Things To Consider When Shopping For Firsttime Home Buyer Loans
When shopping for firsttime home buyer loans it’s wise to compare
lenders and loans to get the best mortgage loan for your needs.
Among the first questions you should ask yourself is how big of a
mortgage can you afford?
The answer should come from your gut instinct and only after you
have spoken with a qualified lender. Ultimately you’re the only
one who can determine what you can realistically afford. You need
to do your homework about firs time home buyer loans and find out
the maximum mortgage you qualify for and then give some thought
as to whether it falls within your personal comfort zone.
A potential lender will run some numbers for you and come up with
a magic number based on the financial information you supply and
your personal credit history. Although it may be in the ball park
of what you can afford, it may prove to be too much of a
financial hardship in the years ahead.
First off, if you currently rent don’t use your monthly rental
fees as a comparison. Firsttime home buyer loans are very
different – it’s like comparing apples and oranges.
Use your monthly rental costs as a guideline only. On one hand it
would make sense to compare the two but you also have to consider
other factors such as the need to pay extra for property taxes.
In a rental situation such taxes were incorporated in your rent.
Property taxes can vary between a few hundred to a few thousand
dollars per year depending on where you reside.
Furthermore, did your rent include utilities? If so, you also
need to factor in the cost of gas and hydro in addition to the
cost of any firs time home buyer loans. And what about having
enough money you can put aside as an emergency fund for home
repairs and general maintenance? Remember you no longer have a
landlord you can call upon when something needs fixing.
Then there’s mortgage insurance to consider whenever you’re
shopping for firs time home buyer loans. This is especially
important if you have a high-ratio mortgage.
Another good rule of thumb when shopping for firs time home buyer
loans is that if your current rent falls within your comfort
level, aim for a slightly lower monthly mortgage payment.
Exploring your total monthly debt load as well as your total
monthly housing costs is one of the best ways to figure out what
is a realistic mortgage payment.
Your next task is to find a lender who specializes in firs time
home buyer loans and who will offer you the best deal. Again
research and comparison is needed. It will take you some time to
investigate both lenders and loan packages. But it’s time well
spent. The time you took to investigate the best in firs time
home buyer loans could literally save you thousands of dollars
over the course of your mortgage.
The bottom line when searching for firsttime home buyer loans is
to invest in doing your homework. Research all your options
before you start looking for that dream home.