A Man's Guide to Mortgage Loan Options
Sometimes we just need to talk, man to man. Occasionally men need to confer with each other and share advice, tips and other information. This is one of those times. We need to share "A Man's Guide to Mortgage Loan Options."*
We could start with the obvious: find a house with a cool garage design and a place for the perfect man cave. But we won't. Instead, let's start at the beginning. Why do you want to look at buying a house? Are you tired of renting? Has living with mom and dad lost its luster? Are you ready for the responsibilities of home ownership? Whatever the reasons, the beginning of the home buying process should include mortgage pre-approval.
Getting pre-approved for a mortgage loan will help you figure out where you want to start your home ownership adventure. Pre-approval will include information about how much house payment is just enough. You'll also figure out some areas where you should go house hunting. You don't want to end up in an area where property taxes are too high for your budget.
Pre-approval isn't a painful process. Included in this chat with a mortgage consultant will be your credit report, your income and your debt. You'll also find out how homeowners insurance and taxes look in the communities where you're considering buying.
Once you've begun this step, it's time to look at your mortgage loan options. If you've been dilligent and good with money, you may have a decent sized down payment ready to go. In this case, a conventional mortgage might work well for you. If your down payment was spent on dates and motorcycles, maybe you still have some cash on hand and could afford the 3.5% down payment requirement of an FHA loan.
As a home buyer you may want to save money on the purchase price of the house and remodel it to really fit your tastes. The FHA 203k and HomePath Renovation mortgage loan options might work well for you. As you can see, you have a lot of choices when it comes to financing your dreams of home ownership.
Let's look at some of the benefits to one of these options: FHA 203k. If you want to pay for remodeling and renovations to the house you're buying, then you're in the right place. The 203k is a renovation mortgage loan that will help you pay for a professional to do all kinds of work. We roll the costs of the work directly into the one mortgage, so it's not a second mortgage. We also base the loan amount on the after-improved value of the house, so you don't need equity in the home - it's not a HELOC.
Instead, the 203k allows you to buy a house and plan a remodeling budget that makes sense. You could:
- Add a deck
- Replace windows
- Re-paint the inside and exterior of the house
- Waterproof and finish a basement
- Repair or replace a roof, the gutters and downspouts
- Add a garage
- Fill in an unwanted in-ground pool
Many other remodeling projects could also fall under the FHA 203k umbrella. It's a great option for home buyers who want to really make the house their own.
Learn more about other choices for financing your house with "The Only Mortgage Loan Options Guide You Need" at the button below. From the 203k we just covered to a 100% financing option like USDA rural development, this guide will help you narrow down your focus for getting pre-approved.
*We also have a Woman's Guide to Mortgage Loan Options article. It's all in good fun. We don't discriminate, we lend to both genders!