Buying a home is one of the most significant financial decisions you’ll make in your lifetime. At Team Tadena Home Lending, powered by Answer Home Lending, we understand that the mortgage process can feel overwhelming, especially for first-time buyers. That’s why we are here to guide you through the basics of home loans, ensuring you feel confident and informed every step of the way.
What Is a Mortgage?
A mortgage is a loan provided by a lender to help you purchase a home. Instead of paying the full price upfront, you make monthly payments over a set period, typically 15 to 30 years. These payments cover both the principal (the original loan amount) and interest (the cost of borrowing the money). The property itself serves as collateral, meaning the lender can take ownership if the borrower fails to make payments.
Types of Home Loans
There are several types of mortgage loans available, and choosing the right one depends on your financial situation and homeownership goals. At Team Tadena, we specialize in the following loan types:
1. Conventional Loans
- Ideal for borrowers with good credit and stable income.
- Can be used for primary residences, vacation homes, or investment properties.
- Available in fixed or adjustable-rate options.
2. FHA Loans
- Backed by the Federal Housing Administration.
- Designed for first-time homebuyers or those with lower credit scores.
- Requires a lower down payment (as little as 3.5%).
3. VA Loans
- Available to eligible veterans, active-duty service members, and their families.
- No down payment required.
- Competitive interest rates and no private mortgage insurance (PMI).
4. Renovation Loans
- Perfect for buyers looking to purchase and renovate a home.
- Allows financing for both the home purchase and improvement costs.
5. Construction Loans
- Designed for those building a new home.
- Funds are released in phases as the construction progresses.
6. Reverse Mortgages
- Available for homeowners aged 62 and older.
- Converts home equity into cash, providing financial flexibility in retirement.
Key Factors That Affect Your Mortgage
Before applying for a home loan, it’s important to understand the factors that influence your mortgage approval and interest rate:
- Credit Score: A higher credit score can help you secure better loan terms and lower interest rates.
- Debt-to-Income Ratio (DTI): Lenders evaluate your income versus your existing debts to determine your ability to repay the loan.
- Down Payment: While some loans require as little as 3.5% down, a larger down payment can lower your monthly payments and eliminate the need for PMI.
- Loan Term: A shorter loan term (e.g., 15 years) may have higher monthly payments but will save you money in interest over time.
Why Choose Team Tadena Home Lending?
With 24 years of experience in the mortgage industry, Team Tadena Home Lending is committed to making the home loan process seamless and stress-free. Our dedicated team—Benita Tadena, JL Oliveira, Jace Hernandez, and Christian Guzman—takes a personalized approach to every client’s needs. Whether you’re buying your first home, upgrading to a larger space, or preparing for retirement, we provide expert guidance and bilingual support (Se habla español) to help you make informed decisions.
Let us help you navigate your home financing journey with integrity and white glove service. Contact Team Tadena Home Lending today to start your path to homeownership!
