Are you wondering what type of mortgage you need for buying your first house? If so, you’ve come to the right place! At Mortgage Solutions Financial, we specialize in working with first-time home buyers.
We know that buying your first home can feel overwhelming and sometimes stressful. We’re here to help simplify the process and make it as straightforward as possible. This includes providing you with useful information about your loan options.
Below, we’ve provided some advice on how to choose the right mortgage that aligns best with your needs.
Deciding on a Mortgage for Buying Your First Home
If you’ve been thinking about buying your first home, you’ve probably already started doing some research and may even have started looking online at homes for sale in your area. But equally as important as finding the right home is choosing the right mortgage. It’s important to choose an option that makes sense for your financial situation and aligns with your long-term goals. Here are some tips that can help you get started in the right direction:
Know Your Financial Situation
Do you know your credit score and debt-to-income ratio? It’s important to gain an understanding of your financial situation. Different loan programs have different requirements. You’ll want to gain a solid understanding of your finances so that you know which loan options you qualify for and which you don’t. There’s no sense in wasting your time on applying for a loan that isn’t right for you.
Learn About the Different Types of Loan Programs
Next, you’ll want to start educating yourself on the different types of loan programs. If you’re buying your first home, you may want to look into programs that are specifically geared toward first-time buyers. FHA loans are a great option for first timers because they have relaxed requirements and buyers typically don’t have to put as much money down as they would with a conventional mortgage. Other great options for first-time buyers include VA loans for military borrowers and USDA loans for rural homes.
You’ll also want to consider your mortgage term. 15-year loans have lower interest rates, but higher monthly payments. 30-year mortgages have lower monthly payments, but borrowers pay more interest in the long run. It’s important to think carefully about what loan term you choose. You don’t want to overstretch yourself, but if you can afford a higher monthly payment, you may save money in the long run with a 15-year loan.
ARM vs. Fixed Rate Mortgages
Additionally, you should familiarize yourself with the different types of mortgage rates. Borrowers with fixed-rate loans retain the same interest rate over the lifetime of their loan. With an adjustable-rate mortgage (ARM), your interest rate fluctuates based on current market rates.
Shop Around and Compare Lenders
Don’t be afraid to shop around and compare offers from different lenders. In addition to comparing different rates, you should also compare other aspects of working with a particular lender like customer service and communication.
Explore Loan Options for Buying Your First House
Ready to get started? Call our office today to speak to a member of our team and begin exploring your options!