When you intend to purchase a home, there are two most important decisions that you need to take:
- The best possible loan program based on your family’s needs and financial standing.
- Choosing the right one from a host of home loan lenders, all claiming to help you through the entire process.
When you are looking to choose the right loan, a lot of considerations need to be worked out. Loan amount, down payment, income, assets, credit ratings, and not the least, future plans about how you intend to repay as well as how long you intend to stay in your house. The role of the home loan lender is to suggest and even recommend the right loan program based on your current and future requirements. It is an imperative to find a reliable lender for this.
Factors to be considered for home loan
Factors to be considered for home loan
- Fixed rate of interest – If you decide to take the fixed rate of interest option, it would remain the same over the entire duration of the loan. The main advantage of this is that you would know the amount you need to shell out every month. In an adjustable interest rate, there might be some dispute about the new interest rates and the old ones as they change with time.
- Jumbo loans – A limit has been set by Freddie Mac and Fannie Mae which is said to be “conforming” but jumbo loans do not conform to this. This is based on the cost of living of the area in which you are buying a house. It would be advisable for you to consider one of the home loan lenders which are adept in enabling you to enjoy the advantages of the conforming rates as well as higher purchasing power of jumbo loans.
