{"id":4836,"date":"2021-01-12T12:30:08","date_gmt":"2021-01-12T17:30:08","guid":{"rendered":"https:\/\/www.sahomebuilder.com\/\/blog\/?p=4836"},"modified":"2024-07-30T00:16:47","modified_gmt":"2024-07-30T04:16:47","slug":"homebuilding-101-financial-terms-to-know","status":"publish","type":"post","link":"https:\/\/www.sahomebuilder.com\/blog\/homebuilding-101-financial-terms-to-know\/","title":{"rendered":"Homebuilding 101: Financial Terms to Know"},"content":{"rendered":"

\"Homebuilding<\/a>The financial side of the homebuilding and homebuying process can often be difficult to understand for many first-time homebuyers. The variety of loan types and procedures involved in these processes can certainly be overwhelming, but the S&A Homes team is here to help with the third installment of its \u201cHomebuilding 101\u201d blog series.<\/p>\n

This new segment helps simplify the complicated financial jargon for first-time homebuyers:<\/p>\n

Adjustable Rate Mortgage<\/strong><\/p>\n

An adjustable rate mortgage is a type of mortgage in which the interest rate periodically changes in response to the market throughout the lifetime of the loan. This type of loan is a smart financial choice for those looking to pay off the loan within a specific amount of time or those who will not be hurt financially when rates adjust.<\/p>\n

Credit Score<\/strong><\/p>\n

A credit score is a number assigned to an individual by the three credit reporting agencies. In the homebuying process, this number is a numerical expression of a homebuyer\u2019s credit history. This number is used to show a buyer\u2019s creditworthiness to lenders in order to get approved for a mortgage loan or other loan type.<\/p>\n

Construction Loan<\/strong><\/p>\n

A construction loan is a type of short-term, high-interest loan used to buy land and finance the construction of a custom-built home. At S&A Homes, all homebuyers within the Build on Your Land program are required to have a construction loan in place prior to building their new home. Upon closing on the home, construction loans can easily transition to a traditional mortgage program.<\/p>\n

Federal Housing Administration Loan<\/strong><\/p>\n

An FHA loan is a mortgage insured by the Federal Housing Administration (FHA) and issued by an FHA-approved lender. FHA loans are designed for low- to moderate-income homebuyers in order to provide them easier access to homeownership. These loans are very popular among first-time homebuyers due to their more minimal requirements such as a lower credit score and lower down payment costs.<\/p>\n

Fixed-Rate Mortgage<\/strong><\/p>\n

A fixed-rate mortgage is a type of mortgage loan with a fixed interest rate for the entire length of the loan that does not fluctuate with market conditions. Fixed-rate mortgages typically range from 10- to 30-year terms, though some lenders will offer different loan terms to meet homebuyers needs. Fixed-rate mortgages are popular among homebuyers who want to know exactly how much they will pay every month or are purchasing a home for the long term.<\/p>\n

Lender<\/strong><\/p>\n

A lender is an individual, firm or financial institution that lends money to a borrower (the homebuyer) with the expectation the money will be paid back overtime. Lenders offer funds for several reasons such as mortgage loans, construction loans and more. S&A Homes partners with a variety of lenders to offer loan programs tailored to each homebuyer\u2019s unique needs.<\/p>\n

Private Mortgage Insurance<\/strong><\/p>\n

Private Mortgage Insurance (PMI) is a type of mortgage insurance that might be required with a conventional loan to protect lenders should payments stop. Provided by private insurance companies, PMI is arranged by the lender and typically required on conventional loans with a less-than 20% down payment.<\/p>\n

Pre-Approved<\/strong><\/p>\n

Pre-approval is the preliminary evaluation of a homebuyer by a lender to determine whether they qualify for a mortgage loan. For pre-approval, the homebuyer must complete a mortgage application, as well as provide documentation to perform an extensive credit and financial background check. This information includes proof of the buyer\u2019s income, assets and credit score. Getting pre-approved helps the lender determine how much money can be borrowed, how much homebuyers can expect to pay each month and what their interest rate might be.<\/p>\n

VA Loan<\/strong><\/p>\n

A VA loan is a type of mortgage loan established by United States Department of Veterans Affairs. VA loans are available to both active and veteran service personnel and their families looking to purchase a home. These loans tend to have generous terms, such as no down payment, low interest rates, limited closing costs and more.<\/p>\n

For more information regarding financing solutions from S&A Homes, click here<\/strong><\/a>. Be sure to follow the blog for more \u201cHomebuilding 101\u201d content.<\/p>\n

To learn more about the new home process and new home communities throughout Central and South-Central Pennsylvania, contact S&A Homes at 1-855-SAHOME1 or visit www.SAHomeBuilder.com<\/a>.<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

