Navigating the Mortgage Maze - Austin Real Estate Agent

Navigating the Mortgage Maze

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Navigating the Mortgage Maze

Buying your first home or your next? Stay prepared with this quick guide.

Types of Mortgages

A mortgage is a loan that uses property as collateral to help finance homeownership.

  1. Conventional – Most common type of loan. Has fixed interest rate for the life of the loan.
  2. Adjustable-Rate – Typically starts at a lower rate than fixe-rate mortgages but can increase over time.
  3. FHA Loan – Guaranteed by the FHA and issued by an approved lender to help low to moderate income buyers.
  4. VA Loans – For the U.S. military and veterans. No down payment or mortgage insurance required.
  5. Jumbo Loan – Used to finance properties that are too expensive for a conventional loan.

This is an image of the word loan spelled out in scrabble tiles, a wooden house on top of some budget paperwork.

 

 

 

 

 

The Perils of Not Preparing

  • Miss out on great properties.
  • Settle for less than you want.
  • Scramble to get finances in order.

Know What You Can Control

  • Credit Score
  • Income/Debt
  • Down Payment/Savings
  • Get professional advice

Know What You Can’t

  • Monetary policies
  • Inflation
  • Housing Market
  • Overall economy

This is an image of a notebook with the word can't written in red on one side and can written in black on the other side.

 

 

 

 

 

Next Steps

  1. Get your finances in shape. Review your credit, savings, and debt to understand where you stand.
  2. Talk to a qualified mortgage professional about loan options and get approved.
  3. Start looking. This is where I can help you! I’ll show you homes that check off your boxes and are in your price range.
  4. After you find a home and your offer is accepted, your loan application will then be reviewed by the lender’s underwriter to assess your ability to repay the loan.
  5. I’ll work with you throughout the entire process to ensure your documentation is in order, from offer to negotiation to closing.

This is an image of a clipboard with next steps on the top and a pink, yellow and green post it notes underneath. There is also a stack of money in one corner and a plant in the other.

 

 

 

 

 

Prequalified Versus Preapproved 

Prequalified– Informal step where you provide a lender with basic info about your finances. They give you a general idea of what you can afford.

Preapproved– Loan officer reviews your formal application, credit score, finances and other pertinent documentation before approving you for a specific loan amount. It shows sellers you are serious about buying.

Want to learn more? Let’s chat! I’m always here to offer clear, concise information you can trust every step of the way!

For a printable version of this newsletter, click here. 

SOURCE: mpamag.com/us/mortgage-industry/guides/the-7-most-popular-types-of-mortgage-loans-for-home-buyers

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