Buying Your First Home

Buying Your First Home

First Rate Mortgage has been using its knowledge and experience to help first-time home buyers, just like you. we have the lowest mortgage rates in the industry and you will find that our customer service is second to none as we guide you through the steps to buying your first home.

Should You Rent Or Buy?

There are several advantages over renting:

    Tax deductions

    Appreciation of homes value

    Build equity for future

    Increase borrowing power and credit rating

    Freedom: renovate and modify your home to fit your needs

    Security: no worries about rent increases

Things To Consider Before Buying Your First Home

The decision to buy a home is one of the most important decisions you will make in your adult life. Therefore you should evaluate all factors of home ownership, including the potential risks.

Financial responsibility: you will be responsible for the payment of your mortgage for the next 10, 20, or 30 years even if you suffer a loss in income.

Maintenance and repair: as a home owner you assume the financial responsibility for the care of the home Locked into a mortgage: you wont be able to relocate until the home is sold or turned into a rental property. Property tax: this is based on the value of your home and can rise as property values rise.

Higher cost of living: you can expect to spend more money for utilities and general upkeep when owning a home.

Steps To Buying Your First Home

Once you have decided that buying a home is the right choice for you then you should familiarize yourself with the steps of buying a home.

1. Apply For a Mortgage

We offer a convenient online mortgage application that you can fill out directly on our website and submit when you have finished. It's quick and convenient!

2. Get pre-approved:

Receiving pre-approval for a loan gives you bargaining power and speeds up the buying process once your bid is approved. our experienced loan experts can get you started - just give us a call!

3. Make an offer:

Your real estate agent will assist you in deciding how much you should offer to the seller and will represent you in the bidding process. Finding an experience Realtor is key to getting the house of your dreams at the lowest possible price.

4. Submit a good-faith deposit:

A good-faith deposit reassures the seller that you are serious about your intention to purchase the home and gives you an advantage over other potential buyers.

5. Finalize your contract:

Your Realtor will review the contract with you and help you spot any potential risks or mistakes. Always make sure that the seller has fulfilled their part of the agreement before signing.

What You Need To Know About Home Mortgage Loans

Interest rate

There are two types of interests on loans and these are fixed and adjustable rate mortgages (ARMs). Adjustable interest rates can decrease or increase, depending on the market. Several factors influence the interest rate you get, including your credit rating, the amount of your down payment, and the length of the loan.

Discount points

Fees paid to the lender; each point equals to one percent of the amount borrowed and are used to lower an interest rate. It is usually not recommended to to pay discount points if you are staying in your home longer then 5 years.

Origination fees

Fees charged for the creation of the mortgage loan that are typically charged by mortgage companies that use a processor. This fee is usually negotiable for buyers with good credit.

Loan Term

The amount of time you have to repay the loan after buying your first home. Typical loan terms are 10, 15 and 30 year terms with fixed interest rates.

Should You Get Pre-Qualified Or Pre-Approved?

There is a difference between getting prequalified and preapproved for a first time home buyer loan.

A pre-qualification is an estimate of the amount that you might qualify for it is not a guarantee.