So, you are thinking about making the leap—you want to buy a home. You probably know that there are several options for home loans available today. While many people choose a “conventional loan,” perhaps your needs are anything but conventional. How do you decide if a conventional, USDA, FHA or other loan is right for you? We’ve put together a few tips to help you choose.
- Look at Your Down Payment Options – Do you have a substantial down payment put together? If so, you may not have to worry about this consideration. However, if a down payment would be tricky (or impossible), you’ll need to look at loans with a low or no down payment option.
- Where is Your Home? – Did you know that some loans are only available in certain areas around Louisville, Kentucky A USDA loan, for instance, is available in most rural and some suburban areas. However, if you have your eye on an urban beauty, you may be out of luck.
- Will You Be Refinancing? – Another consideration is whether you are searching for a “forever” mortgage or one you will refinance in a few years. Some loans may have refinance stipulations that you must understand.
- Know the Fees – If you choose a no down payment option, you may have to pay PMI (private mortgage insurance). Also, some loans have higher origination fees than others. Talk to your lender and make sure you know all the numbers and details before you make a final decision.
If you are just starting the process of comparing lending options or you aren’t exactly sure where to start, we’ve put together a home buying guide just for you! We would love to share this with you free of charge, and as always if you have any questions or concerns about your future home purchase, feel free to contact us at First Liberty Financial in Louisville, Kentucky. We’re always here for you.