The mortgage process can be confusing when it is your first mortgage. There are many steps that need to be taken before you can finally arrive at your new home. Busch Team Mortgages can help guide you through this process. Having the right broker at your side can make a difference and give you an advantage in getting through the process more easily. If you are in the beginning stages of getting a mortgage, we can help.
What Are Your First Mortgage Steps?
The first step on the journey to getting your first mortgage is to check your credit. Before you can even begin looking at houses, it is important to know what your limits will be and what kind of house you can afford. Your credit score can tell you a number of things, including how your various debts have affected your score over the years and what lines of credit you have open currently. Your credit score is one of the things that any lender is going to look at to determine what kind of mortgage you can afford, so it is important to be aware of what your credit score is currently.
The next step is typically to get pre-approved. This will give you an idea of how much you can spend on a home. However, before you can get pre-approved, it is always a good idea to shop around for your lender. This will make the process later on much easier. The right broker can help you find a lender that suits your needs as well as assist you with the rest of the process.
Once You’ve Found Your Lender
Finding your broker and your lender is only the first part of the process. Once that part is settled, you have to determine what type of mortgage is going to work best for you. The right type of mortgage is going to depend on a variety of factors.
- Type of loan: There are two main types of loans. These are conventional and government-backed loans. Government-backed loans are good for first-time homeowners who may not have the money for a large down payment. Conventional loans are financed through banks or credit unions and can have favorable terms for those who have excellent credit.
- Fixed or adjustable: Adjustable-rate loans can change over the life of the loan and can possibly yield savings if the interest decreases. Fixed-rate loans will not fluctuate in interest rate which means they can be safer in the long run.
- Term of loan: The life of your loan can also determine how much your monthly payments will be. A 30-year loan will allow you the lowest payments, but a 10-year loan will let you pay less in interest. Be sure to get all rates that are available to you, so that you can make an informed decision about the length of your loan.
- APR: Your APR is your annual percentage rate. Your APR is generally higher than the interest that is quoted to you because it includes assorted origination fees and points. This will determine how much of your monthly payment is actually going toward the principal of your loan.
Once you’ve determined which loan will best suit your needs, you will need to go ahead and submit your application. This typically includes a long list of documents to verify your financial ability to pay for your new home as well as proof of your identity. Your broker can help you gather these documents for your application.
After the application is completed and submitted, you will need to await the underwriting process. This can be arduous, even for those that have been pre-approved. However, the time will come when you will get to close.
How We Can Help
Getting your first mortgage is not always a smooth process, but the right team can help make it smoother. With 25 years of experience and a dedication to our clients, Busch Team Mortgages has the knowledge to guide you through the mortgage process and get you what you need.
Contact us today to see how we can assist you and get you the right mortgage.