Buying your first home is no doubt one of the most mind exhilarating and rewarding experiences in the world. It is for this reason that anyone thinking about buying their first home should take some time to learn the basics of first time home buying. These basics can help make the process far easier and more enjoyable for everyone involved.
How Mortgages Work
Mortgages are much more than a typical loan. They are loans that are levied and given against the value of your home. Generally, the larger down payment or cash sum you have on hand when you seek your loan, the less you will need to finance or borrow and the better interest rate you can negotiate. The mortgage amount will be lent against the overall value of the home. After the home you are looking to purchase is valued by the lender and the appraiser, the lender will take into account how much money you make each year, how much money you have to put down on the house, and how much the home is worth. These factors will help your lender decide what amount to lend. Your lender will be able to explain the nuances of your particular loan and can help you understand the legal side of your mortgage.
Mortgage Rates, Escrow, and More
As a first time homebuyer you will learn about mortgage rates, escrow, and other financial terms and processes, helping you to make informed decisions. Mortgage rates fluctuate continually with the conditions of the current market and lending rates across the country. Working with a qualified loan officer, at Homeowners Mortgage you will have assistance obtaining the best rate possible.
Escrow is another concept that is worth understanding the basics of, as it is incredibly helpful for homeowners both new and old. After you establish an Escrow account, your monthly mortgage payment will include an additional amount, which is tucked away in an account to pay the cost of property taxes and insurance, as they come due.
Finding a Realtor
Finding the right realtor to work with can make finding and buying a home so much easier. A realtor will help you find homes to view, set up showings, discuss financing options, and even help you negotiate price on the home you want to purchase. The right realtor will prove invaluable as they help you get all the paperwork in order that you will need to get your loan underway.
Choosing a Loan Officer
Selecting a loan officer can seem almost as difficult as deciding on a home to purchase. Luckily for you, Homeowners Mortgage makes it easy. With over thirty years of home mortgage lending experience, our loan officers are dedicated to providing personalized service to help every client find their optimal loan solution. Find a location near you and discover how we can help you today