|
There's several options when you are interested in getting a home loan. There are fixed rate mortgages, adjustable rate mortgages, and balloons. Having the knowledge about the differences and being able to wisely choose which best fits your needs and budget is critical.
The first step and usually most important, is to find out your FICO score (more commonly known as credit score). Equifax is the most recognized, but getting them from each of the 3 reporting agencies (Experian, Equifax, and TransUnion) is recommended. www.annualcreditreport.com is the ONLY FREE credit report site where you can get your reports for FREE without having to join a membership and pay. NEVER EVER use www.freecreditreport.com ITS NOT FREE if you have to join.
IS MY SCORE IS GOOD?
Here are the scores and the general categories of quality:
700 and higher is considered Very Good or Excellent
620-699 is considered Ok or Good and is where most people fall
580-619 is considered Low or Below Average
Anything below 580 is Very Bad BUT YOU CAN IMPROVE IT
If your score is in the Low to Bad category, you should work on improving your credit before attempting to get a loan. Basically a good credit score = a good interest rate.
WHAT KIND OF LOAN SHOULD I GET?
Government Loan: People who have formally served in the military or are currently serving may qualify for a VA loan. Some of the awesome benefits include favorable repayment terms, many times require little or nothing down, and are many times easier to qualify for than conventional loans.
Fixed Mortgages: A fixed mortgage loan typically is financed over 15-40 years. 30 year and 15 year loans are usually the most common. . The interest rate is fixed throughout the duration of the loan. This means that your payments stay the same until the loan is paid off.
Balloon Loan: A balloon loan is a short term loan that generally lasts 3 to 7 years. The interest rate is fixed during this timeframe. When your loan is over, the balance of the loan is due in full unless you refinance. Generally the interest rates on these loans can be very promising. The negative side is when the loan is done, the balance is due.
Adjustable Rate Mortgages (ARM): With an adjustable rate mortgage, your interest rate adjusts during the loan according to the defined index. This index is usually established when the loan is applied for.
Don't forget that taxes and insurance may or may not be held in escrow, and if they are not, you will be responsible for paying them separately.
What if I already own a home?
Maybe you need a fence, a deck, painting, or repairs done. Home equity lines of credit and home equity loans are a good way to obtain money to make improvements to maximize the value of your home. When you put your home up for sale, and need financial help to pay for improvements like adding a patio, landscaping, deck, outdoor fireplace, or fence, a home loan can help fund that project. A home equity loan is a great way to deal with unexpected problems with a home, like pest control, exterminators, termite damage, mice, yellow jackets, and more.
BUYING OR SELLING A HOME?
Contact the TOP Raleigh REALTOR® and Raleigh real estate agent , Jamie Harrison today for free information, education, and dedication.
This website is sponsored in part by our Apex fence company and Holly Springs fence installer who specialize in residential fences for new homes and existing homes.
This website targets:
- Indiana
- Michigan
- Missouri
- Massachusetts
- Florida
|
