Remember, you are not alone if you are a first-time homebuyer. Almost 45% of buyers are first-time buyers, and we’re happy to aid them in making the process go as smoothly as possible. Financing often causes the most confusion, but we can make it quick, simple, and even pleasant with our assistance!
Here are some things that most first-time homebuyers wish they had known before they began the process.
The 20% Down Payment Myth
Concerned that you will only be able to buy if you have a substantial down payment? It’s false! One of the most common myths about home financing is that you need a 20% down payment to buy a house.
Several home financing options have a zero to five percent down payment! But, it’s crucial to remember that mortgage insurance is frequently necessary for loans with down payments under 20%. Even yet, first-time homeowners benefit significantly from having the chance to acquire real estate, even with the insurance needed.
There Isn’t One Loan That Fits Everyone
In the same way that houses may be found in various architectural styles and price ranges, there are also many different ways to finance the purchase of a house. Multiple choices are available to you regarding loans; all that remains is to determine which is most suitable for you. In these situations, the assistance of a reliable mortgage advisor is vital.
Many people might believe that the conventional 30-year fixed loan, which has several benefits, including a fixed interest rate, is the best option. However, it may not be the ideal match for your situation.
When a bad credit score is your primary obstacle, for instance, a government-backed loan might be a smart choice. FHA, VA, and USDA loans provide excellent financing choices for borrowers with bad credit, minimal down payments, or those seeking to live in rural areas.
An Early Pre-Approval Is Crucial
Pre-approval is essential when buying a home, and browsing without it might be difficult. The sooner you start, the better it will be in the long run.
To avoid any unpleasant disappointments down the line, it’s a good idea to get pre-approved for a mortgage before you start looking at houses.
By starting early, you also have a better chance of identifying any errors on your credit report and having time to correct them. A better credit score could result in a lower interest rate, which could equal savings of tens of thousands of dollars in interest payments throughout the loan’s lifetime.
Arguably most important, being pre-approved for a mortgage is one of the best ways to demonstrate to real estate agents that you are in the market to make a serious purchase.
Final Verdict
It’s important to do your research on different loan types to guarantee you’re getting the best loan for your particular financial position.
Obviously, you don’t have to do anything alone — that’s why we’re the experts! We work on your behalf, not the sellers’, to guarantee that your best interests are prioritized while you acquire your own home.
As an independent mortgage broker, Three Rivers Lending will work diligently to comprehend your demands and locate options that will assist you in achieving your home-buying objectives. Don’t hesitate to call (412) 203-3379, email us, or a submit an online form to schedule your consult at the earliest possible opportunity.