Buying a home is a big investment as well as a complex and time-consuming transaction. Whether you’re brand new to home ownership or a seasoned purchaser, you need the support and advice of a local mortgage professional. Specifically, you need answers to these 3 questions:
- What kind of mortgage is best for me? Once your local mortgage expert has done a thorough analysis of your financial needs and goals, the next step is to recommend mortgage options. If your goal is to cut interest costs and become mortgage-free faster, a 15-year mortgage may be a good choice. But that may not make sense if you’re planning to sell in the medium term. If you have credit challenges or a small down payment, you may want to consider an FHA loan. Whatever your situation, it’s essential that your mortgage match your needs and goals.
- What am I going to pay? You’re entitled to receive a detailed loan estimate that includes all costs, including mortgage broker fees, interest rate, monthly payment, lender fees, closing costs, prepayment penalties, taxes and insurance. If the loan you’re being offered won’t fit your budget, ask for more options. Do a side-by-side comparison of various lenders and mortgages, then choose the most cost-effective option.
- Should I save a larger down payment? Saving a 20% down payment means you won’t have to pay private mortgage insurance (PMI). But draining all your savings for a down payment isn’t a wise decision since you should always have enough cash on hand to cover 3 to 6 months of emergency expenses. Your mortgage expert can help you decide whether PMI makes sense, or whether you can qualify for a loan that doesn’t require PMI at all, like VA loans.
As your local mortgage experts, we’re happy to do a free analysis of your finances and help you find the most cost-effective mortgage for your specific needs. Call us today!