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So as a new couple, you’re thinking about buying a house. You may already know what a mortgage loan is, but in case it’s your first time, a mortgage loan is funding that helps you buy a home. Anyone interested in buying a home should learn as much as possible about mortgages before going shopping for their dream home or starter home. 

Find out what types of mortgages are available and learn what happens when you apply for a loan. You also should ask questions so that you can get the most out of a mortgage loan. 

Buying a home is one of the biggest decisions you’ll make in life, it’s certainly one of the most expensive decisions. With that, you should know what kinds of loans are available to you and which ones are better for your budget and lifestyle

Competitive Mortgage Loans 

Experts in the lending business know their trade. They should know the best deals so they can pass the information and savings on to you. Mortgage lenders should provide easy-to-understand options like rates, kinds of mortgages, and the application process. The more you know, the better you are equipped with the knowledge to move into your home without a hitch. 

Fixed Mortgage Payments

Who can’t appreciate a consistent partner or a steady paycheck? Most of us prefer consistency to a volatile life. If steadiness appeals to you, so would a fixed-rate mortgage. This means that your mortgage note may not ever change. You can decide between a 15-year loan and a 30-year mortgage. Most people go with the 15-year fixed rate mortgage if they can afford it. It helps the new homeowner build equity quicker, in half the time of a 30-year mortgage note. This program will allow you to enjoy shorter loan notes, saving you more cash in interest payments, and a low-interest rate. Essentially, you’ll be able to live more comfortably early on in life. Can you picture being a fully vested homeowner before the age of 40 or 50 years old? 

Benefits of an Adjustable-Rate Mortgage

An Adjustable-Rate Mortgage (ARM) gives the potential homeowner some flexible options and compatible rates. It doesn’t matter if you want to have more payment options or if you want to buy within the short term. 

If you qualify for low mortgage interest rates, you take advantage of low monthly payments. You may only want to live in the home for one or two years and believe me, people do this as a means of investing. They buy a fixer-upper, do the repairs and sell it at a profit. If this is something you could be interested in, the Adjustable Rate Mortgage is a terrific alternative. It has great rates for short-term buyers over the time in the house. Use a mortgage calculator to estimate your payments. 

USDA Loan

Veterans use their VA certificates to help them secure a home with nothing down. If you get approved for a USDA loan, this means you don’t have to put anything down on your home, although you still may need to have money for closing costs and other bank fees. You’re exempt from paying a large down payment on your home. 

If you were turned down for a conventional loan, don’t worry. There are ways to get you and your family into a home of your own sooner than you may realize. Ask Rocket Mortgage about their USDA home loan programs: 

  1. Direct loans: You must not make over a certain amount to qualify for this mortgage loan. They are for anyone who meets low-income requirements
  2. Loan guarantees: Get a mortgage loan approved by a participating lender
  3. Home improvement loans and grants: You may qualify for a mortgage loan or grant if you want to upgrade your home or need to make repairs.  

FHA Loan

What qualifies for an FHA loan? Are you a first-time homebuyer? You may be in for a treat if you apply for an FHA mortgage loan. Often, they lower down payments to 3.5% of the asking price. Not only can you buy a single-family unit, but you can purchase multi-family properties with an FHA loan. 

Most seniors find this loan to benefit them, especially if they live in their homes. It doesn’t matter if they have an existing loan or if it’s paid for. It’s possible to convert some of the equity in the home into cash. Ask about a Reverse Mortgage loan if you need to make repairs to your home. 

 

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