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When looking for a mortgage, many buyers focus on the interest rate. While the rate does matter, mortgage lenders say a better question is which loan best fits your goals, budget and circumstances?
Key Takeaways
The “right” mortgage can look very different depending on who you are:
At Gate City Bank, mortgage lenders get to know you, so they can consider your full picture and find the best loan for your specific situation.
For first-time homebuyers: More help is available than you might think.
One of the biggest homebuying misconceptions is that you need a 20% down payment before you can even start looking. The truth is there are programs designed specifically to help first-time homebuyers with upfront costs.
Gate City Bank lenders often help customers explore programs through North Dakota Housing and Minnesota Housing, which offer eligible buyers competitive rates, down payment assistance and reduced cash requirements at closing.
These programs can be especially valuable for younger buyers who have steady income but haven’t had years to build savings.
For veterans: VA loans can open doors.
Open to military veterans and active-duty service members, VA loans can be one of the most powerful mortgage tools available. They often feature affordable financing options and reduce some of the barriers that prevent buyers from purchasing a home.
Gate City Bank offers VA financing – paired with local service and support throughout the lending process. If you’re not sure if you qualify, talk to a lender to help clarify your options.
Buying in a smaller community? Look into rural financing.
If you're considering a home in a smaller community, you may qualify for our Rural Development Loan. In many cases, homes in smaller cities, towns and surrounding areas may be eligible.
Gate City Bank can help you determine whether a property falls within an eligible area and whether this financing aligns with your financial goals.
Want a lower payment? Consider an adjustable-rate mortgage.
A traditional 30-year fixed mortgage isn’t your only option.
Gate City Bank offers adjustable-rate mortgages, commonly called ARMs, that may provide a lower interest rate during the loan’s initial fixed period – typically five, seven or 10 years before the rate adjusts.
For buyers who don’t expect to stay in the home long term or anticipate refinancing before the adjustment period begins, ARMs can offer lower monthly payments and potentially significant savings during the years they own the property.
Understand mortgage buydown points.
Another way homebuyers can lower their interest rate is through a temporary or permanent rate buydown. With this option, buyers pay an upfront cost in exchange for a lower rate, reducing the monthly payment and potentially saving money in the long-term, depending on how long they plan to remain in the home.
A lender can calculate whether the savings outweigh the upfront investment and help figure out whether a buydown fits with a buyer’s financial plans.
Because one mortgage does not fit all situations, we encourage you to focus less on waiting for the perfect rate (and possibly missing out on your dream home) and more on finding the right loan for your circumstances and goals.
Bottom line: By matching the right mortgage to your situation, you might find ways to lower your monthly payment, reduce upfront expenses and move into a home sooner than you dreamed possible.
When buying a home, strategy matters more than timing. Our local mortgage lenders share nine smart strategies for today’s housing market.
From competitive interest rates to local service down the street, discover why we’re the #1 mortgage lender in North Dakota.
Use our simple mortgage payment calculator to estimate your monthly home payments and plan your budget!
