Mortgage Tips for First Time Buyers

A home is the single most expensive thing most people will ever
purchase. In addition, paying off a home loan can take as long
as forty years and will involve paying an amount of interest
that exceeds the cost of the house itself. In short, buying a
house is not something to be done without a lot of forethought.
With the average American living in their homes for seven years
or less, most mortgages are probably offered to people who have
purchased a home before. But there are always people who are
buying for the first time, and for them, knowing how the process
works is important.

Here are some useful tips for
first-time homebuyers:

Know how much you can afford
to pay. This includes not only the total price of the house, but
the monthly payments, as well. Do not be fooled by the monthly
amount the lender tells you that you can afford; that number is
usually high enough to be well beyond most buyers\' comfort
zones. If the lender suggests that you can pay as much as $2000
per month but you only feel comfortable paying $1500 per month,
then that is your limit. You should buy a house that will allow
you to pay that amount, and no more.

Check your
credit ahead of time. No one wants to be denied a home loan
because of errors on your credit report. You can check it for
free at annualcreditreport.com. Get a copy and make sure the
information is accurate.

Shop around for a good
lender. The interest rates and terms will vary from lender to
lender, so you should seek out the best terms. Additionally, you
should try to find a lender with whom you feel comfortable. You
will be paying on your mortgage for decades to come, so find a
lender and terms with which you are
comfortable.

Be aware of closing costs. The
amount of money that a buyer is expected to bring to closing can
be astonishing. Don\'t be caught off guard when it come time to
close and the lender asks you to bring a certified check for
$15,000 that you do not have. Find out ahead of time exactly how
much it will cost you to close on the loan and have those funds
ready.

Most of these items will seem like common
sense, especially to those who have financed a house before. But
anyone who is buying a home for the first time should be
prepared for the process. By being prepared, the process should
go smoothly.