PURCHASING YOUR FIRST HOME

First determine how your mortgage payment will fit into your current budget, and to some extent your future obligations 15 to 30 years from now. Your first step to new home ownership is examining your finances before your shop for a home loan. Don’t forget homeowner’s insurance and taxes when determining a comfortable budget for you, the new homeowner. Once you have determined your own financial information you are ready to look at loan options. Shop the mortgage loan costs, interest rate, broker fees, points, penalties, loan term, application fees and a host of other costs usually involved when buying a home.

The real issue with real estate financing is not getting a loan(any one willing to pay lofty interest rates can find a mortgage), instead it is getting the right loan with the lowest cost and best terms. Many lenders are willing to meet with you in advance of finding a home you want to buy and determine the loan amount you for. This pre-approval demonstrates your financial strength and shows that you have the ability to go through with a purchase offer. Your Pre-Approval letter is a valuable tool as you start the next step- looking for the right home.