Today is the day that baby boomers are starting to get a little older. With that age comes the need to purchase a home, a car, and other necessities. I’m not the only one who has been affected by this; I’m sure most of you have. I myself have had my own issues with purchasing a home, car, or other necessities. This article will help dispel some of the myths and misconceptions that are out there for the general public.
I love the fact that for the first time ever one of the biggest financial barriers to owning a home is being able to afford a mortgage, and for the first time ever, lenders are giving a reasonable rate for a house that is far below current median home prices. That’s wonderful. In fact, it’s probably the first time since the Great Recession that the average rate for a house was lowered.
For the first time in a while, lenders are lowering rates for people who are already struggling to make ends meet. This is a great thing. If you have a large mortgage, you might not be able to make payments on it even if you have the cash to do so. With a rate cut, you can lower your payments (and thus your mortgage balance) without having to start paying back any of the money you borrowed. This is a great thing.
Well this is great too since you are trying to lower your mortgage but also have cash to buy something. However what if you don’t have the cash to buy something that will put that money back in your pocket? How is that good? The first thing you have to remember here is that this loan is for the purchase of a house. If you don’t have the ability to pay the loan back within your means, it’s unlikely that you will be able to sell the house.
The most popular method of borrowing for a house is on the secondary market. There are a couple of sites that you can sign up at for that, but they are more geared towards first time home buyers. They do have a good selection of mortgages from a variety of lenders, but only those with good credit are willing to loan their hard earned money to someone who is not their own family.
I think most people want to find a lender that will put their money to work for them, but that just isn’t practical for the average first-time homebuyer. They also have many of their own financial obligations to deal with, which is why they can’t just borrow it from the bank. The good news is that you can search for lenders for loans on FHA, VA, and Conventional with the Home Loan App.
FHA and VA loans are the best loans for first-time homebuyers. You can get your money quicker, they are generally for 30 or 60 months, and you have access to a much larger pool of potential borrowers. Conventional loans on the other hand are more for larger debts, but they are less likely to be repaid and they generally take longer to pay off.
Conventional loans are also less likely to be repaid so you have to make a lot more payments to get your money off your credit report. FHA loans (which are only available to first-time homebuyers and will never be repaid) are for homeowners who are in a hurry and don’t have a lot of time.
FHA loans are for single-family homes which are generally built on a lot, making them somewhat of a more affordable form of home ownership. They are usually much more likely to be repaid than conventional loans and usually require much less monthly payments to get them off your credit report. FHA loans are also available to first-time homebuyers.
FHA loans are for the same reason as conventional loans – they are not for the homeowner but are for the buyer. FHA loans are not available to homeowners who are in a hurry because they are not required to provide proof of financial responsibility for the loan (federal guidelines say that borrowers must make a minimum payment per month) or who are in poor credit.