Choosing the best mortgage program for your situation is about much more than getting the best rate. Making the best decision up front will set you up for a successful loan process.
How Much Can You Afford?
Since buying a home is one of the largest purchases most people will make in their life, it’s important to know just how much you can afford. An experienced mortgage consultant will help determine this figure, but in the meantime, use our mortgage calculator for an estimate of your payments.
Set a Savings Goal
The initial savings goal is to qualify for a loan, but you’ll also need enough in savings for a down payment, closing costs and other expenses. The down payment acts as instant home equity, which helps to buffer the major expense, and closing costs are a part of the lending process. Stay comfortable by making sure to have enough money in the bank for upfront costs and anything down the line.
Length of the Loan
Whether it’s a 5-year ARM, a 30-year conventional loan or somewhere in between, the term will help determine the interest rate as well as the total interest paid over the life of the loan.
Understand Interest Rates
Interest rates are the price that is paid to borrow the money for a home, which is key to choosing what loan program is best. There are fixed-rate mortgages which will maintain the same rate for the life of the loan, and adjustable-rate mortgages which will move with the market, adjusting once a year. Determining how long you plan to stay in the home will help with this decision.
No matter which mortgage you choose, Capital City Home Loans is here to help you finance your dream home. As a full-service mortgage lender, we offer an extensive menu of products to serve your individual needs. For loan assistance, speak with one of our mortgage consultants today at 855.845.2433 or apply online here.