Finding the right mortgage should be a straightforward process, but there are often so many choices it can quickly become overwhelming. Loan programs, rates, loan amount, term, down payments, mortgages insurance, closing costs . . . the list can seem endless.
Since there are so many options available, it’s important to seek advice from an experienced mortgage professional who has your best interest at heart. The first step in determining which program is right for you is to ask yourself the important questions listed below.
How long do you anticipate living in your home?
Do you expect any changes over the next few years, such as expanding your family or having children go off to college or move away?
Do you expect any changes in income due to promotions, relocations, retirement, inheritance, or pensions?
Are you expecting a change with regard to your investments?
When it comes to investment strategies, are you conservative, aggressive, or somewhere in between?
The reason these questions are so important is that different loan programs will offer specific benefits that will appeal to borrowers at different stages of life.
After determining your home buying goals based on the above questions, the next step is to determine which loan program will be best for you. Work with a Northpoint Loan Officer to get a better understanding of the below options:
Conventional Loans
These are the most common loans and are backed by Fannie Mae or Freddie Mac. The mortgage rates with these products are very competitive and down payment requirements can be as low as 3%. At Northpoint we offer conventional loans from 10 to 30-year fixed rates as well as adjustable-rate mortgages (ARM), providing a variety of options.
FHA Loans
These loans are insured by the Federal Housing Administration (FHA) and provide solutions for borrowers down payments as low as 3.5%. This option is also more lenient than a Conventional loan if you have had a bankruptcy or financial issues in the past. It is also one of the best options for a low downpayment multi-family purchase or refinance.
USDA Rural Loans
This unique program is available to give families and individuals the opportunity to own affordable homes in more rural areas. Allowing for a zero down payment and increased flexibility on credit requirements. Income limits and location requirements apply.
Veterans Loans
Qualified veterans, service members and their spouses can finance up to 100% of their home and pay less at closing. It is an overall amazing product with zero down payment required, allowing you to take advantage of the benefits you’ve earned.
State Housing Loans
State Housing Finance Agencies (HFAs) are state chartered, nonprofit organizations that provide financing and services for affordable housing and related community development activities. Most are quasi-governmental entities that operate as financially independent organizations and are governed by a state-appointed board of directors. HFAs generally have the mission to provide funding to increase and sustain affordable homeownership opportunities, most often targeted toward low- and moderate-income renters and homebuyers, and/ or special populations such as first-time homebuyers, active military and veterans, police and teachers, and individuals with disabilities. Contact a local Northpoint Loan Officer to see what State Housing option we have where you live.
Renovation Loans
Renovation loans are an all-in-one way to purchase, or refinance, a property and finance repairs and improvements. Renovation loans allow you to borrow based on the as-completed value of the property, meaning you can often borrow more money than with a traditional cash-out refinance or Home Equity Line of Credit which is based on the current value. Northpoint Mortgage has an experienced team dedicated to renovation loans who will help guide borrowers, contractors, and agents of all experience levels through the renovation process.
In the end, be sure you are given a complete picture of exactly how much your mortgage will cost over the period of time you anticipate having the loan in place. This is the most important factor you should consider. Not only does this data paint the bigger picture of your financial goals, but it also allows for adjustments should things change a little sooner than expected.
When shopping for a mortgage, you should always evaluate your choices carefully and consider how they’ll fit in with your long-term financial plan. Answer the important questions listed above and call a Northpoint Loan Officer for a free consultation. Together we’ll find the program that’s best for you.