Buying a house is one of the biggest purchases you’ll ever make in your life. A house can cost more money than you have spent in total all your life. Given the high value of the properties (average cost of $ 100,000) the terms of mortgage loans are also quite long (15 or 30 years). The most common options for these mortgage loans are the following:
- FHA Mortgage Loans (Federal Housing Administration): These types of loans are insured by the government so they can be easier to get. The benefits of these mortgages are that they have low premium requirements (initial payments / deposits) from 3.5% premium and are ideal for people with bad credit (minimum 500).
- VA Mortgage Credits: These types of credits are also insured by the government, but can only be used by active or retired members of the Army and Armed Forces. The advantage of these loans is that they do not require a deposit or good credit to qualify.
- Conventional Mortgage Loans: These types of loans are insured by private companies. Even if they are not directly insured by the government, they still follow all the necessary federal and state laws. The benefits of these mortgages is that they may have lower interest rates than other government options (the better your credit, the better interest you apply to).
Mortgage loans can be very useful since they allow you to finance a purchase of a high amount for a comfortable period of time, but they have to be used responsibly. The mortgage loan options with which we work require premiums as low as 3.5% and help people with imperfect credits (minimum 500). The better your history and initial deposit, the better the terms to which you apply. Check our options on your own or receive a free consultation with one of our agents.
How Mortgage Credits Work
Mortgage loans are made by lenders who are insured by private or governmental entities. Thanks to the wide variety of mortgage options in the United States, customers like you can enjoy better interest and repayment terms. The majority of decisions and terms for mortgage financing depend on these factors:
- Amount requested.
- Credit history
- Level of debts.
- Monthly income.
- Initial premium amount.
To save the maximum on the purchase of your house there are certain steps that we recommend you to follow. These tips will help you get the best interests and make more informed decisions when buying your home:
- Prepare your credit history: Although if there are options for people with bad credit, it is better to repair / fix your credit history as much as possible before applying. In this way you will receive the best possible offer for the financing of your home, which will save you money in the long run.
- Have a pre-approval offer list: If you have a house in your sights and would like to make an offer to the seller, it is best to have a financing offer at hand. In this way the seller will see that your offer is serious and can help you negotiate a better price since you are ready to proceed with the purchase of the house at any time.
- Understand your credit limit: Do not buy a house out of your budget that later you find it difficult to pay. The more risky your loan, the higher the interest you will receive. Talk to our agents and understand your budget (how to check my free credit).
- Compare financing options: It ‘s good to compare all possible mortgage credit options before choosing an offer, in order to save as much as possible (remember that this decision will affect you for the next 15 to 30 years).
- Variable Interest vs. Fixed: Mortgage loans may have fixed interest (which will not change for the duration of the loan) or variable interest (change according to the interest of the American Government). Be sure to ask and understand what kind of interest they are offering you.
How to Apply for a Mortgage Loan
Mortgage loans have been evolving and the United States has become one of the markets with more mortgage options in the world. Unfortunately many people do not know about all the mortgage options and end up paying more than necessary for the financing of their house. The purchase of a home is a decision that you have to live with for the next 15 to 30 years, so we recommend comparing all possible options.
Historically, mortgages could only be requested by going to an institution in person and presenting your data. Then you had to wait for an agent to review your application and on top of that it takes a couple of days to give you an answer. Although this process still exists, with technology and the internet the process has become much easier. Thanks to technology, asking for mortgage loans online have the following benefits:
- You can apply from your home and in your free time.
- The approval process is much quicker instant response).
- Credit funds are available in less time.
- You can compare more offers online and find better terms of mortgage loans.
- Applying online with an encrypted system can be safer than applying in an office where someone can keep your information without you knowing.
If you are thinking of buying a house, do not do it until you review the best options for mortgage loans that we work with or schedule a free consultation with the Snowball experts.
Other Resources for Mortgage Credits:
For mortgage loans we recommend you always check with the CFPB (Consumer Financial Protection Bureau) and FCC (Federal Communications Commission). These sites give information and news of personal finances which give you tips to avoid online fraud.