As someone who is buying a home for the first time, you want to know that you're making all the right moves. Nothing you do should put you in financial jeopardy now or in the future.
One of the best ways to make sure you're in a good position is to look into working with a mortgage lender that has the best interest rates and repayment periods. How do you find a good lender, though? Here are a few ideas.
Compare, compare, compare
The best thing you can do before taking out a mortgage is to compare the rates that you can choose from. A rate of 9 percent at 72 months would be much worse than a rate of 10 percent at 60 months, so be sure you're comparing the length of time along with the percentage. Even a smaller percentage of interest adds up if you pay on a loan longer.
Get preapproved before you look for a home
Getting a preapproval helps you know in advance how much you can spend and how much that loan will cost over time. It helps sellers take you seriously and gives you the backing you need to make a purchase once you find the right home. It also limits your budget, making sure you stick to the mortgage you can afford.
Read the fine print
Can you pay off the mortgage early? What happens if you pay more on one payment? Know the specifics of your loan before you sign a contract and take on the debt.
These are a few things to do to help yourself when choosing a mortgage and want to use it to buy a home. A good financial decision now will impact you in the future.
Source: Nerdwallet, "5 Tips for Finding the Best Mortgage Lenders," Steve Micastro, accessed March 02, 2018