to submit documentation. The whole process takes between 30-45 days, and then you can close on the loan.
Wells Fargo might have a little higher interest rates than other banks, but the customer service is excellent, and the options are flexible. The lender is one of the few that does offer construction loans if you are building the home. If you are looking for a mortgage loan, Wells Fargo is worth considering.