The financial side of the homebuilding and homebuying process can often be difficult to understand for many first-time homebuyers. The variety of loan…<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"ngg_post_thumbnail":0,"footnotes":""},"categories":[454],"tags":[609,506],"class_list":["post-4836","post","type-post","status-publish","format-standard","hentry","category-tips","tag-homebuilding-tips","tag-homebuying-tips"],"yoast_head":"\nHomebuilding 101: Financial Terms to Know - Building Forward<\/title>\n<meta name=\"description\" content=\"Learn important financial terms to know when building a new home with S&A Homes' Homebuilding 101 blog post.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.sahomebuilder.com\/blog\/homebuilding-101-financial-terms-to-know\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Homebuilding 101: Financial Terms to Know\" \/>\n<meta property=\"og:description\" content=\"Learn important financial terms to know when building a new home with S&A Homes' Homebuilding 101 blog post.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.sahomebuilder.com\/blog\/homebuilding-101-financial-terms-to-know\/\" \/>\n<meta property=\"og:site_name\" content=\"Building Forward\" \/>\n<meta property=\"article:published_time\" content=\"2021-01-12T17:30:08+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2024-07-30T04:16:47+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.sahomebuilder.com\/blog\/wp-content\/uploads\/2021\/01\/SA-Homebuilding-Terms-Part-III_768x512.png\" \/>\n<meta name=\"author\" content=\"SA Homes\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"SA Homes\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"4 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.sahomebuilder.com\/blog\/homebuilding-101-financial-terms-to-know\/\",\"url\":\"https:\/\/www.sahomebuilder.com\/blog\/homebuilding-101-financial-terms-to-know\/\",\"name\":\"Homebuilding 101: Financial Terms to Know - Building Forward\",\"isPartOf\":{\"@id\":\"https:\/\/www.sahomebuilder.com\/blog\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/www.sahomebuilder.com\/blog\/homebuilding-101-financial-terms-to-know\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/www.sahomebuilder.com\/blog\/homebuilding-101-financial-terms-to-know\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.sahomebuilder.com\/blog\/wp-content\/uploads\/2021\/01\/SA-Homebuilding-Terms-Part-III_768x512.png\",\"datePublished\":\"2021-01-12T17:30:08+00:00\",\"dateModified\":\"2024-07-30T04:16:47+00:00\",\"author\":{\"@id\":\"https:\/\/www.sahomebuilder.com\/blog\/#\/schema\/person\/be68a4338a0c82a173d01151ef149f87\"},\"description\":\"Learn important financial terms to know when building a new home with S&A Homes' Homebuilding 101 blog post.\",\"breadcrumb\":{\"@id\":\"https:\/\/www.sahomebuilder.com\/blog\/homebuilding-101-financial-terms-to-know\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.sahomebuilder.com\/blog\/homebuilding-101-financial-terms-to-know\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.sahomebuilder.com\/blog\/homebuilding-101-financial-terms-to-know\/#primaryimage\",\"url\":\"https:\/\/www.sahomebuilder.com\/blog\/wp-content\/uploads\/2021\/01\/SA-Homebuilding-Terms-Part-III_768x512.png\",\"contentUrl\":\"https:\/\/www.sahomebuilder.com\/blog\/wp-content\/uploads\/2021\/01\/SA-Homebuilding-Terms-Part-III_768x512.png\",\"width\":768,\"height\":512,\"caption\":\"Homebuilding 101: Financial Terms to Know\"},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/www.sahomebuilder.com\/blog\/homebuilding-101-financial-terms-to-know\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/www.sahomebuilder.com\/blog\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Homebuilding 101: Financial Terms to Know\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/www.sahomebuilder.com\/blog\/#website\",\"url\":\"https:\/\/www.sahomebuilder.com\/blog\/\",\"name\":\"Building Forward\",\"description\":\"S&A Homes Blog\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/www.sahomebuilder.com\/blog\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"},{\"@type\":\"Person\",\"@id\":\"https:\/\/www.sahomebuilder.com\/blog\/#\/schema\/person\/be68a4338a0c82a173d01151ef149f87\",\"name\":\"SA Homes\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.sahomebuilder.com\/blog\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/secure.gravatar.com\/avatar\/188a9fff024e05154d3712ff84cffc47?s=96&d=mm&r=g\",\"contentUrl\":\"https:\/\/secure.gravatar.com\/avatar\/188a9fff024e05154d3712ff84cffc47?s=96&d=mm&r=g\",\"caption\":\"SA Homes\"},\"sameAs\":[\"http:\/\/www.sahomebuilder.com\"],\"url\":\"https:\/\/www.sahomebuilder.com\/blog\/author\/sa-homes\/\"}]}<\/script>\n<!