What Mortgage Loan is Right for Me?
There are many types of mortgage programs to choose from on the market that you be asking yourself “what type of mortgage loan is right for me?” Every situation is different and everyone has different needs, restrictions, goals and finances. Working with an experienced mortgage specialist will help you determine and select a program that best suits your budget and financial goals.
You may choose a Conventional Loan program which is not backed by the government. It doesn’t matter if you are a first-time or move up home buyer as long as you have good credit and enough cash for a down payment. Conforming loans are made for loan amounts up to $417,000 and jumbo loans for more than that amount in Texas.
If you need more flexible credit guidelines and have little or no money to put down, you may choose a Government Loan program that is backed by federal or state agencies. These types of loans include FHA, VA and State Bond Programs. To qualify for a VA loan sponsored by the Department of Veterans Affairs, you must prove your U.S. military veteran or active duty status. VA loans are usually financed for 100 percent of the purchase price. FHA loans are very popular with first-time home buyers because of more lenient credit requirements and lower down payment requirements of only 3.5 percent of the purchase price. The typical loan cap on an FHA is $271,000 in most areas for a single-family residence in Texas.
You will also need to decide between a fixed-rate loan and an adjustable-rate mortgage (ARM). With a fixed-rate loan, your interest rate stays the same throughout the life of the loan. On ARMS, your interest rate can change annually. There are some ARMS, known as hybrids, that combine both features of a fixed-rate and adjustable loan.
To learn more about the pre-qualification process or get started with your mortgage loan pre-qualification, you may contact one of our preferred lenders today!