“I wish I’d known!” - 4 Tips for a Mortgage for First-Time Home Buyers

It would be nice if life came with an instruction manual… But it doesn’t. So when you’re looking to buy your first home, it can be easy to become overwhelmed with questions over this confusing process. Here are 4 tips for getting a mortgage for first-time home buyers. These are the “I wish I’d known” instructions that previous homeowners have found out… the hard way! Learn from their mistakes!

Tip #1: Be credit-rating savvy

Great mortgage rates are largely influenced by your credit rating. The better your credit, the better mortgage rates you may get on your mortgage. Therefore, if you are a first-time home buyer who is thinking of getting a mortgage, even if it’s a few years down the road, start working on your credit today. The effort you invest now could save you a lot of money in the future.

Tip #2: Get pre-approved

Too many “newbies” start by looking for their dream home and then when they go to get their mortgage, they discover that it’s out of their price range. Start by getting pre-approved and that will help you know exactly how much you can afford.

Tip #3: Don’t just focus on the interest rate

A great mortgage for first-time home buyers is not just one with a low interest rate. There are many components to a mortgage that you need to consider. Interest rate is one, of course, but so it your term (how long you’ll be paying your mortgage off) and the frequency payments are also a factor.

Tip #4: Remember closing costs!

This can be the most shocking mistake of them all because a mortgage for first-time home buyers is only the first step. There are additional costs – not associated with the mortgage – that are required for closing. These including home inspections, lawyers fees, moving costs, and more. Be prepared to pay for these costs as well!

First time home buyer? Congratulations! Make sure you follow these 4 tips to help you navigate the complex world of mortgages more easily.