Is buying a home one of your goals this year? Maybe you’re a millionaire that has mounds of money to purchase a home with cash, but most us will have to purchase property with a mortgage loan. What exactly is a mortgage? It’s basically when the property you’re purchasing is used as collateral against the loan you’re taking out. In other words, you sign a note saying you promise to pay back the lender. If you don’t pay your mortgage, well, they take away your property, aka foreclosure.
Finding a mortgage loan that’s right for you should be easy. Recently, we had a little Mortgage 101 Q&A with Brian Cavanaugh, NMLS#441864 Sales Manager at Mortgage Network, Inc.
How do I determine what I can afford?
My suggestion would be doing a mortgage pre – approval. This will help you understand your sales price, down payment and monthly mortgage payment, etc.
How much of a down payment is required?
As little as 3%. There are some amazing mortgage products available if you are not able to come up with the 20% down payment.
What credit score do I need?
This depends on a few different things… conventional financing would be around 700+, FHA/Government financing would be 660+
What’s the difference between Adjustable vs. Fixed?
I believe this depends on how long you will be owning the home going forward. If its short term my suggestion would be an ARM. It it’s a long time than fixed.
Is now a good time to refinance my mortgage?
100%, refinancing rates are presently at 30 year lows!
What type of loan is best for me?
Great question… that depends! Call me and I can help you.
Brian Cavanaugh NMLS#441864 is a Sales Manager/Mortgage Banker assisting potential Homebuyers with purchase mortgage financing, and current Homeowners with mortgage refinancing in Massachusetts. During his almost 20 years of experience in Mortgage Banking Brian has helped thousands of families with affordable and financially responsible mortgage financing solutions.