After weeks of searching, you finally found your dream home and submitted an offer. But…
Home Loans Don’t Have to Be Confusing
There’s nothing like walking into a house and realizing it’s the one — your dream home!
But before you go house hunting, you should get preapproved for a loan that’s just as perfect for you. Making sense of the financial language might initially seem intimidating, but it’s the first step to living that dream.
Get in touch if you’d like help answering the following questions:
15 or 30 years?
If paying off your loan sooner is important to you, a 15-year mortgage might be a good fit. These typically have a lower interest rate, but you’ll have a higher monthly payment due to the shorter loan term.
If you need (or want) a lower monthly payment, a 30-year mortgage might be better suited to your lifestyle.
Fixed or adjustable?
Fixed-rate mortgages are generally uncomplicated and have specified monthly payments that make budgeting easier. You neither save when market rates go down nor suffer when they spike.
Adjustable-rate mortgages (ARMs) typically start with lower interest rates that stay fixed for a set amount of time. Once that period ends, your rates vary at predetermined intervals.
Conventional or government?
The typical 20% down payment you’ve probably heard about is associated with conventional loans, but it isn’t a must. Your credit score, debt-to-income ratio and down payment all factor into your interest rate.
Don’t have a big down payment or excellent credit? Consider a government-backed loan. With an FHA loan, you only need a small down payment, dependent on your credit score. The VA offers mortgages with no down payment to active military, reservists, veterans and spouses. And if you’re in a rural area, you may qualify for a zero-down USDA loan.
Curious about which type of home loan will be the best fit for you? Reach out today.
About the Author
Kevin Oto
Mortgage Broker/ President at Green Haven Capital Inc. · NMLS #62641
With over 20 years of experience, Kevin has established himself as one of Northern California’s most trusted mortgage advisors — helping homebuyers, homeowners, and real estate investors secure financing with clarity, confidence, and competitive pricing in any market.
Specializes in: Conventional loans, Purchase loans, Investment property financing
Licensed in: CA, CO, MD, OR, TN, TX, UT
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