Going through the process of searching for a home loan and wondering if you’ll qualify can be stressful. There are so many different financing options out there, but how do you know which ones you should apply for, and how do you go about applying? What if you don’t know the difference between an fha loan Tucson and a VA loan? One resource you might consider is visiting a mortgage broker, someone who works exclusively with mortgages and no other services.
A mortgage broker has no agenda to push you into one particular type of mortgage product or another, so they’re unbiased. Their business is finding the right mortgage programs for their clients, so they may suggest solutions you may not have thought of. A broker also presents you with one-stop shopping for a mortgage. All you have to do is provide your information one time, instead of applying all over town, and then let the broker take care of doing the work.
One of the problems that caused the housing crisis was the surge of adjustable-rate ARM loans, which start out with great low payments, but after a certain time they revert to a much higher interest rate. With a fixed-rate mortgage, you can budget for the term of the loan. Fixed-rate mortgages range from 10 to 30 years. Later, if interest rates go down, you can apply to refinance to an even lower interest rate if it becomes available.
VA loans through the US Department of Veterans Affairs offer military veterans no-down-payment loans of up to $412,000.00 and less stringent qualification requirements than a conventional loan or an fha loan Tucson. A balloon loan is a fixed-rate loan that becomes due with a balloon payment in three to ten years. These loans work for those who know they will have the cash available when the payment is due. There is a risk that the borrower won’t be able to refinance in the future, but these loans do have a lower interest rate. Bridge loans can be a solution for buyers who need to purchase a new house before their current house has sold by letting them borrow against the equity in their home.
