Just because purchasing a home is an exciting experience doesn’t mean there isn’t considerable stress involved. Finding the right home for you and your family can be hard enough, dealing with financing and figuring out how you can realistically afford the house is often overwhelming.
Of course, it doesn’t have to be. By partnering with the right mortgage lender and knowing what to ask before purchasing, you’ll feel more empowered in your decisions and be able to sidestep the all too common experience of buyer’s remorse.
At Franklin Savings Bank, our customers know we are committed to instilling them with the confidence required to make these decisions, which often means educating them and ensuring they have the information they need to move forward.
While there are many questions you’ll want to ask your mortgage lender, we believe it’s best, to begin with these three…
What Are My Mortgage Options?
Part of what makes the home loan process so daunting is the number of mortgage options on the market, not all of which will make sense for you.
For instance, a conventional mortgage is not backed by the federal government; however, the government does set the loan limits for conforming mortgages. For 2022, a conforming mortgage cannot exceed $647,200.
Certain types of mortgages, like FHA-insured or VA loans, are government-backed, but only available or appropriate for those who meet certain criteria.
That’s why it’s important to evaluate your needs against the 8 primary types of mortgage you might encounter, including a 30-year or 15-year fixed-rate, adjustable-rate, FHA, VA, USDA, jumbo, or interest-only.
How Do I Determine My Required Down Payment?
Similar to reviewing the various types of mortgages, a qualified lender will help you review what you need to purchase a house. Traditionally, and still, the best case, is the 20% down payment; however, some mortgages require zero down or significantly reduced amounts, like 3%.
Am I Eligible for Down Payment Assistance?
This question has arguably become increasingly important to more people, following the economic challenges presented by the COVID-19 pandemic. If your dreams of owning a house were put on hold, now might be the time to speak to your lender about possible assistance options, which can help with your down payment, as well as closing costs.
Even before the pandemic, these assistance programs proved particularly helpful to those with certain occupations, like our public servants — emergency responders, teachers, and servicemen and women, including those with veteran status.
At Franklin Savings Bank, we want to help you find the home of your dreams, whether or not this is your first experience with the mortgage lending process, which is why we offer the following types of mortgages:
- First-time home buyer
- Manufactured home
- NH Housing home loans
Our lending team is well-versed in the differences between these loans and will discuss each one with you so you feel comfortable moving forward with the right one for your particular situation.
Don’t let the details of the home lending process deter you from buying a home. We agree with Suze Orman that “Owning a home is a keystone of wealth… both financial affluence and emotional security.”
We invite you to contact our lending team at Franklin Savings Bank and let us help you secure the keys to your home sooner than later.