Tips for Financing a New Home

If you’ve been dreaming about buying a new home, and even know where you want to live and exactly what you’re looking for, there may only be one problem: financing. The good news is that there may be different financing options available to you. And at The Jana Caudill Team, we can help to answer some of your financing questions and point you in the right direction. In the meantime, consider these tips for financing a new home–

Understand Loan Types

The first thing that you should know about financing is that there are a variety of different loan types available. Familiarize yourself with these, as they can have a significant effect on how much you’re expected to put down and what your interest rate may be.

• Conventional loans. These types of loans are mortgages that are not guaranteed or insured by the federal government, and typically come in the form of fixed-rate loans. However, adjustable-rate mortgages, or ARM loans, are also common.
• FHA loans. FHA, or Federal Housing Administration, loans are a great option for first-time homebuyers, as qualifying for this type of loan is typically easier than is qualifying for a conventional loan, and down payment requirements are typically less. However, before you think that this is the best loan for you, note that getting this loan type requires purchasing mortgage insurance. 
• VA loans. If you’re a veteran, you may qualify for a VA loan. Like FHA loans, there are many favorable conditions associated with VA loans, including that a down payment may not be required. 

Start Saving Now

While you may end up qualifying for a loan type that doesn’t require a big down payment, you will still have closing costs, regardless of your down payment requirements. This means that you should start saving up for your home now – the more cash that you have on hand, the better.

Talk to a Lender Early On

Another thing that is recommended is to talk to a lender early on in the process and to secure a pre-approval letter if you can before you even start looking at homes. This will help you to know how much of a home you can realistically afford when it comes time to purchase. It will also allow for better planning.

Talk to Our Indiana Real Estate Agents Today

If you have questions about financing, our Indiana real estate agents at The Jana Caudill Team are happy to point you in the right direction. To learn more about how we can be of service and the homes that we have for sale in Indiana, call us today or send us a message. We look forward to working with you!