Home Loans made simple
#1 - A home loan is called a mortgage.
Buying a house is one of the largest investments most people make. Home loan programs are available to those who need to borrow the money and buy a house (which is almost everyone.) The money borrowed and the payment due each month is called a mortgage.
#2 - Home loan options are also called programs.You have choices when it comes to a home loan. Some buyers have more choices than others depending on how much money you make, where the home is located, how much money you have to spend right away and your credit score. There are many options when it comes to home loans and several programs available. Some of them include:
#3 - Learn the numbers.There are many “numbers” involved in a home loan process. When you apply for a loan, you will have a unique set of figures for you. Here are some numbers that will be figured up into your home loan:
#4- Home loans aren’t free – but it doesn’t cost to apply.
It’s FREE to pre-qualify and apply for a home loan. But there are some fees involved when you borrow money to buy a house. Closing costs will apply before your loan is approved. This pays for the processing of the home loan. Also, you will be charged interest on your loan – this works just like any other loan from the bank – interest for borrowing the money will be part of your mortgage payment.
#5- There are tax benefits to home loans.Although home loans do not come free, the government lets you write-off what you pay in interest on your Federal income tax return. Also, if you pay mortgage insurance (MI), you may also write-off this amount.
How do I buy a house?
These are the basics of understanding home loans. If you want to buy a house but haven’t found one yet, go ahead and pre-apply for a home loan now.
Questions? Call us at 616-481-2232.