Mortgage and Lifestyle: Which is the Best Option for You?
Introduction
Owning a home is still considered the American Dream for most people, and that dream has become more attainable than ever before. The most important aspect of homeownership is choosing the right mortgage product that fits your lifestyle, budget, and your future. Mortgage products and loan requirements have been altered to fit the lives of most any consumer with decent credit and stable income. There are a variety of lender options to choose from at almost any bank or mortgage lender.
Government-Backed Options
The most popular options are FHA, VA, and the lesser known USDA Home Loan. These are all government-backed mortgage options that are designed to help consumers that do not have a rich uncle or a 20% down payment. The FHA loan product requires a 3.5% down payment, while the VA and USDA loan does not require a down payment at all. It is very important to choose a mortgage lender that offers all these lender options and more. But, buyer beware, these loan products come with upfront lending fees and a private mortgage insurance requirement that will be paid monthly along with your mortgage.
Conventional
Buyers that do not require a subprime, government-backed loan product can still opt for the tried and true conventional loan option. This loan usually requires a 20% down payment to acquire a loan to purchase your home. Lenders have become more lenient with this lender option in recent years as some lenders offer a 5% or 10% down payment option on their conventional mortgage loan. This option is for the polished consumer who has good credit, stable income, nice savings, and does not require much upfront financial assistance to purchase a home.
Rent to Own
When you go car shopping, what’s the one thing that you must do before signing on the dotted line? Test drive it! Some home buyers may not be ready to sign on the dotted line no matter how convenient the lender options are presented; some buyers are working on credit issues, and some buyers may be unsure of their future because if they have a shaky job or relationship. In these cases, rent-to-own options may be the way to go. There are sellers in every market that are willing to rent their property to a potential buyer in hopes that the buyer purchases the home in the future.
Conclusion
Remember that mortgage rates are dependent on a lot of things. There are many lender options available to fit almost any lifestyle. Whether you need assistance upfront, have less than perfect credit, or have perfect credit with tons of money saved, there is a mortgage option available for you. Do not let your lifestyle deter you from achieving the American Dream. Go forth and buy!
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