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Basic Mortgage Knowledge for First Time Home Buyers

Basic Mortgage Knowledge for First Time Home Buyers

Basic Mortgage Knowledge for First Time Home Buyers

New to mortgage process? Don’t worry we got all the information you need to know regarding which mortgage best suits your needs.

Understanding mortgage can be difficult for first time buyers as not only are there various loans to choose from, knowing and understanding what to await can leave you in a stressful position or a smooth closing.

This is why we have come up with some mortgage questions and their respective answers to make mortgage easier for you:

1. Should you go for adjustable rate or fixed rate?

Fixed rate as the word goes means that you will be paying the exact same interest rate throughout the entire lifespan of your loan. Whereas, adjustable rate mortgage initially starts out with a minimal interest rate for a particular period of time usually three to five years and then later adjusts depending upon the prevailing market rates.

2. Should I go for 15 years or 30-year mortgage?

Note that shorter term loans come with lower interest rates so it’s advisable to have a term with minimum years. However, a 30-year loan will yield the lowest payment and would be much easier for an individual to afford it. Consult with us as we offer various mortgage plans that best fit your needs.

3. What if I don’t have an adequate amount of employment history?

For those who have a good employment history are at good position. Lenders prefer those who have at minimum two years of work experience. Also, for those who have good positions in their workplace are given preference but nonetheless, your employment history is one factor amongst many others.

4. Is my credit score good enough?

In order for you to acquire a loan, you generally need a minimum FICO score of 620. Having a good credit score gives you an edge to negotiate the terms and rates of your mortgage. Don’t forget that you will be requiring insurance for house as well so plan accordingly to evaluate your expenses.

Feel free to consult us for your mortgage concerns, we are available around the clock for you!

Posted in General News, Mortgages