-- \/ Yoast SEO Premium plugin. -->","yoast_head_json":{"title":"Homebuilding 101: Financial Terms to Know - Building Forward","description":"Learn important financial terms to know when building a new home with S&A Homes' Homebuilding 101 blog post.","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.sahomebuilder.com\/blog\/homebuilding-101-financial-terms-to-know\/","og_locale":"en_US","og_type":"article","og_title":"Homebuilding 101: Financial Terms to Know","og_description":"Learn important financial terms to know when building a new home with S&A Homes' Homebuilding 101 blog post.","og_url":"https:\/\/www.sahomebuilder.com\/blog\/homebuilding-101-financial-terms-to-know\/","og_site_name":"Building Forward","article_published_time":"2021-01-12T17:30:08+00:00","article_modified_time":"2024-07-30T04:16:47+00:00","og_image":[{"url":"https:\/\/www.sahomebuilder.com\/blog\/wp-content\/uploads\/2021\/01\/SA-Homebuilding-Terms-Part-III_768x512.png","type":"","width":"","height":""}],"author":"SA Homes","twitter_card":"summary_large_image","twitter_misc":{"Written by":"SA Homes","Est. reading time":"4 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/www.sahomebuilder.com\/blog\/homebuilding-101-financial-terms-to-know\/","url":"https:\/\/www.sahomebuilder.com\/blog\/homebuilding-101-financial-terms-to-know\/","name":"Homebuilding 101: Financial Terms to Know - Building Forward","isPartOf":{"@id":"https:\/\/www.sahomebuilder.com\/blog\/#website"},"primaryImageOfPage":{"@id":"https:\/\/www.sahomebuilder.com\/blog\/homebuilding-101-financial-terms-to-know\/#primaryimage"},"image":{"@id":"https:\/\/www.sahomebuilder.com\/blog\/homebuilding-101-financial-terms-to-know\/#primaryimage"},"thumbnailUrl":"https:\/\/www.sahomebuilder.com\/blog\/wp-content\/uploads\/2021\/01\/SA-Homebuilding-Terms-Part-III_768x512.png","datePublished":"2021-01-12T17:30:08+00:00","dateModified":"2024-07-30T04:16:47+00:00","author":{"@id":"https:\/\/www.sahomebuilder.com\/blog\/#\/schema\/person\/be68a4338a0c82a173d01151ef149f87"},"description":"Learn important financial terms to know when building a new home with S&A Homes' Homebuilding 101 blog post.","breadcrumb":{"@id":"https:\/\/www.sahomebuilder.com\/blog\/homebuilding-101-financial-terms-to-know\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/www.sahomebuilder.com\/blog\/homebuilding-101-financial-terms-to-know\/"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.sahomebuilder.com\/blog\/homebuilding-101-financial-terms-to-know\/#primaryimage","url":"https:\/\/www.sahomebuilder.com\/blog\/wp-content\/uploads\/2021\/01\/SA-Homebuilding-Terms-Part-III_768x512.png","contentUrl":"https:\/\/www.sahomebuilder.com\/blog\/wp-content\/uploads\/2021\/01\/SA-Homebuilding-Terms-Part-III_768x512.png","width":768,"height":512,"caption":"Homebuilding 101: Financial Terms to Know"},{"@type":"BreadcrumbList","@id":"https:\/\/www.sahomebuilder.com\/blog\/homebuilding-101-financial-terms-to-know\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/www.sahomebuilder.com\/blog\/"},{"@type":"ListItem","position":2,"name":"Homebuilding 101: Financial Terms to Know"}]},{"@type":"WebSite","@id":"https:\/\/www.sahomebuilder.com\/blog\/#website","url":"https:\/\/www.sahomebuilder.com\/blog\/","name":"Building Forward","description":"S&A Homes Blog","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/www.sahomebuilder.com\/blog\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/www.sahomebuilder.com\/blog\/#\/schema\/person\/be68a4338a0c82a173d01151ef149f87","name":"SA Homes","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.sahomebuilder.com\/blog\/#\/schema\/person\/image\/","url":"https:\/\/secure.gravatar.com\/avatar\/188a9fff024e05154d3712ff84cffc47?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/188a9fff024e05154d3712ff84cffc47?s=96&d=mm&r=g","caption":"SA Homes"},"sameAs":["http:\/\/www.sahomebuilder.com"],"url":"https:\/\/www.sahomebuilder.com\/blog\/author\/sa-homes\/"}]}},"_links":{"self":[{"href":"https:\/\/www.sahomebuilder.com\/blog\/wp-json\/wp\/v2\/posts\/4836","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.sahomebuilder.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.sahomebuilder.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.sahomebuilder.com\/blog\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.sahomebuilder.com\/blog\/wp-json\/wp\/v2\/comments?post=4836"}],"version-history":[{"count":2,"href":"https:\/\/www.sahomebuilder.com\/blog\/wp-json\/wp\/v2\/posts\/4836\/revisions"}],"predecessor-version":[{"id":6358,"href":"https:\/\/www.sahomebuilder.com\/blog\/wp-json\/wp\/v2\/posts\/4836\/revisions\/6358"}],"wp:attachment":[{"href":"https:\/\/www.sahomebuilder.com\/blog\/wp-json\/wp\/v2\/media?parent=4836"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.sahomebuilder.com\/blog\/wp-json\/wp\/v2\/categories?post=4836"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.sahomebuilder.com\/blog\/wp-json\/wp\/v2\/tags?post=4836"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}