How does a purchase loan work?
When you apply for a purchase loan, the lender evaluates your financial situation, credit history, and the property you intend to purchase. If approved, the lender will provide you with the funds necessary to complete the purchase. You then repay the loan amount over a specified period, usually through monthly mortgage payments.
Are there any additional costs associated with a purchase loan?
In addition to the down payment, you may need to pay closing costs, which can include fees for appraisal, title search, loan origination, and more. It's important to factor in these costs when budgeting for your home purchase.
Can I get a purchase loan with bad credit?
While having good credit makes it easier to qualify for a purchase loan, it's still possible to obtain a loan with bad credit. However, you may face higher interest rates and more stringent requirements. Exploring options like FHA loans or working with specialized lenders may provide alternatives for borrowers with lower credit scores.