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Home Loans to Consider

Located in a military town, ARP (Action Real Properties) is no stranger to the VA loan, among many other types of mortgages. Every buyer needs to educate themselves on the types of loans available and see what the pros and cons are. Each loan is very different from the next and you should research them so that you are sure to pick what’s best for you. Everyone’s circumstances are different, and no one should tell you different.

Before you start searching for homes, you may want to get pre-approved for a mortgage so you know what your price range is. You would hate to fall in love with a house and come to realize that not only is it out of your price range, you’re not even approved for the amount the sellers are asking. Once you are pre-approved, you will have a better idea of what you can afford, and you can then narrow down your search. If you know how many bedrooms and bathrooms you want and if you want a garage or a large fenced in backyard, it will be so much easier to find a few quality homes to view. Basically, the bottom line is this. Know exactly what features you are looking for and be prepared with your budget. Decide which features are must-haves and which can be overlooked. Being too picky will leave you with few choices and not much leverage.

Here are the types of loans available:

VA loan:This loan with competitive rates and either low or no down payments is guaranteed for eligible active duty military, veterans and even surviving spouses.

Fixed-rate mortgage: you keep the same interest rate throughout the period of the loan (usually 15, 20 or 30 years)

Adjustable-rate (ARM) or variable-rate mortgage: the rate may fluctuate throughout the period of the loan, but beware the loan payments most likely will follow the same trend.

FHA (Federal Housing Administration) loan: this allows you to borrow a low down payment, if you’re not qualified for a home loan.

Balloon mortgage: most likely a fixed rate loan with low payments for a period of time, but once that period is up, the full balance of the loan is due.

Interest-only: only the interest on the loan is paid for a period of time, but once that period is up, the payments may increase significantly or the entire balance may be due, which could force you into refinancing.

Reverse mortgage: Seniors are able to convert the equity of their home into cash. As long as they still live in the house, they won’t have to pay back the loan or interest. Be careful to make sure the loan is federally insured since there are many scams out there with the intention to take advantage of the elderly.

Take the time to educate yourself and do the research. When committing to a loan of this magnitude, you want to make sure you can afford it. It won’t get you anywhere to get a mortgage you know you cannot afford. If you have any questions whatsoever, please do not hesitate to call us today!!! ARP is here to help you, call for an appointment at (915) 591-4636.

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Contact ARP Rental Homes

If you would like more information on any of our homes, or would like information on managing your property, please call us at (915) 591-4636 or contact us via our website. We will respond to your request as soon as possible.