What are some common misconceptions about home buying ?

1) You need to have perfect credit to purchase a house. • There are many affordable loan options offered through  a variety of mortgage programs; both government and non-government, (conventional) that allow for lower credit scores. • For a complete list of loan programs, check out our Loan Options page to see what loan programs you may qualify for and the best loan product for you and your family. 2) Choose the lender with the lowest interest rate and APR.
  •  The interest rate on your mortgage is very important, as most of your monthly payment goes toward the interest cost during the first 10 years of your mortgage when obtaining a 30 year fixed rate loan.
  •  The APR is calculated based on the upfront or financed origination fees, discount points, upfront mortgage insurance premiums and other lender or broker fees associated with the loan. The APR takes into account these fees and amortizes them within your loan to provide you a true total cost of obtaining the mortgage. The note rate is the amount of interest the lender is charging you each year for borrowing the money.
  • Your interest rate should not be the only consideration when comparing lenders as the expected service, communication and reputation of the mortgage company should be part of your decision when selecting a lender to work with.
  • When you’re ready to choose a lender, compare loan estimates from multiple lenders that take into account all of the above criteria as sometimes the cheapest price may result in a painful loan process with broken promises along the way.
3) A 30 Year Fixed Mortgage is the best loan option for everyone.
  • Many factors need be taken into account when selecting the mortgage product that’s right for you.
  •  Do you plan to stay in your home for a long period of time? If not, then an “Adjustable Rate Mortgage (ARM) may be the right choice for you! Are you about to retire? If so, then a loan with a shorter term may suit you better. Feel free to talk to one of our Licensed Loan Originators to discuss the many different loan options available.
  •  Another important fact to remember is that 15 year loan terms ( If you can afford the payment) are must less expensive loans than a 30 year loan. First, the interest rate tends to be about .5% less than a 30 year rate; and more importantly, the amount of interest you will pay over the life of the loan is about half. Depending on your loan amount, the interest savings on a 15 year mortgage could be hundreds of thousands of dollars. Again, if you can afford the payment, give a 15 year term some serious consideration.
Ready to take the next step? Apply Now or Get help from an expert.