First Time Home Buyer Loan Considerations
Interest Rates and Fees
best loan period
How to buy my first home?
Buying your first home is one of the biggest financial decisions you will ever make. This decision needs to be taken seriously.
If you are a first time home buyer, it can be very overwhelming to navigate a maze of procedures and work with agents, sellers and lenders, to name just a few of the players whom you would meet along the way. The pro is that you would find a lot of information, while the con is that you never know where the free advice ends and starts turning into a sales pitch. Do not worry, we have your back.
Start with these simple steps:
Refinancing a mortgage is to take a new loan to pay off your original mortgage loan. In most cases, homeowners refinance in order to take advantage of the market interest rates, cash a portion their assets, or to reduce their monthly payment with longer repayment term.
- Work on improving your credit score.
- Allocate and decide on a budget for your home.
- Be ready with initial payment and associated costs.
- Have sufficient money in your savings account to cover unforeseen costs associated with buying a home.
- Speak with a mortgage professional.
- Find a real estate agent.
- Look for a house you want to buy.
If you’re just starting your home search or are ready to find a lender, choosing a mortgage or loan near you, call us at 866-660-5994 to start comparing best rates from top lenders in the industry.
Should I buy a house?(Rent vs Buying)
Questions on renting Vs buying is not something that people typically ask and answer once. It is a decision with many moving parts, and things change: you are considering moving to a cheaper or more expensive area, your savings down payment grows, you’re curious to see what happens if you spend less on a house, or more.
Before you make a decision, ask yourself:
- Where you want to live?
- The purchase price of the house (ask how much you can afford?
- Your initial down payment or deposit
- The duration of your mortgage (a 30-year mortgage is the most common)
- How long you think you’ll live?
- Compare this with the cost of renting a similar home
What kind of loans are available for buying a house?
Buying a home is exciting, but trying to calculate the financial side of things can be overwhelming. Choosing a mortgage is not as painful if you are well informed. Once you’ve done some research and nailed budget amount and down payment, and reviewed your credit score, you’ll have a better idea of which loan works best for your needs.
Here are the 5 most common types of mortgage loans available:
- Conventional mortgages
- Jumbo mortgages
- Government-insured mortgages
- Fixed rate mortgages
- Adjustable Rate Mortgages
How much down payment is needed?
“A lower down payment makes you a greater risk in the eyes of the lender.“
Conventional mortgages, such as traditional 30 yr fixed, usually require at least a down payment of 5%. If you are buying a home for $ 200,000, in this case, you will need $ 10,000 to secure a home loan. FHA Mortgage. For a mortgage backed by the government as an FHA mortgage, the minimum down payment is 3.5%.
How is EMI for home loan calculated?
Finding out the exact amount to pay each month, is not simply calculated by the number of months you plan to pay back the loan. You also have to consider the interest percentage and other possible charges, fees and local property taxes on mortgage insurance.
What are the documents needed to buy a home?
Based on your unique situation, here are seven documents you would need while applying for a home loan.
- Tax returns. Mortgage lenders want to get the full story of your financial situation.
- Pay stubs, W-2s or other proof of income.
- Bank statements and other assets.
- Credit history.
- Gift letters.
- Photo ID.
- Renting history.
How long does the process take?
So, on average, a homebuyer takes about 30-60 days in shopping the desired house, 14-60 days from contract to close, and probably about 14-45 days before the first mortgage payment. For some people, the process can be very fast and have just 30 days in total. For some, the shopping period alone can last for several months.
Disclaimer: callmortgageloan.com strives to keep the information accurate and updated. This information may be different from what you see when you visit a financial institution, service or site of the specific product. All financial products, commercial products and services are presented without guarantee. While evaluating the bids, please check the Terms and Conditions of the financial institution. Pre-qualified offers are not binding. All logos, brand names, trademarked words used in this site are owned by respective owners of the brands. callmortgageloan.com doesn’t have any rights on any of the brand names or logos mentioned over here.