Buying a new home is a big decision and can be intimidating even for the most seasoned home buyer. Anytime you start thinking about buying a home, there are many uncertainties and questions you may need help facing. Our online buyer resources are here to help you find the guidence you need to make the most informed decision you can. Use these resources to help you get and stay informed. If you have questions or concerns that aren't answered in these resources, please contact us.
Should I choose a fixed-rate mortgage or variable-rate mortgage?
The answer to this question is that it really depends on your situation. Each type of mortgage offers different advantages and disadvantages. Typically, first time buyers like the idea of the security that a fixed rate mortgage offers. If your plan is to pay off sooner than later, and rates are expected to go down, you may prefer to use a variable rated mortgage.
Other factors that can play into your decision include current interest rates. If interest rates are high, you may opt for an adjustable rate mortgage. On the other hand, if rates are lower than they have typically been in the past, you may opt for the fixed rate mortgage in case rates start to go up again.
If you are considering a variable rate mortgage, make sure to do your homework and make sure to understand the terms. Verify that you know how often the rate will be adjusted and that you know what the max amount the rate can fluctuate is. Make sure that your adjustable rate is capped at a respectable amount.
Should I get pre-approved for a mortgage?
Most housing professionals recommend that you get pre-approved for a mortgage before you start looking at houses. Pre-approval gives you piece of mind knowing what your limits are and what your budget is. Knowing exactly what you can afford can help you keep your housing search focused to your needs and help keep your expectations in line. Having pre-approval also helps sellers know you are a legitimate buying candidate with financing to back your offer.
What is a home inspection and do I really need one?
A typical home inspection is the process of having a third party professional check your potential investment. Home inspections are designed to give both the buyer and a seller piece of mind. As a buyer, you need to protect yourself from the unknown. Typical home inspections check everything from the very top of the roof to the very bottom of the basement.
After a professional inspector has completed the inspection. Make sure you sit down with him or her and verify that you understand everything they found. Some inspectors even like you to do the walkthrough with them. We recommend you do or ask if you can.
How much should I plan on putting towards a down payment?
The amount of down payment depends on what your creditor requires. Some lending institutions do not require any down payment while others may require you to put a minimum down. Make you sure you check with your lending partner to make sure you know how much you will be requried to come up with.
Completely understanding how to estimate mortgage and loan details can be confusing and time consuming. Use our online mortgage calculator to estimate your monthly mortgage payments, the total of all your payments, total interest paid, term length, and down payment. Enter the amount of the loan or mortgage, your interest rate, and the term length in years and press 'Calculate Now' to get started.
If you have questions about the output of the calculator or need more details, please contact us.