How To Choose The Right Loan For You

How To Choose The Right Loan For You

The move to home ownership is a big step, with rewards and pitfalls. There are many things to consider, including your budget, what you might need to see in a new home and the area in which you want to live. You’ll likely work with a professional realtor to help you find the right home and navigate the sale process, but it is also important to find a qualified provider for your home mortgage loan in Denver to help ensure the loan process goes through smoothly.

There are many loan programs available from which to choose, and having a qualified local loan officer to advise and guide you can help ensure you find the best fit for your mortgage. If you’re shopping for your first home, looking for an investment property  or looking to move into something that better fits your growing family, sitting down with Denver mortgage lenders before shopping for your next home will help you stay on budget and select a home you can afford.

What Down Payment?

Different loan programs have different down payment requirements and restrictions on who can qualify. For your first home or if you have a smaller down payment, you could consider an FHA loan, which allows buyers to purchase a home with a lower down payment and government backing on the loan. There are more restrictions on this type of loan and you would likely have a higher monthly mortgage rate on the same home as with other loan types.

When looking for a mortgage loan in Denver you can also look into conventional loans, which require a larger down payment than FHA, but comes with fewer restrictions on the type of property that qualifies. Professional loan officers are adept at talking with you better understand your need and situation and find the right loan for your home purchase.

Interest Rates over Time

Another factor to consider when shopping for Denver mortgage lenders such as those at Fairway Mortgage Colorado is the interest rate you will end up paying. Over a 30-year mortgage, even a half-percent change in your loan interest rate has the potential to make a huge cost impact over the life of the mortgage. Depending on the loan programs you qualify for, you may be able to choose from a fixed rate mortgage, a variable ARM rate or a loan with a ballooning interest rate.

Purchasing a home is a big decision and a large financial investment. Taking the time to discuss your options for home mortgage loans in Denver will give you confidence to know your decision is the right one for your financial future.