Grange - Welcome to the World of Mortgages

Welcome to the world of mortgages, where acronyms reign supreme. If you’re thinking of settling in Grange, you’ll need to sort through options like conventional loans, FHA, VA and unique Texas programs. No, it’s not as terrifying as it sounds. Let’s unravel mortgages choices together and figure out the best path to buying that dream home.

Conventional Loans

Conventional loans are the go-to option for homebuyers. Put down 20 percent or moreand you can happily wave goodbye to private mortgage insurance (PMI). Got stellar credit? You’ll get even better rates. But don’t get too excited — since these loans avoid government involvement, they demand higher credit scores and heftier down payments.

Fixed-Rate Mortgage

A fixed-rate mortgage is reliable, predictable and always there for you. Your interest rate won’t change whether you sign up for 15, 20 or 30 years. Budgeting? A breeze. Market chaos? Not your circus. But, of course, there’s a twist. These loans often come with higher rates, and if they drop, you’ll need to refinance to benefit.

Adjustable-Rate Mortgages (ARMs)

Adjustable-rate mortgages (ARMs) kick off with a fixed interest rate for the first few years, then shift periodically depending on market trends. This can mean lower starting payments. If rates stay steady or drop, you could end up paying less overall. Adjustible-rate mortgages work well if you plan to move before the fixed-rate phase wraps up. On the flip side, when that initial period ends, your payments could jump, and shifts in the market can make it tricky to plan for the future.

FHA Loans

FHA loans, courtesy of the Federal Housing Administration, are like a VIP pass for buyers who don’t have flawless credit or buckets of cash lying around. A 580 creditscore and 3.5 percent down? Totally doable. Plus, sellers or others might pitch in for closing costs. The catch? You’ll pay not one, but two mortgage insurance premiums — an upfront fee and a monthly payment.

VA Loans

These loans are the superhero of mortgages for veterans, active-duty service members and their families. Powered by the Department of Veterans Affairs, they swoop in with 100 percent financing, no PMI and often lower interest rates. But even superheroes have quirks. There’s a funding fee (don’t worry, you can tack it onto the loan). Oh, and these loans are only for your main residence, so no, you can’t use one to snag a vacation home in Hawaii.

Texas-Specific Mortgage Programs for First-Time Buyers

First-time homebuyers in Texas? There are programs to help you make that leap. My First Texas Home, which serves up down payment assistance and low fixed-interest rates, is great for first-time buyers. Veterans and buyers in select areas might also qualify. But your income needs to fit within guidelines based on your household size and location, the home price has to play by program rules, and you can’t have owned a home in the last three years—unless you’re a veteran or buying in a designated area.

Ways to Save

Buying a new home rather than a resale can also offer savings. Builders in places like Grange love to team up with their go-to lenders and reward you for tagging along. Perks? Oh, just little things like covering closing costs or buying down your interest rate. Their lenders and builders are in perfect sync, so the process is smoother. Bonus? You save money upfront and can dream about decorating that new home.

Match Your Mortgage With Your Home

Ready to buy? Be sure to discuss your loan options with a mortgage lender. They can even pre-qualify you for a loan, so when you go shopping, you already know your budget. Once you are approved, stop by Grange and pick out the home for you.

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