Category: Mortgage

A mortgage is a loan secured by real estate as collateral. If you happen to stop making payments, the lender can take possession of the property through a process known as foreclosure. For this reason, it is essential to calculate how much house you can afford ahead of time.  There are many home loans to choose from. Therefore, it is vital to work with a reputable lender to find which loan suits your needs the best. Some of the most popular home loans are FHA, USDA, VA, and conventional.

Government-backed home loans are offered by the Veteran Affairs (VA), United States Department of Agriculture (USDA), and the Federal Housing Administration (FHA). The first two do not require a down payment. On the other hand, FHA loans call for at least a 3.5% down payment in general. FHA’s are also the most popular with first-time homebuyers due to their less stringent credit score requirements. Lastly, if you’re a first-time homebuyer in Virginia, you can also get down payment and closing cost grants if needed. I mention Virginia specifically because this is where I am licensed as a real estate agent.

All in all, there are many options to choose from. In the mortgage archive, you’re going to have access to loads of information regarding such. Lastly, another piece of advice is to follow the 28/36 rule. You should spend no more than 28 percent of your gross monthly income on housing expenses. And no more than 36 percent on total debt, such as credit cards, student loans, and your monthly mortgage note.