Getting Your Dream Home: Common Home Loans

Taking that decisive step towards owning a home for yourself and your family is a big deal, and Vahe Hayrapetian understands that it can be discouraging to face the sheer number of options available to a first-time home buyer. How can you be sure if you’re getting the most for your budget? Choosing the right loan type can mean the difference between enjoying your home to the fullest and constantly struggling with payments. Let’s start with the most common home loans you can benefit from:

Fixed Rate Mortgage

When you avail of a fixed rate mortgage, you will be given a consistent interest rate for the duration of the loan. Fixed rate mortgages present the advantage of knowing exactly how much each payment will be, regardless of market shifts. Because of the consistency, this mortgage option tends to have more expensive rates compared to the others.

Adjustable Rate Mortgage

On the other hand, adjustable rate mortgages are usually less expensive in the outset. However, there is a fair amount of risk involved. Adjustable rate mortgages have interest rates based on existing market conditions. This means that shifts in the economy can cause the payments to grow.

Hybrid Home Loans

The hybrid home loan is a compromise between the other two types. The interest will be fixed for a pre-determined time period, usually up to seven years. After which, the lender can make adjustments to the rate depending on existing market conditions. This loan type allows the homeowner to establish themselves financially before taking on the added expense.

Obtaining a loan for your new home is a big decision, and you should take all the time you need to choose the right one that will fit your lifestyle and capabilities. Vahe Hayrapetian is always ready to lend a hand.

Vahe Hayrapetian on Weighing Home Financing Options

When looking to buy something, most people look at the price first and then try to haggle down. The idea is simple: get the most bang for your buck by minimizing the bucks you have to shell out. However, what they usually don’t consider is the other side of the equation. How much bang does each choice produce? In other words, what’s the value?

Housing Options are Easier to Grasp than Loan Options

In the case of home buying, people can easily see the value in the houses they choose from (in terms of amenities, proximity to urban centers, accessibility, and so on), but seeing the value in different financing options can be harder. Inexperienced and financially challenged home seekers may tend to go for the cheapest home financing option right off the bat, without regard for the actual terms of the loan. The only question is “can I afford it”? Fortunately, experts like Vahe Hayrapetian are available to guide them.

A Classic Tradeoff: Adjustable vs. Fixed-Rate Mortgages

One example of a choice that people may struggle with is picking between an adjustable and a fixed-rate mortgage. An adjustable-rate mortgage generally starts out with a low interest rate; the interest rate may then increase or decrease, depending on conditions in the housing market. On the other hand, fixed-rate mortgages have a higher interest rate than adjustable-rate mortgages usually, but since the rate is fixed, the payor is insulated from any market effects.

Adjustable versus fixed-rate is just one decision that homebuyers have to contend with when considering financing options. With the number of competing financial institutions out there, along with their attempts to differentiate themselves from the competition and the complex terms and jargon they tend to use, it’s hardly surprising that people get confused and go back to the most basic criterion they can understand, which is “which has the lowest interest rate?” That is why experienced loan consultants like Vahe Hayrapetian are invaluable when making a decision on which loan option to choose.

Real Estate Agent Perks

Finally making that leap to get your new home? One of the most common pieces of advice you’ll be offered is to consult a real estate agent—and you’ll do really well to take it! A good real estate agent such as Vahe Hayrapetian can reduce the hassle of house-hunting greatly for first-time home buyers.

Save time

Depend on your real estate agent to cull the wheat from the chaff. You won’t need to go through listings that are questionable or too expensive. Most of the time, so much of a home buyer's time is wasted going from site to site only to end up disappointed. Sometimes a property is simply beyond your budget or the area doesn’t suit your lifestyle. Of course, it’s also necessary for you to be as detailed as possible when discussing your needs. The clearer the picture you give to your agent, the more effective they will be in securing the right home for you.

Make projections

A good real estate agent will also advise you on how a particular property will fare in the market. As much as we all dream of a home that will stay in the family for generations, the reality of the property market is that concerns like the sustainability of your house’s value is a major consideration.

Maximize value

Lastly, your real estate agent is expected to get you the best deal possible. With a combination of connections and knowledge of the trade’s finer details, your agent can potentially chop off thousands of dollars from the asking price. Take the time and seriously consider getting a capable real estate agent like Vahe Hayrapetian as the first step towards owning a home you’ll treasure.

Playing the Long Game

Most people who consider buying a home are in their twenties or thirties. Maybe they’re still relatively young adults, just starting a marriage and putting down their roots. Or maybe they’re not so young, but just initiating the fission reaction that would start their own nuclear family. Whatever the case, financial experts like Vahe Hayrapetian say that not enough people consider the long term in choosing a home. Here are some long-term considerations that must be made when buying a home.

Will You Need Extra Space?

A house is a place to stay in for years at a time. If you’re planning to start a family, consider how many people your family will have over the time you’ll stay there. How many children do you have? Do you plan to have any more? What if you’re blessed with twins? With your lifestyle, do you imagine inviting other people over for dinner, for a few days, a week, or more? Think about these things when you are choosing a home.

Do You Consider Aging in Place?

Another consideration is whether you’ll grow old in your home. If you have no desire to leave your domicile in your senior years, you’ll want to think about having a home that’s built for your future. You’ll probably want wide spaces and hallways, stairs with sturdy railings, and other facilities that will be helpful to those who are past their prime. If you can’t find such a home but aging in place is a priority for you, then consider a home that can be renovated accordingly with minimal effort.

How about Your Long-term Wealth and Income? 

Home buyers should also consider their income and wealth over time. Do they project their careers to take them on a trajectory with steadily increasing income and wealth? Or is there some risk of hiccups, emergencies, or interruptions in their money inflows or possibility of erosion of their wealth? If there is any risk, consider estimating how great that risk is and how that will impact your ability to afford mortgage payments, renovations, maintenance expenses, and so on.

Even with the aforementioned factors identified, the road of life is littered with many uncertainties, and trying to make a proper decision may be overwhelming for the average home seeker. Given that, it’s a good idea to contract the services of an expert. For the financial side of things, a reliable loan consultant like Vahe Hayrapetian can assist you in making a sound financial decision, finding the best mortgage option based on your financial capability and your risk appetite.