You can’t know everything there is to know about buying a home — especially when you’re a first time home buyer. However, you can do a little research
and put yourself in position to succeed.
The more you know, the better off and less stressed you’ll be. You may even get a better deal on your new home loan.
If you’re just getting started, there are a few key tips to keep in mind before diving in:
Contact at least three mortgage lenders to ensure you’re getting the lowest rate. Many first-time home buyers make the mistake of going with the first lender they talk to, and they miss out on thousands of dollars of savings
- Learn about different types of home loans. While there are dozens of loan types, more than 90 percent of buyers will end up using one of four major loan programs: Conventional, FHA, VA, or USDA. Find out which loan best fits your needs — there are options for low down payment, low credit score, self-employed, large loan size, and more
- Understand your price range and monthly payment. Calculate your mortgage payment, including principal, interest, taxes, and insurance. Understand your mortgage rate as well as your budget. This will allow you to shop for a home and a mortgage with confidence
If you keep these three things in mind, you can maximize your home buying budget and get the best mortgage deal for your new home.