If the time has come in your life that you're ready to purchase your first home but you don't know a lot about obtaining a mortgage, there are some basics you'll want to know. Shopping around to find the lowest interest rate with your credit score and getting an FHA loan if you are a first time buyer with little money to put down is important, but there are other details you have to look into. Know the following when you go to take out a home loan.
Know Your Broker Fees
Are you using a broker to get the mortgage? If so, make sure you understand the fees. Some mortgage brokers will charge you a certain percentage of the mortgage to help you find a lender, and other brokers will charge the mortgage company. Make sure you aren't paying out of pocket for the broker's fees.
Know What to Include in the Payment
There are some things you want included in your monthly mortgage payment to be sure you don't fall behind or get in a financial bind trying to pay them later on. They include the following:
When these things are included in your payment, you don't have to worry about having insurance coverage because you forgot a payment or trying to pay a large amount of property taxes at the end of the fiscal year.
Choose the Best Terms
Different mortgage brokers will have different terms on their loans. Look for a loan provider that offers the following:
If you think that making payments twice a month would be easier than one large payment and you can afford to make those payments, this can shorten your mortgage.
If you are a first time home buyer and you have never applied for a home loan, make sure your debt to income ratio is low, your credit score is good or great, and that you have enough money to put down on the loan and to close on the property. You can sit down with a mortgage company before you apply for a loan to go over your current financial status, and to see what you could afford to pay them each month for your mortgage. Work out the details to become a responsible homeowners with a mortgage you can afford.Share
6 October 2016
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