If you are a first-time homebuyer, this could be an exciting phase in your life. Finding 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 buyers 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:
Comparing different types of mortgage loans
In general, the majority of first-time buyers 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 mortgages, as well as interest-only mortgages. As first-time home buyer, you will have many questions about the mortgage loan. Do not hesitate to ask the lender about their products and services, including the advantages, drawbacks, and long-term effects.
Visit the 3-4 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. Consider bringing a list of questions to ask the mortgage lender, which will help you separate the good lenders from unscrupulous.
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.