As a homebuyer, the first step you need to take in the home buying process is to talk to a lender so you can get pre-qualified. During this step, you’ll determine which type of mortgage loan you’re going to get, and there are four loans you can potentially qualify for.
The first and most popular is the FHA loan. This loan requires you to put 3.5% down. Along with your down payment, it also requires you to be prepared to pay the closing costs.
The second loan type is the conventional loan. Most people who choose this loan put down 20%, but it allows you to put down as little as 3%. If you put down 20%, though, you won’t have to pay mortgage insurance.
The third loan type is the USDA loan. This loan is typically used for properties located in rural areas.
The fourth and final loan type is the VA loan, which you can use only if you’re a veteran or an active duty member of the U.S. armed forces.
If you’d like to know more about any of these loan types or you’d like to get in touch with a local lender, don’t hesitate to reach out to me. I’d be happy to help you.