When deciding on what kind of mortgage is for you, you and your mortgage professional need to ask yourself a few questions:
1) What are my goals? (For instance, are you buying a first-time home that you will move out of in a few years? Are you planning on staying in this house for life?)
2) Where is my credit? (This can make a big difference when deciding to go conventional or FHA)
3) What is my budget? (Can you afford to take on a mortgage payment or is there going to be a huge payment shock for you?)
4) What kinds of investments are important to me? (Do you plan to prepay on your loan? Do you plan to build a portfolio of stocks? Do you want to buy this home and later down the line use it as an investment home?)
5) What do I want my payment to be? (If you do not want to pay mortgage insurance, you want to stick with a conventional with 20% down. Can you get a gift to get 20% down? What is your downpayment?)
6) How much do I have liquid right now to put down? (Are you going to have to get a gift for the entire downpayment? Will you have to have the seller pay closing costs?)
There are many more questions to ask yourself. These are all things to start thinking about when buying a home. Before you buy a home and obtain a mortgage, you need to learn how to manage your loan and the rest of your money. Make sure you are involving yourself with a mortgage professional who is concerned about you in the long run. You don't want to get stuck and become "house-poor."
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