Now, more than ever, it’s important to learn about the homebuying process. After the 2008 housing crisis, many adolescents saw the homebuying process as a scary, unimportant thing that only puts people further in debt. However, this surely is not the case. Now that those adolescents now are of age to buy a house, they need to learn that the process is very safe if done correctly.
Continue reading to learn more about home mortgages and the home buying process in Coral Springs!
Before we begin going over the types of home loans you can get, let us first define what a home mortgage is. A home mortgage is simply a loan distributed by a bank, mortgage company, or any other financial institution to help people such as yourself purchase a home. We all know that homes are expensive, but that’s why they are an asset. However, the majority of the population cannot pay for a home outright, which is where home mortgages come in. Rather than pay the entire cost of the house upfront, people can pay off their house over the course of about 15 or 30 years. However, when you opt for a home mortgage, you need to choose a financial institution that you can trust and are comfortable working with. With as many options as there are, many people don’t know where or how to start their home mortgage process.
The most known type of loan, conventional loans are popular because they are fixed-rate loans or loans that keep the same interest rate throughout your contract. However, conventional loans are the most difficult type of loan to qualify for because of the requirements each qualifier must meet. Both the down payment and minimum credit score are usually higher than the other two types of loans and account for more factors. Factors that are taken into account include
- Credit Score
- Housing Costs
- Debt-to-Income Ratio
- And more
The reason conventional loans have more factors is that they are not government-issued, meaning there is more risk put on the mortgage lender to accept. However, Ace Mortgage Loan Corporation will work with you to see if you qualify for a conventional loan!
Federal Housing Administration (FHA) Loans
A Federal Housing Administration (FHA) loan is a popular type of loan, especially for those who are buying a house for the first time. FHA home loans come with lower interest rates and are available to individuals with lower credit scores. For FHA loans, fewer factors are taken into account than conventional loans. For example, only a credit score of at least 580 is required, and down payments can be as low as 3.5%! Compare those numbers to a conventional loan that requires a 20% down payment and a 700-credit score! FHA home loans are great from homebuyers in Coral Springs looking for an affordable mortgage option. Ace Mortgage Loan Corporation specializes in these government-issued loans. The FHA does not directly provide these loans to homeowners, but they help ensure lenders in case borrowers do not make the necessary payments.
Veteran Affairs (VA) Loans
Signed into law in 1944 through the GI Bill of Rights, President Franklin D. Roosevelt enacted the U.S. Department of Veterans Affairs (VA) loans to help American veterans secure a home without having to make a down payment. Not only are we thankful for your service, but so is the government! This reason is why Ace Mortgage Loan Corporation has been helping veterans qualify what is rightfully theirs since 1996.
Contact Us Today
If you’re interested in buying a new home or just looking for more information on the home buying process, Ace Mortgage Loan Corporation in Coral Springs has got you covered! We have years of expertise and we have the knowledge you need to make the home buying process as simple and quick as possible. Give Ace Mortgage Loan Corporation a call today and get one step closer to the house of your dreams!