Your First Step to Home Buying

Explore Your Mortgage Options

Learning how much you can afford is a great start. Use our mortgage resources to discover your loan options—and move one step closer to your perfect home.

A Quick & Simple Guide to Mortgages

There are a lot of loan options that vary from lender to lender and from buyer to buyer. That means it's important to know what to look for when researching mortgages and talking to lenders. To help you make the best decisions possible, we've provided this quick guide to understanding mortgages. Pick a resource below to get started!

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What Are My Mortgage Options?

Most home buyers in Raleigh and the surrounding Triangle area choose a loan from one of these four mortgage types, which we have broken down below. If you want to learn more about these types of mortgages, give us a call at 919-810-2203 or 919-810-2188.

Conventional Mortgage:

A conventional loan is what most buyers think of when they hear the word "mortgage." This is the standard loan used by buyers with good to excellent credit who can make down payments of at least 10%. However, there are programs that offer options for lower down payments based on buyer credit and location.

FHA Mortgage:

These loans often apply to buyers with lower credit scores, as they offer a down payment as low as 3.5% and lower interest rates. However, FHA mortgages do also require mortgage insurance premiums, which can result in higher overall costs.

VA Mortgage:

All veterans and active military members qualify for VA loans. These offer up to 100% financing, simplified loan approvals, and lower interest rates. They can be much lower than conventional loans.

USDA Mortgage:

These loans are available to buyers in rural or low-density areas and offer up to 100% financing and below-market interest rates. Their ideal buyers are of average means, have lower credit scores, and are buying modest homes. Additionally, because of the government's loose definition of the term "rural," some of the buyers in the smaller communities in the Triangle will qualify for this loan. Contact us for more information!

What Kind of Interest Rate Can I Get?

Let's talk about interest rates. While it may feel like there are hundreds of options on the market, there are actually just two categories of loans that determine what interest rate you'll have.

Fixed-Rate Mortgage:

The interest on a fixed-rate mortgage loan will not change, so your monthly payments won't change. This type of loan offers very predictable payments.

Adjustable-Rate Mortgage (ARM):

The interest rate on an ARM will often be lower initially, but as interest rates with this type of loan fluctuate with the market, they can be somewhat unpredictable.

What Else Should I Know About Mortgages?

Before you start searching for homes in the Triangle area, it's a good idea to get pre-approved for a loan. This process involves a lender taking a look into your financial history and determining how much financing you can qualify for, which will help you figure out your price range.

But just because you can qualify for a certain mortgage amount doesn't mean you should spend all of that money on your next home. Overspending is one of the biggest mistakes home buyers make, so check your budget to see how much you can comfortably pay per month.

Want to learn more about choosing a mortgage, finding a reputable lender, or buying a home in general? We're more than happy to talk with you about your plans. Give us a call and let's get started!

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Finding a Local Lender

When researching mortgages, it's just as important to shop around for lenders as it is to shop around for loans. Talk to at least two different lenders before you make a decision. That way, you'll be certain you're getting the best rate possible.

Need a place to start when researching mortgage lenders? We can help! Give us a call at 919-810-2203 or 919-810-2188.

How Much Home Can You Afford?

Before you start researching different lenders and mortgage products, we recommend learning how much you can afford. That way, you'll know what types of mortgage you want (e.g. a fixed-rate mortgage, loans with low or no down payments, etc.) based on how much you want to pay each month. Estimate your monthly payments with our handy mortgage calculator!

Start Your Calculation