Mortgage Bankers Like Vahe Hayrapetian Offers Guidance in Home Loans

Buying a home is a major financial transaction. Before you start looking at home listings, you first need to take a good look at your financial situation and make the right budget preparations. In all likelihood, a home loan is going to be your primary means of financing, so among your first steps should be to review your credit score and determine if it’s good enough to be pre-approved for a favorable loan.

After assessing your credit standing, you also have to select the right type of mortgage that will suit your needs. Your mortgage option will depend on various factors, such as how long you plan to keep the home, the potential of changing mortgage payments, and your expectations on your future financial situation. Given the long-term and complex issues surrounding a home loan, it’s best to work with a reputable mortgage banker like Vahe Hayrapetian who can guide you through the process.

Popular Types of Mortgages

The fixed-rate mortgage is the most common and one of the easiest to manage home loan types, as it sets a specific monthly amount to pay. While your homeowner’s insurance and property taxes may increase, your fixed-rate mortgage payments will not. You can choose from a 10-year to a 30-year repayment plan, and may shorten the period to accrue less interest along the way.

Adjustable-rate mortgage (ARM), on the other hand, would have fluctuating interest rates based on current market rates. Despite the instability, some home buyers prefer an ARM because its initial interest rate is usually lower than the fixed-rate type. This is suitable for those who need lower payments at the start to qualify for mortgage, or for buyers who plan to move or get a refinancing in the future.

Reverse mortgages are loans intended for seniors aged 62 years and older. Under this loan type, the conventional payment system is reversed, that is, borrowers will be receiving a lump sum, or monthly payments, or a line of credit from the lender, using their home equity. Qualified seniors can use the loan amount to maintain or improve their quality of living and remain in their homes without paying monthly mortgage payments.

While weighing on your choices, it’s important for you to keep your good credit standing from pre-approval time until you have closed your mortgage deal. To find out which loan type may be most suitable for you, don’t hesitate to get help from an experienced loan officer like Vahe Hayrapetian, and get better assurance about your prospects for long-term home ownership.