The next step in getting you into your home is making sure the TYPE of mortgage fits your needs. There's a common assumption that the way to go is the conventional 30 year fixed rate mortgage, but that actually may not make sense unless you're seriously planning on living in that home for 30 years. The average time a family lives in a home is actually LESS than 10 years!
You may be thinking, "I've found the perfect house I'm never gonna move!" But then life happens: families grow (or shrink as the kids move on with their own lives), jobs change, or your dream house becomes stale and boring after a decade. Any of these things can and DO happen so maybe looking at a shorter term loan might be the answer.
There are numerous home loan types available in the market, the trick is finding the best one that fits your life and your budget. For example an ARM (Adjustable Rate Mortgage) may have gotten a lot of bad press a few years ago, but it's actually a very good option for some people. This is where the loan is fixed for a set number of years (5 or 7 are typical) and then adjust each year after that. Where these loans make sense is when you know you'll be moving after a certain period of time. There's also shorter fixed loan terms that allow you to pay off the mortgage quicker, but keep in mind your payments will be higher.
You also will need to know if you're going to escrow the taxes and insurance into the mortgage payment and take that into account as you are putting your budget together. Your best bet is to talk to your Mortgage Loan Officer and review your options so that you have the best fit for YOU and your family!
^Amy
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