Very few purchases made in your lifetime will rival that of purchasing a new home. There are a few factors you should consider before making this very crucial purchase.
The first factor to consider is affordability. Owning a home has its own set of expenses. For example, homeowners are required to have insurance. In addition, you need to pay taxes, annually, on your property depending on its location. If you are not careful, you could be paying both city and county taxes every year!
The taxes for homeowners are calculated on the appraised value of your home and these usually appreciate with time. If so, you are looking at a high payable figure for your property.
Now we move on to home loans. When you visit a lending institution, for your home loan, the lender naturally considers your credit history and your employment history. Both of these factors have to be in perfect order for you to secure a home loan.
Most often, you will have to come up with approximately 15% to 20% of the price of the home as your down payment. It will be difficult to secure a mortgage if you don’t have this much cash in hand.
- There are quite a number of home loans available for seniors depending on their needs.
- The standard mortgage can last between 5 to 30 years. You will qualify for this loan depending on your income and credit rating.
- The reverse mortgage is available for seniors over 62. This provides cash payments based on the equity of your home. No documents are needed for this loan.
- The Home Equity Line of Credit is a loan where small sums of money are given against the equity of your home.
- The Home Equity Conversion Mortgage is regulated by the Federal Housing Authority and provides some of the best interest rates.
- The VA Loan is for retired veterans of the armed forces and their spouses. This loan has low rates and requires very little or no down payment.
It is not easy thinking about home loans and what type to get. If unsure, you should always consider the assistance of a professional. With the help and great consideration, you will be able to apply for an affordable home loan and move into your dream home in no time.
This article is by ActiveAdultLiving.com®, your dream retirement home community website.
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