Home Ownership 101: Things you
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Home Ownership 101: Things you Should Know about Home Loans PowerPoint PPT Presentation


Being a homeowner means having a place which you can call your own. However, there’s just one small problem - your funds and your wishes aren’t in alignment. You will, probably, need a home loan to help you get started on your journey to homeownership.

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Home Ownership 101: Things you Should Know about Home Loans

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Home ownership 101 things you should know about home loans

Home Ownership 101: Things you

Should Know about Home Loans

Are you tired of apartment living and feel like you are ready to buy your first home? We

congratulate you!

Apartment living has its perks, like some of the better amenities, but it also comes with its

hassles as well. Think thin walls, loud upstairs neighbors, and horrible parking, to name a few.

Being a homeowner means having a place which you can call your own. You can decorate the

rooms of your house the way you want, have barbecues during the summer, and enjoy the

sweet privacy, which is possible only when you are at your own home.

However, there’s just one small problem - your funds and your wishes aren’t in alignment. You

will, probably, need a home loan to help you get started on your journey to homeownership.

But, before starting the panic, there’s also

good news coming. If you try just a fast

internet search you will see many results

showing you various notices about the home

loans or mortgages, e.g. the tax advantages

to be had, the amount of money you will have

to put aside and save, the monthly payment

you should expect, even about the mortgages

and what you can do when you are late on

your mortgage and when foreclosure seems

to be the only possible end. However, it is not:

you can prevent foreclosure by contacting the

foreclosure preventing companies, which will

be able to help you save your home.

And perhaps this advantage has its downside as well i.e. there’s so much information out there

on home loans, it’s hard to sift through the clutter to find the exact information you need at the

actual situation. To help you make the best decision for your needs, you will have to gain a

basic understanding of the various home loan options available for you to choose from.

Types of Loans

When you are interested in becoming a homeowner, getting the right home loan is just as

important as finding the right home. After all, you will have to make this payment for the


Home ownership 101 things you should know about home loans

foreseeable future. Like a marriage, for better or worse, the type of loan you choose will

influence your financial future.

There are four main types of mortgages and each one has its own advantages and

disadvantages. They are:

●Jumbo: These loans are for those financing homes that are above conventional loan

limits. For instance, if you wanted to finance a million dollar home, this would be the best

option for you. But, it's important to note that because of the large amounts of money

involved, these loans have special credit requirements and restrictions that you will have

to meet to qualify.

●VA: These loans are brought to you by the Department of Veteran Affairs and require

little to no down payment. However, they are only available to armed forces veterans

who meet their qualifications.

●FHA: These loans are courtesy of the

Federal Housing Administration and allow

you put as little as 3% down - if you and the

property you are interested in qualify for the

loan that is. This loan is mainly useful for

people who are unable to do a down

payment, because of the lack of the money.

Those people, however, are ready for

monthly payments and can do those

payments easily. However, the one matter

here is that by having a down payment less

than 20%, you will have to pay private

mortgage insurance every month. Your

monthly PMI payment is used for security

purposes in case you default on your loan.

●Conventional mortgages: These loans require that you put down at least 20% down

and won’t require you to pay private mortgage insurance. This is really a great variant,

especially for those who have the needed amount of money saved and are ready for

down payment and closing costs.

The Bottom Line

You know that owning your own property is one of the best things in the world. After all, a man's

(or woman's) home is his/her castle. However, sometimes the road leading us to the

homeownership isn’t necessarily an easy and careless one. In this case, if you are doing all

your responsibilities properly, you will be sure to get a satisfying result. This will ensure that you

have the information in your arsenal for you to make an informed decision that will positively

affect your financial and personal future. Happy House Hunting!


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