Traits you will find with all home loans offered by Prodigy Lending in Dallas, Texas
Buying a home is not cheap. Accumulating the large sum of money required can be very stressful. However, you don’t have to worry about where money will come from. All you have to do is approach a good financial institution offering home loans.
Prodigy Lending offers various home loans for you to choose from. It is unlikely that you will qualify for all of them. This is because each home loan targets a certain group of people. Owing to this, there are features that differentiate them. One such feature is the down-payment requirement. VA home loans, for instance, do not have a down-payment requirement. On the other hand, FHA home loans have a 3.5% down-payment. This is an example of what you should consider when deciding on the best home loan. However, it is important to note that some features are common with all home loans. To differentiate further, you should consider how each feature reacts to a certain home loan.
Explained below are some traits you will find with all home loans offered by Prodigy Lending in Dallas:
- Loan requirements – to be approved for a home loan, you must meet its requirements. For instance, you must meet FHA loan requirements for approval to be given. Otherwise, you will not be a suitable applicant for an FHA program. Similarly, if you are a member of the military, it is mandatory to meet all VA loan requirements. These requirements have a lot to do with your current income and credit-worthiness. They are aimed at making sure that you have the capability to repay as expected.
- Validity period – this is the period within which you should repay your loan. It is commonly referred to as the loan’s term. If the term is 30 years, you must make all necessary payments by that period. If that term expires before repayment is completed, you will be in breach of the contract.
- Interest rates – when paying back a loan, the amount is usually higher than what was borrowed initially. The additional amount is what makes up for interest rates. Interest rates are what result in profits for Prodigy Lending. It is, however, important to note that they keep changing. For instance, making a down-payment of less than 3.5% for an FHA home loan, might result in higher interest rates. This is because of the risk you present by making a small loan contribution. If you want attractive interest rates, you should consider making a higher down-payment.
- Non-repayment consequences – like all other contracts, home loan agreements have stipulations stating what will happen if you fail to repay. With most of them, you might lose your newly acquired home. With government backed loans, however, you might not lose your home. This is because the government provides a payment guarantee if you fail or are unable to.
Make a point of studying each home loan critically. This will help you make a decision that is right for you especially in regards to your repayment ability.
Don’t hesitate to contact us for more home loan information!