Whether the house of your dreams has a yard with white picket fences, or a swimming pool and great neighborhood schools, buying your first home is something that most people dream about doing. The prospect of financing a mortgage for the first time can be incredibly daunting. It’s a long-term commitment that requires serious planning and budgeting. But buying a home can be a wonderful experience – a place to start the next chapter of your life, raise a family, and discover the full responsibilities of adulthood.
Property prices and mortgage rates have hit record low levels in the past couple years. In addition to this market fluctuation, there have been several incentives put in place to facilitate first-time buyer commitment.
• Getting pre-qualified is a smart decision for first-time buyers. This will help to narrow the margins of an otherwise overwhelming decision. Pre-qualified buyers are more aware of their financial range and less likely to make a mistake when estimating their budget limitations.
• If you have trouble securing a good loan with your bank or credit union, don’t forget there are other options available. The government is financing loans through the Federal Housing Administration that have higher approval ratings for first-time buyers specifically.
• Fixed rate mortgages may seem inflexible, but they are actually part of a program designed to alleviate the stress for first-time buyers. Because these loans have long-term predictability, they are good for budgeting specificity. In financial terms, consistent rates are incentivizing because they mean predictability no matter what turn the future market takes.
For more information visit http://www.midlandmortgagecorp.com/mortgage-applications/overview.