NHL Lending Tips for New Homeowners
Buying a new home is a huge accomplishment. A new home signifies a new chapter in life. With a new home being one of the biggest purchases of anyone’s life, it’s important that all of the facts are known. In unfamiliar lingo, surprise expenses, and a complicated paperwork process, it’s no surprise many people are often confused and even discouraged before, during, or after the process is all over. Fortunately, we’ve compiled a list of first-time home buying tips in order to keep things as straightforward and stress-free as possible and to even save a little bit of money.
Save for a Down Payment Early
If you are even entertaining the idea of buying a home, then it’s time to start saving. Typically, for first time home buyers, there are many incentives; including home buyer programs that allow as little as 3% down. FHA loan requirements in Fort Lauderdale putting a down payment of anywhere between 3%-20%. Of course, it’s important to remember that the smaller amount you put down the higher the amount your monthly mortgage payments may be. Either way, that’s why it’s so important to start saving as early as possible.
Pause Any New Credit Activity
Any time a new credit account is opened like a credit card, an auto loan, or any other type of loan, the lender will run a hard inquiry on the credit score. Whenever any lender runs a credit check, it can put a temporary ding in the score. This means that before applying for a mortgage, you should wait on opening any new credit card accounts, taking out new loans, or buying or leasing a new car.
Compare Mortgage Rates
Even though the process is a bit long and complicated, first-time home buyers are in the advantage seat. This means that it would be wise to shop around FHA loan rates in Fort Lauderdale, FL. Never take the first offer you see. Remember, everything in life is negotiable and as a first-time home buyer, you are in the advantage. With tons of incentives like tax breaks, tax credits, and even first-time buyer tax deductions, you’re in charge.
Research Different Loan Types
Just like neighborhoods and homes aren’t a one size fits all, neither are mortgages. Depending on your personal long-term and short-term plans, there are options for which mortgage terms are right for you.
* Fixed-Rate Mortgage: This type is best for those who are looking for a reliable payment over an extended period. This period can range from 15 to 30 years. With this type of loan, you will pay more over the life of the loan, however, the silver lining is peace of mind.
* Adjustable Rate Mortgage: If you aren’t sure where you will be one year from now or 10 years from now this is the ideal mortgage for you. Most ARMs will feature a low introductory rate. This rate is adjusted every six to twelve months depending on the market. In some cases, the ARM programs will be capped at a lifetime rate.
Don’t forget Closing Costs
Most first-time buyers are already aware of the down payment required, but many aren’t always are of closing costs. These costs that are associated with the mortgage are the final formal step in a getting a mortgage. Closing costs can be significant and even shocking for those who aren’t aware of how much they can typically be. FHA loan mortgage rates can be negotiated to lower closing costs. Though be aware that these shaved costs can pop up elsewhere during negotiations.
Buying a new home for first-time buyers isn’t a one and done process. It can be lengthy and even trying at times if you don’t find the right people and lenders to work with. Nationwide Home Loans wants to work with you to find the best possible mortgage rate available. We know just how special buying your first home is, which is why we try to make the entire process as easy and transparent as possible. Now that you know the best tips new homeowners, give us a call today and find out how you can buy your dream home today.