Your Loan: The First Step to Buying a New Home

by Eastside Realty Group, LLC 01/12/2020

Photo by Nattanan Kanchanaprat via Pixabay

If you’re in the market to purchase a home, it can be a confusing process. Interest rates, types of loans and what may apply to you can all sound like a foreign language. It’s always best to have some background knowledge before going to see a mortgage broker to make sure you’re on the same page. Although there are many components to the process, one of the main elements that directly affects you is the type of loan you qualify for. Here’s a quick guide:

  • Land Purchase

You may want to build a home on a specific piece of land. Most banks offer up to 85% of the price of the land for residential and investment purposes.

  • Home Purchase

These loans finance the purchase of a new residential property or home from previous owners. There are many categories: fixed-rate, adjustable-rate, conventional, jumbo, FHA, VA, USDA and bridge. Each one has elements that mortgage brokers use to determine whether you would be a good candidate for that type of loan.

  • Home Construction

If you’re looking to construct your home from the ground up, this is the type of loan you will be considered for. The loan and application process is a little different from a standard home purchase loan. If you want the loan to be included as a part of the total price of the house, the land should have been bought within a year.

  • Home Expansion/Extension

Even if you’re purchasing a home, you may decide you need to expand it. These types of loans work differently if you are purchasing the home, so working with a mortgage broker will provide more insight.

These four loan options may directly impact your decision and ability to purchase. When considering the type of loan you are seeking, you should also think about where you want to live and how long you plan to stay there. Each specific type of mortgage loan may require different amounts for a down payment, have different standards, require mortgage insurance and interest.

The type of mortgage loan and interest rate will also affect your monthly payment. A mortgage broker should be able to help choose wisely to save money in a number of areas. The most important thing to remember when searching for a home loan: they are not one size fits all. Every home loan is dependent on your current circumstances, credit rating and income level.

Everything may sound confusing right now, but you have a good foundation to work from. As your mortgage broker walks you through the process, you'll be able to identify those loans that may be mentioned without feeling like you're lost. Being educated on what's out there can also help ask the right questions. Although a mortgage broker is designed to help you get the loan you want, they also want to make money too. Working with one that appreciates your knowledge (even if limited) is key. Good luck!

About the Author
Author

Eastside Realty Group, LLC

Mark Martin Broker / Owner, Eastside Realty Group LLC

Client Services and satisfaction are the principles that are paramount to me. I will go to any length, utilizing every technical tool available to meet my clients needs. I understand that buying or selling a home is more than just a transaction: it’s a life-changing experience. 

That’s why my team of highly-seasoned real estate professionals is dedicated to providing exceptional, personalized service for all of our clients. I take great pride in the relationships I build and always work relentlessly on the client’s behalf to help them achieve their real estate goals.

My team of experts represents the best and brightest in the industry, and we’re always striving to lead the field in research, innovation, and consumer education. Today’s buyers and sellers need a trusted resource that can guide them through the complex world of real estate. With our extensive knowledge and commitment to providing only the best and most timely information to our clients, we are your go-to source for real estate industry insight and advice. And to the license real estate agents looking for a great company to join. Come join Eastside Realty Group, LLC the company that aspires to be the most recommended Real Estate agency in the country.

Our Mission Statement:

Our philosophy is simple: clients come first. We pledge to be in constant communication with our clients, keeping them fully informed throughout the entire buying or selling process. We believe that if you’re not left with an amazing experience, we haven’t done our job. We don’t measure success through achievements or awards, but through the satisfaction of our clients.