Every Sunday afternoon is the same. After you attend the 11:00 am church service you go to one of your favorite places for lunch and then you go for a drive. The location of the drive is always different, but the goal is always the same. With the latest listings of the home for sale, you and your husband travel through a number of different neighborhoods getting a feel for the prices of homes throughout the city.
You have been in a two bedroom apartment for three years, and are finally are making the move to buy a home, but you really want to understand a little bit more about the many neighborhoods in the area, so these Sunday afternoon drives serve that purpose.
Are You Ready to Buy a Home?
Owning a house is a dream that more and more Americans are realizing. The opportunity to own your own home is a path to both comfort and security. For many buyers, however, one obstacle in reaching the home ownership dream is in deciding what kind of loan is the right one for them. In fact, understanding what the different loans are and taking advantage of the best loan is the real secret to your home ownership. First time home buyers are
Jumbo loans sound intimidating, but like many of the terms that are used in the home mortgage industry, jumbo loans are not as scary as they sound. In fact, if you are the right kind of buyer, jumbo loans are a fairly safe approach to home buying. By definition, a jumbo is one way to buy a luxury, high-priced home. for buyers who have lower debt-to-income ratios, a substantial down payment, and a higher credit score, this kind of loan may be the right fit. Typically, the limit on conforming loans is set at the $424,100 level in most parts of the country, but jumbo mortgages are allowed to exceed these limits.
FHA mortgage loans are insured by the Federal Housing administration. They require mortgage insurance which serves as a protector the lender against loss in the event the loan is defaulted on by the borrower. This type of mortgage plan requires a borrower credit score somewhere between 500 and 579 with a 10% down payment. The lowest available down payment for a FHA mortgage is 3.5%, but it is important to understand that the lower the credit score will also include a higher interest rate. Like all loans, it is important to make sure that you find out all of the specific details from your lender.
VA home loans are available to military, veterans, reservists, and National Guard members. There are specific limitations as to how long someone needs to have been in service, but these loans are also available to spouses of military members as well if the military member died as a result of a service-connected disability or while on active duty. six months of service is typically required before any of these applications can be made. An advantage to this loan is that those who qualify do not have to provide a down payment and can finance the entire price of the property.
Vacation home loans are one example of a type of loan not many people typically apply for. Those people who are in the top income brackets and those who already have a great deal of equity in their primary home are the people who can apply for a vacation home loan, some of which are jumbo loans, without having to pay high interest rates.
Home Loan Rates Vary in Interest Rates and Down Payment Requirements
Finding the right kind of financing can help home buyers, especially first time buyers, set themselves up for success. If, however, a borrower gets into a loan that has high interest rates and requires no down payment the road may be difficult. Obviously, it is important to make sure that you have taken the time to research the terms of any loan that you consider:
Unfortunately, as many as 59% of home owners indicate that they wish they would have understood the terms and details of their mortgage better. Even more concerning is the fact that in 2016, 14% of buyers financed 100% of their entire purchase with a mortgage.
