You’re right about the fact that there are many loans to choose from. I’m almost certain that your parents and uncle didn’t have as many choices, and therefore, feel much more comfortable with something they’re familiar with. If you’re worried about a high monthly payment, consider a variable interest rate loan (ARM) to take advantage of a low interest rate. Or choose a loan with a fixed interest rate for 10 or 15 years to obtain a greater tax break and save yourself thousands of dollars in interest. Also inquire about a “two-step mortgage” that combines some of the risk associated with a variable rate loan with the stability of a fixed rate loan. Research all your options. The lenders are there to help you choose the loan that is best for you. Ask them to give you in writing what each loan will cost and the differences between each one of them.
To avoid making a mistake, try to spend as much time as possible in the area. Drive through neighboring streets and visit the local supermarket, cleaners and other nearby businesses. Wait and observe the neighbors as they come home from work or walk up and talk to them. Think about how your life would be in this new community and if you would enjoy being a part of it.
