Home Loans

First time homebuyer? You’ve come to the right place!

Looking at real estate fliers and touring homes is easy. Applying for a home loan and figuring out how to pay for a house – well, that can get complicated. Let us guide you through understanding a home loan.

#1 - A home loan is called a mortgage.

Buying a house is one of the largest investments most people make. Home loan programs are available to those who need to borrow the money and buy a house (which is almost everyone.) The money borrowed and the payment due each month is called a mortgage.

#2 - Home loan options are also called programs.

You have choices when it comes to a home loan. Some buyers have more choices than others depending on how much money you make, where the home is located, how much money you have to spend right away and your credit score. There are many options when it comes to home loans and several programs available. Some of them include:

• Conventional loans (also known as regular loans)
• FHA loans
• VA loans
• USDA loans

The best step to determine the right home loan program for you is to call South Atlantic Financial Services and speak with one of our loan partners. South Atlantic Financial Services can explain the difference in each program and help you decide which one is best for you.

#3 - Learn the numbers.

There are many “numbers” involved in a home loan process. When you apply for a loan, you will have a unique set of figures for you. Here are some numbers that will be figured up into your home loan:

• Purchase price of the home
  What you’re offering to pay for the house you want to buy.
• Down payment
  The money you have available to buy the house when you apply for your loan.
• Interest rate
  Usually a percentage and based off of your credit score. This percentage figures up how much money in interest you will pay during the life of your loan.
• The term of your loan
  Typical terms are 15, 20 or 30 years – meaning how long it will take to pay back the loan.
• Monthly payment amount
  This is what your mortgage bill will show each month.

#4- Home loans aren’t free.

There is no application fee to get pre-qualified and apply for a home loan. But there are some fees involved when you borrow money to buy a house. Most closing costs will and can be paid at settlement but some costs (credit report and appraisal) will need to be paid throughout the loan process.

#5- There are tax benefits to home loans.

Although home loans do not come free, the government lets you write-off what you pay in interest on your Federal income tax return. Also, if you pay mortgage insurance (MI), you may be able to write-off this amount.

How do I buy a house?

These are the basics of understanding home loans. If you want to buy a house but haven’t found one yet, go ahead and pre-apply for a home loan now.

If you’ve already found a house and made an offer, we can still help you. Fill out our online application form for a home loan. Our team will be in touch ASAP to collect information about the house you want to buy and get the ball rolling on your financing.

Questions? Call us at (305) 667-8776.