Making the decision to buy a home or investment property is a big step. Finding a good real estate broker and looking at the properties available to buy in LA is the first obvious step, but you also need to secure the financing that is needed to make the purchase. Most people will need to secure a mortgage loan in order to buy a home, and there are actually numerous types of mortgages available. Having your financing pre approved will also help you be extra competitive on this market.

Finding the right mortgage loan is important. There are several options available depending on what you qualify for and what your situation may be.

Here are the primary types of mortgages you’ll need to consider.

Fixed Or Variable Rates?
The first consideration is what type of loan rate you’ll be using. There are two main types – fixed or variable.

  • Fixed – Fixed rate mortgages have interest rates that are set in stone from the signing of the contract. The interest rate will never change, which means that you can easily budget your loan throughout the future. These are best for those planning on being in a property for years to come.
  • Variable – Variable interest rate loans have interest rates that can change. The initial year or two will have a rate much lower than average, but after a certain period the rates can quickly increase. Those initial lower rates make them perfect for anyone looking to invest in a property and resell it within a year or two.

Term Lengths
How long your loan terms extend for is important as well. The most common types of terms are 15 year or 30 year, and choosing the right one for your needs will require you to consider your situation, your plans, and your budget.

Other Types Of Loans
Along with the points above, there are several specific types of loans that you may need to consider. These include:

  • FHA – These loans are backed by the Federal Housing Administration and are designed for first time home buyers or those who may not otherwise qualify for a loan. They have easier qualification requirements and are a better fit for many. (FHA = 3.5% down)
  • VA – Available only to veterans of the armed forces, these loans are easier to qualify for, have great interest rates and terms, and make it easier for veterans and their loved ones to buy a home. (VA = 0% down)
  • USDA – These loans are designed for those in rural areas who want to buy a home and get great loan rates with easier qualification requirements. Properties must be located in rural areas in order to qualify, and while most of LA doesn’t’ fit into this definition it’s still worth looking into when buying a home.

And these are only a few examples of the options available. Consider your choices and find the loan that is best for you.

Whether you’re buying, selling, refinancing, or building your dream home, you have a lot riding on your loan officer. Since market conditions and mortgage programs change frequently, you need to make sure you’re dealing with a top professional who is able to give you quick and accurate financial advice. As an experienced loan officer Natalie Salins has the knowledge and expertise you will need to explore the many financing options available.

Natalie is our preferred mortgage specialist, consider browsing her website to check out the different loan programs she offers, use the available decision-making tools and calculators, and use the secure online application if you are ready to get started. Feel free to reach out to her with any questions on how to get started. 

Natalie Salins
917.992.9134
natalie.salins@movement.com

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