Welcome to Barako Finance

Your Partner In Homeownership!

“Empowering Dreams, One Home at a Time – Let Us Guide You Through The Mortgage You Deserve For Your Dream Home.”

What we do?

Consulting

We recognize that securing a mortgage is a significant financial decision that requires guidance & understanding.

Get it right the first time.

Book Appointment

Purchasing

Purchasing a home is a significant life decision that involves several steps and considerations.

Get it rigfht the fitst time.

Get Pre-qualified

Refinancing

Refinancing involves replacing an existing mortgage with a new loan, typically with different terms & rates.

Get it right the first time.

Get Pre-qualified

Get Empowered

Let’s guide you on home purchasing or refinancing. This will save you time and money.

Prequalify Early

Apply your loan, get prequalified, get approved, and realize your homeownership dream.

Get Ready

Get all the required information for your mortgage application ready – Income, Employment, Libailities, etc.

Close Faster

Close the loan, get the keys to your home, move in with ease, and enjoy. And Congratulations!.

Get Pre-Qualified

FAQs

What is the first step to becoming a homeowner?

Before you start house hunting, investigate how much the types of houses in your area cost. You should also be familiar with your financial standing, current budget and credit history. All these factors will come into play when you’re working with a lender, and they can affect what type of loans you qualify for.

What credit score do you need to become a homeowner?

For a conventional mortgage in California, you typically need a minimum score of at least 600. If you qualify for certain government-backed loans, however, you may be able to buy a home with a score as low as 500.

How much are closing costs in MN?

The closing cost in Minnesota for buyers is approximately 2%–5% of the home’s agreement value. While the sellers are expected to pay around 6–10% of the home’s purchase price, including the realtor fee.

What are the first 5 steps to buying a house?

Step 1: Prepare your finances

Step 2: Prequalify for the right loan

Step 3: Call a real estate agent

Step 4: Lock in your mortgage

Step 5: Prepare to close

Useful Info

  • The Loan-To-Value (LTV) Ratio is a measure comparing the amount of your mortgage with the appraised value of the property. The higher your down payment, the lower your LTV ratio.
  • The Debt-To-Income Ratio (DTI) is all your monthly debt payments divided by your gross monthly income. This number is one way lenders measure your ability to manage the monthly payments to repay the money you plan to borrow.
  • The 28/36 Rule dictates that you spend no more than 28 percent of your gross monthly income on housing costs and no more than 36 percent on all of your debt combined, including those housing costs.
  • The 2-2-2 Rule: To verify your income lenders ask 2 years of W-2s, 2 years of tax returns (Federal and State) and 2 most recent pay stubs.
  • Average Closing Costs for the buyer run between about 2% and 6% of the loan amount. That means, on a $300,000 home loan, you would pay from $6,000 to $18,000 in closing costs in addition to the down payment.
  • Escrow is a legal concept describing a financial agreement whereby an asset or money is held by a third party on behalf of two other parties that are in the process of completing a transaction. Escrow accounts are managed by the escrow agent.

What’s New?

Testimonials

The team at Barako Finance goes beyond just mortgages. Their support was unmatched. They addressed my concerns, negotiated on my behalf, and made me feel confident in my decision. Truly a partner in homeownership

Aisha Ali

Mom of 5, Housewife

What stood out for me with Barako Finance was their cultural sensitivity. They understood the unique needs of our community and provided services that felt inclusive and respectful. Thank you for your commitment to diversit

Ali Saney

Truck Driver, Bile Trucking

Choosing Barako Finance was the best decision for my mortgage needs. Their expertise in the market, sound advice, and attention to detail ensured I got the best deal. I’m grateful for their professionalism and knowledge

Hawa Farah

Nurse, Community Homecare