So you’re buying a home and you need a loan. So what is the best loan for you? That is a very important question and we’ll help give you the best home loan options. To find out what is the best loan for you we will start with these questions.
How much do you want to put down?
How long are you planning on owning the property?
How much can you afford for a monthly payment?
Are you eligible for any special loans?
The amount of down payment you have can greatly affect the overall cost of the loan and the type of loan you can get. There are loans that offer no money down and some that require 25% down and everything in between.
If you are buying a home and planning on living in it for a specific amount of time then a 30 year mortgage might not be the best loan for you. Some buyers know they are moving out of their home in certain number of years. They might take an ARM loan to take advantage of a very low interest rate and sell their home when they move. Others might do a 15 year loan and try to build up more equity so when they sell their home in 4 years they have more money. Some buyers are not sure how long they plan on owning their home and like the security of a fixed rate loan so they know what their payments will be for the life of the loan.
What is your budget for your home, what can you afford monthly? Can you pay a larger monthly payment and have a shorter term loan or do you need the flexibility of a 30 year mortgage and have a low monthly payment.
Do you qualify for a specialty loan program such as a VA or USDA loans. VA loans are available to veterans only. VA loans offer a no money down loan without mortgage insurance. VA loans are great for veterans who are putting less than 20% down, but if they are putting more than 20% down the VA loan my not be the best option for them.
The USDA loan is available to buyers in certain geographical locations typically in areas outside larger city limits. USDA loans require no money down but do have certain income restrictions associated with them. They are only for buyers who are going to live in the property they are buying and in most cases the buyer cannot own other properties.
As you can see there are many options and it is important to us that we help you get into the best loan that fits your needs.