Areas We Serve
Whether you want to live in the city, near the beach, or anywhere in between, Griffin Funding provides loan services for all types of Maryland homebuyers, including those looking for property in:
- Ocean City
- Maryland City
- Bel Air
However, you’re not just limited to those locations. Wherever you choose to call home, as your Maryland mortgage lenders, we can pair you with the best loan that suits your individual financial needs.
How Do Home Loans Work in Maryland
If you’ve purchased a home before, the process will be quite similar to buying a house in any other state. However, if you’re a new home buyer, you’ll need to understand the home loan process.
Once you have obtained a loan and purchased a home, you will make monthly mortgage payments. These payments are split up into four categories:
- Principal: This portion of your loan is paid down each payment.
- Interest: The interest rate will be charged monthly and depends on your lender and the type of home loan you choose.
- Taxes: Each month, you’ll pay 1/12 of your yearly property tax bill based on the city in which you live.
- Insurance: If your mortgage program and/or lender require you to have insurance, it should cover your home against fires, theft, and accidents.
The process to obtain a loan is straightforward, and our loan officers will help you every step of the way. It starts off with you finding a home that you’d like to purchase and applying for a home loan. The application will request information from you, such as your income, credit history, and more, to determine whether or not you qualify for a loan.
Once you’ve agreed to the terms of the loan, it is pre-approved and finalized by our team. At this point, you can request a copy of your pre-approval letter from us to prove to the sellers that you are ready to buy their house and can afford it.
Requirements to Buy a Home in Maryland
The requirements to purchase a home in Maryland with a home loan will depend on the type of loan you choose, but you can ultimately expect to have these prerequisites required by mortgage companies in Maryland.
Meet the minimum credit score
Your credit score is an important factor for deciding whether or not you are a risk to the lender. The higher your credit score, the less of a risk you are, and the more easily you’ll be able to obtain a loan. Griffin Funding is proud to offer flexible loan requirements, including accepting lower credit scores. For example, you can qualify for some of our home loans with a FICO score as low as 580.
Most importantly, lenders want to make sure that you have enough money coming in to pay your mortgage each month. During the underwriting process of applying for a home loan, your lender will verify you’r income through W2s, bank statements, or any other way they see fit to ensure that you can pay back your loan. It’s important to note that just any income won’t get you approved. You’ll need enough income to be able to afford the monthly mortgage loan while still paying for your everyday expenses like food, water, gas, and electricity.
Debt-to-income (DTI) ratio
Your DTI is how much money you have going out each month versus how much you have coming in. If you make $2,000 per month from your job and owe $500 in debts each month for your car loan and credit card payments, you have a DTIA of 25%. Most lenders want to see a DTI ratio at or below 43% (including your full mortgage payment).
Before you can get approved for your loan, you’ll need to save money for your down payment. Down payments typically can range anywhere from 03% to 20%, depending on the lender and the type of home loan, so it’s important that you save enough money before applying – even if you are a veteran and qualify for a zero down payment loan you’ll still need to save up for closing costs and other expenses associated with purchasing a home. The higher the amount you put down on the house, the less you’ll need for a loan, which means that you’ll pay less over the life of the loan than you would when you put down a smaller down payment.
While in most cases, down payments are required, there are some cases where you may not need to pay anything up front, like with VA home loans. Griffin Funding also strives to offer more flexible loan options to cater to self-employed individuals, first-time home buyers, and veterans.
Mortgage Rates and Fees
Maryland home loan rates and fees vary depending on the loan and the lender.
Some fees that may be associated with your Maryland home loan include:
- Processing costs
- Underwriting fee
- Title fees
Mortgage rates rise and fall depending on economic factors such as US national debt, inflation and unemployment rate. Other factors that affect the interest rate of a home loan include:
- Your financial situation
- Type of loan
- Loan amount
- Your credit score
Maryland Mortgage Programs
Our programs include:
Our Maryland Mortgage Programs
DSCR Loans: DSCR loans allow real estate investors and mortgage brokers to qualify for financing based on their debt service coverage ratio (DSCR) rather than through traditional means. By calculating the DSCR, lenders can measure a potential borrower’s operating income in relation to their mortgage debt, and thus determine whether they will be able to repay a loan.
Asset-Based Loans: When you take out an asset-based loan, you’re borrowing against the value of your assets. The more valuable your assets are, the more financing you can receive. This enables borrowers to tap into the equity of their assets and access financing.
Bank Statement Loans: Bank statement loans are ideal for self-employed individuals because they allow you to qualify for a mortgage with your bank statements instead of income.
FHA Loans for First-Time Home Buyers: FHA loans are recommended for non-veteran first-time homebuyers who aren’t able to afford a 20% downpayment. Instead, you can put down as little as 3.5% and get approved for an FHA loan.
VA Home Loans: VA loans allow qualifying service members, veterans, and surviving spouses to get a loan with a guarantee from the Department of Veteran Affairs. With these loans, veterans and military personnel can receive lower interest rates with no down payment required.
USDA Loans: Depending on where the home is located, you may qualify for a USDA mortgage loan reserved for homes in qualifying rural areas. Since these loans are guaranteed by the USDA, buyers can make a purchase without a down payment.
Not sure which loan is right for you? Talk to one of our loan officers for mortgage help in Maryland today. We can guide you through the process of how to apply for a home loan in Maryland and make the process as stress-free as possible for you. After all, buying a home should be a positive experience.
Buying a House in Maryland
Buying a house in Maryland is easy, thanks to our flexible underwriting requirements and our knowledgeable loan officers. We provide competitive rates to our borrowers no matter their unique financial situation.
If you’re a new homebuyer, follow these simple steps to buying a house in Maryland:
- 1. Save for a downpayment (if the type of loan you’re applying for requires it)
- 2. Apply for a home loan with Griffin Funding and get pre-approved
- 3. Find a house
- 4. Make an offer on the house
- 5. Complete the closing process
Apply for a Maryland Home Loan
Securing a mortgage may seem complicated, but with Griffin Funding as your Maryland mortgage lender, you can find a home loan that fits your needs and make your goal of obtaining a house more achievable. Our process typically takes 30 days, so you do not have to wait long to move forward with your purchase. Begin the application online or request a free MD home loan quote today!