Are you looking for a first time home buyer mortgage? If you’ve found a home you’d like to purchase or are currently looking for a home, no doubt you are going to need a mortgage in order to realize that dream of owning your own home. You’ll want to shop around a bit for the mortgage available and in doing so you will be amazed at the variety of mortgages that are out there. You’ll probably want to start your search with your current bank or credit union.
While one lender might offer a lower rate of interest but higher fees and points, another might present a slightly higher interest rate, but lower points and fewer fees. You will need to take an overall look at what all of that means to you financially over the long haul. A mortgage is a long term commitment and you will want to be sure that it’s one you really want to make.
First Time Home Buyer Mortgage: Where to Start
Lending institutions will be glad to sit down with you to discuss your current financial status as well as your ability to qualify for a first time home buyer mortgage. They’ll be able to tell you how much money you can borrow and at what percentage rate of interest. When applying for your first mortgage, the lender will be looking at your credit score, your income, current debt and your employment history. It’s a good idea to check with credit reporting agencies before applying for a loan to make sure there are no errors in your credit report.
The first thing you’ll want to do, if you haven’t already, is to start saving for a down payment. The more you are able to contribute up front the better chance you will have for obtaining a first time home buyer mortgage. With a substantial down payment you will also be borrowing less. Begin your savings strategy by creating a realistic budget that allows you to put money away for a significant down payment. Creating a financial savings goal and working toward it in preparation for your first time home buyer mortgage will put you on the road to success.
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