Understand Your Mortgage With This Guide
Whether you're a first-time homebuyer or searching for your second property, it's never a bad idea to plan ahead. One of the first steps to buying a home is analyzing your financial situation to see what you can afford. On this page, you'll find a thorough guide to mortgages in the Wake Forest real estate market.
When it comes to financing your home, you may have more options than you think. Generally, a mortgage is a loan for the amount of money your paying for your home. Here are the different kind of loans you may qualify for. The mortgage that's best for you depends on your credit score, your financial history, your income, and your future plans.
Conventional Mortgage: One of the most common types of mortgages, the conventional loan requires good to outstanding credit and at least a 10% down payment. Private mortgage insurance is often required for these kinds of loans.
Fixed-rate Mortgage: Featuring a "fixed" interest rate, this type of loan guarantees the exact same payment each month.
Adjustable-rate Mortgage: While the adjustable-rate mortgage (ARM) offers a relatively low initial interest rate, it adjusts with the market over the years. This can lead to inconsistent monthly payments.
Veterans Affair Mortgage: A VA mortgage is designed for veterans and active military members. Typically, they offer total financing, a simplified approval process, lower interest rates, and a lower down payment.
Federal Housing Administration (FHA) Loan: These government-funded mortgages offer extremely low down payments and lower interest rates.
Before you begin shopping for homes in Wake Forest, you should sit down with your lender of choice to get pre-approved. Getting pre-approved for a mortgage makes you a more competitive buyer, because it lets the seller know that you're serious about buying their home. It's also a great way to go over your finances to figure out exactly what you can afford.
Getting pre-approved for a mortgage means visiting your lender to review all aspects of your financial situation. During this process, your lender will review your credit score, annual income, and other aspects of your financial past and let you know how much the bank is willing to lend you.
Work With an Expert
Need a lender in the Wake Forest area? I can help with that. I've helped dozens of people find their dream home in the area, so I happen to know a few top-tier lenders. Just give me a call at (919) 556-7444 so we can discuss. I want to make the home buying process as easy as possible for you. If you ever have any questions about real estate in Wake Forest, please don't hesitate to contact me.