10 Tips About Mortgage All First-Time Buyers MUST Know If They Actually Want To Buy A House

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If this is your first buying a house, you are probably terrified and stressed out right now. Especially if you are dealing with a mortgage. A lot of things may go wrong, but if you know what you are doing and you came prepared, everything will be not as scary as you think.

Nexter.org made you a list of things you should know about before buying a house.

# 1 Credit Score

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Knowing your credit score is a very important thing since you have to know exactly how much are you willing to pay and how much interest you’ll pay in the end. You can use MyFICO calculator, which will help you count the cost of your credit score.

#2 Documentation

You will need to submit a lot of documents to get a mortgage like documents about your identity, income, employment and so on, so you’d better start collecting them as soon as possible.

It is a lot of paperwork and it is always exhausting, but going into the lender’s office and finding out that you have a coffee cup stain of your papers or you miss some of them is not a good idea.

#3 First pre-approval THEN shopping

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To be honest, it is not like you MUST get a pre-approval and only then you can start looking at houses. But it would be much better if you submit it along with your offer because this way the seller will know that you are serious about it and there won’t be any money problems.  

#4 Down Payment

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20% down payment is a standard, but you have an opportunity to get a mortgage with much less money up front, like 3%, or even with no down payments at all (VA and USDA loans), so you might save more money than you think.

#5 FHA loan

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Usually, 620 FICO is a minimum for a conventional mortgage but if your other qualifications are not as good, it might be impossible. In this case, consider using FHA mortgage. It will be more expensive, but it is good if you have no other choice.

#6 Seek a lower rate

Don’t be afraid to say no, if you are not satisfied with the offered mortgage, it might cost you thousands of dollars if you have a 30-year mortgage ahead.

#7 Smaller lenders

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There are many local and regional banks that may offer you a better deal than national ones, so don’t forget about them. There might be special offers and unique programs, especially for first- buyers.

#8 15-year mortgage

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If you are buying a less expensive house or you have some money to pay more every month, think about getting a 15-year mortgage. You will be amazed at how much you can actually save.

#9 Hassle

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It rarely happens that everything goes smoothly and you have no problems along the way. But change your attitude and be ready to go through some hassle to get what you want. Many unpredictable things can happen, like your credit score may fall or you may need to pay more than you thought, but all of these things can be solved, it might not be easy, but hey, do you want a house or not?

#10 Don’t use your credit

Don’t use it, until the key to your new house is in your hands because usually your credit will be pulled at least twice – when you apply and when you close the deal. If there will be big differences between those two it might lead to delays or even disqualification of your mortgage.

Source: Giphy

So, be smart, be ready to hassle, follow these tips and enjoy your brand new house!


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Summary
10 Tips About Mortgage All First-Time Buyers MUST Know If They Actually Want To Buy A House
Title
10 Tips About Mortgage All First-Time Buyers MUST Know If They Actually Want To Buy A House
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If this is your first time buying a house, you are probably terrified and stressed out right now. Especially if you are dealing with a mortgage. A lot of things may go wrong, but if you know what you are doing and you came prepared, everything will be not as scary as you think.
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