Four Common Mistakes First Time Homebuyers Make, and How to Avoid Them
Real Genius, a Division of Luminate Bank
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Fixed rate loans are the most common type of loan and are best when you plan on staying home for an extended period. These loans offer stability in the form of a consistent monthly payment with no rate changes.
Adjustable rate loans may be a good fit if you plan to keep the home for only a short amount of time. These loans have fixed rate for a limited amount of time in the beginning and then regularly adjust after that period ends. As a result the payment is typically lower up front but could end up being higher in the long run.
Jumbo loans are helpful if you plan on buying a home in a high cost area. These loans typically have a higher rate than your standard loan but allow you to borrower more money.
If you are worried about your credit score, income or ability to make a down payment a Federal Housing Authority (FHA) loan may be the right fit and help you get a loan.
Veterans Administration (VA) loans are available to qualified veterans and service members that may offer better rates, fees or no down payment options depending on what you’re looking to do.
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