Let’s be honest, there’s a reason that owning your own home is the American Dream. Nothing feels better than moving into a home that you will own for the rest of your life. It’s where all your best memories will be made, and where you’ll bring up your children. Here at Nationwide Home Loans, we’re here to help make that dream a reality.
We know that loan shopping can be confusing to first time buyers, as well as those already on the property ladder. That’s why we’ve gathered together the four must know facts you should have under your belt, before you start looking.
There are several types of loan you can take out
There is no one standard ‘home loan’ you can take out, in order to buy your dream home. In fact, there are several types you can go for. That means that you can find a loan that’s perfect for you and your circumstances.
– FHA Loans: These loans, which are provided by Federal Housing Assistance, are designed to give you a leg up into the housing market. They give you a lower repayment rate, usually below the 20% mark. However, you need to be able to prove to your lender that you’re not going to default on the loan.
– Fixed rate mortgage: You can get a loan of this type for either 15 or 30 years, and you’ll pay the same amount each month for the entirety of the loan period. Many people who take out home loans in Boca Raton opt for this type of loan.
– Adjustable rate mortgage: This type of loan can change throughout the years, so the prices you pay will be different depending on the market. It may be the best way for you to get a mortgage when you start out, but we recommend you make sure you can afford the repayments if the prices change.
You can get a loan even if you’re struggling
There are plenty of options available to you, even if you don’t have as much as an income as you think you need. The aforementioned FHA loans are a great way of affording your first home. If you’ll be able to afford the repayments over the course of the loan, it can work out a lot cheaper.
There’s also options for you if you’re looking to refinance your home. Following the financial crisis, many homeowners found they were owing more on their mortgages than their homes were actually worth. However, they found they were able to refinance their homes through federal assistance programs, even if they were behind on the loan. The exact details would be different depending on who backs the loan, but it is possible.
If you want to know more about these programs, it’s a great idea to get in touch with us. We can tell you more, and find out just what kinds of programs you’re eligible for.
You can calculate how likely you are to be accepted for a loan
If you’re on the hunt for the best home loan rates in Boca Raton, FL, you’re probably concerned that you may find the perfect loan, only to be turned down for it. Of course no one wants that, so you may be thankful to learn that you can judge whether you’ll be accepted before you apply.
The way to do this is to calculate your EMI. Banks usually limit repayments to 40-50% of the buyers salary, so you can check whether that would be enough to make repayments on the loan you have in mind. It’s also worth keeping in mind that some lenders take the fact you have dependents into consideration. If you have questions, it’s always worth asking before you apply, so you know the lay of the land.
You can ask for a longer tenure on your loan
Sometimes it may be better for you to have longer to pay on your loan. Maybe you’ve been laid off work, or taken an unexpected financial hit. It is possible, in these cases, to ask your lender for longer to pay the loan off.
If they allow this, it can be better in the short term as it gives you some breathing room while you get your finances back in order. However, it can mean you’re paying more overall on your loan that you’d originally agreed to. If the worst happens though, it is an option you may be able to think about.
These are four facts that should make it easier to pick the right home loan for you. If you want more guidance, give us a call at Nationwide Home Loans. We know the business inside and out, so we can give you advice that’s right for you.