mortgages

The First Time Homebuyer
Have you been itching to settle down into your own home? Do you find yourself lingering in front of houses with For Sale signs and visiting real estate sites wondering if you can afford to buy them? If this is the year you want to buy your first home, you should start planning now. Buying your first home is a big step. The home buying process should be a fun and exciting experience if you do your home work. Your very first mortgage is a huge financial milestone so it's a good idea to know your options when it comes financing your home.

Down Payments
If you don’t have a lot of money to put down on a house, you may have several options. If you have less than 20 percent down, you may want to consider an FHA loan. You can also look into an 80-10-10 mortgage, also called a piggyback mortgage. This mortgage allows you put 10 percent down on a home, and then get two separate mortgages for the remaining 10 and 80 percent. This way, you may be able to borrow enough to fulfill the 20 percent down requirement, and avoid paying PMI.

We also have access to loan programs that offers NO PMI with only 5% down. Please call us to find more info about this.

What can I afford?

Another thing to keep in mind is how paying your mortgage is going to affect your finances. There isn’t a hard and fast rule for how much you should spend on a home. Some experts will tell you that you shouldn’t spend more than two and a half times your total yearly income. Others will say that no more than 35 percent of your total monthly income should be spent on your living expenses, including utilities. Another way to determine how much you can afford is to get pre-approved. That way you will know what homes are in your price range.

Mortgage Options
Regardless of what percentage of your income you decide to spend on your first home, one of the most important things you can do is learn what the different types of mortgages mean for your finances and then choose the best mortgage for you.

Understand what is important to you

Do you want to live close to work? Would you like to be within walking distance of schools? Is accessibility to public transportation important to you? When finding a home, you need to decide what you want to have in close proximity. Do you want to be near restaurants and shopping, or would you prefer a home with more solitude? Evaluate your personal preferences and your needs. Look for neighborhoods that meet those criteria.

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