HOME LOAN BASICS: MORTGAGE LOAN TYPES SIMPLIFIED

Whether you’re buying a Single Family Home in Orland Park, a Townhouse in Tinley Park, or a Condo in Mokena there are a lot of decisions to make. You’ll have to choose how many bedrooms you want and which neighborhoods you prefer — and of course, which type of mortgage loan makes the most sense for you. While home loans may seem confusing at first glance, they’re much simpler when broken down by options. Here are the basics!

Conventional Loans The term “conventional loan” just refers to any loan that isn’t guaranteed or insured by a government agency. These loans are very common, and make up the majority of mortgage loans in the United States.

They fall into two categories:

Conforming mortgages are conventional loans that offer a lower rate in exchange for conforming to certain maximum limits and guidelines for a given geographical area set by Fannie Mae and Freddie Mac (government agencies that buy and sell mortgage-backed securities.)

Non-conforming mortgages often have a higher interest rate and require a larger down payment, since they’re for amounts above the conforming loan limits for that area (which presents more risk to the lender.)

Government Loans are from private lenders just like conventional loans are — but these loans are guaranteed by a government agency, allowing those lenders to relax some requirements. These types of loans can be helpful to those with moderate credit, or for people who are carrying some debt.

FHA loans are insured by the Federal Housing Administration. These loans are great for first-time home buyers and low-income borrowers. They require that mortgage insurance be paid throughout the life of the loan.

VA loans are government loans too, but these are guaranteed by the U.S. Department of Veterans’ Affairs. For veterans and service personnel who are eligible, these can be easier to qualify for than other loans. They don’t require a down payment or mortgage insurance.

USDA loans are government loans guaranteed by the U.S. Department of Agriculture. These loans are specifically for rural properties and while they don’t require a down payment, they do require mortgage insurance.Still not sure which type of loan is best for you? Having trusted advisers to turn to for answers and advice will help the home buying process go more smoothly. For more information, please call or email us and we can introduce you to a mortgage loan professional.  …

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Budget for These Hidden Home Selling Costs

How much does it cost to sell your home?
When selling your home, your financial investment doesn’t end with the list price!

Here are a few hidden costs that you should be prepared to encounter when you put your house up for sale.

Repairs and updates — Whether it’s a few coats of paint or replacing light fixtures, there will be small improvements and upgrades to be made. Plus, your home inspection may turn up a few things that need to be addressed.

Closing costs — Usually the buyer pays closing costs, but they might also request that you cover that as part of their offer. Keep in mind that closing costs are often 2-5% of the purchase price.

Fees— You’ll need to pay any outstanding sales and transfer tax, as well as property taxes. Make sure to also budget for things like title insurance, HOA fees, and similar fees.Nationwide, the average cost of selling your home is around $15,000. And of course, that number can be higher in more expensive cities.

But don’t worry: I am here here to help! As you get ready to sell your home, you have a trusted expert in your corner to help you budget, prepare your home for sale, list it, and review offers — so these hidden costs don’t sneak up on you.

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