Do You Know the Right Home Loan for You?
But it’s never that simple. There are other choices to make including what kind of loan to get (adjustable rate mortgage of fixed-rate), whether or not to add options to the loan such as an FHA Energy-Efficient Mortgage, and whether or not to pay the Up Front Mortgage Insurance Premium in cash at closing time or have it rolled into the loan amount.
An August 2019 Freddie Mac report says one important step new real estate buyers can take is to seek out housing counseling and/or good financial education. Knowing why some loans may be more cost-effective for you (based on your financial goals and needs) compared to others.
The Freddie Mac report, a "Generation Z Study", concludes the age group known as Generation Z (defined by Freddie Mac as the "post-Millennial generation" won’t hesitate to begin scouring the real estate markets when the time is right.
"The dream of homeownership is alive and well within Generation Z, despite some perceived barriers to reaching this goal".
Another conclusion of the Freddie Mac report? Generation Z may opt for owning, not renting. "Most report that they make a conscious choice to save money, carefully consider whether they can afford something before buying it, and are at least somewhat confident that they will have a financially comfortable adulthood."
Make the jump from renting to home owning isn’t simply a case of having enough information to make an informed choice about the loan you want, but it is definitely a money-saving start to know more about your options.
What are the major differences between an FHA One-Time Close construction loans and an FHA Rehabilitation loans? And which one is right for your needs? If you know nothing of either of these programs, you will feel you have a lot of homework to do. But there is a short cut that can help.
Call the FHA directly at their toll-free number, 1-800 CALL FHA. Ask to be put in touch with a HUD-approved housing counselor near you.
This housing counselor can help you learn about the differences in the loan options open to you, how being a first-time home buyer doesn’t always guarantee you a home loan (credit issues should be considered and worked on long before you apply for the loan), and what you can do to maximize your chances at loan approval.
Housing counseling will help you better understand your choices, and why some options cost more over time than others. You may or may not want to finance your Up Front Mortgage Insurance Premium at closing time. But do you know WHY? That’s what housing counseling can help you with--not just the details themselves, but why and under what circumstances you might want to consider one course of action over the other.
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