Types of Mortgages
Fixed-Rate Mortgage: Offers a constant interest rate and monthly payments for the life of the loan, making budgeting easier for homeowners.
Adjustable-Rate Mortgage (ARM): Features an interest rate that may change periodically depending on changes in a corresponding financial index, resulting in fluctuating payments.
FHA Loan: Backed by the Federal Housing Administration, this loan is designed for low-to-moderate-income borrowers and requires lower minimum down payments and credit scores.
VA Loan: Available to veterans and active military personnel, VA loans are backed by the Department of Veterans Affairs and often require no down payment.
Jumbo Loan: Used to finance properties that exceed conventional loan limits, typically requiring higher credit scores and larger down payments.
Home Buyers Programs
First-Time Homebuyer Programs: These programs offer down payment assistance, reduced interest rates, and grants to help new buyers enter the market.
Low-Income Assistance: State and local governments may provide special loans or grants to help low-income families purchase homes.
Veteran and Military Programs: Special programs for veterans and active-duty service members, including VA loans and military grants.
Mortgage Pre-Approval Process
Getting pre-approved for a mortgage involves submitting financial information to a lender, including income, assets, debts, and credit history. The lender reviews your application and provides a letter stating how much you may be eligible to borrow. This process helps you understand your budget, shows sellers you’re a serious buyer, and can speed up the final approval when you find a property.