When it comes to real estate loans, are all basically the same? What’s the difference, as long as you’re getting a loan? The difference can be as huge as paying enormous interest rates, verses lower interest rates; paying off a home for a few more years than is necessary, or other factors that could save time and money.
This real estate glossary will provide a brief glossary of the most common types of mortgage loans available today:
Adjustable-Rate Mortgages – where the terms or rate of the loan can change throughout the life of the loan.
FHA real estate home loans – which are loans issued by the Federal Government. These can potentially save the buyers the costs of down payments or make it easier to qualify for lending. See our article on what’s a HUD, or what’s a FHA for more information.
Fixed-rate mortgages – as the name suggests, the rate of interest remains the same throughout the life of the loan.
VA real estate home loans – which benefits veterans and their spouses in attaining home ownership. These are accessible through certified lenders. For referrals, see the directories, go online, or speak to a real estate agent.
If you’ve already chosen the form of loan you want to apply for, or have already been approved, be sure to speak to a licensed real estate agent to help with home searches in the area of interest, as well as all the procedures required for getting the keys into your hands. A real estate agent can speed up the process rather than doing it on your own, as they know the steps of the trade. He or she can make the entire process go smoothly, and also negotiate prices to save you money.
Are you read to buy a home? Find a real estate agent in your area today.
