How to Find the Right Mortgage for Your New Home Purchase

Buying a new house is an exciting time in any homebuyer’s life. However, it can also be overwhelming as you navigate the options available for mortgaging your new home purchase in Tennessee. Fortunately, the mortgage experts at Citizens Bank are here to explain your options and help you get into your new home today. 

Your Home Lending Options in Tennessee

With the average monthly payment in Tennessee averaging at just over $1,400 per month, a mortgage is more affordable than you may think. However, factors like your credit score and choosing the right mortgage make a difference when it comes to being able to afford a new home. Below are some of the mortgage options offered by Citizens Bank to our members. 

Government Programs

To make homeownership more accessible, the federal government offers special lending programs for qualified individuals looking to buy a home. These include: 

FHA Loans

The Federal Housing Administration (FHA) offers government-insured mortgage loans through approved lenders, like Citizens Bank. These loans are ideal for first-time homebuyers or retirees with lower incomes or credit scores. Your mortgage loan officer can help you determine if this option is right for you based on an assessment of your financial situation. 

VA Loans

For veterans and active-duty service members, the Department of Veterans Affairs (VA) offers special home lending programs through approved lenders, like Citizens Bank. There are minimum service requirements to obtain this type of loan. However, your mortgage loan officer can help you determine your eligibility based on your service history and other factors.

Conventional Mortgages

If you do not qualify for government assistance to purchase your home, don’t worry. You still have options available in the form of conventional mortgages. In basic terms, a conventional mortgage is not insured by the government like an FHA loan is. There are two types of conventional loans offered by most lenders, including Citizens Bank:

Fixed-Rate Mortgage

A fixed-rate mortgage has an interest rate that stays the same throughout the term of the loan, which may be up to 30 years. It is ideal for homebuyers who want a budget-friendly option. As it protects homeowners from fluctuations in interest rates, it works best for those who plan to stay in their home as long as possible.  

Adjustable-Rate Mortgage

Unlike a fixed-rate mortgage, adjustable-rate options have an interest rate that changes over time in set intervals. While interest rates may be low in the beginning, they do go up based on changes in the market. It is ideal for those who only plan to stay in their home for a short time, usually less than 10 years. 

Refinancing

While you may think that once you have a mortgage, your payment is locked in for life, that’s not necessarily true. If you have an existing mortgage and want a better interest rate, you can refinance your home. A mortgage expert, like those at Citizens Bank, can help you find the best rate and walk you through the refinancing process. 

Down Payment Assistance

When purchasing a home, you need to make an initial payment of a percentage of the total price, called a down payment. This can often be a major hurdle for prospective homebuyers to overcome, as this payment can be tens of thousands of dollars. That’s why many banks, including Citizens, offer down payment assistance loans and grants to make homeownership more affordable. 

Construction Loans

Perhaps you want to build your own home instead of buying an existing one on the market. Construction loans are available for those who choose this path to homeownership. While they are technically personal loans, these loans are an ideal lending option for those who want to customize their homes to meet their needs, whether through renovations or new construction. 

Get Into Your Dream Home in Tennessee at Citizens Bank

While the homebuying process can be daunting, the mortgage experts at Citizens Bank are here to walk you through your financing options. We will help you find a mortgage that fits your needs and complete the application. To get started on your homeownership journey, contact us online, call us at (615) 327-9787, or visit one of our branches in Nashville or Memphis.

Apply for a Mortgage in Tennessee at Citizens Bank

Start your journey to homeownership with Citizens Bank. We can help you find the right mortgage to fit your needs and budget. To apply for a mortgage or explore your home lending options, contact us online, call us at (615) 327-9787, or visit one of our branches in Nashville or Memphis today. We look forward to partnering with you as you make your next home purchase.