Purchasing your first home can be an incredibly exciting experience. However, one of the major hurdles to this momentous event is choosing the right mortgage. Whether you’re shopping for a mortgage, car loan or business loan, it pays to research each option carefully. Here are a few types of home loans that may be available to you, whether you’re a first-time buyer or looking to upgrade to a different home.
Types of Loans
While you probably already know the importance of building your credit, shopping around and reading all the terms and conditions before signing, you may not know that there are many options available for your mortgage. Here are a few great choices when looking for a home loan:
- FHA loans: Insured by the government and less strict, these loans are excellent for a low down payment and reasonable interest rates.
- VA loans: If you’ve served or are currently serving as military personnel, you may be eligible for a VA loan. Zero down, incredible rates and a loan amount up to $417,000 are just some of the great benefits you’ll receive.
- Conventional loans: These are probably the loans you’re most familiar with. Credit checks, typical down payments around 3 percent and a range of payment plans are all are all available to you.
- Jumbo loans: If you need a loan for a high-end home or community, consider these larger-than-average loans. Expect a down payment up to 10 percent.
Determine the Best Choice Today
These are just a few of the various loan options available to home buyers. Each loan has its own pros and cons, so it can be difficult to determine which one is the right fit for you. Take a minute and consider your financial situation in order to determine the best option for your current situation. With a little help, you’ll be on your way to owning your dream home with manageable monthly payments.