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Buying a Home

It’s always exciting to move! It’s even more exciting to create the new home for yourself, filling that dreamlike space with new furniture, new items and new expectations!

As soon as you start thinking of a new place to live a whirlwind of mixed feelings comes over, especially for those individuals who have been used to renting apartments and have made up their mind to purchase a house of their own for the first time. The housing market seems something frightening and the idea to part with a sensitive amount of money gaining additional debt for the nearest 15-30 years not really attractive.

Do not be afraid of the housing market you do not know well enough. Study the situation carefully and make your own decision. InterestRatesMortgageLoans has prepared some advice, which may help to make this process a bit easier.
  • Owing property will save you from giving away a certain amount monthly for the rented apartment.
  • Look at the home purchasing process as at the long-term investment, the home prices are not likely to drop in the long-term perspective.
  • Location matters, but everything changes and the fashionable area now may become outmoded in several years and vice versa. Trust your feelings, yet study the tendencies.

As a rule the homeowner-to-be faces more questions than answers and Interestratesmortgageloans.com is aimed to help the clients with certain basic aspects of common home ownership. Anyway real estate professional consultancy is highly advisable.

Initial Steps

No matter if you are a first-time home buyer or an experienced customer, it’s better to follow certain steps on your way to a new house.

Turn to a real estate agent as he is able not only help you to choose the right home to buy, but provide valuable information and consultancy up to the deal, especially if he is an experienced one. A rookie can also be extremely helpful as he is usually ready to do a bit more to prove himself. Anyway you should feel at ease with your agent as you are going to spend a lot of time together.

Mind, please, that a good agent is the one, who is familiar with the area you want to live in.

Find out the typical home sale price of your agent to make sure you will get the full attention of the expert. In case the agent works with homes which are significantly higher than yours, he may not be interested enough in cooperation with you. Choose the best loan type, which will meet your needs and abilities, consider if the fixed or adjustable rate mortgage suits your current financial situation best.

Decide on the term you are going to live in a new house, it’s important from the point of view of the house condition and infrastructure in the neighborhood. Are you ready to make some repairs? Do you have schools around for your children? Try to take all variables into consideration: the neighborhoods, colleges, insurance, extra space to grow in case you get a family, checks, neighbors, etc.

Make a "Deal-Breakers" List – the list of things you are not ready to put up with at all – like small kitchen, old roof, bad air-conditioning. Checking all the points from the list you will save time and make sure to choose the house without these drawbacks.

Location is usually determined by the amount of money you have, so define the area for your home search in advance. In case you are a first time home-buyer:
  • Find out the unpredicted costs which may follow the purchase of a house. Make an approximate road map for expenses possible to occur the months after moving in.
  • Check with the insurance agent if you have the insurance portion of the deal locked down.
  • Mind all the other fees associated with a home purchase, they can include, property taxes, relocation fees, recording fees, inspection costs and some more. In each particular case certain fees might be negotiable or even waived.
  • Consult a financial advisor to find out the realistic costs before signing the agreement. In such a way you will be able to make a careful estimation as to the means you have.

There will be pains and obstacles but finally it will culminate in one of the most satisfying accomplishments in life, home ownership.

The Consumer Finance Protection Bureau (CFPB) offers a list of experts able to assist you in the process of your first home buying, look at it at http://www.consumerfinance.gov/find-a-housing-counselor/

Down Payments

The biggest challenge for the homebuyer is usually the necessity to accumulate a certain amount for the down payment, which is often thousands of dollars even for a quite modest house. Though it’s not always demanded, especially with FHA loans, but in most cases reasonable to pay 20% as a down payment. It will not only provide the borrower with certain initial equity, but allows him to forego mortgage insurance, which usually protects the lenders from defaults on mortgages with a loan-to-value (LTV) percentage higher than 80%.

Mind that every loan provider is different and not to be lost in all those advertised rates and special offers on the way to the final deal, you should always be up-to date. Trust a part of worries to Interest Rates Mortgage Loans Service and be sure to be offered the best mortgage variants.