This is How to Shop for a Home Loan via @homebidz

This is How to Shop for a Home Loan

Shopping for a home loan can be a complicated matter if you are not sure where to start. It is a good idea to get to know a little bit about the different types of loans before you get your search started. Using this information you can decide which loan will be best for you.

Government Loans

Government Loans are the first type that, believe it or not, many people are not aware of. The first type of government loan is FHA or Federal Housing Administration. This type of loan is mainly for those who need assistance with buying a home. This loan also carries a low down payment.

VA Loans

VA or Department of Veteran Affairs is another government loan. VA works with people who have either served in the military, are currently in the military, or families of military personnel. Just like with FHA, the down payments are often low, but with certain qualifications, there can be no down payment at all.

Adjustable Mortgages

Adjustable rate mortgage is next. With this loan, the interest rate can fluctuate because of the current market value. While your mortgage rate may be low at first, this type of loan has the potential to increase over the life of the loan. Many will have a cap placed on the rates.

Fixed Rate Mortgages

Lastly, fixed-rate mortgage is a common type that many home buyers choose. The interest rate on the loan will remain the same the entire time. However, you should keep in mind that your regular monthly mortgage payment can increase.

These are just a few of the types of mortgages that are available. Talk to your lender to find which type of loan is best for you. Differences in loans can vary depending on your income, where the house is located, the amount and type of interest, the amount of downpayment required, and more.

Latest Posts

Loans, Fees, and the Real Cost of Owning Your Home via @homebidz

Loans, Fees, and the Real Cost of Owning Your Home

Need a Home Loan? We know this may come as a shock, but that home that’s for sale for $350,000 will actually end up costing about $575,000 over time. How? Between the interest rates, insurance, property tax, and...
Rent to Own vs. Traditional Mortgages via @homebidz

Rent to Own vs. Traditional Mortgages

Need an FHA Loan? It’s no secret that most people seek out rent-to-own home options over traditional mortgages because of credit issues: either their credit is fair or poor or simply just unestablished. Depending...
Why Does My Credit Matter? via @homebidz

Why Does My Credit Matter?

Click Here to Look at Bad Credit Home Loans Honestly, if you have less than perfect credit, you can still potentially buy under a rent to own option, but you still have to get financing at some point, so you'll need...
Taking the First Step on Your Rent to Own Journey via @homebidz

Taking the First Step on Your Rent to Own Journey

Looking for Rent to Own? When considering a rent to own journey, there certainly are a couple different choices. Each requires the rental property itself, two authorized documents, and then -- sometimes -- an...
Simple Ways to Save for Your Down Payment via @homebidz

Simple Ways to Save for Your Down Payment

Need Family Support? There are a lot of different ways to purchase a home. You can get creative and try owner-financing, or even buying a home at an auction. For the majority of us though, we’re still using banks and...
Should I Rent to Own or Lease? via @homebidz

Should I Rent to Own or Lease?

Check Out These Listings You've found yourself asking, "Should I rent to own?" or "Should I look into a lease option?" Understanding your options, and determining if a rent-to-own or lease option is the most...

Categories