Getting a Mortgage in 2012 as First Time Homebuyer
Trying to secure a mortgage can definitely be a trying process especially for young couples going for first time buyer mortgages. There are so many things that they feel can go wrong throughout the process of everything from finding the house to getting approved for the mortgage itself. The current state of the housing market doesn’t help to alleviate people’s concerns either although some experts say that the conditions of things are getting better. The most important part of the mortgage process is to make sure that you know exactly what you are getting into every step of the way.
The best way to not end up with buyer’s remorse is to fully inspect the property that you are buying. This might seem like something that is very simple to do but you would be surprised at how many people rush into these things. Checking out every aspect of your new property inside and out is a crucial step to the buying process. Don’t be afraid to ask questions to the people who are showing you the house either. You won’t be pestering them with your questions and if you feel that you are – they probably aren’t the people that you want to buy from anyways.
Another pitfall that many people fall into when taking out their first mortgage is high interest rates and long terms. While it might seem like a good idea on paper to take a longer term for your interest rates to keep the monthly payments low you will almost certainly end up regretting things in the end. Not only will you end up paying a lot more in total buy you often will be upside down on the house for most of the loan. This means that you will owe more than the house is worth which will make trying to sell it before it is fully paid off very difficult unless you have lots of cash lying around.
The good thing though is that there are many mortgage brokers out there that can help you with the entire process. The mortgage broker is typically paid by the lender and not by you so you can enter into the working relationship with him or her in a much more trusting manner. Just make sure that throughout the whole process that you are comfortable with everything. Use your sense and follow your instincts and everything should work out just fine.