Are you planning to purchase a new home in Georgia? Congratulations! We are happy for you.
Finding the perfect home is a big decision, as is choosing a mortgage lender in the Savannah Metropolitan Area who can meet your needs. Mortgages are available through Credit Unions, banks, and private lenders, but the many different formats and options may be overwhelming.
We are here to answer your mortgage questions one-on-one. In the meantime, however, here are a few steps you may wish to take beforehand as well as tips you should keep in mind as you are weighing your options.
Mortgage Options in Georgia
First of all, it’s important to understand the various types of home loans available in the Savannah area. Discounts and special financing options may be available through various programs, such as those for veterans and first-time homebuyers.
The following is a basic list of some of the options that may be available to you, depending on your needs, your background, and the type of home you are trying to finance.
- Loans available through the U.S. Department of Veterans Affairs
- USDA-RD Loans, which generally are for homes in rural areas
- FHA Loans, which may be especially ideal for first-time homebuyers
- Jumbo mortgages, which are essentially for larger homes and properties
- Conventional mortgages, generally for basic home loan needs
Steps to Take Before Applying for a Home Loan
Deciding what you want out of a home, planning for your future, and analyzing your budget are important steps in finding a mortgage lender in the Savannah Metropolitan Area who can work with you. Here are a few things you may wish to do beforehand that may help you obtain the right mortgage plan for your needs.
1. Give your credit score a boost.
Make a concerted effort to lower your credit card debt and improve your credit rating. Many home loan lenders may offer greater benefits for homebuyers with high credit scores and strong credit histories.
2. Plan your budget.
Trying to finance a home that is simply too expensive at this juncture of your life is not ideal, but neither is buying a more affordable home that leaves you feeling cramped and unsatisfied. Decide how much home you can afford by analyzing your finances and talking with others in your household if necessary. Try to strike a happy medium between comfort and affordability.
3. Obtain pre-approvals from multiple lenders.
When you obtain pre-approval letters, you will have documents at hand that identify your credit worthiness, giving you a leg to stand on to negotiate. You can also use the letters to compare lenders.
How to Find the Ideal Mortgage Lender in the Savannah Area for You
After you get your thoughts and plans organized, you will need to identify the mortgage lender in Georgia that is best for you.
How do you do that?
- Ask your friends and family for recommendations.
- Do some research online for the best mortgage lenders in the Savannah Metropolitan Area.
- Understand your mortgage options.
- Compare rates from home loan lenders in Georgia.
The best recommendation is by word of mouth, so asking your friends and family which local mortgage lenders they used may give you a great start.
In addition to asking around, get online to perform some basic searches to find qualified mortgage lenders near you. Go through their websites to determine if they indeed offer the services you need.
Once you find mortgage lenders that are a good fit, then comes the fun part: Comparing their rates. Call each organization, communicate online, or schedule an appointment to meet in person.
Take notes about the most relevant details, and plug these details into a chart that will allow you to compare and contrast them easily. Include the length of the loan, the interest rate, any penalties, any fees, and whether it’s a fixed or variable interest rate loan.
After you contact several potential lenders, calculate the numbers to see which loan would be the best option for you.
Some homebuyers only need the home for a few years because they plan to move to other locations soon. Such a homebuyer may wish to look for a home loan that is more affordable month to month.
If you are looking for your forever home, on the other hand, you may wish to determine which loan would be best for you in the long run, even if it means paying a little more every month. A 30-year-mortgage may mean lower monthly payments, but a 15-year-loan may mean less interest, depending on the specific details of the loan. Additionally, if there is no early payoff penalty, paying off the loan completely in 13 years instead of 15, for example, may allow you to save even more in interest costs.
As long as the parameters of the loan are acceptable, there really is no wrong answer when it comes to how your mortgage repayment plan is set up. It depends on your budget, your future goals, and the overall state of the economy.
Speak with one of our mortgage lenders in the Savannah area to obtain details about home loans available through our affiliation with AmeriCU Mortgage. Contact Georgia Heritage Federal Credit Union by sending us a message online, calling us at (912) 236-4400 during normal business hours, or visiting ghfcustaging.wpengine.com.