3 Questions to Ask Before You Choose a Mortgage

3 Questions to Ask Before You Choose a Mortgage

(Good Things Utah) – Some home buyers may think getting a loan for a new home is complicated. In reality, it’s not! It is the same loan you would get for an existing home. Not all mortgage products are created equal, so finding the right one is important. The good news is there are many types of loans available in the market so homebuyers can find the perfect fit. 

What makes the perfect home loan?

1. How long will you live there?

It’s vital that you ask yourself one crucial question: How long do you plan on staying in the home? 

In general, loan terms are set at 30, 20, and 15 years, but other options exist as well. Shorter-term loans usually have higher monthly payments with lower interest rates and lower total costs. But houses don’t usually make great short-term investments.

If you’re planning on being in a home long-term the more likely you are to regain what you paid in transaction costs and be able to sell for a profit. This consideration also affects the interest rate type and loan type, which brings us to our next point.

2. What’s your budget?

From the very beginning, you need to consider how much you’re willing to pay per month. Payment is made up of principle, interest, taxes, insurance, and possibly mortgage insurance. Remember, what you can qualify for and what your payment should be are two completely different things.

It’s important to run your family’s calculations to understand what you can afford and use that as a starting point. Don’t forget to factor in tax savings vs renting.

3. What are you putting down?

It’s also important to determine how much you can pay on the down payment because it will affect how much your monthly payments are. Generally, if you put less money down on a home at closing, you’ll pay more in fees and interest over the loan’s lifetime (and vice versa).

The down payment you make on your home impacts what kind of mortgage you qualify for, how much money a lender will give you, and the loan’s terms and conditions.

If you’re in the market for a new home and you’re wondering how to navigate your mortgage, it’s best to start by using this advice. But many home buyers will also enlist the services of a mortgage broker to find them the best terms and rates while showing the best path for their individual situation.

Find the right mortgage advice

Whether you’re looking to purchase a home or refinance, you deserve great mortgage advice. People’s Home Equity mortgage advisers are local leaders who not only care about your short- and long-term financial goals but are equipped with the tools and knowledge to help you realize them.

As a top-of-the-line preferred lender, Peoples Home Equity has gained the trust of Fieldstone Homes by consistently providing their homebuyers with exceptional customer service, extremely competitive rates, and positive experiences. 

People’s Home Equity is familiar with Fieldstone Homes and the entire sales staff, its policies, and the requirements and knows what both the buyer and builder need from the beginning to the end of the process. The team gives you quick and accurate answers to all loan questions and concerns and provides a faster, less complicated loan process. They promise to be with you every step of the way! 

Through a winning blend of products, processes, technology, and people, they’re turning customers into happy homeowners, one mortgage at a time. 

Visit People’s Home Equity or learn more about Fieldstone Homes Preferred Lenders.

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The Coughlans joined the Fieldstone Homes family on Good Things Utah. Make sure you follow the HOME Series right here on Good Things Utah every Wednesday at 9 AM. Join Fieldstone Homes as they follow the young Utah couple in the complete home-building experience. It’s a local show designed for everyone and for the Utah Home lifestyle. Think BOLD. Think Fieldstone Homes.

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– Ian Bartlett