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Team Virkus’ Tips on Getting a Mortgage in a Tough Market

Team Virkus’ Tips on Getting a Mortgage in a Tough Market

Article by, Brent Virkus – President and CEO of Motor City Design Build and member of Team Virkus | brent@motorcitydesignbuild.com | (586) 854-9203

Brent VirkusWhen it’s time to finance a home purchase, it may be tempting to simply pick the most convenient option. However, in the current financial market it is more important than ever to really understand your options. The following are some important things to consider when deciding what type of loan to get:

What kind of mortgage to get – First you will need to choose the type of mortgage that best suits your situation.

  • Fixed Rate Mortgage – These types of mortgages can mean higher payments in the long run, but you always know what your monthly payment will be. In a low interest rate environment it might be best to lock in to the current rates.
  • Adjustable Rate Mortgages – If interest rates decrease during the life of your mortgage, you could be in a position to take advantage of the lower rates when your loan comes due for refinance.
  • FHA Loans – FHA loans are government subsidized. They’re good for buyers who are purchasing there first home or don’t have terrific credit and don’t have significant funds for a down payment.
  • VA Loans – VA loans are available only to military veterans and do not require a down payment.
  • Other Options – There are some other options, such as interest only loans. If you’re not a financially savvy person, it is probably better to stick with one of the more standard options.

Where to get your mortgage – Determine what kind of lender is best for you to work with. Each type of lender has their benefits.

  • Banks – If you use the same bank for all your financial needs you could have all of your financial needs catered to in one place.
  • Mortgage Broker – As mortgage brokers can arrange mortgage options from different sources, they can sometimes offer lower rates and may be able to find a mortgage for someone who hasn’t been able to get financed.
  • Savings and Loan’s – S&L’s offer primarily long-term loans, but the application process can be easier.
  • Credit Unions – In some cases Credit Unions may offer lower rates.

On another note…

Are you thinking of buying or selling a home? If so, there is a lot of strategy behind doing it right. Whether you’re looking to sell and need to know what the right price is to sell quickly or looking to buy and want to know what the best neighborhoods are for price appreciation, we’d like to help. Take us up on our offer to provide you our FREE Buying and Selling Home Strategy Evaluation. There is no obligation whatsoever. We just want to help you do it right!

FREE Buying and Selling Strategy Evaluation

Written by Brent Virkus

Brent Virkus

Brent Virkus is President and CEO of Motor City Design Build and Member of Team Virkus. Brent has been in the Real Estate and Investment industry for over 20 years. | brent@motorcitydesignbuild.com | (586) 854-9203