Knowing the worst mortgage options when buying a home can have a long-standing positive impact.
An adjustable-rate mortgage may feel like the right choice upfront. They are a massive risk in the long run. This funding mechanism ropes you in with a low initial interest rate; your lender can raise the interest rate, and your mortgage payment goes up! Many first-time home buyer loans only require a small amount but can cost thousands more in the long run.
Find a lender you trust because it is imperative to explore your options. Ask for recommendations, confirm what your associates tell you by checking online reviews, and then ask your realtor for a suggestion.
You can shop around and interview a few people to make your decision comfortable. Make a list of questions you have for your lender before the meeting. There are no silly questions. Find out the documents you need to bring with you. Ask about the lender’s experience, and ask for information on available first-time home buyer programs if this is going to be your first home purchase, or ask what buying programs they may have for a buyer like yourself. Often there are veteran programs you can take advantage of and more. In our area, we have the WCDA program for first time home buyers. Be sure to get all the details for it to weigh the pros and cons. Make sure there are no pre-payment penalties for paying off your mortgage early. Find out the timeline from start to finish to get a mortgage.
Then you will want to be preapproved for a loan before you start to look for a home. Being preapproved is not the same as being prequalified. Preapproval is when your lender verifies your financial information and gives you a letter saying how much money you can borrow. It’s just a further step to ensure that you are looking at homes that you can qualify to buy, and it will make the buying process faster for you when you find the home you love and may even help you get your offer accepted.
We wish you success in your home investing process! If you want home buying help, give us a call at 307-635-0303!