Tips For Getting Your First Mortgage
April 21, 2009 by admin
Filed under Home Finance
If you are looking for a way to own a home of your own, you want to get a mortgage. You have many options when it comes to getting your first mortgage. You can get an FHA loan for first time home buyers, or you can also get a conventional mortgage loan. Mortgage loan rates have gone down as the government is trying to get people to buy homes. There is also a new tax credit for first time home buyers that you can take advantage of as well.
Before you get your home mortgage loan, you need to be aware of the responsibilities it will entail. In addition to paying your monthly mortgage payment, you will also have to pay real estate taxes as well as insurance on the home. These are usually included in with your mortgage rates.
Your mortgage interest rate will vary depending on your current credit rating as well as how much you are putting down on your home. You can use a mortgage calculator to figure out your principal and interest payments for your mortgage loan. You can find a mortgage calculator that will let you know your mortgage payments right online. This figure will not count the amount of real estate taxes or the homeowner insurance.
Your home loan lender will be able to give you a rate and help you figure out what type of mortgage loan is best for you. If you decide to go with an FHA loan, you can put as little as 5 percent down. If you get a conventional mortgage loan, you will need to put 20 percent of the value of the home down as a down payment. If you do not put 20 percent of the value of the home down for the home mortgage, you will have to get private mortgage insurance. Mortgage brokers can help you obtain this. Private mortgage insurance, or PMI, is usually paid for 7 years and protects the mortgage lenders in case you default.
If you do not make your mortgage payment on time, you will be in default of your mortgage and subject to foreclosure. Before you apply for a mortgage loan, you need to b sure that you are able to afford to make the mortgage payments. Take a look at mortgage calculators and see how much the mortgage payments will cost. If you are comfortable with the idea of making mortgage payments, then you can apply to a mortgage lender for a loan. Your mortgage lender will collect the information from you that you need, such as financial documents, do a credit check and will send your application to a mortgage processor so that it can be ready for an approval. Once you are approved, you will be able to close on the purchase of your home.
Anyone who is considering buying a home of their own, needs to understand what a mortgage loan entails and should apply for mortgage loans by looking at interest rates and finding a mortgage lender that can offer them the best competitive rate.