Buying a home is an exciting time! But it can also be a bit overwhelming, especially if you’re a first-time home buyer. With so many steps to take and important decisions to make, it’s easy to feel intimidated and confused by the mortgage application process. As you start your journey to homeownership, consider the following things you might not know about getting a mortgage loan.
Mortgage rates change constantly
Mortgage rates are unpredictable. Some days rates are on the rise, and on other days they fall. Current mortgage rates are considered low by historical standards, making it a great time to consider buying a home. If you’re in the market for a mortgage, working with a mortgage broker can help you find competitive rates and create a tailored loan that’s just right for you.
You don’t need to make a large down payment when purchasing a home
It’s a common misconception that homeowners need to make a 20 percent down payment when purchasing a home. In fact, according to the National Association of Realtors, the average down payment of first time home buyers is just 6 percent. When you choose to make a lower down payment, you free up funds you can use to furnish and decorate your new home, build your retirement savings, or save for other future goals.
Even with a poor credit score, you can get a mortgage loan
While it’s true that your credit score plays a role in loan eligibility, you don’t need to let your low credit score prevent you from pursuing your dream of owning a home. There are several government programs and other organizations that make it possible to get a mortgage loan with lower credit. For example, FHA loans – which are insured by the Federal Housing Administration – are designed to make it easier for first-time buyers with low credit to purchase a house. Speak with a mortgage expert to begin the pre-approval process and start exploring your financing options.
You don’t have to navigate the home buying process alone!
When it comes to buying your first home, it can be difficult to know where to start. That’s why at River City Mortgage, we’re here to help make your first home purchase a great experience! We’ll guide you through the entire mortgage process from pre-approval to closing, with personal service and support every step of the way. Contact us to learn more or apply online to get started today.