When you are thinking of purchasing a home, one of the things you need to consider is how you are going to pay for the home. Unless you are independently wealthy, you will not be able to purchase a home for cash. If you can’t purchase a home with cash you will need to procure some sort of financing.
There are two main places you can go to secure financing for purchasing a new home. Private Sources and Public Sources.
Some private sources of funding include banks, family members, friends, and private lenders.
Some public sources for funding include government grants, housing programs and lending programs.
There are advantages and disadvantages to both sources of securing financing.
For example, if you get funding through private sources, the interest rates are generally higher, but you don’t have as many requirements as public sources and they generally don’t take as long to process.
On the other hand, the public sources have various requirements which need to be met, and take a lot longer to process, however the interest rates are generally much lower than private sources for funding.