Ask your Better Rate Mortgage expert for more details about which loan will work best for your circumstances.
Mortgages are differentiated into various types, and it’s hard to know which one is right for you. Unfortunately, most people go for the cheapest option and conclude their mortgage search in a snap. It’s a fast and straightforward approach, but it could work to your detriment.
You’ll have to do a lot more to find the best mortgage for your next home. Sean Zalmanoff and our entire team specialize in making the home purchase or refinance process a great experience! Ask your Better Rate Mortgage expert for more details about which loan will work best for your circumstances. We are committed to making sure that you can receive the funding you need.
Check the Mortgage Length
The longer the length of your mortgage, the more interest you’ll have to pay over the long term. However, that doesn’t mean you should steer clear of mortgages with lengthy repayments periods. Remember, lengthier mortgages also attract lower monthly installments throughout the loan’s lifespan. You’ll have to find a mortgage with a repayment period that fits your current and projected financial situation.
Most mortgages have repayment periods of between 10 to 30 years. Some lenders even have “write your own mortgage” programs that allow borrowers to negotiate their mortgage terms. You’ll first need to calculate how much you can afford in monthly payments and how much interest you’re willing to pay. This should help you make a better decision when choosing the length of your mortgage.
Figure Out How Much You Can Afford
Most people make the mistake of overstretching their financial reach when applying for a mortgage. Provided you have an excellent credit score, lenders would be more than happy to grant your mortgage request. However, the decision to take an expensive mortgage will likely come back to haunt you in the future unless you can afford the mortgage in question.
Borrowing a mortgage that you can’t afford will only strain your finances in the future. So regardless of your stellar credit score, borrow a mortgage that’s within your financial capability.
Settle for the Right Type of Mortgage
As mentioned above, there are many types of mortgages to choose from. However, not everyone can qualify for every mortgage. Some mortgages are specific to particular groups of people. That said, here are the main types of mortgage loans.
- VA loans for veterans and individuals with a military background
- FHA loans for people with poor credit scores
- USDA loans for folks who are comfortable living in rural or suburban areas
If you don’t belong in any of the above categories, conventional mortgages are your best fit. They don’t have any perks or special conditions, but they can get you a new house.
Choose the Right Mortgage and Mortgage Lender
Choosing the right mortgage is just part of the process; next, you have to find the right mortgage lender to grant you the mortgage. Make sure you put in as much effort as you did when choosing a mortgage in choosing your lender. Fortunately, the best mortgage lender is a phone call away.
Contact the Better Rate Mortgage Team today so we can get started on your mortgage loan application as soon as possible. Your dream home awaits.
