How to Finance Your Mobile Home
Are you ready for the next step and wondering how to finance your mobile home?
With rising housing prices, manufactured homes are becoming an extremely sought-after option for prospective homeowners. This housing option can provide more flexibility than traditional homes and are typically much more affordable. With that being said, there are a few steps you should take first if you’re wondering how to buy a mobile home and get the best financing. Let’s get started!
Assess Finances & Check Your Credit
A good place to start is by checking your debt-to-income ratio (DTI). There are many calculators available online that can help you determine how loan costs and interest rates will fit into your budget. If you discover that it is not financially feasible to take on a loan, you can work on addressing any issues before applying. Finding ways to earn some extra income, consolidating your debt, and adjusting your lifestyle are all options.
A lender takes your credit into consideration as part of your loan application whenever you apply for financing. Clean credit histories and high credit scores make it easier to obtain loans and better rates and terms from lenders. You can check your credit for free at AnnualCreditReport.com from 3 different bureaus. If you come across any mistakes or inaccuracies, make sure to dispute them and have them corrected!
If your credit needs some work to get it into better shape, take action! Keep in mind, the better your credit score, the lower your interest rate will likely be. You may be able to save thousands of dollars over the course of the loan.
Decide What You Need a Loan For & What Type
Most of the time those who live in mobile homes have to pay for the land itself. Sometimes the land is leased for a monthly fee, but if the land is leased, the borrower may be ineligible for certain types of loans. People looking for loans for mobile homes in parks, for example, may need to look into specific loan types.
Certain loans may cover both the land and the mobile home purchase. Better yet, an assessment of the borrower’s finances may reveal that they could pay cash for the land or the mobile home while financing the other. Either way, you will benefit from taking some time to familiarize yourself with all the types of loans available to find the option that works best for your situation!
Choose a Lender & Apply
The next step is to contact lenders who provide the type of loan you require. You can also get quotes for various types of loans to narrow down which loans will work best for you.
The final step is to apply for a loan from the provider who offers the best loan terms and rates. You can also inquire with lenders about getting preapproved for a mobile home loan. It is critical to collaborate with a professional to ensure that all paperwork is in order. Applying for a loan can necessitate a wide range of detailed paperwork, such as recent pay stubs to prove income, credit history, tax returns, bank statements, proof of identity, and the loan application, just to name a few.
Good News: You’re Not Alone!
We understand that the process leading up to buying a home can be intimidating and feel overwhelming. The good news is, that you don’t have to worry about navigating the journey alone! Whatever questions you may have, our team at Braustin Homes is here to help and make you feel as ready and comfortable as possible!
If you’re prepared to start taking the steps toward owning a mobile home, speak with a member at Braustin Homes today!