If you are a first time home buyer, this could be an interesting phase in your life. Of course, figuring out how to buy a home and qualify for a mortgage can be stressful as well. Unless you can pay in advance by cash, you will need to shop around for a mortgage loan. Although there are many mortgage lenders for first time home buyer loan to choose from, as well as a variety of loan products to consider, not all of them will be right for you.
Here are some tips on mortgage loans for the first-time homebuyer:
3-4 visit mortgage lenders
When you start the home buying process, you will find that there are many types of lenders out there. You should interview at least three or four lenders so you can compare options and determine which bid is best for you.
Comparing different types of mortgage loans
In general, the majority of first-time homebuyers opt for a 15-year or 30-year fixed mortgage. While fixed mortgage offers stability and a predictable monthly payment, there are also other types of home loans to consider. It is recommended that you look into the pros and cons of adjustable-rate mortgage (ARM), and interest-only (I-O) mortgages. As the first-time homebuyer, you will have many questions about the mortgage loan.
Get pre-approved for a mortgage before you go house hunting
Mortgage loan pre-approval is a good way for first-time homebuyers to determine how much they can afford based on their financial standings. It also gives you buying power when you're house hunting because it assures the seller that you can get the right financing.