What Every First Time Buyer Needs to Know about Home Mortgages
Buying a home for the first time is complicated because you are going to have to do so many different things at one time and in order to do it right you are going to have to do these things in the right order. The mortgage process is the most difficult part of buying a home. Most people wrongly think that it is going to be finding their dream home that is going to be the most difficult part, not getting the mortgage.
The mortgage work begins once you find the house that you want to move into. The first thing that you are going to have to do is talk to several different banks to find out what type of mortgage is right for you. First time buyers are going to get extra attention from the banks and may even be able to get special deals. When you are a first time buyer, you are going to find that banks either reject your mortgage application quickly or accept it quickly and really want your business.
They love applications that are backed with a good credit score and a stable financial history. On the other hand, they are going to hate it if you have a bad score, and you might find it impossible to get a mortgage from anyone but a lender that specializes in high-risk mortgages.
What awaits a first time buyer? Those who are getting their first mortgage are going to find that the bank that is lending them the money is extra attentive and responsive to everything. You should also check with your bank to see if they can offer you a lower interest rate, a no fee or no closing cost mortgage or a reduction (or elimination) of the private mortgage insurance that is often required when your down payment is not enough.
Some banks are going to offer those first time buyers a chance to learn about mortgages. This usually comes in the form of a class or seminar where you can learn all about mortgages. Sometimes these classes are optional but some banks require that everyone learn about budgeting your money, how much mortgage they can afford, the different types of mortgages out there, how to pay off their mortgage and other things that you need to make the transition from renter to homeowner successful.
Why do banks and mortgage companies care so much about first time buyers? The answer is simple, if they give you good service and provide you with the best deals possible from the beginning you are going to be more likely to come back to them in the future. Chances are, you are going to need a mortgage in the future. If someone has a great experience with your company, they are going to come back and not even bother looking at the competition in the future.
First time buyers can experience a lot of advantages over repeat mortgage seekers in that they are going to get service that is going to explain the whole process to them and perhaps even some special deals. However, first time buyers should be smart and still use this as an opportunity to shop around and find that best deal that is going to get them into their dream house without spending any more money than necessary.
The mortgage work begins once you find the house that you want to move into. The first thing that you are going to have to do is talk to several different banks to find out what type of mortgage is right for you. First time buyers are going to get extra attention from the banks and may even be able to get special deals. When you are a first time buyer, you are going to find that banks either reject your mortgage application quickly or accept it quickly and really want your business.
They love applications that are backed with a good credit score and a stable financial history. On the other hand, they are going to hate it if you have a bad score, and you might find it impossible to get a mortgage from anyone but a lender that specializes in high-risk mortgages.
What awaits a first time buyer? Those who are getting their first mortgage are going to find that the bank that is lending them the money is extra attentive and responsive to everything. You should also check with your bank to see if they can offer you a lower interest rate, a no fee or no closing cost mortgage or a reduction (or elimination) of the private mortgage insurance that is often required when your down payment is not enough.
Some banks are going to offer those first time buyers a chance to learn about mortgages. This usually comes in the form of a class or seminar where you can learn all about mortgages. Sometimes these classes are optional but some banks require that everyone learn about budgeting your money, how much mortgage they can afford, the different types of mortgages out there, how to pay off their mortgage and other things that you need to make the transition from renter to homeowner successful.
Why do banks and mortgage companies care so much about first time buyers? The answer is simple, if they give you good service and provide you with the best deals possible from the beginning you are going to be more likely to come back to them in the future. Chances are, you are going to need a mortgage in the future. If someone has a great experience with your company, they are going to come back and not even bother looking at the competition in the future.
First time buyers can experience a lot of advantages over repeat mortgage seekers in that they are going to get service that is going to explain the whole process to them and perhaps even some special deals. However, first time buyers should be smart and still use this as an opportunity to shop around and find that best deal that is going to get them into their dream house without spending any more money than necessary.
posted by Credit Counseling at
7:40 AM
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