Many aspiring homeowners agree that there are several challenges that they face when they want to actualize their dream. TD Bank carried out research in 2016 and found out that 74% of millennials say that the only hurdle between them and homeownership is saving for a down payment which in most cases is very high. To own a home, you will require a down payment. You may opt to pay or go for a loan. Going for a loan will require that you have a good credit standing for you to be eligible for any government loans.
Before settling for any loan, you will need to know the following;
Types of mortgage loan options available:
Many banks do not offer 100% financing. They always require you to have a little money down. There are however so many options of financing your home with small down payment.
- SONYMA- State of New York Mortgage Agency is a state corporation that offers down payment assistance loan of 3% or up to $15000 of the purchase price. Their loans are usually for motivating first time home buyers. There are usually no interests for these loans, and they are forgivable as long as they borrower stays in the property for at least ten years and maintain their financing in place.
- FHA- Federal Housing Authority is the only leading lender for borrowers with a not so perfect credit standing. They charge a minimum of 3.5% of the purchase price as down payment.
- VA Home Loans- These are loans offered exclusively to the US military. They are the only corporation that provides 100% financing mortgage on the market.
- Home path financing- available only for properties owned by Fannie Mae (a US government agency). They charge 3% down payment and are only available on move-in ready primary residence and investment properties.
Median house prices:
Before settling for any loan, it is important to know the kind of house you can afford. Know their prices and decide if it perfectly fits your budget. This will inform your decision immensely. By knowing the kind of house you can afford, you will know the kind of mortgage to go for depending on your gross monthly income. You will need to ascertain the information of your new home such as; down payment, interest rate, homeowners insurance, real estate taxes and loan term. Your monthly expenses and gross monthly income also need to be factored to know how affordable your new home is.
Your monthly income is a major factor in determining the kind of house you want to buy and the kind of loan to settle for. Your income will help you know which house perfectly fits your budget. Several hidden costs come with the purchase of a home and therefore knowing your income will enable you to settle for a house that is affordable and one whose loan you can quickly repay without straining.
School systems and national rankings of schools:
A home within a community with top notch schools is more attractive than that in a locality with no schools. If you find a house within a community with a higher national ranking of schools, the chances are that they could be expensive compared to houses situated in communities with no schools. This will also help inform your decision on the kind of loan to settle for. A locality with school systems in place is attractive to many home buyers because the value of homes in such localities appreciates and if you consider reselling your house, you are likely to sell it at a higher value than you bought it. This is because most people tend to value communities with top-notch schools.
Crime rate compared to state and national average:
Crime in any neighborhood affects property prices negatively. Properties in such communities are likely to drop or stagnate for a very long time. When you are searching for a house, do a thorough research. Find out the crime statistics of the area. You need to know where the area ranks in the national average concerning crime rate. This will inform your decision on whether to settle for that nice house or not.
It is important to consider the above factors when deciding which mortgage loans to settle for in Staten Island NY. By doing these, you will save yourself the headache of the unforeseen expenses that come with home buying. It will also help you buy a house in a prime area where property value is likely to appreciate thus giving you an attractive return on your investment.