Buying a home is exciting, but it can also feel overwhelming, especially if it’s your first time. You may not know which loan to choose or even how to apply. There are a lot of mortgage companies out there and according to the Consumer Financial Protection Bureau, nearly half of borrowers do not shop around. Comparing loans for a house can help you save a significant amount of money and help you get a better mortgage. Fortunately for you, the experts at Mortgage Solutions Financial are here to help! Here’s what you need to know.
How Do You Compare Loans for a House?
In order to properly compare loans for a house, you need to understand what the main types of loans are. Once you understand the different types of loans out there, you can start thinking about your own financial situation and start exploring the ones that line up with your needs.
Understanding the Different Types of Loans
There are four types of loans that every borrower should understand and be aware of. These include conventional loans, FHA loans, USDA loans, and VA loans.
1) Conventional Loan – This is a common loan that is based mostly on your credit and financial situation.
2) FHA Loan – An FHA loan is a loan that is insured by the government and is a good option for those who have a harder time getting access to conventional loans.
3) USDA Loan – This is a loan that is meant for rural areas. It requires no down payment, but applicants must meet certain requirements.
4) VA Loan – A VA loan is a mortgage loan that is guaranteed by the United States Department of Veterans Affairs and requires no down payment.
Know Your Needs and Limits
What type of loan you need is largely dictated by your financial situation. If you are a current military member or are planning on buying a home in a rural area, these are also important factors to consider.
When comparing loans for a house, it’s important to know what your needs and restrictions are. If you’re not sure about your financial situation or which type of loan is best for you, you may want to schedule an appointment with one of our loan officers so you can gain some clarity and find out what steps you need to take next.
When you start looking at your offers, you will want to compare interest rates and the annual percentage rate (“APR”). The rates you are offered can have a large impact on the amount of money you pay over the years.
Work with a Lender You Can Trust
It’s important to feel confident that you are getting the best deal possible when comparing loans for a house. That’s why it’s great to shop around your offers. That way, at the end of the day, you know you chose right. Working with an experienced, trustworthy lender is crucial. Don’t wait to call us at Mortgage Solutions Financial! We can help you navigate your options and find the right loan!