After 10 years of marriage, I’m still enjoying living in the first home I moved into with my husband. Buying a first home can be one of the most exciting events in a person’s life. Before making this important expenditure, people need to first sit down and determine how they will successfully finance it. After all, a home will likely be the most expensive purchase you make in your life. Talk to a loan officer and determine how much money you can reasonably borrow. Then, decide how much money you want to use as a down payment. You also must decide how many years you will finance your home for. On this blog, you will learn about the process of buying a first home with a loan.
Getting your first mortgage can be very exciting. Purchasing your own home is a major next step in your life since you will be making a big purchase and will be living in your most valuable asset. However, when obtaining a mortgage, there are several things you can do to better position yourself financially.
Make a Down Payment
Making a down payment allows you to increase the amount of equity that you have in your home. At the same time, you will also reduce how much money you will owe. Lenders are more willing to lend to you at better rates if you're willing to put some money on the line.
Get Pre-Approved for a Mortgage
The last thing you want to do is to find your dream house only to later discover that you aren't able to obtain a mortgage. Fortunately, you can find out if your credit score and debt-to-income ratio are good enough to obtain a mortgage.
To maximize your chance of being approved for a mortgage, you will not want to file for bankruptcy or be foreclosed on if you already have a mortgage for another house. Doing this will prevent you from getting a mortgage for several years.
Have Your Information Ready
When applying for a loan, make sure to have all your information available to give. Make sure that you include all the correct information as incorrect information or mistakes can lengthen the process. You will also want to make sure that you choose a loan amount that you are able to afford.
Beware of Higher Interest Rates With Longer Amortization
This type of loan is becoming more popular because it allows for the homeowner to make a lower monthly mortgage payment. However, if you choose this type of loan, you will pay more money in the long run because you will be paying more interest. You will have less equity, and you may find it much harder to move again in the future.
Keep Your Mortgage Payments Under Control
The best way to keep your mortgage rates from going up suddenly is to lock in your mortgage rates. You have the choice to float your interest rates, but make sure to pay attention to what they are before you make this decision. With each of these decisions, you'll have a mortgage that you'll benefit from.
For more information on mortgage pre-approval, contact a loan officer in your area.