Home Buyers in Mesa Learn About Mortgages

Today’s real estate market has people concerned about their ability to get a mortgage in Mesa and elsewhere in Maricopa County. However, many buyers simply need more information about the mortgages available and what all these terms mean. After all, homes are still being bought and sold in Mesa and mortgages continue to be a major part of that.

Know the Types of Mortgages Available to Real Estate Buyers

  • Fixed Rate Mortgages: This mortgage guarantees a particular percentage rate for a particular length of time, usually 30 years. These traditional mortgages are the most popular choice and are usually a great option for buyers who expect to stay in their home for more than five years.
  • Adjustable Rate Mortgages: This type of mortgage usually guarantees a low percentage rate for a short period of time then readjusts to a higher rate tied to the economy or other market conditions afterwards. These are often chosen by buyers who expect some kind of major life change in the first five years of ownership. For example, if buyers expect to move or get a higher paying job, they may start with an ARM mortgage.
  • Hybrid Loans: These mortgages are a combination of the above types. Often, they begin as fixed rate mortgages, which at a pre-arranged time become adjustable rate mortgages. Like the ARM, people who expect short-term life changes usually prefer these loans.

Plan for Closing Costs when Purchasing a Mesa House

Just about every mortgage available today will have some kind of closing costs for which you, as the home buyer, will probably be responsible for. Sometimes, it is possible for you to negotiate an agreement where the lender or seller agrees to pay closing costs, and you can ask your realtor about that option. For the rest of us however, it is important to be ready to pay these last minute expenses.

In order to prepare for the closing costs, you can ask your loan officer for a Good Faith Estimate. This should list all of the fees you will be expected to pay. While there might be a few changes based on the changes that occur during the purchasing process, this estimate should give you a pretty good place to start planning.