Are you ready to purchase your own home?
This is the dream for so many people here in Texas and across the nation. Many work hard and scrimp and save in order to have enough money for a downpayment.
Some people worry they’ll never have quite enough for a downpayment, but you may be surprised to learn that you actually do! There are many affordable real estate markets throughout Texas. You can buy a decent-sized home with a yard for the kids to play in and some lovely trees and plants for you to enjoy for a fraction of what the same property would cost in California, New York, or Hawaii, for example.
We are blessed here in Texas to still have beautiful, affordable homes at our access. If you feel you’re still not quite there financially, that’s okay. Don’t give up! Every homeowner starts somewhere. It may take a few more months, or perhaps longer, before you’re where you want to be financially to make an offer on a home, but this doesn’t mean you have to keep putting things off. Contact a mortgage broker to get started!
Begin by asking questions. Any question will do; you’re just getting the conversation going, after all! That’s what it’s about: building a relationship with a mortgage broker, one with a solid foundation based on trust.
And once you’ve started that dialogue, keep going! The more you ask, the better prepared you’ll be to choose the right loan product and buy your Texas dream house.
Here are some of the questions we want you to be sure to ask your mortgage broker at some point during the loan-acquiring, home buying process. Feel free to add to the list! There are no wrong questions. Everything you ask opens doors to more options and opportunities for you. So ask away!
What Types Of Conventional Loans Do I Qualify For?
There are many different types of conventional loans available from different banks and lenders.
What’s more, these loans come with different terms.
For example, you can get a conventional loan with a fixed interest and 30 years to pay off the loan. Or you can get one that has a variable rate for the first 7 years, changing over to a fixed rate for the remaining years.
Then there are conventional loans that you pay off in just 15 years. These may come with fixed rates, variable rates, or a combination of rate types.
If you’re not sure what any of this means, don’t worry! You’re mortgage broker will be happy to fill you in. Just ask the question we’ve listed here, and your home mortgage specialist will take it from there.
What Non-conventional Loans Are Available To Me?
You may qualify for loans other than a conventional one. Here are some possibilities:
- FHA Loans: A number of first-time home buyers qualify for this type of loan
- VA Loans: Available for veterans and others with a connection to the U.S. military
- USDA Loans: Also called Rural Development Loans
- New Construction Home Loans: For when you want to BUILD your dream home
- Renovation Loans: If you purchase a so-called “fixer upper,” you may be able to make much-needed repairs right away through one of these loans
Don’t automatically assume that you can’t get these types of loans. You may be surprised to find out not only that you qualify, but also that you can get great terms and assistance you didn’t even know was available! Once again, ask away.
When Is A Good Time To Lock Into Mortgage Rates?
It’s not a given that you should lock into a specific mortgage rate. That’s because rates can go up, or they can go down. However, your broker (especially one who’s been working at this job for a long time) will have a good sense regarding whether or not locking into a particular rate is a good idea. So find out whether or not your broker thinks this is a good idea for you.
What Are The Best Current Mortgage Rates For A Fixed Loan?
Rates vary widely from one product to the next. Find out what the current range is for mortgage rates, for every type of loan you’re interested in and that you qualify for.
However, look at the overall picture and calculate the total amount you’d be paying over the life of the loan (here again, your mortgage specialist can be an invaluable resource for you). You may find that a 15-year loan with a slightly higher rate is better for you than a 30-year loan with a lower one. Look at all of your options and do the math (or have your mortgage broker do the math for you).
What About For A Variable Loan?
Many people are able to enter the real estate market by going with a variable loan with a lower rate than a similar fixed loan. Check the rates on variable loans; they may enable you to get you into homeownership sooner rather than later.
For More Information, Contact Manuel Mortgage
We hope this blog has helped you come up with questions to ask your mortgage broker before making an offer on a house and deciding which loan to get. As you can see, there are differences between one loan product and the next. Your mortgage specialist is your advocate and ally, so ask your questions to make the best informed decision you can!
For assistance with any part of your home-buying process, contact Manuel Mortgage in Texas today.