Friday, June 7, 2013

Mortgage 101 for First-Time Homebuyers

Have you finally made the decision to quit the renting game and buy a home in Fountain Hills? Congratulations! This is a huge milestone that I promise you won’t regret. You’ll always look back at this time in your life and remember feeling independent, excited, and a little bit overwhelmed. With how complicated the home buying process has become over the years, I’m sympathetic to how daunting the task can seem. However, it is my job as a Fountain Hills real estate agent to make this experience as stress-free and as fun as possible for you.

A very important step in the home buying process is to secure financing. It’s uncommon that a homebuyer pays for his or her new home in cash, and even more rare when a first-timer does so. Here’s where a mortgage comes in. For those who are completely new to the home buying process, a mortgage is a loan you take out to finance the purchase of your new home. You have many options when it comes to selecting a mortgage, which is a process your Fountain Hills real estate agent can guide you through from start to finish.

You are generally required to have 20% of the purchase price up front as a down payment. You will pay the remainder of the purchase price in monthly installments over a period of 15 or 30 years, depending on the mortgage you select and get approved for. You also have the option of choosing an adjustable mortgage rate or a fixed-rate loan. Typically, homebuyers will select an adjustable mortgage rate in a seller’s market when interest rates are high. The mortgage rate will be fixed for a number of years, and then change over time as interest rates fluctuate. A fixed-rate loan is your best bet in a buyer’s market. You’ll lock in a low interest rate that will remain consistent over the lifetime of your loan.

Once you have decided to buy a home in Fountain Hills, it can be difficult to ignore the impulse to start shopping immediately. A little bit of online browsing never hurt anybody, but I strongly suggest that every homebuyer first pay a visit to his or her local bank to discuss financing. While getting preapproved for a mortgage isn’t a requirement to buy a home, it does give you a realistic idea of how much you can afford. This way, you’ll start your Fountain Hills home search on the right foot and in the right price range.

While there’s a lot more to it, I just wanted to provide a few basic principles to help you start thinking about your approach to obtaining a mortgage. As a
Fountain Hills real estate agent, I am available to you at any point in the home buying process whether you have a quick question or would like an experienced professional to assist you all the way through closing. One of the best parts is that there is no obligation and my services are completely free of charge. What’s not to love? When you’re ready to take the next step in the home buying process, please give me a call. I look forward to helping you become a homeowner in Fountain Hills!

1 comment:

  1. Everyone would testify to the fact that buying a house is a thing that should done with a lot of care.

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