Are you a first-time homebuyer?

I’m sure you’ve got questions about your mortgage options. There are many programs out there, and whittling them down to the exact one that’s right for you and your future isn’t always an easy task. Here’s an overview of the basics, before we dig into the specifics.

First, mortgages can be grouped into five main categories.

  1. FHA mortgages
  2. Conventional mortgages
  3. USDA mortgages
  4. VA mortgages
  5. Mortgages, wallets, and “other” mortgages

Each loan category has its benefits, and a well-trained mortgage loan agent can assist you to make the right choice. However, you can reduce your mortgage options to suit your specific needs.

How should you choose a mortgage?

Some years back, it was tough to acquire a mortgage. The lenders were stingy, and the guidelines were strict. Only a few loans were approved, the housing market suffered as a result. Today, the mortgage market looks a little different.

Housing values ​​(finally) have exceeded the maximum prices of the last decade, and mortgage lenders are more willing to lend than in any period of this decade. According to Ellie Mae, more than 70% of the loans are currently being approved, with mortgage software processing more than 3.5 million loan applications each year. This is the highest percentage of approval since this information was taken.

But for today’s buyers, it’s not just “Will my mortgage be approved?” There are more mortgage options available than during any part of this decade, too. The proliferation of low and medium-term mortgage loans has helped boost homeownership among long-term tenants, and the return of loan 80/10/10 allows existing owners to “travel” to something more significant.

How to Choose a Mortgage

When choosing a mortgage, consider the following:

  1. Down payment Amount
  2. Loan Size
  3. Credit Score