How to Choose the Right Loan
- posted 9.18.2014
- Rebecca Singer
- Home Loans
Fixed-rate and jumbo mortgages, ARM, FHA, VA Loans and many more—there are many mortgage options available for buyers, but which loan is right for you? One thing to keep in mind is that there is no such thing as the "best" type of home mortgage or a #1 mortgage for everyone. Obtaining a mortgage and choosing the right option for you really comes down to your personal needs and being able to find a loan that suits your financial situation. Continue reading this blog for a few tips on the steps you can take to help you choose the right loan.
Establish Your Financial Priorities
It's okay if you don't have all of the answers right away; think about what questions you can answer and work up from there. Before you begin, try asking yourself these questions:
- How quickly do you want to pay off your loan?
- Do you want fixed monthly payments?
- How much can you afford for a down payment?
- Are you eligible to receive Veteran benefits?
- Are there local down payment assistance programs near you?
- Will you need extra money for renovations?
Additional Details to Consider
Different loans have different terms and conditions, so make sure you consider your loan term goals. A mortgage is a long-term financial commitment so choosing the right mortgage can make a big difference in the future of your finances. Here are some additional details that might help you consider what loan is right for you:
- Do you want the ability to make additional payments at no extra cost?
- Are you interested in having the ability to make payments online?
- Are there any fees associated with the loan?
- What are the interest rates like for the various loan types?
How to Research
Now that you have your financial goals in mind, check out these tips to help you do your research:
- Fixed-rate mortgage, Jumbo Mortgage, FHA Loans, VA Loans for veterans—there are tons of mortgages available for buyers, but which loan is right for you? We canVisit websites such as: U.S. Department of Housing and Urban Development, Federal Housing Administration, Fannie Mae, Freddie Mac and Ginnie Mae.
- Contact local housing non-profits to see if you qualify for special assistance.
- Attend local seminars or trainings
- Talk to family and friends
- Contact your loan officer so that they can provide their advice based on your current financial situation Fixed-rate mortgage, Jumbo Mortgage, FHA Loans, VA Loans for veterans—there are tons of mortgages available for buyers, but which loan is right for you?
If someone you know if considering purchasing a home and isn't sure of their loan options.