Loans Don’t Have to Be Scary for First Time Home Buyers
Renting does have its perks. Making a call to the superintendent every time the faucet leaks or the tub needs caulking is a nice benefit. But there’s something about owning your own place, deciding on a whim that yes, you can hang that wallpaper without asking permission and tap dance in the living room without fear of downstairs neighbors’ complaints. It all sounds great until you hear someone complain about securing a mortgage. But don’t worry; these first-time home buyer tips will help you sail through your loan process.
Tip #1: Don’t obsess over 20% down. Putting 20% down on your first house may be ideal because it means you don’t have to pay private mortgage insurance (PMI), but you don’t have to pay that much down. You can secure a loan for much less on your down payment because programs through Freddie Mac make it possible for you to pay as little as 3% down on your first home. Talk with a lender to see what programs might be applicable in your situation.
You may also be able to find a program unique to your city or state that offers down payment assistance. The trick can be matching the lender that participates in the program, so get a list of approved lenders from the agency to access those programs.
Tip #2: Protect your credit score. If you shop around for mortgage rates, with multiple lenders running credit checks, it could hurt your score. Instead, run your own credit check and use it to get informal rate quotes from multiple lenders. When it’s time to secure a loan, the lender can then pull a single credit report and use it to create your mortgage.
You should also prequalify for a mortgage, but when it’s time to secure the financing, be sure to shop around. You’ll need to do this quickly because you risk your contract if you drag the process out past the deadline for financing, but most lenders will get back to you quickly with the rate and mortgage payment you’ll expect.
Tip #3: See if you can close quickly. You may secure a lower interest rate if you can close quickly on your home. Lenders have accessibility to more data and if you can help push the other aspects of your purchase forward, such as inspections, you may be able to get a lower house payment.
At Dani Beyer Real Estate, you’ll always enjoy a stress-free closing process that is expedited as quickly as possible. Ask about the strategies we use to make your home-buying experience fun and enjoyable.
Tip #4: Shop around. One of the best first-time homebuyer tips is simply to look at multiple lenders in terms of fees. You’ll be paying most of the fees that come with your mortgage, so check around to see if you can save some money in this area.
Want to know more first-time home buyer tips? We’re just getting started! Contact us at Dani Beyer Real Estate and we’ll have you tap dancing on your very own living room floors in no time.