Getting a Home Mortgage For Your First Home
If you are renting a home it may be possible to buy a home for less than the cost of rent. This is due to today’s low home prices and historically low home loan and home mortgage interest rates. You should consider a few important questions:
How long will you be living in the home?
Purchasing a home only makes financial sense when you intend to live in the home for at least a few years (usually five years or more). A home loan or home mortgage is a long-term obligation that requires repayment over many years. If you have to relocate to due a job transfer or other factors it may cost you money to sell the home in a short term period. All things considered it only makes sense to buy if you plan to live in the home for at least three or four years.
Will the home meet your needs for at least three or four years?
Consider the features you need now and in the future. Will the home offer enough space for your needs? If you plan to have children or other family members living with you in the future you may want to consider a larger home than you may need presently. Does the home offer options for future expansion? Reviewing these questions can help you make a better home purchase that will be suitable for years to come.
Are you financially healthy?
Purchasing a home and obtaining a home mortgage is a major financial decision that stays with you for many years. Having good credit, good income and a good down payment can save you thousands of dollars over the life of your home loan. Home mortgage options are available for most credit scores but the best home loans are reserved for those with good and excellent credit scores and/or strong income. A larger down payment can help offset a lower credit score. A low credit score or other credit problems will still be considered by most home loan and home mortgage providers but a higher interest rate may be charged resulting in much higher costs over the life of the home loan.
Are you prepared for ongoing home ownership costs?
Purchasing a home requires more than the monthly home mortgage payment. As a home owner you are responsible for maintenance, insurance, utilities, property insurance and improvements. These costs add up over the time you live in the home. Some properties may also require a monthly association fee. Be sure to research these costs for your specific property before completing your purchase.
Ready to get started? Complete the form below for your no obligation home mortgage pre-qualification.