What You Need to Know About Your First Mortgage
First Mortgage
Your first mortgage is almost certainly going to be one of the key factors in being able to buy a house. If you’re like most homebuyers, though, you may not have put all that much thought into what this loan is going to look like.
As such, it’s important for you to know a few things about your first mortgage so that you can plan for your future a bit more successfully.
There Are Many Different Mortgages
Perhaps the most important thing for first-time buyers to know is that there is more than one product under the umbrella of mortgages.
You can certainly get a conventional mortgage, but there are also products like FHA loans and VA loans that can help certain buyers get into a home more easily.
It’s always a good idea to look into different mortgage types to figure out which ones best suit your needs.
It’s Highly Dependent on Credit
Getting a mortgage is highly dependent on your credit score. Different types of mortgages have different credit minimums, and failure to qualify for certain types of mortgages might mean paying more for your down payment and getting a higher interest rate.
Even being able to bring up your score fifteen or twenty points might be all that it takes to get a better type of mortgage.
The Process Takes Longer Than You Think
Actually getting a mortgage can take a long time. You’ll get pre-approved for your mortgage fairly quickly, but then you’ll go into underwriting and have to satisfy certain conditions to get your loan before you can close on your home.
The process can take anywhere from weeks to months, so it’s always better to get moving quickly if you know that you want to buy a home.
The Interest Rate is Everything
Finally, you’ll need to remember that the interest rate you get on your loan really is everything.
A tenth of a percentage point on a loan can mean hundreds of dollars each month, which can translate into thousands – or tens of thousands – of dollars every year.
As such, it is always a good idea to seek out the best interest rate possible for your mortgage.
Getting your first mortgage isn’t always easy, but it is usually a necessity if you want to buy a home.
You need to know what the process will be like and what it will require of you before you start shopping.
When you find the right loan, though, you’ll be able to get a home of your own.
Category: Housing
