Are you a first-time home buyer looking for the best mortgage rates? If so, you’re in luck. In this article, you will learn four tips for choosing the best mortgage for your situation.
Figure Out Your Monthly Payment
When you’re looking to buy your first home, the best mortgage for you may vary depending on a few factors. Here are some things to consider:
Your credit score: A good rule of thumb is to have a score of 660 or higher. However, if you have excellent credit, you may be able to get a lower interest rate or shorter-term loan.
Your down payment: This depends on your income and assets. Generally, the more money you can put down, the lower your interest rate will be and the shorter your loan term will be.
Your location: Certain areas have more affordable housing options than others. If you’re looking for a suburban area with good schools and plenty of jobs, for example, your rates may be higher than if you were seeking an urban center with more affordable housing options and less job opportunities.
Consider Your Debt Tolerance
When you are considering a mortgage, it is important to consider your debt tolerance. The best mortgage for first time home buyers varies depending on your income and debt-to-income ratio (DTI).
If you have no children under 18 living with you, your DTI is calculated based only on your income. If you do have children under 18 living with you, your DTI is increased by their income. Your DTI cannot be less than 33 percent or more than 100 percent of your gross monthly income. You can use our Mortgage Calculator to see what type of mortgage may be best for you based on your specific situation.
Compare Loan Rates
Once you have determined your mortgage requirements, it is important to compare loan rates. There are several websites that allow you to search for the best mortgage rates. Be sure to compare all of your options before submitting an application. It is important to compare loan rates before you decide on a mortgage. You can use our calculators to find the best rates for you. It is also important to shop around for different lenders. You may be able to get a better rate by comparing rates with more than one lender.
Ask for a Quote
Buying a home is a huge investment, and like any other big purchase, it’s important to do your research before making an offer. That’s why we’re here to help you find the best mortgage for first time buyers. If you’re interested in getting a quote from us, please give our team a call at 1-800-426-4226. We’ll be happy to help you choose the best mortgage for your unique situation. Thanks for choosing our company!
Choosing the right mortgage can be daunting, but it doesn’t have to be. By following these four tips, you will be able to find the best mortgage for your needs and budget.