Purchasing or constructing a home?

There is no other feeling quite like it. When you buy or build a new home you get the unique opportunity to customize it to fit your lifestyle and personality. It becomes an integral part of you. Your space. Your comfort zone. A place all your own. At Spruce Mortgage we put everything we’ve got into helping you get your dream home.

The first step to purchasing a new home is to determine how much home you can afford. Our helpful calculators will give you an idea. Or contact one of our loan officers to find out how big of a loan you can be approved for. This will give you a price range of homes to begin looking at or to plan construction.

Now you're ready. Most of the qualities that you are looking for will depend on you individually, of course. Certainly you'll want to keep these general things in mind:

Location - You'll most likely want to be close to your workplace. Perhaps you want to be near shopping and restaurants. Maybe you favor a kid-friendly neighborhood. Nature and quiet could be high on your list even if it means a bit more commuting. Don't forget to consider appreciation... some areas are appreciating and growing faster than others.

The Community - Take a good look around the neighborhoods where you might consider settling. Are there amenities nearby that meet your needs? Parks for your kids to play in, or to walk your dog? Do the people seem friendly? Do you get a feeling of safety there?

Important Features - What things inside and outside your new home matter most to you? Do you want a big yard? Fenced in or open. Are the appliances new or will you have to put additional money into fixing things up?

New Home or Used Home - New construction can mean lots of decisionmaking and options galore to think about from faucet styles to landscaping. On the other hand, when considering a used home you'll want to look carefully at what might need repair or replacement from carpet to wiring to paint or roofing.

We're here to help. We have outstanding relationships with Vermont's top realtors, builders, and repair people. Feel free to ask us for partner recommendations.

New Purchase Mortgage Options

Fixed-Rate. Want stability? A fixed-rate loan gets you evenly divided monthly payments spread over 15 or 30 years. You'll know exactly what your payments will be next month, or 117 months from now. Other loan types might offer somewhat better rates, but this is the one you'll never have to think of again. Down payments, depending on the loan, can be as low as five, three, or even zero percent!

Adjustable-Rate. Want flexibility? Want a real shot at saving money? Payments tend to be lower with an adjustable-rate mortgage (ARM), because you share some of the lender's risk should interest rates rise significantly in the future. But don't worry too much. Annual and lifetime caps keep rates in check. Generally, ARMs are easier to qualify for, allow you to buy a little bit more of a home, and offer significant savings up front - which you could use to buy needed household items, or to "grow" into future payments after promotions or pay raises at work.

Construction Loan. Building a new home is a rewarding, but big endeavor. With our construction loan rate structure, you have one less challenge. The advantage: floating loan payments during construction. Upon completion, the loan can be converted to fixed-rate. Speak with one of our loan officers to discuss your homebuilding goals and how a construction loan may be the best strategy for financing it.

"Hybrid ARMs." Want the qualifying ease and lower payments of an adjustable? At the same time, do you want the stability of a fixed-rate? A Spruce Mortgage "hybrid ARM" offers the best of both worlds! You can have your payments fixed for three, five, seven, even up to 10 years. Your choice. After the fixed period, the loan becomes adjustable. But during that multi-year, "fixed" period, you'll enjoy a below-market rate. If you're like most people, you'll get a new mortgage every five to seven years (either because you refinance or move). A "hybrid ARM" is a smart way to have lower payments during the likely life of your loan.

Jumbo. Want a bigger home, or do you live in a high-cost area? Jumbo refers to loans that are above the "conforming" loan limits established each year by Congress. Currently, it's $400,000. Conforming loans offer the best rate. Jumbo loans, because of a greater hit to the investor in the rare event of borrower default, are generally priced between one-fourth, and one-half point higher than conforming loans. Jumbos come in fixed and adjustable varieties.