Common Questions For First-Time Home Buyers Helping Homeowners Understand The Home Buying Process When you are ready to buy your first home you may be wondering about the entire process. It is a big responsibility to take on a mortgage and the care of a home. You need to be prepared to go through a lengthy loan process. You should also work with a realtor and mortgage officer who are willing to answer any questions you have along the way. It is exciting to buy your first home, but you still may have a wide variety of questions about purchasing your home. You can prepare to go through the process by learning the answers to many of your questions. Financial Advisor. Questions About Loans Many first time homebuyers may be confused about the process of applying for their first mortgage. You may be wondering what it …show more content…
They may wonder if they should choose an adjustable rate mortgage (ARM) or a traditional fixed rate mortgage. They may also be wondering about points, closing fees and closing on the loan. An ARM offers a lower initial interest rate, but it will go up over time. It is often safer to choose a traditional mortgage even with a higher interest …show more content…
Your credit report and score will determine if you qualify for a loan and the interest rate you are charged on the mortgage. You can clean up past mistakes before taking out a mortgage. Make sure your bills are current and try to pay down the balances on your credit cards before you apply for a mortgage. This should help you resolve your credit issues. Since you are taking on the responsibility of a home, you are now responsible for the cost of any repairs and improvements you make to the home. You should plan on an emergency fund to cover these costs. You also need to make sure you are setting aside money for home insurance, taxes, and home association