Conventional mortgage loans often have lower rates and fees for buyers who have good credit and can make a good down payment. FHA loans have lower down payment requirements, often making them a popular choice with first time homebuyers.
An escrow account is used to keep money safe by a third party until a specific condition has been fulfilled. In the mortgage world, a buyer may put cash into an escrow account to show they are serious with their offer to buy the property; the money is held until the loan funds and is then released to the home seller. With some loans, an escrow account may be used to collect payment of taxes and insurance after the home is purchased; then the mortgage company uses those funds to pay the taxes and insurance due each year.
PMI is a type of insurance buyers may be required to pay for if they get a conventional loan and have a down payment of less than 20%. The insurance is arranged by the lender and protects the lender in case the buyer stops making payments on the loan.
Probably not! So many loan options are available, and some of those allow as little as 3.5% or even zero down. However, a 20% down payment does reduce the amount for monthly payments and the interest paid over the life of the loan.
Texas does not require title insurance, but most lenders require title insurance to protect their interest. Title insurance protects the buyer from other parties claiming ownership of that same property. You only pay for it once, and the policy is good for as long as you or your heirs own the property.
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