Buyers often have a lot of questions about mortgages. Getting the best rates on your mortgage could save you tens of thousands of dollars over the lifetime of your loan, so it makes a difference. Our expert real estate advisors know how to help, whether this is your first home buy or your fifth.

In Mobile and Baldwin County, many people in the market at any given time are first-time buyers. If you are one of them, you might have access to first-time buyer programs offering lower interest rates and low down payments. However, it's still crucial to understand all your options.

Mobile and Baldwin County homes for sale are some of the most desirable in Alabama, so finding the best home mortgage is crucial. Let's examine the different types of mortgage loans you might choose from:

• Conventional Loans
  Conventional loans are usually provided by banks. You must have a credit score of at least 620 and be ready to make a down payment of at least 3%, but often 5%. This mortgage is the most common, so it's easy to shop around for the best rate before you commit.
  
  
• Jumbo Loans
  This kind of loan comes into play when you need more than $548,250, the maximum loan amount prescribed by the Federal Housing Finance Agency for most locations in the United States. It requires a credit score of at least 700 with a minimum down payment of 10%. Borrowers must be "ultra-qualified" to get these loans.
  
  
• Interest-Only Loans
  This extremely rare loan allows you to pay only interest during a defined "introductory period" running from five to 10 years. Private banks only offer these loans, and the standards may vary widely. Banks generally only offer these loans to existing customers with substantial investments in the institution.
  
  
• FHA Loan
  The Federal Housing Administration backs these loans, allowing lenders (usually banks) to offer an attractive mortgage loan to borrowers who might be considered less qualified. The minimum credit score is only 580, and the minimum down payment is lower, too, at just 3.5%.
  
  
• USDA Loan
  USDA loans are somewhat similar to FHA loans. They are backed by a government entity and usually allow for lower down payments. A USDA loan also has no specific credit score requirement. The catch? To qualify, you must buy within a designated rural area specifically set aside for the USDA loan program.
  
  
• VA Loan
  The Veterans Administration home loan program was launched in 1944 to help returning World War II veterans buy homes. Only veterans who meet service length and discharge requirements may qualify. As with the other federal loan programs, the VA loan is administered by banks that can set criteria such as credit score minimums.
  
  
• Fixed-Rate Loan
  A fixed-rate mortgage maintains the same interest rate over the entire lifetime of your loan. That means there are no surprises in the future if the prevailing interest rate goes up. However, it also means that you cannot benefit when rates go down unless you go through the entire process of getting your loan refinanced.
  
  
• Adjustable-Rate Loan
  Also called an adjustable-rate mortgage (ARM), this is essentially the opposite of a fixed-rate loan. The annual percentage rate (APR) you pay on your ARM varies over time based on the prevailing market interest rates. It can go up or down from month to month.

Contact us to find out more or get started with real estate in Mobile and Baldwin County.