Buying a home will undoubtedly be the largest expense of your life and requires a lot of time, patience, and dedication to get exactly what you want. However, developing a mortgage plan can be easier said than done. It is important to work with Stacy Schlesinger, an experienced realtor, to ensure the process goes by as smoothly as possible.
But are you a first time home buyer and don’t necessarily know where to start? No worries — we have created a quick guide on everything you need to know when it comes to mortgage planning for your first home.
Step one: Make sure you are financially ready to purchase a new home.
Buying a home is no easy decision and chances are you will have to use a mortgage when you finance. In fact, in 2016, 14% of buyers financed a full 100% of their home purchase with a conventional mortgage, so it’s crucial you are fiscally prepared to do so. But how do you know if you’re adequately prepared? Here are some questions you can ask yourself.
- What is your job situation like?
- How long do you plan on staying in your new home?
- How much can you afford to pay per month?
- What is your credit score?
Step two: Understanding the different types of mortgage loans available.
Depending on your needs, there are plenty of different types of mortgage loans at your disposal. Each has different advantages depending on your personal situation, and they include:
- A prepay home loan
These are payments that are fixed, meaning the monthly amount you pay is the same. With these, the interest you pay is determined by the amount of money you put down at the time.
- A 15-year or a 30-year plan
The most common mortgage plan you can get is a 15-year or 30-year mortgage plan. Shorter mortgages will have a lower interest rate, but a higher monthly payment.
These two steps are just breaking the surface when it comes to mortgage planning in the United States. If you are in the Oregon area and don’t know where to start when it comes to budgeting for your new home, please contact Stacy Schlesinger and we will get started on getting you the home of your dreams.