First Time Home Buyer Questions to Ask Yourself

Are you thinking about buying your first house? It can definitely be intimidating and overwhelming as you navigate to find the perfect house and figuring out how to  finance your dream home. Determining the perfect loan is difficult enough, but navigating rates, fees, and loan types can be absolutely perplexing.

We recommend that you give one of our Mortgage Brokers a call or email so that they can assist you with navigating the mortgage process. Our Mortgage Brokers assist you more than any written information or automated solution. In fact, sitting down with a Mortgage Broker can give you a much clearer picture of your specific mortgage situation.

In the meantime, we assembled questions to ask yourself as you begin thinking about when you start exploring home ownership for the first time:

  • What is your credit score? When you  begin looking at all the different loan types, make sure to think about your credit score as it can have an impact on the types of loans you qualify for and it will have an impact on the interest rates you are offered. Ultimately our payment history has a bearing on the various loan programs available. Knowing what’s in your history and where you stand can help you find the right path. Many first time buyers have a shorter credit history – and sometimes no history at all, and a qualified Mortgage Broker can assist in navigating all the details.
  • What is your budget? Don’t let calculating your budget scare you. Simply account for your income, expenses, and remember to consider any assets you have. For example, this would be like a savings account. Your budget is heavily influenced by your debt-to-income ratio. Thi is the amount of income you have minus expenses. A rough estimate can be calculated by subtracting your monthly expenses from your income. Make sure to also account for taxes and insurance. You’ll need to leave some room. Knowing the monthly payment that you can afford can assist you in calculating the equivalent purchase price of your house. You can then use tools like our Mortgage Loan Calculator to determine a comfortable budget range.
  • How much down payment do you have?. Knowing how much money you have available to put down on a house is key in figuring out the best loan for you and your family. Keep in mind different loans have different requirements. Choosing to make a bigger down payment can assist in removing the need for private mortgage insurance (PMI) or lowering your monthly payment. Other programs, like the USDA Rural Housing loan or FHA loan, require less money down, but are only available under certain conditions.
  • What loan programs are you interested in? – There are multiple types of loan programs that exist. There are Fixed Rate Mortgages, Balloon Mortgages, construction loans and many more. The different types of mortgages may have certain qualifications and/or requirements. There are some types of mortgages that make sense only in certain circumstances.
  • Have you obtained your pre approval? A mortgage preapproval letter is quite a valuable tool in your house hunt. Working with a Mortgage Broker to obtain preapproval allows sellers to know that you are a serious home buyer. This is a great way for a first-time buyer to get ahead in a competitive market.Your preapproval letter is based on the information you submit. While preapprovals are not exactly a guarantee that the mortgage will be approved, they do provide an indication of what you can afford.
  • Have you checked into first-time home buyer programs? There are many programs for low-income and low-to-moderate income residents that assist with closing costs and down payments to assist with homeownership. These and many other programs are also available to first-time home buyers. Reach out to one of our qualified Mortgage Brokers who can assist you in determining the program(s) for which you qualify.

At the end of the day, the mortgage process is not as intimidating once you have assembled the right information. Even active markets can be conquered with the right process.

Working with an experienced Mortgage Broker who will guide you through the entire process is invaluable. They can navigate the different loan types and assist you in figuring out what works best for your specific situation. Every mortgage has its own unique set of circumstances and other specifics that form the process. We know that purchasing your new home is perhaps the single largest purchase you will ever make, it only makes sense to work with a Mortgage Broker who knows the entire process. 

If you are ready to initiate your first-time buyer mortgage process, then contact us to get started. 

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