What to Know Before Taking Out Any Syracuse NY Home Loans

Getting a home loan one is a big financial step and is one of the most important decisions you will make in life. But before you do that, you have to digest the necessary information to make the process easy.

First, you need to know that every state has different loan options or state programs offered that you can avail of should you decide to apply for one.

If you are in New York, companies like Empower FCU can help you smartly choose among the different options and purchase your own home.

Here are more major essential points that you need to know:

Choose a Home That You Can Afford

Taking out a loan is a serious business, and you need to be able to pay it back, so it is wise to choose a home that you can afford to buy. A down payment is required, and the range varies depending on your lender and your home’s purchase price.

Get pre-qualified. With the pre-qualification process, you will know the amount that you can borrow and the price range of homes that you can afford. You can then take your time to browse and check as many properties as you can before making a final decision.

Be Mindful of Your Credit Score

Your credit score is crucial. It can make or break you. You need to have a good credit history, whether you are a company employee or a self-employed individual. A good credit score can attract the best deals out there and can, therefore, make purchasing your own home smooth sailing.

Get a copy of your credit report. This helps you know what your credit profile looks like. By knowing your credit performance, you can then take the necessary steps to improve your credit score if need be before starting the process of home buying.

You also need to be careful about decisions and purchases before and while your loan is being processed because it may affect your credit score and may even affect your loan’s rate and term. It is best not to apply for new credit cards, not take out any other loans, and paying your bills on time, always.

Know The Various Loan Options That You Can Choose From

Now that you have settled your credit score, you should know the loan options that you can choose from. You may have heard of an adjustable-rate loan from colleagues and friends. Or perhaps your parents had a fixed-rate mortgage. That does not necessarily mean that either of the two is the right loan for you.

Below are the options that you need to know and take into consideration:

Federal Housing Administration Loans

This is a government-subsidized loan for new home buyers or existing homeowners that require a small down payment of about 3.5%. This loan is also applicable to buyers with poor credit but would require a higher interest rate.

Fixed-Rate Mortgage

The interest rate for this mortgage is fixed. It means that on the entirety of the mortgage, you will pay the same interest rate. This, of course, comes with an advantage and a disadvantage. You will have the security of the same monthly payment, but you will have to refinance if interest rates drop.

 Veterans Affairs Loans

This is a type of loan that is offered to veterans and has no down payment. The Veterans Affairs department will assist in the loan’s downpayment.

Hybrid ARM

With this mortgage, there is typically a fixed-rate first, and then it becomes adjustable. You can avail of the 5/1 ARM wherein you will have a fixed rate for five years, and then it becomes adjustable annually. Or you also have the option to avail of the 10/1 ARM with the same terms except the fixed rate would last for ten years instead of five.

Adjustable-Rate Mortgages

With this mortgage, your interest rate can be adjusted. Usually, the interest rate will be locked within a year. Again, this comes with both an advantage and a disadvantage. There is a possibility that the rates can go up, and you may encounter problems with payments,  but you can also take advantage of lower interest rates the moment it goes down.

Convertible ARM

With this mortgage, you will be able to switch to a fixed-rate mortgage from an adjustable one but with some restrictions. One of the limits include only being able to lock in within the first five years. Additionally, you will not have the option to adjust again.


These are just some of the mortgage tips that can serve as your guide before taking the first step into purchasing your own home. It is best to educate yourself because it is your decision that would help you better your chances of making a successful bid in a competitive housing market in Syracuse NY.

Steve Max
Steve Maxhttp://www.webzando.com/
A long time digital entrepreneur, Steve has been in digital marketing since 2010 and over the past decade he has built & executed innovative online strategies for leading companies in car insurance, retail shopping, professional sports and the movie & television industry.


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