Does anyone have any good mortgage advice for first timers?

Answer 1

Borrow as little as you have to, and pay it back as soon as you can.

For me, a fixed rate is better than a variable rate.
Those companies are in the business to get as much of your money as they can. Don't think that they are there only to help you. Work a deal, then hold out for a lower rate. Do not let them presure you into a deal you are not happy with.

Only take a payment that you know you can pay each month on time.

Set the date of payment that is best for you.

Plan on paying more than the payment asks for. A 30 yr mortgage can be paid off in as little as 7 yrs, if you pay it right. Consider half payments twice each month, this will save you money in the long run.

It is best if you can go in there with at least 20% down, so save first and wait a bit if you can work that out.

Watch out for the prepayment penalty. That says that you can not pay more than x amount extra within the term of the penalty. Might be two yrs, might be five yrs. The shorter the term, the better for you.

Answer 2

Get a fixed rate. Don't fall for the adjustable rate scam that you hear so much about these days. You can get a 30 year right now in the low 6% and a 15 year in the high 5's if your credit is good. Learn all about what you are getting into and do NOT be afraid to read everything when you sign. If your broker tries to rush this process, be suspicious. Don't buy more house than you can afford. Understand that once you own a home, things break. Having some cash set aside for repairs will save you some grief. Understand and learn all the mortgage terminology that you can. Escrow, amortization, interest rate etc. Know what your taxes and insurance will be before you enter into the loan. Learn how much interest is at the top of your loan and make sure you can pay extra principal with no penalty. Paying off a mortgage quicker will save you TONS of money.Tons! (Google amortization calculator and play with your numbers, you'll see what I mean) Hope that helps! Have fun in your new home! :)

Answer 3

That's a tough one. Hate to give advice on something so important.
On the bad side, remember what can go wrong will and count on a little more out per month than you first figured.
Outside of that, get the lowest interest you can and get it "Locked In". No variable rate.....Banks can be a little bit like car dealers. Not as much leeway but you can "negotiate" to a point.
Let them know that your checking their competitors, don't fall for a smiling face and
the first option. The person you're talking to probably won't even be working in the same place 5 years from the time you buy.
Do some serious homework AHEAD of time, so you know what they're talking about
when you actually go in for the loan.
That is really the key.You can't talk to them if you're not prepared. Teach yourself
the ins and outs........Ending....
There's not a hell of a lot of difference between banks, they all pretty much have to play by the same rules. But, Hey!, If you can beat them by as little as a half of a percent and as much as 2%, why not try it?
Do your homework!!!!!

Answer 4

Yes, plenty, Look on the internet for houses for sale so you know you are getting the best deal,

Second, they are like used car salesman, THey will try to push you into adjustbale rate mortgages and other exotic mortgages, DON"T FALL FOR IT. only get a 30 or 40 year fixed rate mortgage, FOR THE ENTIRE TERM, If you cannot be approved for one of those loans then you CANNOT afford the house, simple as that,

THey always have these low introductory rate, which sounds enticing at first but stay away from them cause you will have to refinance, Costing you further money.

If you can put 20 % down then there will be no mortgage insurance.

BE FIRM on what you are looking for.

Answer 5

Hi. Just remember that interest rate is everything. Know how much you can afford - Don't go in over your head! Don't get a variable rate, get a fixed. Here check out my webpage for lots of good tips:

http://www.tbm-company.com/mortgage.html

Answer 6

Do not exceed a quarter of your take home pay, after adding in insurance, taxes, utilities, including heating oil, and a budget for the continual repairs.

Answer 7

Check to see if your state offers GRANTS for first time homebuyer's

Here is the info. for Arizona first time homebuyer's

http://www.welcome2arizona.com/home/first_time_homebuyer/first_time_homebuyer.php

Terry S.

http://www.Welcome2Arizona.com