Do You Know Which Type of Home Loan is Best for You? Your North Georgia Realtor Can Help
Buying a home and getting a mortgage can be confusing, especially if you’ve never done it before. There is no need to stress though, you just need to work with an agent with experience to guide you. That’s where we can help!
Southern Select Properties is your North Georgia land and home specialist. Our team of experienced Realtors can assist you every step of the way in the home buying process from mortgage referrals to closing on your dream home.
The first step in buying a home is to get approved for a mortgage. There are a variety of different types of loans available for qualified North Georgia home buyers.
Types of Home Loans in North Georgia
Fixed vs. Adjustable Rate
One of the first loan decisions you must make is whether you want a fixed-rate or an adjustable-rate mortgage. (ARM). Here’s a little about each:
- Fixed-Rate – Loan maintains the same interest rate and monthly payment for the entire loan repayment term.
- Adjustable-Rate – Loan has an interest rate that will adjust/change each year after an initial period of remaining fixed.
Next, you will need to decide about other loan options that are available to you. Some home loans are guaranteed by the government, and others are not. Here are the main types of home loans:
- Conventional Home Loan – A conventional home loan is not guaranteed or insured by the federal government in any way.
There are several types of government insured home loans:
- FHA Loans – FHA insured loans are available to all types of borrowers. The government protects the lender against losses and the borrower gets a low down payment but must pay mortgage insurance premiums each month.
- VA Loans – The U.S. Department of Veterans Affairs (VA) offers a loan program to current and past military service members and their families. This government backed loan means the VA will reimburse the lender for losses. Borrowers typically receive 100% financing on home purchases.
- USDA / RHS Loans (Many Homes in North Georgia Qualify for This) – The United States Department of Agriculture (USDA) offers a loan program for rural borrowers who meet certain income requirements. Much of the North Georgia Mountains qualifies for the USDA/RHS loan. If you want to know if certain North Georgia homes for sale qualifies for this program, contact me here.
Please note that borrowers can combine types of loans as follows: You may decide to choose an FHA loan with an adjustable rate mortgage or possibly a fixed interest rate on a conventional home loan. There are many options for your home mortgage, and we are happy to discuss your options and guide you through the process for pre-approval.
Need Help Sorting Through the Mortgage Process?
The team at Southern Select Properties is here to help you through the seemingly overwhelming mortgage process so that you can become a homeowner.
It’s very important to educate yourself about the process of buying a house, so you can find a home that you will love… and that’s comfortable for your budget. As an experienced Realtor in North Georgia, it is our job (and privilege) to help you understand the loan process and get qualified to buy a home.
Please contact us for more information and feel free to check out the North Georgia homes for sale. If you see any that you like, we would love to take you on a tour. We are here to answer any questions you have and are ready and willing to help guide you through the process.
