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Getting the Best Boca Raton Home Loans
So you’re looking for a home loan but you’re not sure where to start. That is perfectly understandable as the market can not only be confusing, but incredibly expensive! Houses are without a doubt the greatest objective that an individual can go for, especially considering their contribution to the American Dream. When you are in the market for a house, you are looking for a place where you can live for a considerable period of time whether you consider it to be a starter house, or are moving into something a bit more permanent. Finding good Boca Raton home loans is without a doubt one of the most important things you can do in terms of getting financing. The biggest problem with buying a home is that they are not cheap, not by any stretch of the imagination. Let’s talk a bit about the different types of loans that you can obtain and why they differ from one another.
Getting a Loan
When you are looking into nationwide home loans or trying to find the best home loan rates in Boca Raton you will quickly discover that you need to put down a very specific down payment, generally about 20%. While that might not sound like much, you have to consider that 20% of $800,000 is a considerable amount of money and with that being the case you might want to consider going for an FHA loan, which will help you to get the money you need without the requirement of a massive down payment. There are some stringent requirements on FHA loans however, which we will address now.
What is an FHA Loan?
Federal Housing Assistance, or FHA is not so much a lending agent as it is an insurer. Lending institutions take a risk when they are giving you a hand up, meaning you must provide some sort of guarantee that you are going to repay the loan rather than defaulting on it. When you are looking for home loans in Boca Raton, the FHA loans will ensure that you pay a lower rate, generally below the 20% mark, but to obtain a loan at this rate you will need to make sure you have a credit score of 580 or higher. A slightly lower credit score, such as 579 to 500, does not automatically disqualify you from receiving an FHA loan, but it will increased your down payment to at least 10% if not higher.
Most borrowers will pay 3.5% of the purchase price, which makes the FHA loan one of the most popular routes to travel when attempting to purchase a brand new home. The FHA also provides loans for those who need to make repairs on their homes, which is called a 203(k). Such a loan is not based on the appraised value of the home, but rather the value after the repairs are completed.
Other Types of Loans
If the FHA route is not your cup of tea then there are several other types of loans that you might consider. Some are more appropriate for your situation than others, which means you will want to speak with a loan officer and determine the right course of action for your situation. The following are a few of the more common types of home loans in Boca Raton:
Fixed Rate Mortgage: This is obviously the most common type of home loan and the rate will stay exactly the same throughout the life of the loan. This type of loan can be obtained in either the 15 or 30 year variety.
Adjustable Rate Mortgage: Throughout the life of this loan the price may change many times, and with that being the case, it is strongly recommended you make sure that you are able to compensate for the changing market and still continue to make the monthly payments. It can be rough sometimes, but it is normally manageable.
These are the two most common types of loans. Finding the best home loan rates in Boca Raton sometime seems to be a bit of a game of chance, but it can be done so long as you do your research and speak to the right people. We are dedicated to helping you find the best rate, and most importantly, making sure you receive a loan that is properly tailored to your home. Now would be a great time to look over our website and make sure you’re ready to take advantage of one of these great loans, and of course, arrange for a complimentary home inspection. We take your satisfaction and your financial situation very seriously. It won’t be long before you are finally in the home that you deserve, and are able to spend your life in the place you call home.