What Factors Determine What Kind of Mortgage You Get?

When you wade (or in some cases, cannonball) into the world of homebuying, you’ll almost certainly start by getting preapproved for a mortgage. You should know that not all mortgages are made equal. There are a number of factors that determine what kind of mortgage you can receive, and what kind of mortgage will work best for you. When you work with the right home loan officer, you’ll be connected with a person who can work in your best interest and help answer all of your questions about the process. Until you arrive at that moment, here’s a little help to get you started.

Know Your Own Credit

The best place to start when you’re considering what type of mortgage you can/will get is with the factors you can control. One of those factors is your credit score. Do you know your credit score? You may want to look this information up (many services allow you to do this for free) so that you know where you stand before you apply for a mortgage.

What Is Your Regular Income?

The budget that you’re able to set for your home search will largely be determined by your mortgage, and the interest rate and the size of your mortgage will largely be based on your income. How much money do you consistently bring home? Combining this with your credit score will serve as a starting point for your home loan officer.

How Long of a Loan Term Do You Want?

The term of your home loan will also play a role in your interest rate. In most cases, you’ll be looking at a 30-year, fixed-rate home mortgage. This is typically the safest kind of mortgage, and is a natural choice if you’re going to be staying in your home for at least five years. There are other types of mortgages that include variable interest rates or interest-only that may work for you depending on your situation, but you’ll want to be sure that you’re choosing the right option for your timeline.

How Much Money Can You Put Down?

Are you already saving for your first home? You should begin saving money for a downpayment on a home a few years in advance of actually purchasing the home. The larger the downpayment you make, the lower your interest rate will be, and if you can put enough money down, you’ll avoid having to purchase mortgage insurance, saving you money in the long run.

Start Your Home Search Today with Bill Swanson

If you’re ready to find the perfect home for you, then you should work with Bill Swanson. Bill has over 25 years of experience in the real estate industry, and he’s an Omaha native who knows the area. Bill can connect you with a reliable home loan officer to help you get preapproved for a mortgage. Start working with Bill Swanson by contacting his Omaha, NE office at 402-679-6566.

Buying or Selling a Home in Omaha? Call Bill Swanson Today!

As a long-time resident of Omaha, I know the area and the surrounding communities intimately, and can give you access to information that you could never find online. If you want to know more about the community, are looking to buy a home in a new one, or need the help of an agent to sell your home quickly, conveniently, and successfully, then email [email protected], or call (402) 679-6566.