Summary
Buying a home in Flower Mound doesn’t have to feel overwhelming. By knowing your credit, down payment options, the value of pre-approval, budgeting for closing costs, and working with a local broker, you’ll be ready to move quickly when you find your dream home.
Credit Score Matters More Than You Think
If you are looking to get a conventional mortgage to buy your Flower Mound home, you will need a 620 minimum score. Industry wide, there are 3 bureaus pulled and the middle score of the lowest scoring borrower is the key score. If you are using FHA, VA or USDA, you can usually go below 600. The caveat on all programs though, the lower the score, the more compensating factors you will need to be approved. The score alone isn’t enough. Contacting your loan officer 45 days before you are ready to buy is a good preventative measure.
You Don’t Always Need 20% Down
Many people think you need 20% down payment to buy a home, but that is simply not true.
- FHA Loans: as low as 3.5% down.
- Conventional Loans: 3% down with good credit when at least one person on the loan hasn’t owned a home in the last 3 years. Otherwise, 5% down required.
- VA Loans: 0% down for qualified veterans.
There are down payment assistance programs that couple with these loans. Talk to your lender if you need assistance.
Pre-Approval Gives You an Edge in Flower Mound’s Competitive Market
Homes in Flower Mound (especially in neighborhoods near Grapevine Lake and top-rated schools) move quickly. A preapproval letter tells the seller you are serious and financially ready. Separate yourself from the tire kickers by getting a preapproval. At Your Mortgage Guy For Life LLC, we typically preapprove clients within 24 hours and no upfront out of pocket costs. Brokers can often issue preapprovals faster than a big bank.
Closing Costs Can Sneak Up on You
Beyond your down payment, expect 2-5% of the loan amount in closing costs. Closing costs include appraisal, title and lender fees. Also get accustomed to differentiating between “closing costs” and “cash to close” when talking with your loan officer. Cash to close encompasses closing costs and down payment.
A Local Mortgage Broker Can Save You Time & Money
Unlike a bank with one set of loan products, a broker shops multiple lenders to find the best fit. We can adjust fees, rates and loan structures to match your financial goals. In a city like Flower Mound that is a community driven city, having a local expert who understands the market makes the process smoother.
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