I Want to Buy a House but Need Financing, Finding Your Perfect Mortgage

Finding Your Perfect Mortgage

When it comes to buying a home for the first time, many potential home buyers can become discouraged by the prospects of finding Home Financing. Knowing which mortgage, they best qualify for and provides the greatest benefits for their needs can be confusing. But by knowing some of the most frequent mortgage offerings home buyers can make an informed decision that helps them select the perfect mortgage for the perfect home.

Which Mortgage is for Me?

Home Mortgages can take many forms depending on a home buyer's financial standing, government programs' qualification and military service record. But knowing what is out there is the first step to making the right choice.

Typical Mortgage Types, the Choice is Yours

• Adjustable-Rate Mortgage (ARM)-An ARM is a mortgage set at a fixed interest rate for the first one to few years, but after the set time frame expires, the interest changes according to corresponding fluctuations in the Index. The Index is a base interest rate that is guided overall by the financial housing market and selection by the lender. The LIBOR (London Inter-Bank Offer Rate) Index is the most commonly used index for mortgages. You can research the LIBOR via financial news outlets. The ARM interest rate for an individual home buyer is based on the Index and the buyer’s lender (calculating the home buyer’s financial standing).
• Conventional Mortgage-Refers to home loans other than government loans.
• Fannie Mae (FNMA)-The Federal National Mortgage Association, which is a government-enterprise company that is the nation's largest supplier of home mortgage funds. 
• FHA Mortgage-A mortgage that is insured by the Federal Housing Administration (FHA). Along with VA loans, an FHA loan will often be referred to as a government loan.
• Fixed-Rate Mortgage-A mortgage in which the interest rate does not change during the entire term of the loan.
• Owner Financing-A property purchase transaction in which the property seller provides all or part of the financing.
• VA Mortgage-A mortgage that is guaranteed by the Department of Veterans Affairs (VA).

When shopping for a mortgage research the different mortgage type offerings, market index and housing market of your area.  Use a mortgage calculator to ascertain what amount of mortgage your budget is comfortable with. Make notes and discuss your budget goals and concerns (for example student loan debt) with your housing lender. As I have shared many times, getting a pre-approval for a home loan can help you clearly define the amount you have to spend for a home as well as put you ahead in the home negotiations. 

Buying a home can appear to be the greatest adventure of your life. With a little homework and a good realtor guiding you through the process, you can be in your new home in no time. 

Whether you are a first-time buyer or in your fourth home search, helping you to find your “perfect” home is important to me. Please visit my site at http://www.pamsantoro.com/ or contact me at 678-656-6627. As an experienced member of both the National and Georgia Board of Realtors, I can answer any questions you have about local market conditions, financing or selling your home for the best market value.  

Remember, no one sells a home like a Mom!