When buying a home for the first time there are many different options and programs out there. How do you know which is the best option for you?
It all depends on your personal situation. The best place to start is to sit down with a lender and discuss the options that might work for you. If you are a military personnel, a VA loan might be the best option. If you have a small amount to put down, maybe an FHA. Or if you are moving from one home to another and have a substantial amount to put down, a conventional loan might be the best. One of the best places to start is by contacting a Mortgage Broker that deals with mortgages in your
CONVENTIONAL - This is probably the majority of the loans out there and for a good reason. They tend to have the lowest interest rates and the best plans. They are typically designed for those that have a good amount of down payment, possibly from the sale of another home. If you have saved 10-20% for a down payment, this is also a good option. You will want to obtain this type of loan from a bank, credit union or mortgage broker. Each has their own fees, points and costs involved and you want to weigh the numbers and shop around.
80/20 CONVENTIONAL - Some first time home buyers are looking into these 80/20 loans where there
FHA - This type of loan is government backed and allows for only a 3% down payment and usually good financing options. This is a good option for first time home buyers and most lenders can draw up the application for this process. The down side to this loan is there is usually mortgage insurance tacked on. This means that because the down payment is so low, the bank supplying the loan wants to guarantee they are not out of money if you default on the loan. For this reason, a small amount it added to each mortgage payment until the loan amount is 80% or less than the value of the home. The trick is though, that most banks won't tell you when this is, so you will want to keep checking back on the mortgage lender to see if this fee can be dropped. It usually takes about 2 years for this to happen.
VA LOAN - If you are in the military you have the option of going with a VA loan. This is an excellent option for those in the armed forces but can only be
For more tips and to apply for a loan for any La Grande Oregon real estate please contact us today! We would be happy to go over any questions you might have.