Imagine finding your dream home!
Before you house shopping in New York, You should get pre-approved for a loan.
How does the mortgage pre-approval work?
For example: “How to buy a house in Bronx for the first time? That’s the question the pre-approval process would answer for you.
Making sense of the mortgage process might initially seem intimidating, but it’s step one to living your dream.
After a quick mortgage application, the right loan officer should answer the following questions for you. This is a safe place because you have not found a home to purchase yet.
- What are the steps to buy a house?
- What’s the monthly payment for my new home
- How much money will I need for down payment
- What are the closing costs for my new home
- How much will my closing costs be for my new home?
- How much house can I afford to purchase?
15 or 30 years?
If paying off your loan sooner is important to you, a 15-year mortgage might be a good fit. According to Marc Giles, a top loan officer in Westchester, NY, these mortgages typically have a lower interest rate, but you’ll have a higher monthly payment due to the shorter loan term.
If you need (or want) a lower monthly payment, a 30-year mortgage might be better suited to your lifestyle.
Fixed or adjustable?
Fixed-rate mortgages are generally uncomplicated and have specified monthly payments that make budgeting easier. You neither save when market rates go down nor suffer when they spike.
Adjustable-rate mortgages (ARMs) typically start with lower interest rates that stay fixed for a set amount of time. Once that period ends, your rates vary at predetermined intervals.
Conventional or government?
The typical 20% down payment you’ve probably heard about is associated with conventional loans, but it isn’t a must. Your credit score, debt-to-income ratio and down payment all factor into your interest rate.
Don’t have a big down payment or excellent credit? Consider a government-backed loan. With an FHA loan, you only need a small down payment, dependent on your credit score. The VA offers mortgages with no down payment to active military, reservists, veterans and spouses. And if you’re in a rural area, you may qualify for a zero-down USDA loan.
Curious about which type of home loan will be the best fit for you? Reach out today!
Calculate your mortgage payments for FREE! with a mortgage calculator.
