The process of buying your first home can be one that brings great joy; it can also bring great fear in a person. There are so many things that you have to keep up with, and so many decisions that you will need to make on a split second. There are several things that you will need to discuss with your real estate agent when it comes to the mortgage process.
The first thing that you will need to know when it comes to the mortgage process is the amount of your down payment. The truth of the matter is this the bigger the down payment the less you will pay on the actual mortgage and this will also lead to a lower interest rate.
A typical down payment is usually 20% of the total purchase price. If you are not able to pay the 20% then you will want to apply for a high ratio mortgage which in most cases requires at least a 5% down payment.
Now there are several things that you will want to consider when talking about a mortgage. Many people are caught because they fail to read the fine print that is most times associated with a mortgage. They are so excited to have their home that they sign first and read later.
If you find yourself to be in this situation then you will need to make sure that you are 100% clear as to what the interest rate will be. Many mortgages will have a very low interest rate the first couple of years then you will be hit with an interest rate from hell out of nowhere.
One bit of advice that will come into being handy is to put down as much as you can for the down payment. Now granted you will have to delay that vacation to the Bahamas but you will be able to rest comfortably knowing that you have a very low interest rate on a shorter mortgage.
Another aspect of the mortgage game is knowing when to apply and when not to, wait for a commercial to come on the air that advertises a low interest rate. That is when you will want to strike while that promotion is going on, just make sure to read the fine print.
The final thing that will factor into the amount you pay is the condition of the house and its depreciation value. If you are trying to buy a new house then you will naturally pay more than a person who is buying a house that will just be a basic dwelling for a family. Things like a pool and other things will add value to the house for the resell but will make your mortgage be that much higher in the end.
Keep these tips in mind when you are in the process of dealing with a mortgage. In addition make sure that you are using the services of a real estate agent that will also help in getting you through the mortgage jungle.