Buying a home is the most significant investment you will make in life. There are different offers of new and used homes to fit your family’s needs and lifestyle. In many occasions, the money you have saved is not enough for buying your ideal home.
Fortunately, there are different financing options for you to have enough money to buy your new home. It is necessary to know the key aspects for you to choose a mortgage loan that suits your particular case.
What Type of Loan Mortgage Is Right For You?
There are two basic types of home loans on the market: conventional and government-backed. In the case of private financing, it is a financial institution that will guarantee the funds to acquire your home. In the case of government-backed loans, you can apply to three different formats:
- Federal Housing Administration (FHA) Loans: these loans were created to make mortgage loans more flexible, especially if you are going to buy your first home. They allow for low down payments, such as 3.5% of the total price of the home.
- VA Credits: These funds are for active military, veterans, and some surviving spouses. Interest rates are very competitive, and in some cases, no down payment is necessary.
- Rural Housing: The Department of Agriculture also funds the purchase of houses for rural residents. The interest rate is low, and it is much easier to qualify for these loans than for FHA ones.
What Conditions Must You Meet to Qualify for a Mortgage?
Every lending institution has their requirements to qualify. The first condition they usually request is a good credit score. This ensures that you have a good reputation as a borrower, as well as sufficient payment capacity to meet your obligation.
Another requirement is that properties must be insurable. The policy protects the money lent to you by the credit company if a fortuitous event (fire, vandalism and natural disasters, for example) damages to part or the entire property. If you would like further advice on obtaining an excellent mortgage loan in Matthews NC contact us; AmeriSouth Mortgage Company’s team of specialists is ready to assist you.
Which Are the Mortgage Loan Conditions?
This is the aspect that defines how advantageous a mortgage offer can be for your particular case. Three aspects usually define the value of fees and general conditions:
- Duration of Credit: always mortgages are given for a period that varies between 10 and 30 years. The longer the loan lasts, the lower the monthly payments.
- Hook Price: The amount you must pay off initially also helps determine the value of the monthly payments. If it is a conventional loan, you are expected to pay around 30% of the total value: the higher this figure, the lower the monthly payment.
- Interest Rates: Another essential aspect is the interest rate your mortgage will have, whether it is fixed or variable. Also, you must take into account the rate applicable to your case, depending on the lending institution. It is advisable that you decide for the one that best suits your current situation, and also can sustain over time.
Trust the Best
If you are looking for the best mortgage loan in Matthews NC, AmeriSouth Mortgage Company has the best options for you. Let our financial experts offer you the best financial deal to buy the home of your dreams. Let our nearly 30 years in the market work for your benefit and the well-being of your family. Contact us.