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As a first-time homebuyer, one of the
most important things you need to think about is a mortgage. You can find
out about the different types available by looking in the real estate
section of the newspaper, surfing the Internet, going to local banks with
mortgage availability or consulting a Mortgage Broker who will deal with
several different lenders.
In order to choose from the hundreds of
different types available, consider factors such as the size of loan you
need, the monthly payments you can afford, whether you're looking for a
mortgage with low up-front costs and the length of repayment period you
want. You should also investigate programs designed especially for
first-time buyers. Many are locally developed and administered by your
state, province or local community.
A further step you
can take, to help you find out exactly what you can afford and to show
sellers that you are committed to the buying process, is to seek
Pre-approval. This is when a lender, after verifying your income and
checking your credit, gives you a letter of commitment stating that you'll
be given a mortgage up to a certain amount (as long as certain conditions
are met). You will also find out what the closing costs will be and be given
a chance to lock into a rate without being obligated to anything. It will
also tell you well ahead of time if you are going to face a major problem
during underwriting when you formally apply for a mortgage, after you have
made an offer for your first home and it has been accepted. |
