If you’re planning to buy a home, you will need to secure a mortgage loan to finance the cost of buying the house. As you research the types of mortgage loans available to you, you will find there are two major types of loans available for mortgages: conventional loans versus government loans. According to The Mortgage Reports, the difference between conventional and government loans is in the source of funds for the money that is offered.
Many people feel it is better to ask for a conventional loan. According to Bankrate, the advantages of a conventional loan include accepting a lower down payment. If you have a higher credit score, you are likely to get a lower interest rate for your mortgage loan.
You may be wondering, “Does a conventional loan require an inspection?” According to The Mortgage Reports, while an inspection isn’t always required, a home appraisal may be part of the deal. The same website reports that conventional loan inspection requirements specify that these loans are meant for single-family dwellings with four units or less. The home also has to be easily reached by standard roadways, and to be safe and “structurally secure.”
Buying a home is an exciting experience. There’s nothing like owning your own piece of property. Home loans are an important part of the home buying process. In fact, it makes sense to have yourself approved for a home loan prior to house hunting.
Can you apply for a home loan online? Yes. Like with most everything else, you can fill out the application online to get a pre-approval letter. Once you have this letter, it’s time to start shopping for a home you can call your own. When you apply for a home loan online, the lender will automatically compare mortgage rates online and find the best current average home loan interest rate for your credit score.
You need good credit to get a house loan so if your credit is currently lacking, you should clean that up first to take advantage of low interest rates on a home mortgage. Pay off debt and don’t take out any new loans while applying for a home loan.
Are you in the market to purchase a home? If so, you are not alone. Every year In the United States millions of homes are bought and sold. Any way you look at it, this means there are a lot of people purchasing homes!
For the majority of these individuals, financing will be needed in order to complete the purchase of a home. Mortgage companies are in the business of assisting interested home buyers in achieving their goal. Here are three questions to consider as you go to mortgage companies about financing the purchase of your home.
How Do I Qualify for an FHA Home Loan?
Considering mortgage rates and the cost of purchasing a home, an FHA home loan can be a great benefit for prospective home buyers. However, mortgage companies will tell you that there are criteria that must be met. These are as follows: you are obligated to refinance your home’s value up to 97.75%, 580 is the lowest acceptable number for your credit score, and purchase a house putting 3.5% down.
What Is an Adjustable Rate Mortgage?
There are two types of mortgage rates: adjustable and fixed. Mortgage companies can walk you through both options and tell you the most up to date mortgage rates for each option. Basically, the difference is this: a fixed rate mortgage is a loan with terms that vary, and it can be scheduled on a 30-year or 15-year basis. With an adjustable rate mortgage (ARM), the interest rate can vary during the time of the loan; and usually, the mortgage rates for an ARM start out for a period as fixed and then become adjustable for a period.
What Are the Most Current Mortgage Rates?
A key factor in determining the financing you will be able to obtain is the mortgage rates. Current mortgage rates are the basis for figuring out the what your monthly home payment will be. Mortgage companies will gladly tell you what the mortgage rates are and help you figure out the most affordable plan for you.
In life, making dreams happen requires action, planning, thinking and determination. The dream of purchasing a home is a journey that can be realized. Understanding mortgage companies, mortgage rates and the lending process is a great place to start. With hard work, and a little luck, too, you’ll be agreeing with the well-known quote: “The best journey always takes us home.”
