As a first-time home buyer, you may be concerned about doing comparison shopping when it comes to getting a loan. A mortgage may be a commitment that you are tied to for decades or until you sell your home, and you certainly want to ensure that you make the best decision possible when applying for your loan.
Read on for a few helpful resources that will allow you to get a loan you can live with, and keep your sanity in the process:
Online Budgeting Tools and Apps
Before you go through the effort to start shopping for a home loan and comparing interest rates, you may first want to review your personal budget. You can use great resources online like this general budget calculator from YouCanDealWithIt.com.
Each tool and app may offer different benefits, so you may consider putting several to work for you as you prepare a budget. Once you know what your budget for the near future looks like, you’ll be much more prepared to meet with a financial representative, and stay within budget when house hunting.
Home Affordability Calculators
After you have a functional budget prepared, your next task will be to determine the size of home that you can afford to purchase. Keep in mind that some lenders may tell you that you can afford to purchase a much more costly home than what may be manageable for your budget. Home affordability calculators are available through many bank and lender websites, as well as through Bankrate.com and others around the web.
Mortgage Loan Payment Calculators
Many who are shopping for a home loan may use a home affordability calculator in conjunction with a mortgage loan payment calculator. You can find mortgage loan payment calculators on most lender websites.
While a home affordability calculator will tell you how much home you can afford with your current expenses, a mortgage loan payment calculator will compute a monthly payment for you. Some of the more advanced calculators take into account property taxes, insurance payments, homeowner’s association dues and PMI payments. Even better, meet with a real estate financial advisor who can crunch the numbers for you and start reviewing loan options.
Current Interest Rate Data
Interest rates for home mortgages adjust on a daily basis based on a number of market factors. In some cases, you may be able to lock your interest rate as soon as you apply for your loan. However, other loans may float your rate until you request a lock or until you are closer to closing on your loan. With this in mind, you may want to monitor interest rates. We make it easy by giving you the Weekly Mortgage Watch every Monday. According to this week’s Mortgage Watch, rates are at 3.69%.
Shopping for a loan can seem stressful, but you can use these and other resources throughout the loan process to successfully navigate your way. You can spend time today finding the resources that are most suitable for your needs as a first step in the home loan process, and take things one step at a time. These resources will help you to properly plan and compare options, and hopefully end up with a loan you can be satisfied with.
If you’re ready to take the next step and meet with a professional, start with a great real estate agent. First Team Real Estate agents have the resources and professional contacts to get you started on the road to homeownership, and a home loan, today. You can find an agent by searching online or reach out and we’ll do the searching for you.
Email us at clientservices@firstteam.com
Call us at 888-870-1142
This article was written by Dixie Somers, a freelance writer who loves to write for business, finance, and real estate. She lives in Arizona with her husband and three beautiful daughters. Dixie got advice for this article from the professionals at USDA Loans Direct who help buyers with first time home loans.
