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Mortgage Tips For First Time Home Buyers

If you’re in the market to purchase your first home, then you understand the intricacies and length of the process.  At Silver Rock Realty, we strive to alleviate that stress by providing valuable content to utilize in the purchase of your home.  Based on our agency’s experiences and the wealth of knowledge our New York Real Estate brokers uphold, we’ve created a detailed list of Mortgage Tips For First Time Home Buyers looking to buy o home in Brooklyn or buy a home in Queens.  Check out our list below to browse our list and contact us if you have any questions!

Create a Realistic Wish-List

Tip #1 – Come up with a realistic wish-list. The key here is ‘realistic.’ Based on the housing budget you figured out, and where you want to live, compile a list of what you’d like to have in your first home and some of the assets your currently have.

Get Pre-Approved For a Mortgage

In this current real estate market, many deals are contingent on financing fall apart because buyers can’t find a bank to give them a mortgage. Getting pre-approved for your mortgage will help you avoid this problem. Start by shopping around for a lender. You should speak to at least three or four different types of lenders including big national banks, mortgage brokers, regional banks, local lenders and possibly a credit union. Check out the Yahoo! Homes Mortgage page to see a list of lenders in your area, along with estimated rates and payments.

Understand the TRUE Cost of Homeownership

Understand the true costs of homeownership. Many first-time home buyers get so caught up in the idea of owning a home that they forget about life after closing. The real costs begin after you move into the house. In addition to mortgage payments, you’ll owe taxes, insurance and homeowner’s association (HOA) fees, and be responsible for any maintenance issues that come up while you own the home.

Improve your credit score/ Since banks today are looking for near perfect credit, you may find it worth your while to improve your score before you apply for a loan. You can in fact build credit, and for ways to do that, check out this free and helpful about.com article.

What can You Afford?

If you have reviewed your finances as we suggested last week in our hidden and otherwise oft overlooked costs of buying a home, you won’t need a broker to tell you how much you can afford to borrow.  An additional figure you want to understand if your debt to income ratio. In other words, know how much you bring in and how much you owe: the payments you’re already required to make will count against what a bank will offer you.

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