Times have changed, but loans still are available

If you are looking to buy your first home, now is a great time to do so.

There are many types of loans available today. The conventional loan is for those with more down payment, typically, at least 5 percent to 10 percent or more down on a purchase. FHA (Federal Housing Administration) loans require 3.5 percent down payment and that can be cash, savings, or in the form of a gift from a relative, as well as other sources, even your $8,000 tax credit for first time homeowners, if you qualify. If you are a veteran, you may qualify for 100 percent VA financing. You will need to contact your local VA office to see if you are eligible.

Today, you must have a good credit score, or you will pay the price in fees or higher rates on your loan. To avoid the additional credit score cost, you must have a score of 740 or higher. To get started, check your credit score. You can go online and find out what your score is and if it isn’t what it needs to be, lenders can offer advice to help you improve your score.

Come in and get pre-qualified. By completing a loan application, you will find out what your income will allow you to handle in a house payment. Things to bring with you are: a current pay stub, W-2 from last year, your most recent bank account statements for checking and savings accounts and a list of your monthly payments for credit cards and auto loans/leases. The amount of the house payment you can afford is calculated on your gross monthly income and the payments you make each month.

Like many banks, American National offers the full range of conventional, FHA, and VA loans. If you are looking for and qualify for a conventional fixed rate loan for 15, 20, or 30 years, you can make your payments directly to American National Bank of Fremont. Any questions about your escrow for taxes or an insurance claim can be answered locally.

Once you have pre-qualified and find the right loan program, you are ready to go. Rates are still low and bankers are eager to help you with the process. Find a

Realtor to work with and happy house hunting.

Stan Darling is vice president of real estate and commercial lending at American National Bank of Fremont.