Are you looking for some info on home loans. Below are four cool tips to help you become a savvy mortgage shopper!
If you're going to start looking for your first home--and assuming that you can't pay cash in full for it--then you'll need some first time home buyers info.
If you think you are ready, be sure to get a loan that works well with first time home buyers.
Knowledge is power, and without this info you are losing out on
knowledge and, thus, you are losing your own power. This is an exciting
but scary time for you if you're going to become a first time home
buyer. You need every advantage you can get to see you through these
times and make it worth your while to be excited.
This page will discuss four useful tips to help you shop your first mortgage.
I'll go into detail on each of these first time home buyers info and tips below, so don't miss a single one.
An important part of your first time home buyers info is knowing that there are various mortgage calculators online.
Why is this an important tip? Before you apply for the mortgage you can get an idea of what you can afford.
Calculating your future mortgage payment depends on one of these calculators, which every loan officer uses (either as a calculator or, more likely, as a wall chart). When you use one of these calculators, you take the loan amount, divide it by one thousand, and then multiply it by the appropriate factor which itself encapsulates length of loan and interest rate. This will give you your monthly payment.
Many online calculators figure this for you, all you have to do is put in the loan amount to buy the home and the interest rate. Usually they want to know how many months you will be paying on the loan. Use 360 months which is a 30 year mortgage. But play with this, use 180 months to see what your payments will be for a 15 year mortgage.
Now play with the interest rate. Put in different rates to see what your payment will approximately be.
You can use imaginary rough estimate for the loan amount or you can base your entered data upon an actual price for a house you have your eye on. The mortgage calculator will let you know how to figure out that mysterious monthly loan payment amount. This helps you figure out in advance what amount of loan and what range of interest rates you could afford.
Before you even apply for a mortgage, you can get an idea of your payment amount. Keep in mind they take in other factors too, like how much of your monthly income goes toward bills. Some calculators will even have you put in your bills to see if you can afford a mortgage.
Read on to find some other first time home buyers info and tips.
The reason this is an important tip, is I found most first time home buyers hadn't counted the cost of a down payment. Plan for this early. If you know you will need help, start your search now for assistance.
There is help out there, but you will need to search for it. There is state and federal help, but many local areas will have help as well.
First time home buyers info would not be complete without knowing how to get hold of information about this assistance. Check with your local housing authority for local assistance. Or you can check this website for the state and federal options. Just go to the nav bar on the left and look for grants or down payment aid.
Getting your ducks in a row early is planning for success, that's why this is the second first time home buyers info tip.
Why do I suggest this, why not just trust the loan officer? Unfortunately, every loan officer has certain programs they work with and they know which ones pay them the best. So they will steer you in the direction that makes them the most money.
There are many different mortgage programs out there now. Don't be sold on any of them that balloon--that is, they start off with a low, low payment and interest rate but after a certain period, say one to three years, that rate and payment balloons.
By being knowledgeable its harder to pull the wool over your eyes. Here's a couple of examples of what I am talking about. One client came to me who was upset with what happened to them. They had met with their loan officer and he offered them a really great deal. Then the loan officer suggested a real estate agent to help them.
I was proud of them that they sought to know how much they qualified for before they began looking for a home. The real estate agent worked with them real good and they found their dream home. They when they came to the closing the deal had changed....it was a great deal more.
See why you should be familiar with the programs and what to expect. Another example was a person who told their loan officer that they couldn't afford the loan they had set up for them. The loan officer said they could change it to whatever they could afford.
She was so excited to get a home at a payment she wanted. Little did she know, the taxes and insurance was not included in the payment. That was how the loan officer was able to get the payment lowered. Now she had a huge tax bill to pay and wasn't prepared for it. She had signed agreeing to this but didn't understand what she was signing. She lost her home eventually!
Know the programs and what is involved! If you have questions, don't hesitate to ask me....pick my brain. I'm here to help you.
Many loan officers don't like to do FHA loans. That was one of the areas I specialized in because it helps many first time home buyers get a home.
If you can only come up with a very small down payment, an FHA loan could be your answer. You can borrow up to 96% of the sale price with this type of loan.
The interest rates are above par--that is they are higher than for conforming loans for people with good credit--but, they are still lower than for other types of non-balloon mortgages. You will, in other words, get a very good interest rate and not have to rely on grants or assistance.
Loan officers don't like these products because they are a little more work for them. But check it out for yourself, it may be a good opportunity for you to buy a home.
One note: you need to look up the FHA loan limits in the county where your target home is located before you know if this is a viable option. However, for the great majority of first time home buyers their loan needs fall within FHA limits.
These are some of the most important pieces of first time home buyers info that can help you secure the best possible loan for your needs.
Do you have more questions? Have a Question is an awesome place to look for answers and if you cannot find what you are looking for, it is also a good place to ask all your questions. Go ahead...pick my brain!
Here are some online mortgage calculators that you can use to figure all sorts of things.
Would you like to know more about what down payment assistance programs there are out there? Click on the above link for a wealth of information.
Perhaps you would like to know more about the FHA home loans product. Click on the FHA home loans link for a ton of information on their products.
Go to House Buyer Solutions Home Page.
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