The Best Way to Find Your Home Mortgage Loan in Newport Beach, CA
Your home mortgage is likely the biggest investment you'll make in life, so choosing a loan you can live with is a big step. If you're ready to find your Newport Beach dream home, here's how to get a home mortgage loan that works for you:
Government or Conventional?
Your first choice is between a conventional loan with a private lender or a government-backed loan. For government-backed loans, you've got three choices. FHA loans are for first-time homebuyers only. VA loans are only for active-duty military or veterans. USDA loans are for buyers in rural areas who meet certain requirements.
Conventional loans are backed by private entities, like banks and private lenders. Unlike the government-backed options, these are open to anyone who needs a home mortgage loan; but they do require a certain amount of credit and a larger down payment than most government-backed loans.
How to Choose
Your personal situation might make the decision for you: if you're not a veteran, aren't looking to buy rural property, or this isn't your first home, then you might not be eligible for any government-backed loans. But even if you are, it's still worth it to go with a private lender if you can. You'll pay less in fees and interest rates in the end.
Fixed or Adjustable?
Your second choice is whether to go with a fixed-rate mortgage or an adjustable-rate one. With a fixed-rate loan, your interest rate will never change. You'll choose a term, usually either 15 years or 30 years, and you'll always know exactly what your monthly mortgage payment is going to be.
An adjustable-rate mortgage has an interest rate that changes over time. These usually begin with very low-interest rates at the beginning, and once the beginning period is over, the interest rates go back to market levels plus a margin.
How to Choose
Adjustable-rate mortgages are great for people with strong, steady income who know they can pay off their mortgage quickly and want to pay less in interest. A fixed-rate loan is best for those who need a longer period to pay and want to be absolutely sure of their monthly payment amounts.
Conforming or Non-Conforming?
Conforming loans follow Fannie Mae and Freddie Mac government guidelines, meaning the amount you borrow can't go above a certain amount. For homes in Newport Beach, that means borrowing no more than $484,350.
Non-conforming, or jumbo loans, can be higher, but they're considered riskier and have higher interest rates to compensate the lender. They require a bigger down payment; and you'll need very good credit to get one.
How to Choose
A conforming loan is almost always the best bet for most people, with lower interest rates and a lower credit standard required to qualify. If you've got your heart set on a property priced above this amount, save up a down payment that will bring the loan down below that limit.
Look for the Right Lender
You're going to be partnering with your lender for quite a while, so it's worth it to work with someone you feel comfortable with. You also want a lender who can help you get into your home as quickly as possible. Your lender should be available to answer questions and committed to getting you through the process simply, affordably, quickly, and easily.
Get the Home Mortgage Loan That's Right for You
That home in Newport Beach isn't out of your reach. You just need to work with the right lender. Contact Justin Purpero today to find out more about your options for getting a loan as quickly and easily as possible. You can see yourself in your dream home: we want to get you there.