Financing Your First Mortgage?
Buying your first home is an incredibly exciting time. It is vital to be as prepared as possible when it comes to paying the mortgage. You don’t want to end up losing your property due to inadequate financial planning.
About 10 years ago, the US real estate bubble burst and foreclosure rates continually increased between 2006 to 2007. You don’t want to end up in this situation.
Do you have questions about financing your very first home mortgage? Do you need advice to ensure you can handle the costs? Read our top five tips.
Feel Free to Make a Small Down Payment
It is a common misconception that you need to make a hefty down payment, such as 20 percent. You can get your first home mortgage loan from the Federal Housing Administration for as little as 3.5 percent.
The Department of Veterans Affairs offers mortgage loans with no down payment for veterans and active-duty service members.
The U.S. Department of Agriculture provides zero down payment loans as part of their Rural Development program.
Work on Boosting your Credit Score
Your credit history and score are vital pieces of information that lenders look at before deciding to finalize a loan. It is important for you to have good credit history.
Take some time to check your credit history and score. If there is a discrepancy, file a written dispute to remove the error. This will improve your score.
Refinance your First Home Mortgage Loan into a 15-year Loan
People often refinance their loans to reduce interest rates. There are multiple reasons to refinance your first mortgage loan into a 15-year time period (instead of the standard 30-year loan.)
A 15-year loan means you will be paying off interest rates for a shorter period of time.
Compare and Contrast your Loan Options
Even if you think you have found a great interest rate on your loan, you should still take a look at other options.
Do a bit of research to see if you can get a lower interest rate with a small down payment.
Find out about a Mortgage with no Closing Cost
Closing costs and mortgage fees can rack up quite a bill. Consider accepting a higher interest rate so that the lender pays for all of these closing costs.
Mortgages without closing costs are especially attractive to buyers who are planning to live in their new home for less than five years.
Do you have any questions about financing your first home mortgage? Contact us here!