Choosing the right mortgage loan is a crucial part of the home buying process. You can find the best home loan by comparing your needs and current situation against the loan qualifications. Take the Which Home Loan Suits You quiz and see which mortgage loan would be the best fit. You can also keep reading to compare your options and learn more about these loans.
Which home loan would suit you best?
Each home loan program has unique benefits that cater to a certain type of buyer. Your goal should be to find the one that matches your wants and your needs. Before you start looking for loans, your best move is to identify what your current financial situation is like. At the end of the day banks just want to make sure you can pay them back.
To make your search for the best home loan easier, here are the most common mortgages. Most home buyers will fall into one of these loan types as they are the most popular options available.
Conventional Loans are the most common type of mortgage loans. They have the strictest regulations requiring that potential home buyers provide a minimum of 3% of total home cost as down payment and a credit score of 620. They also require that you “buy” private mortgage insurance. This is an insurance policy that only benefits them. In other words you pay a premium anywhere between 0.1% – 2% of your loan amount per year. You can avoid this cost by providing the lender 20% of your total home amount as a down payment rather than the minimum 3%. You may want to opt for a conventional loan if you meet the following criteria:
FHA Loans are the best mortgages for the average first time home buyer. Reason being, that it allows home buyers who have not saved up for a downpayment or have experienced a foreclosure. In a side note, if you have experienced a foreclosure, you must wait 3 years before reapplying. To qualify for this loan option you must meet the following criteria:
LIPA Loans are mortgage opportunities for those who are classified as low income households who are buying a home for the first time. The best part about this loan is the fact it the government will fund up to $90,000 for your down payment costs and will only require you to cover 1% of the downpayment. This program has many contingencies enforced onto the buyer such as a mandatory 8 hour in person class and shared appreciation. Here are the necessary criteria to qualify for this program:
Adjustable Rate Mortgage Loans are loans where your interest rate can go up or down overtime. The obvious advantage of this loan is that it carries lower interest rates during the fixed period of the loan. In other words if you plan to sell the home within 5-10 years, these loan could be the best fit because it would be cheaper initially. If you are confident that you can pay off this loan in 10 years or that you will relocate, then it may be a good option for you. Here are the criteria for this type of loan:
Fixed Rate Mortgage Loans are best for those who want their interest to remain the same for the lifetime of the loan. These types of loans are great because they provide homeowners with predictability and stability. Lendees never have to worry about changes in their monthly payments and is best for those who want a stable monthly expense where they can budget accordingly. For this type of loan you should:
Veteran Affairs Loans are fitting for those who have served in the military and for their surviving spouses. Those who are eligible have access to low-cost mortgages even if their credit isn’t perfect. The best part about these loans — you won’t need a downpayment or private mortgage insurance. Also, interest rates are competitively low for those who use the veteran loan to buy a home. Here are the main qualifications for this loan:
Have an expert guide you through the process. Whether you’re curious about buying, selling, or renting — Srbuhy will answer any questions you may have. Feel free to call her. If you prefer a consultation on your terms, choose a time and day to talk! During your consultation, Srbuhy will discuss your goals and circumstances to define what the best plan of action will be for you.
Having a realtor guide you through the home buying or the listing process takes the burden off your shoulders. As your realtor, Srbuhy will ensure that your real estate experience is stress free – from searching for the right home to escrow. By working with Srbuhy as your realtor, you will receive a free, one on one consultation with real estate attorneys, should there be any legal complexities. You will have a dedicated team of experienced agents supporting your real estate transaction. You also won’t have to worry about all the nuances of a home buying or selling process because Srbuhy will search, investigate and negotiate on your behalf. If you would like to learn more about the real estate process, scroll down to download your free guide to get a better understanding of the buying or selling process.
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