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First Time Home Buyer Loans - How To Apply For A Mortgage Loan
By: Carrie Reeder
For a first time home buyer, applying online for a mortgage loan makes the
experience easy. You have plenty of time to compare rates and terms to find the
best financing for your situation. With just a few steps, you can secure
financing for your home with the lowest possible rates.
1. Select Your Terms
Mortgage terms affect both your interest rate and payment. With a large amount
of flexibility, lenders allow you to tailor your loan to fit your budget needs.
So if your goal is to purchase the most with your income, look into an
adjustable rate mortgage with initially low payments.
For security, fixed rates can also have reasonable rates. For even lower rates,
you can purchase reductions by paying points at closing. One point equals one
percent of the principle. Paying points is affective if you keep your mortgage
for at least seven years in order to recoup the cost of buying the rate
reduction.
The length of the loan will also affect your rates and payments. 15 year
mortgage provides you with a cheaper loan, but payments are about a third higher
than a 30 year mortgage.
2. Research Your Lender
Even a difference of an eighth of a point in rates can save you thousands of
dollars. The easiest way to save money on your home’s purchase is by finding the
lowest costing loan.
With online mortgage companies, in just a few minutes you can request loan
quotes without hurting your credit report. Every time a potential creditor
accesses your report, it temporarily hurts your score.
Rates are one way to evaluate loans. But closing costs can also add up to
thousands. That’s why the APR number is important. It gives you the total cost
of the loan. But if you plan to move or refinance, focus on low closing costs
rather than low rates.
3. Apply Online
When you have found the right lender, you can start your home loan application
online. Even if you haven’t found the right house, you can still get
pre-approved and lock in your rates.
With online financing companies, your paperwork is expressed mailed to you. You
complete the forms with a notary’s seal. Working with your real estate agent,
escrow company, and seller, the date of sale can then be finalized.
About the Author:
View our list of recommended lenders for first time home buyer mortgage loans
online. Also, view our recommended sources for a cheap credit reportonline.
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