Buying a new home is an exciting adventure, but navigating the world of mortgages can be daunting. That’s where GPS (Global Property Systems) comes in to guide you through the
process. And when it comes to finding the right mortgage, our preferred loan officer partner, Barry Goldenberg of CrossCountry Mortgage, is here to lend a helping hand. You can reach Barry at barry.goldenberg@ccm.com.
Mortgages come in all shapes and sizes, so let’s take a look at the options available:
1. Conventional Home Loans: The most common type of mortgage, where you and the lender enter into a partnership. Most lenders typically require a 20% down payment, but there are options with as little as 3% down for those looking to dip their toes into homeownership.
2. Jumbo Loans: These are for those seeking a larger loan that exceeds the limits set by the Federal Housing Finance Agency. These loans come with stricter qualifying requirements just like ordering a jumbo-sized meal.
3. FHA Loans: A government-backed loan tailor-made for first-time home buyers with less-than-perfect credit or limited funds for a down payment. FHA mortgages offer financing based on a minimum down payment of 3.5% of the purchase price. Just remember, monthly private mortgage insurance is required until you reach 20% equity.
4. VA Loans: A special loan for veterans and their families, offered by the Department of Veteran Affairs. The great thing about VA loans is the ability to finance 100% of the purchase price. It’s like a special thank you for your service!
5. USDA Loans: This niche government-backed loan administered by the US Department of Agriculture is perfect for those looking to purchase in rural or semi-rural areas. No down payment is required, but monthly private mortgage insurance is necessary until you reach 20% equity.
Now that we’ve explored the different types of mortgages, let’s dive into the rates:
-Fixed-Rate Mortgages: Like a trusty old friend, these mortgages offer stability with fixed rates for the entire duration of the loan. It may cost a little more in the early years, but you’ll avoid the risk of rising interest rates down the road.
-Adjustable-Rate Mortgages: For the adventurous souls who like a bit of excitement, adjustable-rate mortgages offer a lower initial rate for a set period before potentially adjusting. These are ideal for those planning to sell or pay off the mortgage early and also for buyers who expect to see a significant increase in their income but in the meantime want to keep their payments lower as they acclimate into home ownership.
To help you compare mortgages effectively, consider these factors:
-APR: The annual percentage rate includes the interest rate and certain lender fees. Look for a lower APR, which will provide lower monthly payments.
-Terms: The duration of the loan affects your monthly payments and the total interest paid. Shorter terms mean higher payments but less interest over time, while longer terms mean lower payments but more interest paid in the long run.
-Closing Costs: These upfront fees can range from 2% to 6% of the loan value. Knowing the approximate closing costs of each lender offers the opportunity to compare options and make an informed decision.
-Ease of Application: Thanks to the digital age, applying for a mortgage has become much easier. Look for lenders with online platforms that streamline the process and provide convenience.
Transparency: Trustworthy lenders are transparent about rates, fees, and requirements. Check out reviews and make sure you feel comfortable with the lender’s level of openness.
At GPS, we understand that finding the right mortgage can be overwhelming. That’s why we’re here to help you navigate the complexities and connect you with reliable professionals like Barry Goldenberg of CrossCountry Mortgage. With our guidance and Barry’s expertise, you’ll be one step closer to finding the perfect mortgage for your dream home.
Visit our Useful Resources page for more Client Approved Service Providers to help you with your home search and beyond.
