The economic scenario for the past few years hasn’t really been conducive for everyone’s financial health. Money has become pretty tight and consumers aren’t ready to spend as much as they did before. If you’re wondering about how to get a first mortgage, then you should be aware of the fact that prices of houses have also hit an all time low. Given the recessive times, it’s not unusual to find that the Federal Government has also lowered the interest rates. This is basically done to drive the economy forward. All these reasons go on to make the current economic times a great time to purchase your first home.
How to get your first mortgage
Enlisted below are a few steps that you could follow when you’re out to purchase your first house in the present economic scenario.
1. Contact various lenders
The very first thing you should do is start contacting the various mortgage lenders to find out the rate quotes. Also make sure that you get hold of the list of all fees for lender charges with regard to the loan. You should compare both fees as well as rates before you choose your mortgage lender.
2. Go for a fixed rate loan
It’s advisable that you opt for a fixed rate mortgage loan in the present economic climate. It’s undoubtedly tempting to go for a variable rate loan as the rates offered on it are generally lower. However, financial experts have always warned against variable rate mortgages during recession. Remember that the rates are sure to rise once recession ends. With a fixed rate mortgage, you can keep that low rate always.
3. Use your connections
When it comes to the financial domain, it’s always advisable that you carry out business with financial institutions or banks that you already know. Solicit mortgage rates from these places and you might get one that actually suits your profile.
4. Check your lender’s reputation
Don’t forget to check the reputation of the lender you finally choose. You can do this with the Better Business Bureau if you’re dealing with someone or a company whose history you’re not well acquainted with.
5. Get a pre-qualification letter
Don’t forget to get a pre-qualification letter from your lender before approaching your realtor to help you with finding your first home.
If you follow the 5 steps given above, then it won’t really be a problem for you to handle your first mortgage. Do your research well in spite of everything and very soon you’ll be the proud owner of your own home.
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