Saturday, 12 March 2011

Important Tips For First-time Mortgage Buyers

By Daryl Maksymec


For any prospective first time home owner, shopping for a mortgage can be an overwhelming and sometimes intimidating experience. It is completely natural to feel some anxiousness about undertaking a long term commitment, such as a mortgage. However, like doing anything new for the first time, the amount of preparedness beforehand can reduce any uncertainty and assist in making the experience of shopping for and purchasing a mortgage a positive one.

Ensure that you are realistic when working out exactly how much you can afford to spend on your new house. A newly built house will require little more than some your possessions and furnishings, whereas older properties may require extensive work, such as re-flooring, tiling, roof repair or renewing the wiring. Make sure that you factor in all these likely expenses in addition to the purchase price.

When buying for the first time, there may be a number of details in the houses you are looking at, which you may not pick upon immediately or even be aware of. Always take an experienced home buyer, such as one of your parents or a home-owning friend, when looking at property. If this is difficult to arrange, make sure you, at least, get some assistance once you have selected a property you like, and are arranging a second viewing. An experienced set of eyes will be a great asset to you.

Even if you do not have children, remember that property in the general vicinity of good local schools will always be much easier to sell later on. Be advised, however, this may also be reflected in a higher purchase price.

Discuss the interest rate outlook with your loan officer and try to learn as much as you can about how ups and downs in interest rate quotes might affect your mortgage payment and your ability to qualify for that loan.

Other types of loans can be more complicated. If you want to consider an adjustable-rate mortgage (an "ARM") or perhaps other less common types of loan products, do your research and make sure you fully understand how your loan works before you sign any loan documents at all.

When initiating the search for mortgage financing, it would seem the easiest route would be to simply turn to their own financial institution for assistance since there is already an established level of familiarity. The bank will have an dedicated employee who specializes in mortgages and can help work with qualified buyers to obtain a mortgage through that institution.

First time home buyers would be well advised to take advantage of readily available resources such as the internet, recommendations from trusted peers, co-workers and family to research a mortgage agent, brokerage, or banking institution. Since this is likely to be their largest single investment, in addition to the place they will reside and raise their family, quotes on mortgage rates and terms are imperative. A trusted mortgage professional will help to explain to you the costs that are associated with purchasing a home and the requirements which must be met to qualify for a mortgage, sometimes even assisting in recommending a reputable and reliable real estate agent or lawyer.

As a first time home buyer looking for a mortgage it pays to be informed - and that will enable you to make better decisions. Utilizing the professionals in the industry (and their extensive knowledge base) will help the process and make what feels like a daunting and complex situation a little easier. Be thorough in your research and ask any and all questions as you see fit. Know what you can afford and make your choices with confidence - your mortgage is your bridge to ownership.




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1 comment:

Mortgage Buyers said...

Hello,

Nice blog! A mortgage buyer may offer creative solutions that allow lenders to use notes more effectively in garnering further investments. Thanks a lot...